Data Center RFID Market to Expand with Significant CAGR During 2021

A data center is a facility of computer systems that houses the data and applications which are critical for the success of business organizations. Data centers are integrated to deliver timely, trusted and secure information within the organization. Currently, data center managers are continuously facing pressure to enhance the security of data center assets and ensure optimal utilization of resources. Hence, they are integrating various technologies such as Radio-frequency identification (RFID) to keep track of critical assets such as servers, routers and other IT assets. Automation via RFID reduces inefficiency and human error, reduces costs and complexity while increasing flexibility and control. RFID allows companies to identify and collect a range of metrics for data center assets.

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Additionally, they help to increase inventory accuracy and operational efficiency. Based on the type of assets, RFID tags can be for servers, switches, storage devices (removable drives and backup drives) among others. Based on solutions, RFID for data centers include tags (active or passive tags), readers, antennas and software.

Data centers consists of expensive, mission critical assets which need to be tracked. Tracking data center assets helps to organize them and reduce operational costs. Moreover, manual tracking is expensive and consolidating inventory can be tedious and inefficient. Hence, a large number of data centers are increasingly turning to RFID technology to decrease expenses, increase inventory accuracy, and improve operational efficiency. RFID tags when used on racks of data center equipment can help in retrieving information about racks within no span of time. Additionally, misplaced equipment can be easily located without reading individual serial number on tags..

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Globally, an increasing number of enterprises are demanding better management of data center resources. RFID tags and other solutions help to improve the management of data center assets. This is driving the global data center RFID market. Additionally, these solutions help increase efficiency and productivity by decreasing the manual workforce which can be used for other vital tasks in an organization. Thus, the increased need for better management of resources with better productivity is collectively driving the global data center RFID market.

Presently, due to the Internet of Things (IoT), massive amounts of data is being generated which is driving the need for data centers. As the number of data centers is expected to rise during the forecast period there is abundance opportunity for RFID technology to be incorporated within data centers.

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Geographically, the data center RFID market is classified into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America. North America is the biggest market for data centers RFID technologies. Increasing digitization in the Asia Pacific region is driving the growth of data centers in this region and hence it is an emerging region for data center RFID market. Some of the leading players in the global RFID marketplace include IBM Corporation, Zebra technologies, Hewlett-Packard Development Company L.P., Invengo Information Technology Co. Ltd and Impinj, Inc. among others.

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