September 24, 2024
The Global Used IT Equipment Market: Growth, Demand and Sustainability
As the digital world evolves, the demand for IT equipment is growing rapidly. However, alongside this growth, there is a rising market for used IT equipment, driven by cost-efficiency, environmental concerns, and the need for infrastructure expansion. This article explores the used IT equipment market, focusing on key segments such as semiconductor equipment, IT hardware, and data center equipment. Additionally, it outlines the factors driving demand, the benefits of certified refurbished products, and how sustainability practices and e-waste regulations are reshaping the industry.Growth of the Used IT Equipment Market
The graph above shows the projected growth of both the IT hardware market and the data center equipment market from 2022 to 2030. The IT hardware market sees steady growth, while the data center equipment market experiences more rapid expansion, reaching an estimated market size of $164.36 billion by 2031. These trends reflect the increasing demand for robust infrastructure to support growing data needs and the expansion of cloud services.
IT Hardware Market
The global IT hardware market is projected to grow from USD 130.86 billion in 2024 to USD 191.03 billion by 2029, with a CAGR of 7.86%. This includes personal computing devices, networking hardware, and storage solutions. The rise in cloud computing, hybrid work models, and increasing data storage needs drive this growth. The availability of used hardware offers businesses cost-effective ways to scale operations and meet IT infrastructure needs.Data Center Equipment Market
The data center equipment market is expanding rapidly, growing from USD 53.85 billion in 2022 to USD 164.36 billion by 2031, with a CAGR of 16%. This growth is fueled by the proliferation of cloud computing, IoT, and big data applications. The need for servers, networking equipment, power systems, and cooling technologies is essential for data centers, and many opt for refurbished solutions to manage costs.Factors Affecting the Growth of the Market
Price Reduction for New Equipment: The availability of used IT hardware can create downward pressure on prices for new equipment, especially for non-cutting-edge models. Companies seeking budget-friendly solutions often opt for refurbished or second-hand hardware, which can push manufacturers to offer discounts or promotions to remain competitive.Extended Equipment Lifecycle: The resale market extends the useful life of IT hardware, particularly for components like servers, routers, and networking equipment. As a result, organizations can offload older equipment, which helps recoup some of their initial investment. This can lead to greater affordability in the market overall, as more used equipment becomes available.
Stable Pricing for High-Demand Equipment: For IT hardware components that remain in demand, such as data center and networking devices, the resale market stabilizes pricing. As companies upgrade to newer models, older but still functional equipment continues to hold value in the secondary market, leading to more predictable resale prices.
Cost-Effective Solutions for Businesses: Many organizations, especially small and mid-sized enterprises, rely on the resale market to acquire necessary IT infrastructure at lower costs. This demand for second-hand hardware supports competitive pricing and boosts liquidity in the market.
Demand for Used IT Equipment
Cost Savings: The primary driver for purchasing used IT equipment is cost-effectiveness. Businesses can significantly reduce expenses by opting for refurbished or second-hand devices, particularly for large-scale infrastructure like servers and networking hardware.Technological Adequacy: If used IT equipment meets the technological requirements for a business’s operations, it becomes an attractive option. Not all organizations require cutting-edge technology, making older models with sufficient capabilities in demand.
IT Infrastructure Expansion: Companies undergoing rapid expansion often turn to used IT equipment to scale their infrastructure affordably, especially for short-term or temporary projects.
Supply Chain Issues: Disruptions in the supply chain for new equipment, such as delays or shortages, can push businesses to consider used options, maintaining operations without waiting for new deliveries.
Environmental Sustainability: Organizations focused on sustainability and reducing e-waste often prefer used IT equipment as a greener option. The increasing emphasis on corporate social responsibility (CSR) has bolstered demand in this area.
Depreciation of New Equipment: Rapid technological advancement causes new IT hardware to depreciate quickly. This boosts the secondary market as businesses look to recover value from their older equipment while still functioning adequately.
Regions that Have the Highest Demand
The graph above illustrates the projected growth of the used IT equipment market for three key regions: Asia-Pacific, North America, and Europe, from 2024 to 2035. As shown, the Asia-Pacific region is expected to dominate the market, followed by North America and Europe, with all regions experiencing steady growth over the years.Asia-Pacific (APAC): This region, particularly countries like China, India, Taiwan, and South Korea, leads in demand for used IT equipment due to their large manufacturing sectors, expanding tech industries, and cost-sensitive markets. APAC is also a global hub for semiconductor manufacturing, which drives demand for used semiconductor equipment as firms aim to manage costs effectively.
North America: The United States and Canada are significant players in the resale market. Many businesses in these regions opt for used IT hardware to lower operational costs, particularly for data centers and tech startups. Additionally, the rising adoption of refurbished equipment contributes to cost-efficient scaling.
Europe: Countries like Germany, the UK, and France have a robust market for used IT equipment, driven by the focus on sustainability, e-waste reduction, and corporate responsibility. The high cost of new hardware in Europe also makes second-hand solutions appealing to small and mid-sized enterprises.
Industries with the Highest Demand
Data Centers and Cloud Service Providers: Data centers are major buyers of used servers, storage devices, and networking equipment to expand capacity cost-effectively. They often rely on refurbished hardware for infrastructure scaling and cost management in high-demand environments.Telecommunications: Telecom companies frequently purchase used routers, switches, and other networking hardware to upgrade or expand their infrastructure without the high costs of new equipment. The long lifecycle of this hardware makes second-hand options highly viable.
Manufacturing: Factories and production facilities, especially in the semiconductor and electronics manufacturing sectors, use older IT equipment for their operations, especially for tasks that don’t require cutting-edge technology.
Education: Schools, universities, and training centers often opt for used IT hardware like computers and networking devices to stay within budget while maintaining operational capability.
Small and Mid-sized Enterprises (SMEs): SMEs across various sectors, including retail, logistics, and professional services, purchase used IT equipment as a cost-saving strategy while still maintaining essential technology infrastructure.
What Are The Top Used IT Brands
The chart above illustrates the market share distribution of major IT equipment companies in 2024. Cisco leads the market with a 25% share, followed by Dell at 20%, Apple at 15%, Samsung at 12%, Lenovo and HP each at 10%, and Juniper with 8%.Dell: Dell’s refurbished servers, desktops, and laptops are popular due to the company’s strong reputation in enterprise solutions. Dell offers its own certified refurbished products through its outlets, providing a trusted source for businesses.
HP (Hewlett-Packard): HP’s refurbished printers, computers, and networking hardware are widely available, making it a top brand in the used IT equipment market. HP-certified refurbished products are often favored by enterprises and educational institutions.
Cisco: Cisco dominates the used networking equipment market, with high demand for its routers, switches, and security devices. Cisco also offers its own certified refurbished products through the Cisco Refresh program, ensuring quality and performance.
Lenovo: Known for its ThinkPad and ThinkCentre lines, Lenovo’s refurbished laptops and desktops are sought after by both businesses and individual users for their durability and enterprise-level features.
Apple: Apple offers refurbished devices such as iPhones, MacBooks, and iPads through its official channels, making them a trusted source for consumers seeking premium hardware at a lower price.
IBM: IBM’s servers and storage solutions are popular in the refurbished market, especially for data centers and enterprises looking for cost-effective, high-performance hardware.
The used IT equipment market has experienced significant growth over the years, driven by businesses and consumers seeking cost-effective ways to upgrade their technology. With sustainability becoming a major focus, selling and recycling used IT equipment helps reduce environmental impact while offering valuable savings for buyers. This market provides an excellent opportunity for businesses to monetize outdated hardware and for buyers to access high-quality tech at reduced prices. While there are many advantages to buying or selling used IT equipment there are potential issues that could cost you in the long run. That is where well established companies like TeleTraders can help you navigate the process and maximize your profit when selling and saving you money on the purchasing side. As the demand for reliable, budget-friendly technology increases, the used IT equipment market will continue to thrive, making it a smart choice for both buyers and sellers.
