The competitive landscape of the global cloud computing data center IT asset Disposition (ITAD) market is oligopolistic in nature. A handful of ITAD providers, including ITRenew Inc., Sims Recycling Solutions Inc., Arrow Value Recovery Inc., Apto Solutions, and Cloud Blue Technologies Inc., enjoy dominance over the worldwide market, finds Transparency Market Research in a new study.
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As the adoption of cloud services has increased across the world, the need for proper management as well as the disposition of the rejected assets has been rising significantly. The aggressive employment of cloud computing ITAD programs and procedures in the leading cloud computing service (CCS) providing companies, such as Amazon, Facebook, Apple, and Google, is presenting an opportunity-rich market to established participants. New entrants are likely to gain from the changing dynamics of cloud computing due to the advancement of technologies.
Growing Concerns over Data Security Boost Adoption of ITAD Solutions
Data security has emerged as the greatest challenge for enterprise across the world. The rapid rise in the incidence of data breach and the stealing of information in the recent past has hugely impacted the reputation of big companies. The effective security solutions such as physical security systems and data recovery, provided to enterprises by Data center ITAD services have boosted their employment substantially in major IT and e-commerce firms.
Apart from this, the rising trend of recycling and reselling in data centers, considering the demand for used IT equipment, is projected to augment the adoption of ITAD solution over the forecast period. The implementation of various government regulation on the disposal of eco-friendly assets is also expected to fuel the demand for these solutions in the coming years.
Steady Rise in Annual ITAD Volume and Revenue Generated to Influence Global Opportunity Significantly
The steady rise in the annual volume consumed and the revenue generated by ITAD has influenced the market for cloud computing data center ITAD greatly over the recent past and the trend looks undying in the near future. According to TMR, the market opportunity is likely to expand at a healthy CAGR of 5.70% during the period from 2016 to 2020 and increase from a US$3.5 bn in 2015 to US$4.6 bn by the end of the forecast period.
North America has emerged as the current market leader. The presence of a huge IT industry and a number of cloud data centers has assisted this region significantly in occupying this position. Analysts expect it to remain dominant over the forecast period, considering the ever-increasing amount of data in cloud data centers. The opportunity in this regional market has been estimated to rise from US$1.3 bn in 2015 to US$1.7 bn by 2020.
During the forecast period, storage devices are likely to report the highest demand among the ITAD assets and the demand for data sanitization is expected to rise at the highest rate among solutions.