IT Asset Disposition Services Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

IT Asset Disposition Services Category Overview

The global IT asset disposition services category is anticipated to witness growth at a CAGR of 13.3% from 2023 to 2030. Key factors that drive the growth of the category include increase in electronic trash across the globe, move towards deployment of energy efficient products, increased adoption of bring your own device (BYOD) mechanism,rising acceptance and growing understanding of the benefits of cloud computing, which has led to a steady transition of services from on-premises to cloud-based, and increased awareness of the need to safeguard the environment. In addition, businesses are required to ensure careful data deletion and secure disposal of IT assets due to the strict enforcement of data protection requirements, such as the general data protection legislation. As enterprises prioritize protecting sensitive information during the disposal process to avoid data breaches and maintain regulatory adherence, this element is vital to the category's expansion.

Technologies such as AI (artificial intelligence), VR (virtual reality), blockchain, and cloud-based solutions are trending in the industry. Businesses can forecast when their assets will fail or reach end-of-life status by using AI algorithms, which will help them manage their assets more effectively. This proactive strategy prolongs gadget life and minimizes downtime. Similarly, using virtual reality, technical professionals can rehearse disassembly techniques before handling real gear by building virtual replicas of retired equipment. In addition to lowering possible dangers, this minimizes errors and boosts productivity. In addition, blockchain can contribute to safe data destruction throughout the asset disposal process with its immutable ledger architecture. It offers transparency by tracking the path of an asset from original ownership to ultimate disposal. Furthermore, by leveraging cloud, businesses can track their assets more precisely than in the past.

The category for IT asset disposition services is moderately fragmented and competitive with the presence of several global & regional market players. To broaden their product offerings and capture a larger portion of the market, players have been concentrating on strategic initiatives such as value-added features, investments in R&D, and product developments. They participate in various strategic endeavours with the objective of providing solutions possessing enhanced features. For instance, in September 2022, TRADEFINITY GmbH merged with EPC, Inc. with an objective to expand its presence in Europe. This enabled sustainable and secure ITAD services to large and medium-sized businesses within that region. Buyers in the industry possess high negotiation capability due to the presence of large supply base which enables them to switch to a better option based on services, and price.

Rack decommissioning, on-site labor & processing, and logistics are the key cost components that affects the cost of this category. Equipments that are turned off is removed from its set place in inventory and racks. It costs between USD 690 - USD 710 per rack or USD 15 - USD 20 per server. In addition, the subcontracted technical specialist and field technicians deployed for on-site data destruction services, inventory management, packaging, and internal decommissioning services cost between USD 83 - USD 87 per hour or USD 18 - USD 22 per square feet. Furthermore, the safe, secure, and exclusive transportation from the client facility to the service provider’s facility for the purpose of processing, cost between USD 2,490 - USD 2,510 per truck or USD 3.60 - USD 3.80 per mile. Efficient data sanitization is a top priority for certified ITAD suppliers, and they are capable to connect with a broad spectrum of prospective customers thanks to their vast remarketing channel network.

The Asia-Pacific region dominates the global IT asset disposition services category, holding a substantial share. Growth of the region can be attributed to the digitalization and development of new technologies, thus, modernizing the existing infrastructure. In addition, the region witnesses increase in the number of ITAD facilities who offer tailored infrastructure required to handle the complex process of decommissioning IT assets. The North America region is anticipated to witness the fastest growth rate over the projected timeframe which can be attributed to rising environmental preservation consciousness, stringent regulatory laws, innovations in the products, and development & adoption of new technologies. Assessing the number of services a supplier can offer and if it offers those services that meets with requirements of the buyer, ensuring if it can support with safe data destruction, and evaluating if the supplier possess necessary certifications are some of the best sourcing practices considered in this category.

IT Asset Disposition Services Procurement Intelligence Report Scope