The Data Center Radio Frequency Identification (RFID) market is experiencing significant growth and innovation, driven by the increasing demand for real-time asset tracking, inventory management, and security solutions in data center environments. One of the key trends shaping this market is the adoption of RFID technology for inventory management and asset tracking within data centers. RFID tags and readers enable data center operators to automatically identify and track the location, status, and movement of critical assets such as servers, networking equipment, and storage devices in real-time, thereby improving inventory accuracy, reducing manual labor, and minimizing the risk of asset loss or theft.
Moreover, the Data Center RFID market is witnessing a shift towards hybrid RFID solutions that combine passive and active RFID technologies to address diverse use cases and operational requirements within data centers. Passive RFID tags are cost-effective, lightweight, and suitable for tracking stationary assets or inventory items within confined spaces, while active RFID tags incorporate battery-powered transmitters for longer read ranges and real-time location tracking capabilities, making them ideal for monitoring mobile or high-value assets across large-scale data center facilities. By deploying hybrid RFID solutions, data center operators can leverage the strengths of both passive and active RFID technologies to optimize asset visibility, security, and operational efficiency in their facilities.
Another notable trend in the Data Center RFID market is the integration of RFID technology with other data center management systems such as asset management software, building management systems (BMS), and data center infrastructure management (DCIM) platforms. Integrated RFID solutions enable data center operators to consolidate asset tracking data, automate inventory workflows, and gain holistic visibility into asset utilization, performance, and compliance across their facilities. By leveraging RFID data in conjunction with other operational data sources, data center operators can make more informed decisions, optimize resource allocation, and enhance operational resilience in dynamic and evolving data center environments.
Furthermore, the Data Center RFID market is experiencing increased demand for RFID-based security solutions to enhance access control, physical security, and compliance monitoring within data centers. RFID-based access control systems enable data center operators to enforce access policies, restrict unauthorized entry, and track employee or visitor movements in sensitive areas of the facility, enhancing security posture and mitigating insider threats. Additionally, RFID-based asset tracking solutions support compliance monitoring and audit trail generation by providing detailed records of asset movements, access events, and environmental conditions within data center facilities, enabling operators to demonstrate regulatory compliance and adherence to security best practices.
Additionally, the COVID-19 pandemic has accelerated the adoption of RFID technology in data centers as organizations seek to enhance operational efficiency, reduce physical contact, and adapt to remote work and social distancing requirements. With the shift towards remote monitoring and management, data center operators are leveraging RFID technology to automate asset tracking, streamline inventory management, and optimize resource utilization without the need for manual intervention or onsite personnel. RFID-enabled solutions enable data center operators to maintain business continuity, ensure operational resilience, and adapt to changing market conditions in a post-pandemic world.
Moreover, the Data Center RFID market is witnessing growing adoption of cloud-based RFID solutions and software-as-a-service (SaaS) models, enabling data center operators to deploy and manage RFID infrastructure and applications more efficiently and cost-effectively. Cloud-based RFID platforms offer scalability, flexibility, and accessibility, allowing data center operators to access real-time asset tracking data, monitor performance metrics, and generate actionable insights from anywhere, at any time, using web-based dashboards or mobile applications. By leveraging cloud-based RFID solutions, data center operators can reduce upfront capital expenditures, accelerate time-to-value, and scale their RFID deployments to meet evolving business needs and market demands.
The data center RFID market is estimated to reach USD 9.2 billion by 2030, registering a CAGR of 27.50% during the forecast period of 2022–2030.
The growing amount of information and data from mobile devices, the Internet, and IoT devices increases the requirement of storage systems and data centers. Presently there are various data centers which are being operated and more to be developed in near future; this is due to increasing volume of information and data such as images, text, company assets files, and confidential documents, among others. RFID systems are used to manage various assets of data centers such as routers, servers, tape media, and related IT assets. Data center RFID is used to reduce the human efforts as it takes a lot of time for tracking the assets manually.
Additionally, RFID also reduces the errors during the operations process such as identification of assets, locating and tracking. The increasing demand for data centers is a major factor driving the growth of the global data center RFID market. Moreover, data centers face several issues during failure that leads to the high losses that may cost approximately USD 93/second during the downtime of the data center. Therefore, to reduce these types of losses, data center RFID is used that reduces the downtime by locating the damaged part or system in the data center.
By data center type, the data center RFID market has been segmented into enterprise data center, mid-sized data center, and large data center.
By solutions, the market has been segmented into readers, tags, antennas, software, and others.
By services, the data center RFID market has been segmented into professional services and integration services.
By vertical, the data center RFID market has been segmented into BFSI, government & defense, IT & telecom, healthcare, retail, and others.
By region, the market has been segmented into North America, Europe, Asia-Pacific, and the rest of the world.
The global data center RFID market is estimated to grow at a significant rate during the forecast period from 2019 to 2024. The geographical analysis of data center RFID has been conducted for North America (the US, Canada, and Mexico), Europe (the UK, Germany, France, Spain, Italy, and the rest of Europe), Asia-Pacific (China, Japan, India, Singapore, and the rest of Asia-Pacific), and the rest of the world (the Middle East and Africa and South America).
North America held the largest market share in 2018 due to the presence of various key vendors such as Cisco System, Inc., Hewlett-Packard Inc., EMC Corporation, CyrusOne that deal in data centers. Moreover, the early adoption of data centers and data center RFID is a major factor driving the growth of the market in the region. Moreover, the increasing volumes of data generated from various industries, social networking platforms, and enterprises, among others in the region is a major factor for driving the data center market, which eventually drives the global data center RFID market.
Asia-Pacific is expected to be the fastest growing regional market during the forecast period; the rapid adoption of new technology and digitalization in the region are boosting the demand for data centers, leading to the growth of the regional market. Additionally, the increasing number of users of social media platforms and large volumes of data generated by enterprises, especially in the BFSI industry vertical—which requires a secure storage system—are some of the factors driving market growth. In the coming years, the number of data centers is expected to increase significantly; therefore, to manage the assets of the data center, RFID is also required, which will drive the market in the region.
The prominent players keep innovating and investing in research and development to present a cost-effective product portfolio. There has been recent mergers and acquisitions among the key players, a strategy the business entities leverage to strengthen their reach to the customers.
April 2023- An electronic locking swinghandle H3-EM with modular access control has been released by Southco, Inc., a leading developer of engineered access solutions.
According to the maker, the solution can be used in applications like customized data centre racks and allows manufacturers to satisfy a range of security requirements with just a single latch. Users can quickly upgrade to stronger security with the H3-EM Modular latch, according to claims that it is simple to integrate with current enclosures and security systems.
The H3-EM Modular, according to Southco, includes a number of access control choices, including RFID readers that can be flexibly integrated and interchanged to fulfill any security requirements. To ensure that mounting screws cannot be accessed when the door is closed, these devices are installed separately and secured from at the rear of the door panel.
The H3-EM modular latch can replace the existing lock easily for individuals seeking to upgrade, the business adds. The device, according to Southco, has the equivalent single hole mounting method as a conventional H3 swing handle latch, allowing dealers to swap out the old latches without having to replace the whole door.
Additionally, Southco highlights how its most recent innovation enables original equipment manufacturers (OEMs) to simply satisfy any customer's security requirements by utilizing just the Modular Electronic Locking swing handle, H3-EM.
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