Market Trends of IT Asset Disposition Industry
This section covers the major market trends shaping the IT Asset Disposition Market according to our research experts:
Regulatory Policies for Data Security and Environmental Safety to Drive the Market
- Companies are required to regularly review their practices for managing outdated IT equipment due to different regulatory compliances, including HIPAA/HITECH and NIST. The majority of potential participants need more solid positions to abide by the application of these regulations. The lack of a safe and orderly process for removing outdated IT equipment can also lead to difficulty in detecting fraud and theft. Therefore, the proper disposal of computers and electronics is governed by several state and federal environmental and privacy standards, and failing to do so may result in significant fines, penalties, and audits.
- Due to the growing risk of data breaches, the Securities and Exchange Commission (SEC) of the United States has increased its focus on the cybersecurity measures that regulated firms are implementing. In fact, as part of its Cybersecurity Initiative, the SEC developed a seven-page sample document request that includes 28 thorough questions for financial institutions and is intended to help businesses assess their level of cybersecurity preparedness. This indicates that the SEC has warned financial service providers to take action to evaluate and improve their organization's data security. The physical protection of IT assets is one area on which the SEC is concentrating. This covers the disposal of information technology assets and information technology asset management.
- The "Examining the Cost of a Data Breach" data breach calculator from IBM Security estimates that financial institutions in the US will have to shell out an average of USD 11 million for each instance of a data breach. Beyond the monetary impact, data breaches may harm a financial services company's brand and cause clients to lose faith in it. Therefore, it is crucial to address one of the most frequent causes of data breaches, the incorrect disposal of IT assets nearing the end of their lives, and ensure that the necessary security technologies and procedures are in place.
- Companies worldwide are expected to have procedures to guarantee the protection of personally identifiable information (PII). Many nations have put in place legislation to ensure businesses have clear procedures to guarantee personal data protection within their corporation.
- A normal laptop can have parts made of mercury, lead, chromium, and other heavy metals that produce electricity and maintain performance. These chemicals could contaminate groundwater, surface water, or the soil nearby if they end up in a landfill as opposed to a recycling facility. These potentially negative effects highlight how crucial it is to dispose of IT assets properly to prevent inadvertent environmental harm.
- Further, to make a laptop, costly materials such as engineered plastics, steel, copper, aluminum, and precious metals like gold, platinum, and palladium are needed. When laptops reach "end of life" status, recycling programs attempt to recover these materials for reuse, but occasionally even just obtaining numerous errors like the unity player dll not found, were gathered for recycling. The remainder ends up in landfills, which can no longer be used to create new items since they are no longer reclaimable. These materials can be retrieved with the aid of ITAD, and working assets can be cleaned up together with their data and sold once more. This not only allows businesses to save on their assets but also saves adequate energy during the manufacturing process.
- The overall number of data compromises in the United States during the first half of the current year was 817. Meanwhile, approximately 53 million people were impacted by data intrusions during the same period, including data breaches, data leaking, and data exposure. Even though they are three distinct occurrences, they all have similar traits. An unauthorized threat actor accesses the sensitive data as a result of all three instances.
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North America to Lead the Market
- Countries like the United States and Canada consist of leading and established IT and Technology industries. The United States is home to the big five IT and Technology companies like Alphabet(Google), Amazon, Apple, Meta, and Microsoft. According to the Bureau of Labor Statistics, the United States tech industry contributed over USD 1.8 trillion to the nation's overall gross domestic product (GDP) last year, accounting for about 9.3% of the total GDP. However, according to Earth web, the country had at least 585,000 technology companies by the end of the current year.
- According to estimates, the sale of US IT assets will increase rapidly due to the introduction of new technology and digitalization, which will cause obsolete equipment to be replaced. Additionally, during the past few years, demand for ITAD has surged in the US to manage and guarantee the safe disposal of the created e-waste.
- During the anticipated period, the US will use ITAD the most frequently. The US IT asset disposition market is expanding due to adopting new technology, product innovation, strict regulations, and environmental consciousness.
- A multi-stakeholder volunteer group in the US developed the R2 Standard, a periodically revised and updated rule to promote best practices in the electronics recycling sector. Businesses that dispose of electrical and electronic waste in the US are required by the R2 Standard to complete material tracking, conduct background checks on all downstream vendors, fully adhere to legal requirements for operating waste facilities, certify themselves with an appropriate environmental safety management system, and have an adequate pollution insurance policy and financial closure plan in place for business continuity and emergencies. Such policies will drive the ITAD market in the United States.
- Although no federal legislation in Canada specifically addresses e-waste management, the federal government indirectly influences the regulation of e-waste through the establishment of standards and its toxic substance control legislation. Most of Canada's e-waste policies are set at the provincial level and call for extended producer responsibility (ERP) or product stewardship for certain electrical and electronic items. However, there is no specific ITAD policy, but the companies usually hire external IT Asset Disposition services for safe Asset Disposition.
- Netflix, a streaming service for audiovisual content, boosted its yearly income by 19% last year. Meta Platforms (previously Facebook Inc.) saw year-over-year revenue growth of 37% during the same period. Additionally, Alphabet's revenue increased by 41% year over year.
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