Data Center IT Asset Disposition Market - By Assets (Servers, Memory Modules, HDD, CPU, GBIC, Line cards, Desktops, Laptops, SSD), By Organization Size (SMEs, Large Enterprises), By Application, By End Users & Forecast, 2024 – 2032

Data Center IT Asset Disposition Market Size

Data Center IT Asset Disposition Market was valued at USD 11.4 billion in 2023 and is estimated to register a CAGR of over 9% between 2024 & 2032. The increasing demand for data center consolidation and cloud adoption is a critical driver for the data center IT asset disposition industry. Data center consolidation involves combining and streamlining computer resources from several data centers into a smaller, more efficient facility. This procedure frequently leads to the retirement of ageing equipment in underutilized data centers. Cloud adoption involves shifting data, applications, and IT infrastructure from on-premises data centers to cloud platforms.
 

In February 2023, HSBC revealed its shift to Microsoft Azure, a prominent cloud service provider. This strategic move to the cloud is intended to bolster operational agility, fortify security measures, and empower the bank to deliver cutting-edge financial solutions to its clientele. With the transition from conventional on-premises data servers to comprehensive cloud services, there arises a heightened necessity for the proper disposal of outdated assets within the organization, consequently spurring demand within the market.
 

Stringent environmental regulations regarding the disposal of e-waste are a significant growth factor for the data center IT asset disposition industry. Correct disposal of waste, including various IT assets, is crucial as they often contain hazardous components that can harm the environment and human health. This increases the demand for alternate, compliant disposal techniques, such as those provided by IT asset disposition businesses. In March 2023, the Basel Convention introduced a Plastic Waste Amendment. This amendment targets the regulation of plastic waste movement and advocates for its sustainable management. While not directly targeting e-waste, this amendment indirectly influences the data center IT asset disposition industry by heightening attention to plastic components within e-waste. This could lead to stricter regulations and require specialized processing and recycling techniques for such components, hence fueling the growth of the market.
 

The inadequate infrastructure for recycling is a major challenge faced by the data center IT asset disposition market, potentially slowing down its growth. Without adequate facilities and processes for e-waste recycling, especially in certain regions, responsible disposal becomes difficult. This can result in inappropriate activities such as landfilling, incineration, and unlawful disposal. These actions endanger the environment and human health by emitting harmful substances and pollutants. Proper recycling infrastructure enables the extraction and recovery of valuable materials from e-waste, including precious metals, rare earth elements, and polymers. However, poor infrastructure restricts the possibility of resource recovery, increasing dependency on virgin resource exploitation and contributing to environmental deterioration.
 

Data Center IT Asset Disposition Market Trends

The overall IT industry has witnessed significant technological advancements that are leading to the replacement of old IT assets in companies, which in turn drives the growth of the data center IT asset disposition industry. IT equipment is becoming outdated at a much quicker rate than ever before as technology advances. New hardware provides better performance, efficiency, and capabilities, making older equipment less competitive. Businesses are progressively modernizing their data center infrastructure to keep ahead of the curve, resulting in a higher amount of retired assets requiring disposal. New technologies like artificial intelligence, cloud computing, and big data analytics need high-performance processing power. This creates a demand for newer, more powerful IT equipment in data centers to handle increasingly complicated workloads. As a result, the replacement cycle for current equipment increases, adding to the demand for IT asset disposition services.
 

For instance, In May 2023, Sims Recycling Solutions, a prominent player in e-waste recycling, launched a "Zero Waste to Landfill" program across multiple sites. This program employs advanced sorting and processing technologies to recover as many materials as possible from e-waste, diverting them away from landfills. This initiative resonates with the increasing emphasis on circular economy principles within the data center IT asset disposition sector.
 

Data Center IT Asset Disposition Market Analysis

Based on organization size, the market is divided into SMEs and large enterprises. The large enterprises accounted for a market share of around 68% and is projected to grow significantly till 2032. Large organizations often have extensive and complicated IT systems that span numerous data centers and serve different departments and operations. This involves regular modifications and replacements owing to factors such as rapid technological advancements, evolving security risks, and increased data storage demands. Large organizations are frequently subject to more stringent data security and privacy compliance rules. This demands comprehensive data erasure methods before disposing of IT assets to assure compliance and avoid data breaches. In addition to this, large organizations often have higher funds for IT management and infrastructure maintenance. This enables businesses to engage in full IT asset disposition services that extend beyond simple data erasure to include logistics, paperwork, and equipment recycling or responsible disposal.
 

Based on application, the market is categorized into data sanitation/destruction, remarketing/resale, and recycling. In 2023, the data sanitation/destruction segment will hold around 48% in the overall market. Businesses now manage massive volumes of sensitive data, such as financial records, customer information, and intellectual property. Data breaches can have serious effects, including financial losses, reputational harm, and legal penalties. As a result, secure data erasure from retired IT equipment before disposal is vital to preventing unwanted access and data breaches. Governments throughout the world are enforcing stronger data security and privacy requirements. These requirements frequently require that firms erase data from all storage devices before disposing of them. As a result, data sanitation/destruction services are vital for organizations to comply with these requirements and avoid potential penalties. Overall, the combination of crucial data security requirements, severe laws, increased awareness, adaptability, and cost-effectiveness positions data sanitation/destruction as the main application category in the market.
 

North America holds a market share of over 34% in 2023. A greater number of IT assets that must be managed and eventually disposed of has led to increasing demand for asset disposition services. North America is a hub of cutting-edge technological advancement, and it is well-known for its early adoption of new technology. This quick speed of technological progress results in frequent equipment upgrades and a greater pool of IT assets that need disposal, which fuels market growth. In addition to this, North American governments enforce strict environmental regulations regarding e-waste disposal, making responsible and compliant IT asset disposition crucial for businesses.
 

Data Center IT Asset Disposition Market Share

Iron Mountain Incorporated and Sims Lifecycle Services hold over 25% market share in the data center IT asset disposition industry. Companies in the data center IT asset disposition industry employ several key strategies to enhance their market foothold. Iron Mountain Incorporated provides comprehensive IT asset disposition services covering secure data destruction, hardware decommissioning, asset remarketing, and environmentally responsible recycling. These services are designed to optimize value recovery while reducing environmental footprint. Additionally, Iron Mountain offers tailored IT asset disposition programs to meet the unique needs and compliance standards of enterprise clients, including initiatives like data center decommissioning, equipment redeployment, and technology refresh projects.
 

Sims Lifecycle Services prioritizes refurbishment and remarketing expertise to maximize the value derived from retired IT assets. They specialize in refurbishing functional equipment for resale in secondary markets and recovering residual value for clients. Leveraging their proficiency in asset evaluation, testing, and certification, they identify marketable assets, evaluate market demand, and establish optimal pricing strategies for refurbished IT hardware.
 

Data Center IT Asset Disposition Market Companies

Major players operating in the data center IT asset disposition industry are:

• Apto Solutions, Inc.
• CXtec Inc.
• Dell Inc.
• Hewlett Packard Enterprise
• International Business Machines Corporation
• IRON Global, Inc.
• Iron Mountain Incorporated
• LifeSpan International, Inc.
• Sims Lifecycle Services
• TES-AMM Pte Ltd.
   

Data Center IT Asset Disposition Industry News

• In January 2024, Sims Lifecycle Services (SLS) and MOLG entered a partnership aimed at revolutionizing the reverse data center supply chain. This alliance marks a significant advancement for both entities, as they pool their expertise to introduce effective solutions and establish fresh benchmarks within the sector.
   
• In August 2023, TES announced that it would construct a new IT asset disposition and disposal (ITAD) facility in Virginia. Spanning 128,000 square feet (11,900 square meters), the site will be dedicated solely to processing ITAD data center assets. It will manage all stages of the data center retirement process, including decommissioning, testing or repair, and disposition.
   

The data center IT asset disposition market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 - 2032, for the following segments:

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Market, By Assets

• Servers
• Memory modules
• HDD
• CPU
• GBIC
• Line cards
• Desktops
• Laptops
• SSD

Market, By Organization Size

• SMEs
• Large Enterprises

Market, By Application

• Data Sanitation/ Destruction
• Remarketing/Resale
• Recycling

Market, By End Users

• Enterprises
• Cloud Service Providers
• Colocation Providers

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Singapore
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA