Data Center Cooling Industry Overview
The global data center cooling market size was valued at USD 13.28 billion in 2021 and is expected to reach USD 56.15 billion by 2030, advancing at a CAGR of 17.2% over the forecast period. The growing demand for energy-efficient data centers along with planned future investments are expected to create avenues for future growth. Several managed, as well as cloud services providers in the industry, are planning future expansion plans to meet the growing demand. Furthermore, the hyperscale data center industry is also gaining traction.
The proliferation of cloud services, growing prominence of big data, and increase penetration of connected devices are encouraging organizations to increase their investments in building new data center facilities. All these factors are projected to favor the data center cooling demand over the next eight years. As such, the demand for cooling solutions is directly proportional to an increase in the number of data center facilities globally.
As of 2021, China was the largest data center market in Asia Pacific, experiencing double-digit growth over the last few years. Data centers are the heart of China’s IT industry growth. As such the Chinese market for data center cooling is expected to witness favorable growth during the forecast years.
Gather more insights about the market drivers, restrains and growth of the Global Data Center Cooling Market
Increasing IT infrastructure spending, and more so as a result of the pandemic, is creating avenues for expansion of existing as well as new data center facilities globally. As such, software-based data centers are also contributing to the market growth by providing an improved level of automation. A shift towards digital transformation amidst the pandemic has further instigated the need for building data center facilities that offer scalability, security, and flexibility. Therefore, as investments in new datacenter facilities witness an uptick, the demand for the datacenter cooling market is also expected to witness a favorable progress.
Datacenters are a hotspot of all critical IT infrastructure across several verticals, including manufacturing, BFSI, retail, healthcare, etc. The need to manage huge volumes of data while offering networking capabilities is the key reason driving datacenter investments in these verticals. However, datacenters dissipate high amount of heat and hence require cooling solutions to keep the system working without any outages. Therefore, datacenter cooling solutions are of paramount importance to any data center facility.
Data Center Cooling Market Segmentation
Based on the Product Insights, the market is segmented into Air Conditioners, Precision Air Conditioners, Chillers, Air Handling Units, and Others.
The air conditioners segment dominated the market in 2021, capturing more than 30% of the overall revenue share. Air conditioners are a popular choice among most end-users since they meet the demand for 24-hours protection, while keeping energy costs minimum.
The precision air conditioners segment is estimated to grow at a CAGR exceeding 18% during the forecast period. Technological advancements coupled with the development of energy-efficient units are expected to propel the demand for precision air conditioners.
Based on the Application Insights, the market is segmented into Telecom, IT, Retail, Healthcare, BFSI, Energy, and Others.
The telecom segment captured the largest market share and is expected to grow at a CAGR of close to 19.0% during the forecast period.
IT & telecom, retail, healthcare, BFSI, energy are the key sectors with massive datacenter requirements.
The retail segment is estimated to grow at a CAGR exceeding 15.0% during the forecast period.
Based on the Containment Insights, the market is segmented into Raised Floor with Containment, and Raised Floor without Containment.
The raised floor with containment segment captured a sizeable share of over 52% in 2021 in the global market, owing to the increased adoption of hot and cold aisle containment methods.
The hot aisle containment segment is expected to grow at the highest CAGR exceeding 15% owing to the presence of an enhanced return airflow management option.
Based on the Structure Insights, the market is segmented into Rack-based, Row-based, and Room-based Cooling,
The room-based cooling segment captured a significant share in 2021 and is expected to grow at a CAGR exceeding 15% from 2022 to 2030.
Row based cooling closely followed the room-based cooling technique with the market size surpassing USD 3 billion in 2021.
The room-based cooling approach for high density IT equipment results in unpredictable and inefficient cooling.
Based on the Data Center Cooling Regional Insights, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
In 2021, North America led the worldwide demand for datacenter cooling solutions and is projected to grow at an estimated CAGR exceeding 13%.
The Asia Pacific market for data center cooling is projected to gain prominence over the forecast period, as the applications of data center cooling are expected to increase in the telecom segment.
The region was closely followed by Europe, which captured over 22% of the overall datacenter cooling revenue share in 2021.
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Data Center Power Market – The global data center power market size was valued at USD 7.64 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 7.9% from 2022 to 2030. Increasing the need to store data on the cloud has resulted in an upsurge in the number of data centers across the globe. These data centers consume a huge amount of energy.
Data Center Substation Market – The global data center substation market size was valued at USD 9.02 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 5.6% from 2021 to 2030. The growing demand for interrupted and smooth transmission and distribution of electricity to power data center facilities is anticipated to drive the growth of the market over the forecast period.
Market Share Insights:
September 2020: Vertiv Holdings Co. launched Vertiv VRC-S, a rack integrated with infrastructure support equipment. The new product incorporates a rack power distribution unit (rPDU), monitoring sensors and software, and Vertiv VRC self-contained rack cooling system in an enclosed, standard-sized IT rack.
June 2018: Microsoft announced that an eco-friendly data center has been lowered into the sea waters near Orkney Island, Scotland, as part of Phase 2 of Project Natick, which envisages checking the feasibility of having data centers on the seabed.
Key Companies Profile:
The global market for data center cooling is characterized by intense competition with prevalence of global giants in this space. Focus on product quality while offering energy efficient solutions is a key trend governing new strategies.
Some of the prominent players in the global data center cooling market include:
Climaveneta Climate Technologies (P) Ltd.
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