HOBI Weekly Blog Recap 9/6-17/21
Asset Disposition refers to getting rid of an asset by direct sale or some other transfer in method. The changes in IT industries and development of technology on daily bases have created many problems of mounting e-waste. IT Asset Disposition (ITAD) solutions help organizations safely destroy material and recycle IT equipment in an environmentally friendly and secure manner. It is a solution that is increasingly being adopted by many companies across the globe to manage waste disposal, minimize the risk of data loss and subsequent monetary loss.
In a market report by Markets and Markets, a market research firm, the group published the current global ITAD market being valued at USD 11.3 billion. Industry experts expect this to increase to USD 20.09 billion by 2022 with the CAGR of 9.83 percent between the time frame 2016-2022. One of the major growth factors for the market is the increasing adoption of new technology and ‘bring your own device’ (BYOD) trend in many organizations. In fact, BYOD is estimated to grow from the 2016 reporting of USD 35.1 billion to USD 73.3 billion in 2021, at a CAGR of 15.87 percent.
This growing trend has created demand for ITAD services and solutions due to employees bringing older device models into the organizations. In addition, technological advances in cloud computing, big data analytics, and the Internet of Things (IoT) are reducing the lifespan of IT equipment and this increasing the dependence on ITAD services.
Another growth factor for the ITAD market are the regulatory changes across the globe for minimizing the environmental hazards created by e-waste. This has also caused the growing demand for government regulations that will save data while promoting environmental protection. There are many industries that have regulations through different types of privacy protection rules such as HIPAA or FACTA. However, the lack of awareness and high service costs may limit the growth of the market. Still, the company needs to recover maximum value from retired, non-working or end-of-life assets which will increase the market growth.
Remarketing and value recovery accounted the major market share of 30.86 percent in 2016. Remarketing and value recovery provide the financial return from electronic assets and it includes benefits such as increase efficiencies, security, and sustainability of assets. Small and medium enterprises aim is to reuse IT assets equipment through refurbishment, redeployment, resale, and disassembly. This process provides maximum return to companies from assets; this is the key factor for driving this segment.
Computer/Laptops segment has held the maximum share of 51.87 percent in 2016 and valued at USD 5.06 billion. Computers/Laptop has tremendously improved the way of businesses. Computers are cost-effective, provide the high speed and easy to use. The laptop provides the flexibility to work from anywhere and also can run without electricity. Considering these factors, computer/laptops segment expected to grow to reach USD 10.09 billion by 2022.
SOHO and medium enterprises segment expected to grow with highest CAGR of 10.34 percent in 2017-2022. The rapid growth of the small & medium industrial sector across the developing & developed countries is the major driving factor. The major factors that are contributing to growth are more jobs, increased productivity, better skills, and education. Owing to the SOHO and medium expected to grow with the highest growth.
IT and Telecom acquired the market share of 25.25 percent in 2016 and expected to reach USD 4.42 billion. Rising requirement of advanced technology are reducing the lifespan of IT assets equipment in IT industry is creating the need for IT asset disposition service. High competition in the telecom industry is creating the requirement of the latest equipment in this industry. These factors are increasing demand for IT asset disposition market.
Asia Pacific region is expected to be the fastest growing region and will hold 30.90 percent market share by 2022. High technology adoption and industrialization in emerging countries such as South Korea, India, and Australia are contributing to the growth of the market. Additionally, increasing awareness towards environmental safety is propelling the growth of IT asset disposition market.
Related posts
