According to a new market report published by Transparency Market Research entitled “Cloud Computing Data Center IT Asset Disposition (ITAD) Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2016 - 2020,” the cloud computing data center ITAD market is projected to reach a value of US$ 4.56 Bn by 2020, rising from US$ 3.47 Bn in 2015. The market is estimated to expand at a CAGR of 5.7% during the forecast period from 2016 to 2020.
Cloud data center providers have to deal with a large amount of discarded IT assets which contain the sensitive information of their clients and hence have to plan for proper disposal strategies to avoid further risks of data breach and environmental contamination. ITAD services enable the systematic disposal of these discarded assets, through data sanitization, recovery, and recycling techniques. Equipment disposed from a data center includes servers, storages, network gear such as switches and routers, cables, and racks.
The cloud data center ITAD market is led by North America, due to the large size of the IT industry and significant number of cloud data centers. The region is expected to stay the largest market for cloud data center ITAD during the coming years. IT assets are rapidly changed owing to change in technology as well as due to the ever-rising amount of data in cloud data centers. This is creating a need for secure ITAD. Furthermore, the ever-expanding use of the Internet and social media is supporting the growth of cloud data center ITAD market in North America.
Several factors, such as technological development and the increased momentum in transition of businesses to the cloud have resulted in growth in the number of cloud data centers in the region. Additionally, the surge in data breaches has forced data center providers to dispose of data and equipment before decommissioning them. Europe was the second-largest market in 2015, aided by a rise in the adoption of cloud computing solutions in the region. The government is extensively promoting ITAD in order to reduce the impact of IT waste on the environment. Furthermore, cloud data center providers in Europe are investing in the building of eco-friendly infrastructure.
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Cloud service providers are increasingly investing in Asia Pacific owing to the high adoption of cloud services by enterprises, particularly in countries such as China, Japan, Singapore, South Korea, and India. For instance, Google Inc. and Amazon Web Services Inc. are expected to set up data centers in Singapore, Japan, and Australia, boosting the growth of market during the coming years.
Unfavorable climatic conditions have led to the presence of a smaller number of data centers in MEA. However, the rate of cloud adoption has gradually accelerated in recent years, and many cloud computing service providers are planning to build new data centers in this region, which is likely to propel cloud computing data center ITAD market. The growth of IoT and in the number of enterprises adopting cloud services is driving the demand for cloud data centers in Latin America. Furthermore, new technologies such as software defined networking and virtualization are expected to make a large number of IT assets redundant from data centers in the coming years.