India’s e-waste recycling market may reach $3 billion by 2034: Report

The report identifies IT and telecommunications equipment as a major source of e-waste, with computers, servers and mobile phones among the contributors. As electronic devices are replaced more frequently, the focus is shifting towards how discarded equipment is collected, reused, refurbished and recycled, and how valuable materials can be recovered from it.

What refers to e-waste?

E-waste refers to electronic equipment that has been discarded because it is no longer wanted, useful or working. This includes devices such as computers, servers, networking equipment, storage devices, phones and other electronic products. In the case of data centres, retired servers, GPUs, storage systems and networking hardware can also become e-waste when they are replaced or can no longer be reused.

The expansion of digital infrastructure means that the amount of IT equipment being used by businesses is becoming an important part of the e-waste conversation. The IMARC report says IT and telecommunications equipment forms a major share of India’s e-waste source mix. It attributes this to digital transformation, device obsolescence and shorter replacement cycles. The report also notes that this category has high recycling potential because IT and telecom hardware commonly contains precious metals.

This could make the handling of retired computing equipment an increasingly important issue as businesses expand their digital infrastructure.

What happens to old data-centre hardware

When data centres replace servers, GPUs, storage systems and networking equipment, the retired hardware can follow several routes. Equipment that is still usable can be refurbished, reused or resold, while hardware that has reached the end of its useful life can be sent to recyclers to recover components and valuable materials.

The IMARC report points to a growing shift among large businesses, IT companies and public sector organisations towards bulk disposal contracts with certified recyclers. For data-centre operators, this can provide a more organised way to manage large volumes of retired equipment rather than relying on informal disposal channels.

Data security is another concern. Retired servers, hard drives and storage devices may still contain sensitive information even after they are removed from active systems. Sending this equipment through informal scrap channels can make it difficult for organisations to verify whether the data has been properly destroyed. Certified recyclers can provide documented data wiping and destruction, giving companies a record of how the equipment was handled.

India’s recycling system faces gaps

The growth in the formal e-waste recycling market does not mean that all discarded electronics are reaching certified recyclers.

According to the report, India still has a large informal sector handling discarded electronics. Informal scrap dealers can offer immediate cash payments, making them an attractive option for people disposing of old devices. This remains a challenge for the organised recycling industry.

There is also a geographic problem. While larger cities are developing formal collection points and pickup services, the report mentioned that the smaller cities and semi-urban areas still rely heavily on informal scrap networks. This leaves a significant portion of e-waste outside the formal recycling system.

For enterprise equipment, the challenge can be different. Large businesses may have greater access to certified recyclers and formal disposal contracts, but the growing volume of IT equipment could require more organised collection and processing capacity.

The report also highlights the cost of compliance. Smaller recyclers can face significant costs in meeting environmental, safety and reporting requirements needed for formal certification. This can favour larger recyclers and make it harder to expand certified recycling capacity across different regions.

E-waste can also be a source of materials

The growing e-waste problem also presents an opportunity to recover materials from discarded electronics. The report identifies metals and chemicals as the most valuable material category in India’s e-waste recycling market. Copper, aluminium and gold are among the materials that make electronic waste economically valuable to recyclers.

The report describes this as an “urban mining” opportunity, with discarded electronics being treated as a source of critical and valuable materials rather than simply waste. The recovery of these materials can support recycling businesses while reducing the need to treat old electronics only as a disposal problem.

Corporate responsibility is growing

The report also points to sustainability reporting and corporate compliance as drivers for formal e-waste recycling. As businesses face greater pressure to document their environmental practices, responsible disposal of old IT and electronic equipment can become part of those efforts.

For companies managing large technology estates, this could mean keeping better records of equipment from purchase to disposal. Instead of treating retired hardware as a one-time waste problem, businesses can increasingly look at its entire lifecycle.

The report stated that corporate bulk disposal contracts are becoming an important source of business for formal recyclers. Such contracts give recyclers a more predictable flow of material while allowing companies to demonstrate that old equipment is being handled through compliant channels.

Recycling market expected to grow

IMARC estimates that India’s e-waste recycling market will increase from $1.7 billion in 2025 to $3 billion by 2034. The report links this growth to rising electronic consumption, shorter product life cycles, tighter regulations, investment in recycling infrastructure and growing awareness around environmental sustainability.

The report also highlights recent investment in the sector. Recyclekaro, secured $7.32 million in funding in February 2026, according to the report. These developments point to growing investment in organised recycling capacity.

For India, the challenge will be ensuring that the growth of digital infrastructure is matched by systems to manage the equipment it eventually leaves behind. As businesses deploy more computing equipment, responsible reuse, refurbishment, data destruction and recycling will become important parts of managing the technology lifecycle.

The e-waste recycling market is growing, but the report shows that gaps in collection, informal disposal and recycling capacity remain. For companies handling large volumes of IT equipment, the question is increasingly not just when hardware is replaced, but what happens to it after it leaves the data centre or office.