According to a new ITAD study by Future Market Insights, the IT asset disposition market is expected to reach US$ 31.8 Billion by 2032, up from US$ 15.6 Billion in 2022, expanding at a CAGR of 7.4%.
FMI suggests that the growth can be attributed to factors such as strict data security compliance with environmental regulations, the need to store assets in inventory for remarketing, the need to maximize asset value recovery, and the growing usage of electronic devices such as mobiles, laptops, and tablets within the enterprise.
The global IT Asset Disposition Market is divided into North America, Latin America, Europe, Asia Pacific, the Middle East and Africa. The U.S is projected to reach a valuation of US$ 11.4 Billion by 2032 with a CAGR of 7.1%. China is expected to reach a market size of US$ 2.2 Billion in 2032, representing a CAGR of 7.2%, over the forecast period.
Japan and UK are expected to reach market size of US$ 1.7 Billion and US$ 1.3 Billion in 2032, representing growth forecasts of 5.9% and 6.4% respectively. South Korea, on the other hand is expected to reach a market size of US$ 1.1 Billion in 2032, representing CAGR of 5.0%, during the forecast period.
The report also cited some recent developments in the ITAD space which are worth noting:
The growth in this market is expected, as companies wake up to the implications of Morgan Stanley’s $60m fine for improper asset disposition. However, we are only at the start of this growth curve as it takes time to stand up a comprehensive ITAD program, particularly for larger organizations looking for regional, national, or global solutions.
The sector will also be driven by the growth in home working kickstarted by COVID-19. Much of the equipment deployed in 2020 will be coming up for replacement in the next two fiscal years. Similarly, for those organizations that have permanently shifted to remote working, there will also be redundant office-based equipment requiring disposal.
The report notes that barriers to growth include a perception that ITAD programs are costly and complex to set up, with over half of companies having no formal program in place. This focus on financial cost should shift over the coming years as C-Suite starts to pay greater attention to sustainability deliverables.
IT Asset Disposition, remarketing, and purchase of devices from secondary markets provides a pathway to a greener operational footprint and enables organizations to justify an ITAD program on grounds other than financial cost. With over 80% of an electronic device’s total carbon footprint sunk in just the production and distribution phase of its life, organizations should consider whether they really need to purchase brand new devices, rather than extending their life through repair or purchasing used devices from a growing secondary market. Each device acquired or disposed of in this way is a positive entry on an organization’s sustainability balance sheet.