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Data Center RFID Market Analysis

ID: MRFR//6653-HCR | 111 Pages | Author: Aarti Dhapte| April 2024

The market dynamics of the Data Center RFID (Radio Frequency Identification) Market depict a landscape shaped by various factors driving its growth and evolution. Data center RFID solutions, leveraging RFID technology for asset tracking, inventory management, and security purposes within data center environments, have become increasingly crucial in managing the complexity and scale of modern data centers. One of the primary drivers propelling the growth of the Data Center RFID Market is the exponential growth in data volume and the increasing adoption of cloud computing, edge computing, and Internet of Things (IoT) technologies. As data center infrastructures expand to support these emerging technologies, there is a growing need for automated and efficient solutions to manage and monitor assets, equipment, and resources.


The competitive landscape of the Data Center RFID Market is marked by intense competition among established RFID solution providers, data center infrastructure vendors, and system integrators offering a wide range of RFID-based solutions and services. Industry leaders such as Zebra Technologies, HID Global, and Impinj dominate the market with comprehensive RFID platforms that offer real-time visibility, asset tracking, and inventory management capabilities. Simultaneously, niche players and specialized RFID vendors are gaining traction with innovative solutions tailored to the unique requirements of data center environments, such as high-density rack layouts, temperature-controlled zones, and strict security protocols. This competitive intensity drives continuous innovation, with providers focusing on delivering scalable, interoperable, and cost-effective RFID solutions that meet the evolving needs of data center operators and IT managers.


Customer demand and industry trends play a significant role in shaping the dynamics of the Data Center RFID Market. Data center operators are increasingly seeking solutions that enable them to optimize resource utilization, reduce operational costs, and enhance security and compliance within their facilities. Consequently, there is a growing demand for RFID-based solutions that provide real-time asset tracking, accurate inventory management, and automated workflows to streamline data center operations and improve overall efficiency. Moreover, the adoption of hybrid and multi-cloud architectures is driving the need for RFID solutions that can provide visibility and control across distributed data center environments, enabling organizations to manage assets and resources seamlessly across on-premises and cloud infrastructures.


Regulatory compliance and security considerations exert a significant influence on the Data Center RFID Market dynamics. With the implementation of data protection regulations such as GDPR and industry standards such as PCI DSS and HIPAA, data center operators are under increasing pressure to ensure the security, integrity, and confidentiality of data stored and processed within their facilities. Consequently, there is a growing demand for RFID solutions that offer robust authentication, encryption, and access control mechanisms to protect sensitive information and prevent unauthorized access or tampering. Moreover, there is a growing emphasis on environmental monitoring and sustainability in data center operations, driving the need for RFID solutions that enable organizations to track energy consumption, optimize cooling efficiency, and reduce carbon footprint.


Technological advancements and innovation are driving transformative changes in the Data Center RFID Market. The evolution of RFID technology, including passive and active RFID tags, readers, and antennas, enables data center operators to deploy scalable and cost-effective solutions for asset tracking and inventory management. Moreover, the integration of RFID with other emerging technologies such as IoT, AI, and edge computing enables organizations to extract actionable insights from RFID data, optimize resource allocation, and automate decision-making processes. Furthermore, the adoption of cloud-based RFID platforms and software-as-a-service (SaaS) models enables data center operators to deploy and manage RFID solutions more efficiently, without the need for complex infrastructure or upfront investment.


Market consolidation and strategic partnerships are prevalent trends shaping the Data Center RFID Market dynamics. Mergers, acquisitions, and alliances among RFID solution providers, data center infrastructure vendors, and technology integrators enable them to strengthen their product portfolios, expand market reach, and access new industry verticals and geographic markets. Moreover, collaborations between RFID vendors and data center operators facilitate the development of customized solutions and services that address specific challenges and requirements in data center environments. These strategic alliances enable organizations to leverage the combined expertise, resources, and capabilities of multiple partners to optimize their data center operations, improve asset visibility, and enhance overall efficiency.

Data Center RFID Market Synopsis


The data center RFID market is estimated to reach USD 9.2 billion by 2030, registering a CAGR of 27.50% during the forecast period of 2022–2030.


The growing amount of information and data from mobile devices, the Internet, and IoT devices increases the requirement of storage systems and data centers. Presently there are various data centers which are being operated and more to be developed in near future; this is due to increasing volume of information and data such as images, text, company assets files, and confidential documents, among others. RFID systems are used to manage various assets of data centers such as routers, servers, tape media, and related IT assets. Data center RFID is used to reduce the human efforts as it takes a lot of time for tracking the assets manually. Additionally, RFID also reduces the errors during the operations process such as identification of assets, locating and tracking. The increasing demand for data centers is a major factor driving the growth of the global data center RFID market. Moreover, data centers face several issues during failure that leads to the high losses that may cost approximately USD 93/second during the downtime of the data center. Therefore, to reduce these types of losses, data center RFID is used that reduces the downtime by locating the damaged part or system in the data center.


Data Center RFID Market Segmentation


By data center type, the data center RFID market has been segmented into enterprise data center, mid-sized data center, and large data center.


By solutions, the market has been segmented into readers, tags, antennas, software, and others.


By services, the data center RFID market has been segmented into professional services and integration services.


By vertical, the data center RFID market has been segmented into BFSI, government & defense, IT & telecom, healthcare, retail, and others.


By region, the market has been segmented into North America, Europe, Asia-Pacific, and the rest of the world.


Data Center RFID Market Regional Analysis


The global data center RFID market is estimated to grow at a significant rate during the forecast period from 2019 to 2024. The geographical analysis of data center RFID has been conducted for North America (the US, Canada, and Mexico), Europe (the UK, Germany, France, Spain, Italy, and the rest of Europe), Asia-Pacific (China, Japan, India, Singapore, and the rest of Asia-Pacific), and the rest of the world (the Middle East and Africa and South America).


North America held the largest market share in 2018 due to the presence of various key vendors such as Cisco System, Inc., Hewlett-Packard Inc., EMC Corporation, CyrusOne that deal in data centers. Moreover, the early adoption of data centers and data center RFID is a major factor driving the growth of the market in the region. Moreover, the increasing volumes of data generated from various industries, social networking platforms, and enterprises, among others in the region is a major factor for driving the data center market, which eventually drives the global data center RFID market.


Asia-Pacific is expected to be the fastest growing regional market during the forecast period;  the rapid adoption of new technology and digitalization in the region are boosting the demand for data centers, leading to the growth of the regional market. Additionally, the increasing number of users of social media platforms and large volumes of data generated by enterprises, especially in the BFSI industry vertical—which requires a secure storage system—are some of the factors driving market growth. In the coming years, the number of data centers is expected to increase significantly; therefore, to manage the assets of the data center, RFID is also required, which will drive the market in the region.


Data Center RFID Market Key players


MRFR recognizes the key players in the global data center RFID market as:


  • HP Inc. (US)

  • IBM Corporation (US)

  • Avery Dennison Corporation (US)

  • Impinj, Inc.(US)

  • RF Code Inc. (US)

  • Omni-ID, Ltd.(US)

  • Zebra Technologies Corporation (US)

  • Alien Technology Corporation(US)

  • Invengo Information Technology Co. (China) Ltd

  • GAO RFID Inc. (Canada)


The prominent players keep innovating and investing in research and development to present a cost-effective product portfolio. There has been recent mergers and acquisitions among the key players, a strategy the business entities leverage to strengthen their reach to the customers.


Intended Audience



  • BFSI

  • Application Developers

  • Investors and consultants

  • System Integrators

  • Government Organizations

  • Research/Consultancy firms

  • Technology solution providers

  • IT Solution Providers

  • Cloud Service Providers

  • Instant Messaging Vendors

  • Security Solution Providers


Data Center RFID Industry Developments

April 2023- An electronic locking swinghandle H3-EM with modular access control has been released by Southco, Inc., a leading developer of engineered access solutions.


According to the maker, the solution can be used in applications like customized data centre racks and allows manufacturers to satisfy a range of security requirements with just a single latch. Users can quickly upgrade to stronger security with the H3-EM Modular latch, according to claims that it is simple to integrate with current enclosures and security systems.


The H3-EM Modular, according to Southco, includes a number of access control choices, including RFID readers that can be flexibly integrated and interchanged to fulfill any security requirements. To ensure that mounting screws cannot be accessed when the door is closed, these devices are installed separately and secured from at the rear of the door panel.


The H3-EM modular latch can replace the existing lock easily for individuals seeking to upgrade, the business adds. The device, according to Southco, has the equivalent single hole mounting method as a conventional H3 swing handle latch, allowing dealers to swap out the old latches without having to replace the whole door.


Additionally, Southco highlights how its most recent innovation enables original equipment manufacturers (OEMs) to simply satisfy any customer's security requirements by utilizing just the Modular Electronic Locking swing handle, H3-EM.


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