Data Center RFID Market Share Estimated to Garner USD 9.2 Billion by 2030

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.

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.