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Data Center RFID Market Size

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

The Data Center Radio Frequency Identification (RFID) Market is influenced by a multitude of factors that shape its growth, dynamics, and competitiveness within the data center industry. These market factors encompass economic, technological, regulatory, and industry-specific aspects, driving the adoption and evolution of RFID solutions in data center environments.

Firstly, the exponential growth of data storage and processing requirements is a primary market factor driving the expansion of the Data Center RFID Market. With the proliferation of digital content, cloud computing, and Internet of Things (IoT) devices, data centers are experiencing a surge in data traffic and storage demands. RFID technology offers a scalable and efficient means of tracking and managing assets, equipment, and inventory within data centers, enabling operators to optimize resource utilization, enhance security, and improve operational efficiency in response to increasing data volumes and complexity.

Moreover, advancements in technology play a significant role in shaping the dynamics of the Data Center RFID Market. With the evolution of RFID hardware, software, and networking technologies, data center operators have access to advanced solutions that offer greater accuracy, reliability, and scalability. Passive RFID tags, active RFID readers, and RFID middleware enable real-time asset tracking, inventory management, and automated data capture, facilitating faster and more accurate decision-making in data center operations. Additionally, integration with cloud-based platforms and analytics tools enables data center operators to leverage RFID data for predictive maintenance, capacity planning, and optimization of infrastructure resources.

Another key market factor is the increasing focus on data security and regulatory compliance within the data center industry. As data breaches and cyber attacks become more prevalent and costly, data center operators are prioritizing security measures to protect sensitive information and comply with industry regulations such as GDPR, HIPAA, and PCI DSS. RFID technology offers data center operators a secure and reliable means of tracking assets and controlling access to sensitive areas within the facility, helping to prevent unauthorized access, detect security breaches, and maintain compliance with regulatory requirements.

Furthermore, the global expansion of data center infrastructure and cloud computing services drives demand for RFID solutions that can support the scalability and flexibility requirements of modern data center environments. With the rise of edge computing, hybrid cloud deployments, and distributed data processing architectures, data center operators require RFID solutions that can seamlessly integrate with existing infrastructure, support multi-site deployments, and provide centralized management and visibility across the entire data center ecosystem. Additionally, RFID technology enables data center operators to automate inventory management, streamline asset tracking, and optimize workflows, reducing manual errors and operational costs associated with managing complex data center environments.

Moreover, macroeconomic factors such as economic growth, market volatility, and industry consolidation impact the overall demand for RFID solutions in the data center market. In times of economic uncertainty or budget constraints, data center operators may prioritize investments in cost-saving technologies and operational efficiencies, leading to increased adoption of RFID solutions that enable automation, optimization, and risk mitigation. Conversely, during periods of economic stability and industry growth, data center operators may invest in RFID solutions to support expansion initiatives, enhance service delivery, and improve customer satisfaction in response to growing demand for data center services.

Additionally, evolving industry trends and customer preferences influence the adoption and evolution of RFID solutions in the data center market. As data center operators seek to differentiate themselves and add value to their services, they are increasingly turning to RFID technology to deliver innovative solutions that address emerging challenges and opportunities in the industry. For example, RFID-enabled asset tracking and inventory management solutions help data center operators improve asset utilization, reduce equipment downtime, and enhance service reliability, driving customer satisfaction and loyalty in a competitive market landscape.

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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