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The data center precision air conditioning (AC) market size is estimated to grow at a CAGR of 9.75% between 2023 and 2028. The market size is forecast to increase by USD 1,413.97 million. The growth of the market depends on several factors growing construction of data centers, growing construction of data centers, and rising demand for effective cooling solutions. Our report examines historic data from 2018 to 2022, besides analyzing the current market scenario.
This report extensively covers market segmentation by deployment (in-row cooling, in-rack cooling, and centralized), product (CRAC units and CRAH units), and geography (North America, APAC, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges.
Data Center Precision Air Conditioning Market Forecast 2024-2028
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Our researchers studied the data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
Many countries in the world are affected by the paucity of power. Tier-4 data centers are integrated with the latest technologies such that they offer close to 99.99% uptime and support uninterrupted business operations. Precision air conditioners are designed for continuous operations. The components installed in these air conditioners ensure redundancy and zero downtime. In case of any component failure, the precision air conditioning system is not affected. Consequently, these air conditioners are suitable for Tier-4 data centers. Technological advances have led to the introduction of innovative cooling solutions that can adapt to extreme climatic conditions
In addition, free cooling techniques and cooling systems, such as precision air conditioners, are designed to deliver maximum efficiency and reduce power consumption which may have a positive impact on the data center precision air conditioning market growth. Such factors will drive the global data center precision air conditioning market in focus growth in the forecast period.
Generally, data center cooling solutions make use of water and other coolants for transmitting the heat out of the facility. The compressors facilitate the transmission of heat out of the data center, which results in the cooling of the data center environment. Economizer-based cooling is a free cooling technique that is highly suitable for data centers that are operated in colder regions. In colder conditions, the heating, ventilation, and air conditioning (HVAC) system compressor is shut down, and cool air from outside is used to cool the data center. Precision cooling systems use external cold air and supply it to the racks installed in data centers. With the emergence of free cooling techniques, the adoption of precision systems has increased. These systems can offer optimal operating temperature and humidity for cooling IT equipment by reducing mechanical cooling.
Moreover, water economizers can be used to reduce compressor running time and pump use. These economizers are used in conjunction with cooling towers, heat exchangers, or dry coolers. Economizers also form a part of the green data center equipment, which is expected to witness strong data center precision air conditioning market demand in the forecast timeframe. Such factors are expected to drive the market growth during the forecast period.
There are many reasons for enterprises to consider data center consolidation projects, including cost reduction and acquisition of enterprises. Consolidation helps with cost savings of up to 30%, reduction in power consumption by 55%, enhanced security by up to 35%, and improvement in efficiency by 50%. In the US, the federal government is involved in the consolidation of data centers to reduce operational costs and shift investments toward an efficient computing platform. Servers are being consolidated to work on a single piece of computing hardware as virtualization boosts the operating efficiency of data center IT infrastructure. Virtualization is a standard technique applied to IT infrastructures such as servers, storage, and network equipment, which reduces a data center's CAPEX and OPEX.
However, the increase in data center virtualization leads to consolidation and reduces the number of data centers which can negatively impact data center precision air conditioning market growth. This can hinder the sales of cooling infrastructure and reduce the worldwide data center footprint. Therefore such factors can hinder the market growth during the forecast period.
The market share growth of the in-row cooling segment will be significant during the forecast period. In-row cooling deployment comprises a heat exchange coil. This heat exchange coil uses chilled water as a cooling medium, and the chilled water is supplied by the external chiller system. The shifting preference toward in-row cooling, owing to high-density IT requirements, will drive data center precision air conditioning (AC) market growth.
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The in-row cooling segment was valued at USD 914.15 million in 2018. In-row-based cooling solutions provide an advantage over the conventional room-based approach as the former can be tailored to the density needs of specific rows. Row-based cooling solutions also improve the efficiency of hot-aisle/cold-aisle rack layouts. In addition, they remove hot air from the hot aisle and supply cold air in the cold aisle, promoting top-to-bottom temperature uniformity. In addition, the growth of the row-based cooling solutions segment is driven by growing investments in data centers in India. For instance, in April 2020, Google announced a plan to invest USD400 million in a cable connecting India and Italy via Israel. Therefore, the growing number of data centers is expected to drive the growth of this segment market during the forecast period.
Based on product, the market has been segmented into crac units and crah units. The crac units segment will account for the largest share of this segment.? CRAC units are a fundamental component of data center cooling infrastructure, playing a pivotal role in maintaining the optimal operating conditions for IT equipment. Moreover, with the proliferation of cloud computing, edge computing, and the increasing reliance on data-intensive applications, the need for precision cooling solutions is likely to grow. Data center operators will continue to invest in CRAC units to maintain the high availability and reliability of their IT infrastructure, thereby driving the growth of the market in focus in this segment during the forecast period.
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APAC is estimated to contribute 39% to the growth by 2028. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. The data center precision air conditioning (AC) market in North America is expected to witness a moderate growth rate, owing to the switching of enterprises from hardware-based services to software-based services and the increasing establishment of data centers in the region. Precision air conditioning systems will be adopted by data centers under construction and those that will be renovated. Many data center operators in the US have identified the benefits of precision air conditioners through their use in their facilities. In the US, the total data center energy consumption accounts for around 1.5%-2% of the nationwide electricity consumption.
Therefore, there is a high demand for energy-efficient cooling solutions. Such factors are expected to increase the need for effective data management and investments in new data center facilities, which are expected to drive the demand for precision air conditioning systems in the region during the forecast period.
The outbreak of COVID-19 in 2020 propelled the market growth of cloud data centers in North America. Furthermore, in 2021, enterprises and companies picked up their pace due to the availability of COVID-19 vaccines and large-scale vaccination drives by the governments of several countries, such as the US, Canada, and Mexico. Moreover, companies realized the need for cloud-based solutions, as retail companies, enterprises, and consumers in this region are shifting toward using cloud-based software solutions which. In addition, the rise in digitalization and innovations in the manufacturing sector are fueling the data center precision air conditioning (AC) market demand in the region. Therefore, the data center precision air conditioning market in the North American region is expected to witness a high growth rate during the forecast period.
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.
AAON Inc - The company offers data center precision air conditioning solutions such as SB Series, SA Series, and M2 Series.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
AAON Inc., Aermec S.p.A., Airedale Air Conditioning Ltd., Black Box Ltd., CONTEG spol sro, CSPM SDN BHD, Daikin Industries Ltd., Delta Electronics Inc., Eaton Corp. Plc, Hidem Group, Huawei Technologies Co. Ltd., Kaltra GmbH, Lennox International Inc., Midea Group Co. Ltd., Mitsubishi Electric Corp., Rittal GmbH and Co. KG, Schneider Electric SE, Shenzhen Kstar Science and Technology Co. Ltd., STULZ GmbH, and Vertiv Holdings Co.
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The data center precision air conditioning market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
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Data Center Precision Air Conditioning Market Scope |
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Report Coverage |
Details |
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Page number |
171 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 9.75% |
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Market Growth 2024-2028 |
USD 1,413.97 million |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
9.34 |
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Regional analysis |
North America, APAC, Europe, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 39% |
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Key countries |
US, China, Australia, UK, and Germany |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
AAON Inc., Aermec S.p.A., Airedale Air Conditioning Ltd., Black Box Ltd., CONTEG spol sro, CSPM SDN BHD, Daikin Industries Ltd., Delta Electronics Inc., Eaton Corp. Plc, Hidem Group, Huawei Technologies Co. Ltd., Kaltra GmbH, Lennox International Inc., Midea Group Co. Ltd., Mitsubishi Electric Corp., Rittal GmbH and Co. KG, Schneider Electric SE, Shenzhen Kstar Science and Technology Co. Ltd., STULZ GmbH, and Vertiv Holdings Co. |
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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, Market condition analysis for the forecast period. |
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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. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Deployment
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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