“Global Data Center RFID Market to reach a market value of USD 5.5 Billion by 2030 growing at a CAGR of 23.8%”
The Global Data Center RFID Market size is expected to reach $5.5 billion by 2030, rising at a market growth of 23.8% CAGR during the forecast period.
Fixed RFID readers offer stability and consistency in data capture within specific areas or zones in the data center. Therefore, the fixed segment acquired $91.5 million in 2022. They are stationary devices installed at predetermined locations, continuously monitoring assets passing through those zones. The increasing demand for fixed RFID readers in the market signifies their importance in providing targeted, continuous, and reliable asset-tracking solutions within specific zones or areas of data centers.
The need for precise and real-time tracking of assets within data centers drives the adoption of RFID technology. Data center operators seek efficient solutions to manage diverse assets, including servers, networking equipment, storage devices, and other critical components. Modern data centers encompass many assets, including servers, networking equipment, storage devices, and other critical components. Managing and tracking these assets manually is a cumbersome and error-prone task. RFID technology provides a systematic and automated approach to asset identification and tracking. Data centers require accurate and real-time visibility into asset location, status, and movement. RFID tags attached to assets enable continuous monitoring without manual intervention. This capability facilitates efficient inventory management and reduces the chances of asset misplacement or loss. Additionally, various industries and regions have specific regulatory standards and compliance mandates related to data center operations. These regulations often necessitate stringent guidelines for asset management, security, data privacy, and auditability. RFID technology facilitates the fulfillment of these compliance obligations for data center administrators by providing dependable and precise capabilities for monitoring and managing assets. Data centers handle sensitive information and critical assets, making security and privacy paramount. Regulatory bodies impose guidelines on managing, protecting, and accessing data. When integrated with access control systems and encryption features, RFID technology helps data center operators comply with these regulations by ensuring controlled access and secure handling of assets. These solutions are crucial in helping data center operators meet compliance obligations, thereby contributing to a secure and compliant operational environment. Thus, the standards and regulations of industries are propelling the market's growth.
However, the complexity of deployment and scalability presents a notable restraint within the market. This restraint arises due to the challenges associated with implementing RFID technology in data center environments and scaling these deployments effectively as the data center grows or evolves. Deploying RFID systems in data centers involves setting up RFID readers, antennas, and infrastructure across various locations within the facility. This installation process can be intricate and time-consuming, especially in larger data center environments with complex layouts. Configuring RFID reader networks to ensure consistent coverage and adequate signal strength throughout the data center poses challenges. Factors like interference from metal structures or densely packed equipment racks can affect signal propagation and require careful planning. Integrating RFID systems with legacy infrastructure and management systems can be complex. Ensuring compatibility, seamless data exchange, and integration with existing software and databases requires meticulous planning and system adjustments. Implementing changes or upgrades to accommodate scalability may require downtime, affecting data center functionality and service availability. Therefore, the complexity in deployment and scalability of the RFID systems is impeding the growth of the market.
Based on application, the market is categorized into asset tracking & management, IT asset management, lifecycle management, and others. In 2022, the asset tracking & management segment registered the highest revenue share in the market. The increasing demand for asset tracking and management solutions in the market is motivated by the necessity for cost savings, enhanced security, and regulatory compliance. These systems are of the utmost importance in optimizing resource utilization, streamlining data center operations, and ensuring the efficient administration of assets throughout their entire lifecycle.
Based on component, the market is divided into hardware, software, and services. The services segment attained a considerable revenue share in the market in 2022. The increasing demand for service offerings in the market mirrors the need for expertise, support, and tailored solutions to maximize the benefits of RFID technology. Service providers provide comprehensive support to data centers throughout the entire lifecycle of RFID technology. This includes assisting with planning, implementation, security, compliance, and continuous enhancement within the data center environment.
The hardware segment in the market is further divided into tags, reader, printer, antenna, and others. The reader segment gained the highest revenue share in the market in 2022. The increasing demand for RFID readers within the market underscores their pivotal role in enabling efficient asset tracking, enhancing security measures, and supporting the overall operational objectives of data centers. As technology advances and data centers evolve, the demand for more sophisticated, secure, and versatile RFID reader solutions will persist.
Free Valuable Insights: Global Data Center RFID Market size to reach USD 5.5 Billion by 2030
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America region witnessed the maximum revenue share in the market in 2022. North America has witnessed a surge in data center construction and expansion due to the growing digital transformation, cloud computing, and expansion of data-driven technologies. As data centers expand, there's a greater need for efficient asset tracking and management, which RFID technology offers. The combination of technological advancements, the need for compliance, a focus on operational efficiency, and the adoption of smart infrastructure collectively drive the increasing demand for RFID technology in data centers across North America.
| Report Attribute | Details |
|---|---|
| Market size value in 2022 | USD 1 Billion |
| Market size forecast in 2030 | USD 5.5 Billion |
| Base Year | 2022 |
| Historical Period | 2019 to 2021 |
| Forecast Period | 2023 to 2030 |
| Revenue Growth Rate | CAGR of 23.8% from 2023 to 2030 |
| Number of Pages | 329 |
| Number of Tables | 630 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | Component, Application, Region |
| Country scope |
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| Companies Included | HID Global Corporation (Assa Abloy AB), Alien Technology, LLC, Confidex Ltd., Honeywell International, Inc., Impinj, Inc., Mojix, Inc. (Peak Rock Capital), Nedap N.V., NXP Semiconductors N.V., Sato Holdings Corporation, Zebra Technologies Corporation |
By Component
By Application
By Geography
This Market size is expected to reach $5.5 billion by 2030.
Regulatory compliance and industry standards are driving the Market in coming years, however, Complexity of deployment and scalability restraints the growth of the Market.
HID Global Corporation (Assa Abloy AB), Alien Technology, LLC, Confidex Ltd., Honeywell International, Inc., Impinj, Inc., Mojix, Inc. (Peak Rock Capital), Nedap N.V., NXP Semiconductors N.V., Sato Holdings Corporation, Zebra Technologies Corporation
The expected CAGR of this Market is 23.8% from 2023 to 2030.
The Hardware segment is leading the Market by Component in 2022; thereby, achieving a market value of $3.7 billion by 2030.
The North America region dominated the Market by Region in 2022, and would continue to be a dominant market till 2030; thereby, achieving a market value of $2 billion by 2030.
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