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The Southeast Asia data center cooling market size is estimated to grow at a CAGR of 6.78% between 2022 and 2027. The market size is forecast to increase by USD 531.36 million. The growth of the market depends on several factors, including the rising adoption of mini data centers, the growth of the data centre 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 data center cooling market report extensively covers market segmentation by type (room cooling, rack, and row cooling), technology (liquid-based cooling and air-based cooling), and components (air conditioners, economizers, cooling towers, chillers, and others). It 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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Increasing number of data centers is the key factor driving the growth of the market. Explosive growth in data traffic driven by increasing deployment of automation across sectors, developments in networked communications technology, increased investment in HMI technology, and several other factors are driving promotion investment in data centers around the world. The dramatic growth in the amount of data generated across end-user industries has forced companies to build their own data centers or rent data center space from market players.
For example, in March 2020, Microsoft Corp. revealed plans to invest in data centers in the Southeast Asian market and launch data centers in March 2020 in Malaysia. Therefore, investment in data center building will promote the development of the Southeast Asia data center cooling market during the forecast period.
The rise in strategic alliances among players is the primary trend in the market. Fierce market competition is anticipated to force established suppliers to increase their market presence through strategic alliances. Market players are investing heavily in joint ventures and acquisitions to capture a large share of the data center cooling market and expand their presence in new regions. This alliance of manufacturers helped them successfully launch their venture.
Moreover, the increase in mergers and acquisitions (M&A) will create more opportunities for cooling system suppliers to expand their geographic and product reach. The increasing number of strategic partnerships and M&A activities will drive the growth of the market during the forecast period.
The rise in different operational regulations is a challenge that affects the growth of the market. The project may be impacted by factors such as government inaction, public opposition, incapability to raise capital, climate conditions, unavailability of procurement materials, changes in the scope of project services that customers require, labor disputes, industrial accidents, and environmental risks. Customs clearances and approvals from various governments along with the need to meet regulatory requirements are restricting the market growth.
Moreover, there have been some delays in data center construction due to problems with government approvals. Such factors damage the reputation of suppliers within the industry and with customers. This will lead to the loss of large contracts, thereby hindering the sale of products such as servers, cooling systems, and networking equipment. These regulatory challenges will impede the growth of the Southeast Asia data center cooling market during the forecast period.
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 data center construction in arid climates. Market players are also providing cooling equipment for data center room service due to the growing investment in data centers. Therefore, these factors will drive the growth of the market segment during the forecast period.
The liquid-based cooling technique is more effective than air cooling. Water cooling, a sub-segment of liquid cooling, is the most widely accepted cooling system and is commonly used in chillers, condensers, and economizers. Implementing liquid cooling and direct-to-chip cooling techniques is also becoming popular among some operators. These technologies have proven to be very effective, especially for data centers with high-density servers. Therefore, continued use of liquid cooling techniques will generate more revenue in the market. These factors will drive the growth of the Southeast Asia data center cooling market during the forecast period.
The Southeast Asia Data Center Cooling 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.
Southeast Asia Data Center Cooling 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.
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 Southeast Asia data center cooling market report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Southeast Asia Data Center Cooling 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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