Hardware reuse market evolves amid global challenges
May 23, 2024
The hardware reuse sector adapts to supply chain crises, economic shifts, and environmental concerns, paving the way for growth.
Speaking at the recent The Recycler Live conference, GM Technology COO José Ángel Muñoz shared his company’s perspective on hardware reuse in Europe and beyond. The hardware reuse market has demonstrated remarkable adaptability in response to significant global challenges over the past five years. The sector has navigated through periods of market stability, COVID-19 disruptions, supply chain crises, and evolving customer demands, positioning itself for future growth.
Muñoz highlighted some of the industry trends from 2019, which saw a stable market with growth in emerging regions like Africa, Latin America, and the Middle East. In 2020, COVID-19 halted new and second-hand equipment sales, causing a supply reduction and a 50% price increase, and remanufactured equipment emerged as a crucial solution.
In 2021, supply chain issues, particularly with microchips, drove up demand and prices for remanufactured devices. In 2022, a market oversupply occurred as OEMs reintroduced second-hand machines, continuing the trends of the previous year.
Dealers faced low demand and sales difficulties in 2023 due to oversupply and lingering high prices. But 2024 saw market stabilisation, with new opportunities in Managed Print Services (MPS) and increased demand for remanufactured equipment due to economic and environmental factors.
Muñoz discussed some of the potential mergers between major players like Ricoh and Toshiba, and Konica Minolta and Fujifilm, which could reshape the market landscape, enhancing collaborative opportunities and competitive strategies.
One trend GM Technology has seen is that public administrations and private companies increasingly accept and demand remanufactured products driven by a desire for sustainability and cost-effectiveness. The trend towards paperless operations and the use of print management software is also gaining traction.
GM Technology continues to evolve its remanufacturing process, which includes selecting, disassembling, cleaning, checking, upgrading, and packaging equipment to produce two product lines. The GreenLine offers a two-year warranty with 85-90% lifespan remaining and features new-generation models. The EcoGreen offers a three month warranty, with 75-80% lifespan remaining, offering affordability and a variety of models.
Muñoz highlighted that the sector faces challenges like OEMs’ chip technology protection, uncertified production, logistics issues, and technician shortages. However, there are significant opportunities for expansion into IT services, cybersecurity, cloud infrastructure, and more, coupled with training and coaching in new technologies.
Despite these challenges, Muñoz felt that the hardware reuse market’s resilience and innovative approaches underscore its potential for sustained growth and development, meeting the evolving needs of a conscious and economically driven market.
Categories : World Focus
Tags : Business Devices GM Technology Hardware market Reuse The Recycler Live
