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The Southeast Asia data center cooling market size is forecast to increase by USD 531.36 million at a CAGR of 6.78% between 2022 and 2027. The growth of the market depends on several factors, including the rising adoption of mini data centers, the growth of the market through government support, and the Increasing number of data centers. Data center cooling solutions are the solutions used for cooling IT equipment, from small network closets to enterprise data centers, server room environments, and heating, ventilation, and air conditioning (HVAC) systems. The importance of these solutions is linked to their capacity to regulate and control temperature and humidity within data centers. This market research and growth report also 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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The market is experiencing significant growth due to the increasing demand for energy-efficient data centers, driven by the generation and processing of massive data volumes from OTT platforms, streaming services, and cloud services. The power consumption in data centers is a major concern, with it accounting for up to 40% of the total energy usage. Heat dissipation is a critical challenge, necessitating the use of specialized equipment to maintain optimal temperatures. High investment costs in IT infrastructure and the adoption of big data and connected devices further fuel the demand for advanced solutions. These issues and carbon emissions are major concerns, leading to the implementation of safety measures and the adoption of the latest trends in technology. The market is segmented into components, such as cooling towers, chillers, and air conditioning units, and the solution segment and services segment. Manufacturing, healthcare, and other industries rely on these centers for scalability, security, and technology innovation.
Increasing number of data centers is the key factor driving the growth of the market. The market encompasses solutions for managing thermal management in these centers. Two primary methods exist Row-based and Room-based cooling. Row-based one targets specific rows of IT equipment, while Room-based one conditions the entire data center room. The increasing adoption of data-intensive applications, cloud computing, and digital services necessitates advanced systems. High energy consumption and the need for environmental sustainability are driving the demand for innovative solutions.
Pre-engineered modules and mini data centers are pivotal solutions in the current market, catering to the high-density computing requirements of data-intensive applications, cloud computing, and digital services. These systems offer scalable designs with precision-cooling capabilities, ensuring energy efficiency and reducing the high costs associated with these operations. Hybrid Cooling Towers are an innovative addition to these systems, integrating both direct and indirect evaporative cooling techniques to optimize energy usage and maintain optimal temperatures. By employing this technology, data centers can further enhance their energy efficiency and sustainability, making them an attractive choice for disaster recovery centers, branch office operations, and other high-demand computing environments. In summary, the market's focus on providing efficient cooling solutions for data-intensive applications is essential, and the integration of advanced technologies like Hybrid Cooling Towers into pre-engineered modules and mini data centers is a significant step towards addressing the challenges of high energy consumption and costs in these operations.
The rise in strategic alliances among players is the primary trend in the market. In the market, vendors are promoting Data Center Infrastructure Management (DCIM) solutions to enhance efficiency and reduce energy consumption. DCIM facilitates remote monitoring and management of these systems through sensors integrated into pre-engineered modules. This results in significant power savings, of approximately 20%, and efficiency improvements of around 40%. With the increasing adoption of data-intensive applications, cloud computing, and digital services, the need for environmental sustainability is high. Traditional methods like room-based and row-based cooling are being replaced by innovative precision cooling solutions. High-density computing environments necessitate scalable cooling designs to maintain optimal temperatures. The high cost of energy consumption makes DCIM adoption an essential investment for data-center operators, offering a return on investment within 12-24 months by eliminating human errors.
The rise in different operational regulations is a challenge that affects the growth of the market. The market faces challenges in meeting contractual schedules and requirements due to various factors. These include governmental delays, public opposition, financing issues, weather conditions, supply material shortages, project scope changes, labor disruptions, industrial accidents, and environmental hazards. Data-intensive applications, such as cloud computing and digital services, necessitate efficient solutions. Traditional methods like Room-based and Row-based cooling have high costs and energy consumption. Innovative solutions, such as Pre-engineered modules with precision capabilities and scalable designs, are essential for High-density computing. Environmental sustainability is a growing concern, making energy-efficient solutions crucial for the operations.
The market caters to the growing demand for Energy-efficient data centers in the era of escalating Data generation from OTT platforms, streaming services, and Cloud services. With increasing volumes and the proliferation of Connected devices, IT infrastructure requires advanced equipment to mitigate Power consumption and Heat generation. Specialized infrastructure, including air conditioners, precision air conditioners, and installation & deployment of non-raised floor and raised floor solutions, ensures scalability, security, and flexibility in managing the cooling issues. Manufacturing, Healthcare, IT & telecom, and Energy sectors are significant investors in this market, given the high investment costs and the need for Technology and Safety measures. Amidst the Pandemic, there is a growing emphasis on these solutions that minimize Carbon emissions and offer Maintenance services for optimal performance. Component segments, such as Air conditioners, Containment, and Rack-based cooling, and Solution and Services segments, including Installation & deployment and Maintenance services, are the latest trends in the market.
The market share growth by the room cooling segment will be significant during the forecast period. In a room cooling solution architecture, CRAH devices are linked to a data center room. Room cooling solutions maintain uniform temperatures inside the data center. In addition, these solutions help monitor total load using sensors attached to computer room air conditioning (CRAC) units.
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The room cooling segment showed a gradual increase in the market share of USD 823.35 million in 2017. In Southeast Asia, the room cooling solutions market is growing at a moderate rate due to growth in construction in arid climates. Market players are also providing cooling equipment for data center room service due to the growing investments. Therefore, these factors will drive the growth of the market segment during the forecast period.
The market 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.
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.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 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 market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments.
India - Data Center Cooling Market: India - Data Center Cooling Market by Technology, Product, and Type - Forecast and Analysis
EMEA - Data Center Cooling Solutions Market: EMEA - Data Center Cooling Solutions Market by Technology and Component - Forecast and Analysis
Data Center Precision Air Conditioning (AC) Market: Data Center Precision Air Conditioning (AC) Market Analysis North America, APAC, Europe, Middle East and Africa, South America - US, China, Australia, UK, Germany - Size and Forecast
The market is a significant sector that requires efficient and effective solutions due to the high power density and heat generation from IT equipment. These systems play a crucial role in maintaining optimal operating temperatures and ensuring the reliability and performance of data centers. They consume a substantial amount of energy for cooling, making it an essential aspect of data center design and operation. The market caters to various types of other technologies, including air cooling, liquid cooling, and hybrid cooling. Air-cooling is the most common cooling technology used, while liquid cooling is gaining popularity due to its ability to provide higher cooling capacity and efficiency. Hybrid solutions combine the benefits of both air and liquid cooling to offer optimal performance.
The market is expected to grow significantly due to the increasing demand for cloud services, the proliferation of Internet of Things (IoT) devices, and the need for businesses to digitize their operations. The market is driven by factors such as the rising adoption of advanced technologies, the growing need for energy efficiency, and the increasing demand for high-performance computing. These systems are essential for maintaining the reliability and performance of these, making it a critical market segment for IT infrastructure providers. The market is expected to witness significant growth in the coming years, driven by the increasing demand and the need for efficient and effective solutions.
Market Scope |
|
Report Coverage |
Details |
Page number |
185 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.78% |
Market growth 2023-2027 |
USD 531.36 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
6.08 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
3M Co., AIRSYS Refrigeration Engineering Technology Co. Ltd., Alfa Laval AB, Alphabet Inc., Amazon.com Inc., Cisco Systems Inc., Daikin Industries Ltd., Dell Technologies Inc., Emerson Electric Co., Hewlett Packard Enterprise Co., Hitachi Ltd., Huawei Technologies Co. Ltd., International Business Machines Corp., Lenovo Group Ltd., Mitsubishi Electric Corp., Modine Manufacturing Co., NEC Corp., Nortek, Oracle Corp., Quanta Computer Inc., Schneider Electric SE, Vertiv Holdings Co., and Wiwynn Corp |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the 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 Type
7 Market Segmentation by Technology
8 Market Segmentation by Component
9 Customer Landscape
10 Geographic Landscape
11 Drivers, Challenges, and Trends
12 Vendor Landscape
13 Vendor Analysis
14 Appendix
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