Data Center RFID Market Analysis

Data Center RFID Market Analysis

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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.
 

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 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.