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Data Center RFID Market - By Component (Hardware, Software, Service), By Organization Size, By Application (Asset Tracking & Management, Dashboards & Reporting, Environmental Monitoring, Data Center Audits, Lifecycle Management) & Forecast 2023 – 2032

  • Report ID: GMI6666
  • Published Date: Sep 2023
  • Report Format: PDF

Data Center RFID Market Size

Data Center RFID Market size was valued at USD 1.1 billion in 2022 and is projected to grow at a CAGR of over 18.5% between 2023 and 2032. Real-time asset management is driving the data center RFID industry growth by enhancing operational efficiency & security. RFID technology enables data centers to continuously monitor & track assets, thereby reducing the risk of equipment loss or theft. It offers immediate updates regarding asset status, location, and maintenance needs, facilitating proactive decision-making. This real-time visibility optimizes resource allocation and supports data center scalability, making it a valuable investment for data center operators looking to streamline operations and improve asset utilization.

Data Center RFID Market

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In the inventory management of data center RFID, the tracking of the equipment entering & leaving the data center is streamlined. The RFID tags on assets automatically update the inventory database, thereby ensuring accurate records. This automation prevents the overstocking or understocking of critical components, minimizing operational disruptions. It also provides real-time visibility into the availability of hardware resources, helping data center managers make informed decisions about resource allocation & procurement, ultimately improving the overall efficiency & effectiveness of data center operations.

The high cost associated with implementing data center RFID solutions can be a significant hindrance to market growth. The initial expenses include the purchasing of RFID tags, readers, infrastructure, and software can strain the budgets of smaller data centers or those with limited resources. Moreover, the ongoing costs associated with maintenance, upgrades, and staff training can further escalate expenses. To overcome this challenge, businesses must carefully assess the cost-benefit ratio by considering the potential operational efficiencies and security enhancements to justify investments in RFID technology.

COVID-19 Impact

The COVID-19 pandemic had significant effects on the data center RFID market. While the demand for data center services increased due to remote work and digital transformation initiatives, certain projects involving RFID implementation were delayed or scaled down as companies focused on cost-cutting measures. Additionally, supply chain disruptions affected the availability of RFID components. However, the pandemic also underscored the importance of real-time asset tracking & security in data centers, potentially driving the global interest in long-term RFID solutions.

Data Center RFID Market Trends

Environmental monitoring is vital for data centers as it ensures the optimal conditions required for equipment operations, preventing overheating and potential hardware failures. This enhances data center reliability and reduces downtime, leading to significant cost savings. For instance, in August 2023, Vertiv launched the Vertiv Geist Watchdog 15, an environmental sensor solution, in India to improve data center monitoring & management. This independent environmental monitoring system enhances the efficiency of an IT infrastructure via remote monitoring and instant tracking of the environmental conditions in server rooms, data centers & network closet environments.

Data Center RFID Market Analysis

 Data Center RFID Market Revenue, By Component, 2021 – 2032, (USD Million)
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Based on component, the data center RFID market is divided into hardware, software, and service. The hardware segment is further bifurcated into RFID tags, RFID readers, RFID antennas, and other hardware components. The RFID readers segment is expected to grow at a CAGR of around 18% during the forecast period. Enhanced security is a key factor propelling RFID reader sales in the data center RFID industry. These readers enable access to control systems in data centers, thereby granting authorized personnel access to specific areas based on the credentials stored in RFID tags or cards. Simultaneously, readers log the access attempts, providing an audit trail for security purposes. This robust security measure safeguards sensitive data & equipment, thereby addressing the critical need for data center protection in an era of increasing cyber threats and stringent compliance requirements.

 Data Center RFID Market Share, By Organization Size, 2022
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Based on organization size, the data center RFID market is categorized into small/medium data center and large data center. The large data center segment was valued at over USD 700 million in 2022. The rising use of data centers is driving the global market growth by expanding the potential application base. As more data centers are put into operation, the demand for RFID solutions will increase for asset tracking, security, and real-time monitoring. For instance, in March 2023, NTT, a prominent data center provider, announced that it will launch six new data centers in India with plans underway for an additional three facilities. Nearly 70% of the available capacity in these upcoming data centers has already been reserved. Presently, NTT manages 11 operational data centers in India and is on track to unveil six more data centers by June 2023.

 North America Data Center RFID Market Revenue, 2021 -2032, (USD Million)

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North America held a dominant data center RFID market share of over 40% in 2022. The robust growth of the data center industry in North America is a primary factor driving the adoption of RFID technology in the region. North America is witnessing an increased demand for data centers owing to factors such as the proliferation of cloud services, rising digital transformation initiatives, and the rapid growth of edge computing. This surge in data center construction & expansion necessitates efficient asset management & security solutions, making RFID an attractive option for North American data center operators seeking to enhance their operational capabilities.

Data Center RFID Market Share

Major players operating in the data center RFID market are :

  • Impinj
  • RFTrail
  • Synertech
  • Zebra Technologies
  • Alien Technology
  • ThingMagic
  • Convergence Systems Limited (CSL
  • GAO RFID Inc

Data Center RFID Industry News

  • In April 2023, MASS Group launched an innovative Find Tag feature in its mobile version of the Traceability Made Easy software. This newly introduced capability empowers users to conveniently search for & pinpoint multiple RFID tags simultaneously, thereby simplifying and enhancing the efficiency of real-time asset & inventory tracking.
  • In June 2022, Axzon broadened its range of intelligent passive sensing solutions by bolstering its RFID asset tracking systems with real-time monitoring capabilities pertaining to temperature & leak detection in data centers. Axzon's UHF RFID temperature sensors can be strategically positioned at various points including front & rear, top, middle, and bottom to continuously monitor air intake and exhaust temperatures.

The data center RFID market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2018 to 2032, for the following segments:

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By Component

  • Hardware
    • RFID tags
    • RFID readers
    • RFID antennas
    • Other hardware components
  • Software
  • Service

By Organization Size

  • Small/Medium data centers
  • Large data centers

By Application

  • Asset tracking & management
  • Dashboards & reporting
  • Environmental monitoring
  • Data center audits
  • Lifecycle management

The above information is provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • UK
    • Germany
    • France
    • Spain
    • Poland
    • Benelux
  • Asia Pacific
    • China
    • India
    • Japan
    • Singapore
    • Australia
    • South Korea 
  • South America
    • Brazil
    • Argentina
    • Chile
    • Colombia
  • MEA
    • UAE
    • Saudi Arabia
    • South Africa


Authors: Preeti Wadhwani

Frequently Asked Questions (FAQ) :

Market size for data center RFID was valued at USD 1.1 billion in 2022 and is projected to grow at a CAGR of over 18.5% between 2023 and 2032, owing to the demand for real-time asset management with enhanced operational efficiency & security.
The RFID readers segment is expected to grow at a CAGR of around 18% during 2023-2032, backed by the enhanced security as these readers grant authorized personnel access to specific areas based on the credentials stored in RFID tags or cards.
North America data center RFID industry accounted for over 40% revenue share in 2022 and will continue to showcase impressive growth through 2032, backed by the proliferation of cloud services, rising digital transformation initiatives, and the rapid growth of edge computing.
Impinj, RFTrail, Synertech, Zebra Technologies, Alien Technology, ThingMagic, CAEN RFID, Convergence Systems Limited (CSL), and GAO RFID Inc.

Data Center RFID Market Scope

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Premium Report Details

  • Base Year: 2022
  • Companies covered: 15
  • Tables & Figures: 293
  • Countries covered: 22
  • Pages: 263
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