Data Center IT Asset Disposition Market Size

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.

To get key market trends

  Download Free Sample

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data servers to comprehensive cloud services, there arises a heightened necessity for the proper disposal of outdated assets within the organization, consequently spurring demand within the market.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.