Data Center RFID Market Size, Share & Trends Analysis Report, By Component (Hardware, Software, and Services), By Hardware, By Tags, By Tag Frequency, By Reader, By Application, By Region, And Segment Forecasts, 2024 - 2030

Data Center RFID Market Size, Share & Trends Analysis Report, By Component (Hardware, Software, and Services), By Hardware, By Tags, By Tag Frequency, By Reader, By Application, By Region, And Segment Forecasts, 2024 - 2030

Data Center RFID Market Growth & Trends

The global data center RFID market size is anticipated to reach USD 5,627.0 million by 2030 and it is projected to grow at a CAGR of 24.8% from 2024 to 2030, as per a new report by Grand View Research, Inc. As the reliance on data continues to grow, so does the need for efficient and reliable data backup and recovery solutions. RFID technology plays a crucial role in this process by facilitating automated and accurate data identification and tracking; this ensures the integrity of backup data and enables faster recovery times in case of disasters or system failures. RFID technology can be integrated with building management systems (BMS) to automate various tasks such as lighting control, temperature regulation, and access control. This integration helps optimize energy usage, reduce operational costs, and create a more secure and efficient data center environment.

In data centers with vast amounts of equipment and inventory, maintaining accurate and up-to-date records can be challenging. RFID tags eliminate the need for manual data entry and provide real-time visibility into inventory levels, location, and movement history; this enables better decision-making regarding inventory management and reduces the risk of stock outs or overstocking. RFID tags can be attached to various IT assets, such as servers, storage devices, and network equipment, providing real-time insights into their location, status, and usage patterns. This information is invaluable for optimizing asset utilization, scheduling preventive maintenance, and extending the lifespan of equipment.

Demand for automation and self-service technologies that can boost operational effectiveness and lower human error is rising as the data center sector develops. Because RFID technology automates processes like inventory management, asset monitoring, and access control, it is essential to the implementation of these solutions. This enables operators of data centers to concentrate on more strategic projects and raise the general efficiency of their establishments. Data security and privacy are top priorities for data center operators due to the increased threat of data breaches and cyberattacks. By enabling improved access control, limiting unwanted access, and enabling real-time tracking and identification of data assets, RFID technology can help reduce these risks.

Data Center RFID Market Report Highlights

• Based on the component, the hardware sub-segment dominated the component segment with more than 70% share in 2023 owing to increasing demand for longer read ranges and higher data capacity, among others
• Based on the hardware, the reader sub-segment is dominated by the hardware segment with more than 35% market share, owing to the ability to automate tasks and enhance security among others
• Based on the tags, the active sub segment of the market by tags is expected to grow the fastest CAGR owing to increased adoption in large data centers
• Based on the tag frequency, HF segment is expected to grow the fastest CAGR by tag frequency owing to easier implementation
• Based on the reader, the fixed segment of the market by reader is expected to grow at the fastest CAGR owing to its ability to ensure consistency and eliminate manual tasks
• Based on the application, the lifecycle management application is expected to grow at the fastest CAGR owing to its ability to help optimize the life cycle of the assets
• North America dominated the market owing to factors such as the presence of a high number of data centers, strict regulations, and the presence of major data center RFID solution providers in the region
• In February 2023, AVERY DENNISON CORPORATION announced that it would construct a new production plant in Querétaro, Mexico, aimed at boosting its capacity to create RFID tags in the Americas. The investment enables the AIPIA member to meet the increasing demand for passive UHF RFID tags, improve order fulfillment time, and provide each item with a unique digital identity

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