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The global data center cooling solutions market is estimated to increase by USD 27.95 billion and grow at a CAGR of 24.36% between 2022 and 2027. The growth of the market depends on several factors, including increased demand for data centers, the need to reduce OPEX, and the growing use of free cooling techniques. Data center cooling solutions are the solutions used for cooling IT equipment, from small network closets to enterprise data centers, server room environments, and HVAC systems.
The report also includes an in-depth analysis of drivers, trends, and challenges. It includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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This report extensively covers market segmentation by application (air conditioning, economizers, cooling towers, chillers, and others), technique (air-based cooling and liquid-based cooling), and geography (APAC, North America, Europe, Middle East and Africa, and South America).
The market share growth by the air conditioning segment will be significant during the forecast period. Temperature and humidity control has assumed great significance in data centers worldwide. A computer room air conditioning (CRAC) unit monitors and maintains air distribution, humidity, and temperature in data centers.
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The air conditioning segment was valued at USD 3,20 billion in 2017 and continued to grow until 2021. Comfort air conditioners are not efficient enough to offer optimal operating conditions for data centers. Therefore, precision air conditioners were invented to cool the heat generated by data center IT equipment. Modern CRAC units use precision cooling techniques. These machines offer precise control over temperature and humidity, operate with higher efficiency, and consume less power when compared with comfort air conditioners. Additionally, heat density inside data centres is increasing following the use of HPC infrastructure and the use of the virtualization concept (wherein IT equipment, such as servers and storage units, are operated at maximum efficiency levels). Such a situation will boost the adoption of precision air conditioners because the technology is very effective in high-density data center environments. Therefore, all these factors will contribute to a steady increase in demand for these units during the forecast period.
Air-based cooling is a traditional cooling technique employed in data centers. Air-cooled CRAC units are widely used in data centers of all tiers. They include air conditioners, air economizers, air-based chiller units, and air-cooled, self-contained systems. Air-based cooling techniques, including free and adiabatic cooling systems, are gaining considerable traction in the data center cooling space. Air-based cooling involves products that use air as a medium to cool the data center environment. The cost of these products is declining rapidly and will continue to decrease during the forecast period because of the growing adoption of liquid-based cooling systems.
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APAC is estimated to contribute 36% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The growing demand for data center cooling solutions in the region is driven by the exponential growth in data traffic and the establishment of data centers. The region's concentration of mobile computing device OEMs, availability of raw materials, and low labor costs have led to cost-effective OEMs, making mobile devices widely accessible. Initiatives like Smart City contribute to connected system infrastructure and generate large data volumes, increasing data center construction. Additionally, high GDP growth in countries like India and China and infrastructure upgrades support the adoption of data center cooling solutions, fostering market growth in APAC.
The market is pivotal in addressing the challenges posed by data centers, ranging from power consumption and heat generation to cooling equipment efficiency. With the surge in data generation from OTT platforms, streaming services, and connected devices, energy-efficient data centers are imperative. Amidst the pandemic, the shift towards software-based data centers underscores the need for flexible and scalable solutions. Automation and artificial intelligence play a crucial role in optimizing cooling operations while ensuring security and compliance with rules and regulations. Specialized infrastructure, including virtual containment and modular components, offer innovative approaches to cooling issues while mitigating carbon emissions. Buyers consider investment costs and energy prices when evaluating cooling solutions, emphasizing the importance of energy-efficient technologies in the market.
The demand for data centers among CSPs, government agencies, and telecommunications organizations is growing because of the expanding adoption of advanced technologies, such as cloud-based services and big data analytics, for the operational needs of businesses. In terms of the market, developed countries are witnessing higher investments in terms of data center construction, where the need for modern technological solutions is triggering the growth of data centers in developing countries. Therefore, data centre operators are expected to adopt a variety of advanced cooling techniques that are cost-effective and consume less power.
Vendors in the cooling market are involved in designing cooling systems that operate with no moving parts to minimize noise levels. In addition, data center operators are renovating their existing facilities to operate as green data centers by reducing both power consumption and greenhouse gas (GHG) emissions. Increasingly, modern systems are also being equipped with components that arrest the transfer of dust particles, which increases the efficiency of cooling systems. Hence, all these factors are expected to boost the growth of the global market during the forecast period.
Liquid immersion cooling solutions work on the principle of liquid submersion technology, wherein the server and other IT equipment are placed inside tanks containing non-conductive coolants. The coolant dissolves the heat generated by the equipment and circulates it throughout the system. These solutions offer uniform and effective cooling with high thermal efficiency. In addition, the use of immersion cooling solutions in data centers makes them green data centers. In a green data center, mechanical, lighting, electrical, and other systems are designed for maximum energy efficiency and minimum environmental impact. A green data center has capabilities similar to a typical data center but uses less energy and space. The design and overall operation of such data centers are planned in an environment-friendly manner. Many companies are investing in the construction of green data centers across the globe. Therefore, such factors will fuel the global market growth during the forecast period.
WUE metrics help monitor water consumption in data centers for cooling purposes. The demand for energy-efficient cooling solutions has increased, driven by their ability to balance water consumption while simultaneously achieving a better WUE rating. Vendors usually build data centers in locations that have an abundant water supply. However, data centers are also required in locations that have an inadequate water supply for present and future requirements.
Countries like California have become drought-prone regions in recent times, where the amount of water consumed by data centers is high, and state officials are coming up with regulations to reduce water consumption in those data centers. This scenario is likely to extend to other regions, where regulations will even have an impact on reducing the use of water for cooling data centers. Such factors may lead to a decrease in the adoption of chilled water systems. Furthermore, higher water consumption may boost tax rates leading to higher OPEX when compared with the costs saved through liquid-based cooling techniques. Therefore, such factors are likely to hinder the global market growth during the forecast period.
The Data Center Cooling Solutions industry report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Data Center Cooling Solutions Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Aermec Spa - The company offers residential ambience, retail outlets, hotels, data centers, sports and leisure facilities, public buildings, and healthcare, as well as numerous specific industrial applications. The key offerings of the company include data center cooling solutions.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The data center cooling solutions market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The market is witnessing significant growth due to the increasing demand for energy-efficient data centers amidst rising data generation. Cooling equipment plays a crucial role in maintaining optimal temperatures, particularly with the surge in usage of OTT platforms, streaming services, and cloud services. Addressing cooling issues is imperative to reduce carbon emissions and align with sustainability goals. Automation and digital transformation are driving scalability and security, with specialized infrastructure catering to varied needs. Investment costs remain a consideration, alongside compliance with rules and regulations. Data center incident response procedures and substitutes are vital aspects. Energy prices influence decisions regarding cooling mechanisms, including mechanical cooling and virtual containment. Buyers seek modular components and suitable temperature solutions, with a focus on installation, deployment, and maintenance services. Insights into solution types, services, applications, and structures guide decision-making in this dynamic market.
Moreover, the market is witnessing significant growth, spurred by the increasing prevalence of connected devices and the need for robust IT infrastructure. The pandemic has further emphasized the importance of reliable and efficient cooling systems in software-based data centers. Flexibility is paramount, with artificial intelligence driving innovations in data center incident response and recovery procedures. The market is segmented into solution and services segments, with offerings such as data center cooling services and power distribution units. Insights into maintenance services and various cooling methods like rack-based, row-based, and room-based cooling are crucial for buyers, especially in industries such as IT & telecom and BFSI. Understanding containment options like Hot Aisle Containment (HAC) and Cold Aisle Containment (CAC) provides valuable application insights, ensuring optimal structure and performance.
Data Center Cooling Solutions Market Scope |
|
Report Coverage |
Details |
Page number |
178 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 24.36% |
Market growth 2023-2027 |
USD 27.95 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
21.79 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 36% |
Key countries |
US, China, India, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aermec Spa, Airedale Air Conditioning Ltd., AIRSYS Refrigeration Engineering Technology Co. Ltd., Alfa Laval Corporate AB, Asetek AS, Black Box Corp., Chilldyne, Citec International, Daikin Industries Ltd., Data Aire Inc., Engineered Fluids Inc., Green Revolution Cooling Inc., Midas Immersion Cooling, Mitsubishi Electric Corp., Motivair Corp., Nortek Inc., Schneider Electric SE, STULZ GmbH, Vertiv Holdings Co., and Delta Electronics Inc. |
Market dynamics |
Parent market analysis, Market forecasting, market growth and trends, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Technique
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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