Data Center RFID Market Share Estimated to Garner USD 9.2 Billion by 2030 with a CAGR of 27.50% – Report by Market Research Future (MRFR)


Growing Need to Improve Visibility and Asset Management Drives Data Center RFID Market

New York, US, March 28, 2023 (GLOBE NEWSWIRE) — According to a comprehensive research report by Market Research Future (MRFR), “Data Center RFID Market By Data Centre Type, by Solutions, by Service, by Vertical and Forecast Till 2030”, the market is predicted to thrive substantially during the assessment era from 2022 to 2030 at a healthy CAGR of approximately 27.50% to attain a valuation of around USD 9.2 Billion by the end of 2030.

The global data center RFID market is likely to expand at a significant growth rate over the next few years. The rising demand for RFID solutions to improve data centers’ visibility and asset management processes would drive market growth.


Datacenter RFID solutions help track, monitor, and manage various expensive and mission-critical assets in data centers. The technology can read multiple tags simultaneously to track densely racked assets in the data center. Handheld or mobile RFID readers allow tracking and inventorying of data center equipment racks within a minute, without human intervention to read serial numbers or asset tags individually.

In a data center, the hardware and the valuable data sets saved on servers are essential to ensure tracking visibility and regulatory compliance. Data center staff is often accounted responsible for maintaining IT asset inventories. Using RFID tags, the staff can accurately identify the equipment’s location and easily track down equipment due for maintenance or upgrades.

However, it is challenging to track equipment that is deactivated to reduce power consumption and heat in the data center for some technical reasons. Specialized RFID tags can even enable the reading of such devices without pulling them out of the racks.

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Data center assets are tracked with the help of handheld RFID readers and fixed readers placed at entry/exit points and other strategic locations. Fixed RFID readers are also used completely automate server tracking for real-time visibility of equipment in each cabinet/rack. Most IT vendors also offer services to tag equipment with RFID labels before shipping to customers to help them automate the internal receiving, provisioning, and deployment processes.

Data center operators are increasingly realizing the benefits of automation in improving efficiency. Considering the increasing size and growing number of equipment in data centers, manual asset tracking isn’t a viable option. Therefore, these operators are increasingly shifting from manual asset tracking to RFID tags to avoid errors and minimize costs.

They mostly prefer active RFID tags, as passive RFID tags can sometimes lead to inconsistencies and labor associated with their traditional spreadsheet-inventorying method. Besides, passive RFID tracking would require manual scanning of tags in the event of equipment relocation, overburdening data center staff.

Data Center RFID Market Report Scope:

Report Metrics Details
Market Size by 2030 USD 9.2Billion (2030)
Market CAGR during 2022-2030 27.50%
Base Year 2021
Forecast 2022-2030
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Key Market Drivers Increasing demand for data centers.

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The data center RFID market is segmented into data center types, solutions, services, verticals, and regions. The data center type segment comprises enterprise data centers and mid-sized & large data centers. The solution segment comprises readers, tags, antennas, software, and others. 

The service segment comprises professional and integration services. The vertical segment comprises BFSI, government & defense, IT & telecom, healthcare, retail, and others. The region segment comprises the Asia-Pacific, Middle East & Africa, Americas, Europe, and the Rest-of-the-World.

Players leading the data center RFID market include:

IBM Corporation (US), HP Inc. (US), Avery Dennison Corporation (US), Impinj, Inc. (US), GAO RFID Inc. (Canada), RF Code Inc. (US), Zebra Technologies Corporation (US), Omni-ID, Ltd.(US), Invengo Information Technology Co. (China), Ltd., and Alien Technology Corporation(US), among others.

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Competitive Analysis 

Highly competitive, the data center RFID market appears fragmented due to the presence of several large and small-scale players. Well-established players incorporate strategic initiatives such as acquisition, collaboration, expansion, and technology/product launch to gain a competitive advantage in this market. Datacenter RFID solutions providers employ a continuous improvement strategy to analyze and update their systems. 

By implementing improvements and launching new technologies, they try to meet the changing needs of the consumer. The market will witness the entry of several new players who are technologically advanced and will capture a major portion of this fast-moving market in the coming years. This, in turn, is expected to intensify the competition in the market. 

For instance, on Mar 03, 2023, Southco Inc., a leading global designer, and manufacturer of access control solutions, launched an innovative locking solution for data centers, H3-EM Electronic Locking Swinghandle. The new solution can counter the growing threat of human error and physical security breaches at data centers. Southco’s Modular H3-EM Swinghandle allows access using an RFID Card, Bluetooth, PIN Code, Near Field Communication (NFC), or biometric identifications.

Geographical Analysis

North America leads the global data center RFID market. The strong presence of key providers of data center RFID technology, such as Cisco System, Hewlett-Packard, EMC Corporation, and CyrusOne, boosts the market size. Moreover, the early adoption of RFID solutions in data centers for real-time asset tracking and management through a centralized view of all physical and virtual assets creates significant market opportunities. 

The data center RFID market in Europe takes the second lead and is likely to witness rapid growth in the forthcoming period. The presence of a number of key vendors dealing in data center RFID solutions is a major growth driver. Besides, the increasing volume of data generation is a major factor boosting the region’s data center RFID market shares, driving the data center market. Also, the high penetration of IoT and cloud technologies escalates the region’s data center RFID market value. 

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The Asia Pacific data center RFID market has emerged as a profitable space globally. The increasing awareness of the benefits of RFID technology in data center asset management defines the growing market landscape. Rapidly developing countries like China, Japan, and India are major data center RFID solutions markets. The APAC data center RFID market is expected to register a notable CAGR in the coming years. 

India is rapidly emerging as a strategic market for RFID technology providers. Many global players are shifting their production bases to the country to scale up the current production rate. They are making significant investments in the Indian data center RFID market. Moreover, government initiatives such as Make in India benefit the players operating in the data center RFID market.

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