The data center RFID market is on track to reach USD 9.2 billion by 2030, boasting a 27.50% CAGR from 2022 to 2030. This growth is fueled by the escalating volume of data from mobile devices, the Internet, and IoT devices, necessitating more storage systems and data centers. RFID systems play a crucial role in managing various data center assets, from routers to servers, reducing manual efforts and operational errors significantly. Downtime costs can be substantial for data centers, driving the adoption of RFID to swiftly locate and address issues.
Market segmentation encompasses different data center types (enterprise, mid-sized, large), solutions (readers, tags, software), services (professional, integration), and verticals (BFSI, government, healthcare). Geographically, North America leads the market due to the presence of key vendors and early technology adoption. On the other hand, Asia-Pacific emerges as the fastest-growing region, fueled by rapid digitalization, social media usage, and increasing data volumes across various industries.
Key players like HP Inc., IBM Corporation, GAO RFID Inc., Avery Dennison Corporation, and Impinj, Inc., among others, are driving innovation through research and development, as well as strategic mergers and acquisitions. Southco, Inc.’s recent introduction of the H3-EM Modular latch, integrating RFID technology for enhanced data center security, exemplifies ongoing advancements in the field.