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.
Albany, NY -- (SBWIRE) -- 10/25/2016 -- According to TMR, the opportunity in the global market for cloud computing data center ITAD, which stood at US$3.5 bn in 2015, is expected to increase at a healthy CAGR of 5.70% between 2016 and 2020 and reach US$4.56 bn by the end of the forecast period. During this period, storage devices are expected to witness a higher demand when compared to other ITAD assets. This segment is likely to contribute US$1.23 bn to the overall market revenue by 2020.
North America to Present Opportunity Worth US$1.7 bn by 2020
A geographical assessment of the global cloud computing data center ITAD market has also been presented in this study. According to it, Latin America, North America, Europe, the Middle East and Africa, and Asia Pacific are the leading regional markets for cloud computing data center ITAD.
Among these, North America has surfaced as the key contributor to this market, thanks to the presence of a large IT industry and a number of cloud data centers. Considering the continual rise in the amount of data in cloud data centers, researchers project this regional market to remain dominant throughout the forecast period. The North America cloud computing data center ITAD market is expected to offer an opportunity worth US$1.7 bn by the end of the forecast period.
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Concerns over Data Security to Fuel Uptake of Cloud Computing ITAD Programs in Data Centers
Data security is one of the prime challenges enterprises across the world are facing currently. The rising incidence of data breach and information theft in the recent times is impacting the reputation of various international organizations negatively. "Efficient security solutions, such as physical security and data recovery, offered by data center ITAD services is propelling their demand considerably in a number of IT and e-commerce enterprises," says the author of this study.
In addition to this, the growing trend of recycling and reselling, on account of the rising demand for recycled IT equipment, is anticipated to fuel the uptake of ITAD solutions in the forthcoming years.
High Initial Investments and Lack of Awareness Regarding Safe Disposal of IT Assets to Limit Adoption
Although the global market for cloud computing data center ITAD is teeming with opportunities, the high initial investments may limit the adoption cloud computing ITAD programs in data centers in the near future. Apart from this, the low level of awareness among small- and medium-size enterprises (SMEs) about the safe disposal of IT assets is also expected to hamper the market's growth over the next few years, states the research report.
According to a report, published by Transparency Market Research (TMR), the global cloud computing data center ITAD demonstrates market an oligopolistic competitive landscape as only a handful of ITAD providers, such as ITRenew Inc., Arrow Value Recovery Inc., Sims Recycling Solutions Inc., Cloud Blue Technologies Inc., and Apto Solutions hold a significant share in this market.
Established players are gaining significantly from the aggressive deployment of cloud computing ITAD programs in the key cloud computing service (CCS) providers, such as Facebook, Amazon, Google, and Apple. New entrants, however, will benefit from the changing dynamics of cloud computing, triggered by advancements in technologies.