With the increasing adoption of cloud services across the world, the need for proper management and the disposition of rejected IT assets has witnessed a considerable rise in the recent times. The efficient and secure elimination as well as recycling of discarded information provided by cloud data center IT asset disposition (ITAD) solutions is leading to their increased employment in enterprises.
According to TMR, the global cloud data center ITAD stood at US$3.5 bn in 2015. The steady rise in the ITAD uptake and the revenue generated by these solutions is likely to boost the market’s opportunity to reach US$4.6 bn by 2024.
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Rising Preference for Secure Elimination of Data in Enterprises Creates Need for Data Sanitization
Data sanitization has emerged as the highest demanded ITAD solution among all in the recent times. In 2015, the segment generated a revenue of US$1.4 bn, which is likely to reach US$1.9 bn by 2024, expanding at a CAGR of 6.40% between 2016 and 2024. The rising preference for secure elimination of data in enterprises has created a substantial need for data sanitization in order to protect confidential information while disposing of storage assets, which is projected to increase significantly in the coming years.
As enterprises are increasingly opting for recovery services in order to maximize the revenue generated from old and discarded IT assets, the demand for asset recovery solutions is expected to augment remarkably in the near future. The segment is projected to rise at a CAGR of 6.30% during the period from 2016 to 2024, emerging second in the overall market by 2024.
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Need for Secure Disposition of Discarded IT Assets Boosts North America’s Demand for ITAD Solutions
The global market for cloud computing data center ITAD spreads across North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. Currently, North America dominates this market on account of the increased need for secure disposition of discarded IT assets, collected due to the frequent upgradation of technologies in this region.
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In 2015, the opportunity in this market stood at US$1.3 bn in terms of revenue. Expanding at a CAGR of 5.90% during the period from 2016 to 2024, the market is expected to reach US$1.74 Bn by the end of 2024. The augmented reliance on outsourced data hosting and processing, propelled by the increasing number of multi-tenant data centers (MTDC) in this region, is projected to boost the adoption of ITAD solution significantly in North America over the next few years.
Asia Pacific has also been projected to register a steady rise in the adoption of ITAD and cloud data centers in view of the ongoing surge in the cloud computing industry and increased uptake of cloud services in this region. The increasing investments by cloud service providers in this region add substantially to the cause.
Asset Management Ireland Ltd., Iron Mountain Recycling LLC, CloudBlue Technologies Inc., eRecoEMEA Corp. Ltd., Apto Solutions, Arrow Electronics Inc., es-Amm, Sims Recycling, ITRenew Inc. are the major cloud computing data center ITAD solution providers across the world.
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