ITAD a multi-billion dollar opportunity

IT asset disposition is a multi-billion dollar opportunity.
IT asset disposition is a multi-billion dollar opportunity.
The IT asset disposition industry is a fast-growing sector of the global economy, a testament to the value of its services. With more devices being cycled in and out of businesses constantly, and given concerns about data security and environmental protection, it's no surprise that ITAD is quickly moving up the list of priorities for executives and IT leaders.


A December 2016 study from the firm Research and Markets makes clear the fact that ITAD is poised to become a key segment of business services. Organizations specializing in asset disposition and recovery are expected to reach a total valuation of more than $20 billion by 2022, with a compound annual growth rate forecast of nearly 10 percent. This includes service providers who can accomplish any of the following for their clients:

  • IT asset de-manufacturing
  • Recycling
  • Remarketing and value recovery
  • Data destruction
  • Reverse logistics

Why ITAD value is growing

The needs of modern, data-driven corporations lead researchers to the conclusion that ITAD services will become more valuable and widespread.

  • Government regulations pertaining to data security and environmental protection have grown more demanding around the world, reaching beyond the scope of the average organization's abilities.
  • Consumers and clients have grown more aware and attuned to corporate policies on privacy and environmental stewardship, conferring benefits for companies with successful initiatives as well as serious risks for failure.
  • Businesses of all kinds are buying more IT assets, particularly mobile devices, that require specialized, large-scale disposal strategies.
MobileAdoption of mobile devices may be driving ITAD growth.

However, higher efficiency and new technology is also a major value driver on the ITAD service provider's side. ITAD specialists are leveraging their impressive sales growth to develop technology to solve the industry's most pressing issues, like how to maximize recovery value and minimize waste throughout the disposition process.

The International Association of Information Technology Asset Managers explained that these improvements are bringing ITAD standards to a new high level. 

  • Reusable yield of recycled and remarketed assets has increased to the majority of the material received by an ITAD vendor. ITAD specialists are getting better at identifying the best opportunities for value recovery and maximizing the outcome.
  • ITAD providers are now able to recycle and remarket materials in bulk to increase process efficiency and decrease waste and emissions, passing the savings and value potential along to the client.
  •  The total cost of ownership of any IT device is second only to data security in the minds of most Chief Information Officers. With better ITAD tactics, CIOs are able to realize a lower TCO, even for items with shorter lifecycles, thanks to efficient recycling that recaptures as much value as possible.

The growth of ITAD services indicates the growing importance of accounting for every stage of a device's lifecycle, from purchase to retirement. Sipi Asset Recovery specializes in complex ITAD needs that ultimately deliver tangible value to organizations in more ways than one.

We understand that there are many factors that go into choosing an ITAD service provider, but we also are aware that too few take steps to actually earn the trust of their clients. In a fast-growing space such as this, it's essential that companies research their ITAD partner's credentials on compliance, environmental protection and data security, and be skeptical of unsupported claims or a lack of proof of certification. Look to Sipi for an idea of the benchmark that ITAD services are often compared against.