The Data Center RFID Market that was estimated at USD 1.1 billion is forecasted to grow at a CAGR of over 18.5% and reach USD 6.3 billion by 2032. This rapid growth is due to improved asset management, the rising need to reduce the risk of equipment loss, the growing demand for streamlined inventory management, and the need to avoid many human errors. However, the high cost of implementing the data center RFID can be a huge obstacle for market growth.
Furthermore, the COVID-19 pandemic has impacted the market growth. On one hand, the pandemic has increased the market size due to remote work and digital transformation initiatives. On the other hand, certain projects involving RFID implementation were delayed due to its high cost.
The market is segmented into key components, namely hardware, software, and services. The hardware segment, particularly RFID readers, is anticipated to exhibit a robust CAGR of approximately 18% over the forecast period. Among the data centers, large facilities account for 33.3% of the market share, reaching an estimated value of USD 700 million in 2022, while small and medium-sized data centers collectively cover 66.7% of the market share. Geographically, North America emerges as the dominant player, boasting a substantial market share of over 40% in 2022. Leading entities in the data center RFID industry include key players such as GAO RFID Inc., Impinj, RFTrail, Alien Technology, Zebra Technologies, and Convergence Systems Limited. These companies play a pivotal role in driving innovation and shaping the future trajectory of the market through their technological advancements and strategic initiatives.