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2021

Data Center Cooling Market

Data Center Cooling Market Size, Share, Competitive Landscape and Trend Analysis Report by Component (Solution and Service), Type of Cooling (Room-Based Cooling, Rack-Based Cooling, and Row-Based Cooling), Type of Data Center (Enterprise Data Center, Colocation Data Center, Wholesale Data Center, Hyperscale Data Center, and Others), and Industry Vertical (BFSI, Manufacturing, IT & Telecom, Media & Entertainment, Retail, Government & Defense, Healthcare, Energy, and Others): Global Opportunity Analysis and Industry Forecast, 2020-2027

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Author's: Vishwa Gaul | Vineet Kumar
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Data Center Cooling Market Statistics: 2027

The global data center cooling market size was valued at $10,541.8 million in 2019, and is projected to reach $27,308.7 million by 2027, growing at a CAGR of 12.8% from 2020 to 2027. Data center cooling is rapidly adopted by data center operators, owing to its eco-friendly, energy-efficient, and cost-effective nature. Number of data centers are increasing due to increase in use of 4G LTE networks. Therefore, with increase in number of data centers, there is a growth in demand for data center cooling solutions to reduce overall IT cost for data centers.

Data center operators use cooling solutions to maintain temperature in data centers within a permissible limit. Data centers are required to work efficiently 24/7 to process huge chunks of data. In data processing, equipment dissipates heat energy, which generates the need for cooling to prevent equipment from damage due to overheating. Basically, there are two types of cooling systems, air-based or water-based. Through air-based cooling, air is circulated in data centers to maintain temperature. On the other hand, water-based cooling is further bifurcated into immersion cooling and water-cooled racks where liquid coolants flow across hot components to maintain temperature.

Data-Center-Cooling-Market,-2020-2027

By component, the solution segment dominated the data center cooling market in 2019, and is expected to continue its dominance in coming years, owing to increase in number of energy-efficient cooling solutions. Air conditioners under the solution sub-segment had the largest data center cooling market share, owing to its energy-efficiency and cost-effectiveness. Therefore, with increase in number of data centers and higher density in data centers, there is a need for efficient cooling. Air conditioners with the help of air ducts circulate air in high-density racks to maintain temperature within permissible limit. However, services in the component segment witnessed highest CAGR in the market, owing to increase in number of service providers for installation & deployment, support & maintenance, and consulting for data center cooling solutions. Data center cooling solutions are required to be installed properly as leakages in cooling could lead to damage of equipment. 

By type of cooling, the room-based cooling segment had the largest market share, owing to effective cooling at less cost. Room-based cooling is anticipated to maintain large market share, owing to least use of pipes and ducts compared to other cooling types. Air-conditioners and other air-based cooling circulate air in data centers to maintain temperature within permissible limit. Room-based cooling is gaining ground due to its energy-efficient cooling.

Data Center Cooling Market
By Component
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Data center cooling Solution segment is projected as one of the most lucrative segments during the forecast period.

North America dominated the overall data center cooling market size in 2019, owing to technological advancements and recent developments pertaining to the market. Moreover, companies in this region are focusing more on implementation of cost-effective and environment-friendly cooling solutions, which in turn fuels the market growth. However, Asia-Pacific is expected to witness highest growth rate during the data center cooling market forecast period, owing to increase in number of smartphones and rise in internet penetration in the region.

Data Center Cooling Market
By Type Of Cooling
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Room based Cooling segment accounted for the highest market share in 2019.

The report focuses on growth prospects, restraints, and global data center cooling market trends. Moreover, the study includes Porter’s five forces analysis of the industry to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the growth of the given market.

Segment Review

The global data center cooling market is segmented on the basis of component, type of cooling, type of data centers, industry verticals, and regions. In terms of component, the market is bifurcated into solution and service. By type of cooling, it is classified into room-based cooling, rack-based cooling, and row-based cooling. By type of data centers, it is classified into enterprise data centers, colocation data centers, wholesale data centers, and hyperscale data centers. In terms of industry vertical, it is classified into BFSI, manufacturing, IT & telecom, media & entertainment, retail, government & defense, healthcare, energy, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Data Center Cooling Market
By Type Of Data Center
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Enterprise Data Center segment accounted for the highest share in 2019.

The key players operating in the global data center cooling market analysis Schneider Electric Se; Black Box Corporation; Nortek Air Solutions, LLC; Airedale International Air Conditioning Ltd; Hitachi, Ltd.; Rittal Gmbh & Co. Kg; Fujitsu Ltd.; Stulz Gmbh; Vertiv; and Asetek.

Top Impacting Factors

Increase in the demand for efficient and cost-effective data centers, green initiatives for eco-friendly data center solutions, and substantial growth of data centers and power density drive the data center cooling market growth. However, requirement of specialized infrastructure and higher investment costs and cooling challenges during power outage are expected to hamper the market growth during the forecast period. Furthermore, emergence of liquid-based cooling and portable cooling technologies and growth in requirement for modular data center cooling approach are anticipated to provide lucrative opportunities for the market growth.

Data Center Cooling Market
By Indsutry Vertical
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IT and Telecom segment led the data center cooling market in 2019.

Increase in Demand for Efficient and Cost-effective Data Centers

Presently, enterprises are trimming down their IT expenses to maximize their profit. In addition, number of data centers is rapidly increasing, which has offered enterprises a wide range of data centers to choose from. Data center operators are reducing their price range for hiring enterprises to sustain in the competitive data center cooling market. In the competitive scenario, data centers work 24/7 and generate immense heat, which can cause data loss or breakdown of these centers. Cooling solutions maintain the temperature inside data centers within permissible limits and help them to work without interruption. Energy efficiency of these cooling systems drives adoption of advanced cooling systems among data centers as they use less power makes them cost-effective. Moreover, these cooling systems prevent damage of equipment in data centers reducing the maintenance cost. Hence, advanced cooling systems in data centers drive the market growth, owing to growth in demand for cost-effective data centers 

Green Initiatives for Eco-friendly Data Center Solutions

Climate change and decline in air quality index in many important cities across the globe has led governments of various nations to impose stringent environment regulations for data center solutions. Green initiatives by government bodies is a key growth factor that drives the global data center cooling market. Furthermore, traditional cooling systems emit polluted air into the environment, which is hazardous, whereas advanced cooling systems release less carbon footprint, which makes them more environment friendly. In addition, advanced cooling systems use less water for cooling as compared to traditional cooling systems. Moreover, these solutions are also adapting modular glasses and steel climate-controlled boxes and are run by geothermal power, which results in reduced carbon footprints to the environment.

Data Center Cooling Market
By Region
2027
North America 
Europe
Asia-Pacific
LAMEA

Asia-Pacific would exhibit the highest CAGR of 16.9% during 2020-2027.

Key Benefits for Stakeholders

  • This study includes the analytical depiction of the global market forecast and trends to determine the imminent investment pockets.
  • The report presents information related to key drivers, restraints, and Data center cooling market opportunity.
  • The current market size is quantitatively analyzed from 2019 to 2027 to highlight the financial competency of the data center cooling industry.
  • Porter’s five forces analysis illustrates the potency of buyers & suppliers in the data center cooling market.

Data Center Cooling Market Report Highlights

Aspects Details
Data Center Cooling Market By Component
By Component
  • Solution
    • Air conditioners
    • Air handling unit
    • Chiller
    • Cooling towers
    • Pumps
    • Others
  • Services
    • Installation & deployment
    • Support & Maintenance
    • Consulting
Data Center Cooling Market By Type
By Type
  • Room-Based Cooling
  • Rack-Based Cooling
  • Row-Based Cooling
Data Center Cooling Market By Type
By Type
  • Enterprise Data Centers
  • Colocation Data Centers
  • Wholesale Data Centers
  • Hyperscale Data Centers
  • Others
Data Center Cooling Market By Industry Vertical
By Industry Vertical
  • BFSI
  • Manufacturing
  • IT & Telecom
  • MEDIA & ENTERTAINMENT
  • GOVERNMENT & DEFENSE
  • HEALTHCARE
  • Energy
  • Others
Data Center Cooling Market By Region
By Region
  • North America  (U.S., Canada)
  • Europe  (UK, Germany, France, Russia, Rest of Europe)
  • Asia-Pacific  (China, India, Japan, Australia, Rest of Asia-Pacific)
  • LAMEA  (Latin America, Middle East, Africa)
Key Market Players
Key Market Players

ASETEK, INC., HITACHI, LTD., VERTIV GROUP CORP., NORTEK AIR SOLUTIONS, AIREDALE INTERNATIONAL AIR CONDITIONING LTD., SCHNEIDER ELECTRIC, STULZ GMBH, FUJITSU, BLACK BOX CORPORATION, RITTAL GMBH & CO. KG

Analyst Review

Increase in green initiatives and stringent environment regulations from governments have led data center operators to adopt cooling systems that emit least carbon foot prints, thereby driving growth of the global market. Moreover, data center cooling system manufacturers are introducing innovative products that use less water while cooling.

For instance, in June 2018, Microsoft announced an eco-friendly data center that has been lowered into sea water near Orkney Island, Scotland, as a part of Phase 2 of Project Natick, which is expected to check feasibility of systems on the seabed. Moreover, data center operators are also focusing on use of renewable Source of energy such as geo-thermal energy to make data center cooling systems energy efficient and eco-friendly. Furthermore, data center operators are focused to provide modular cooling and portable cooling to data centers present in mild temperature at reasonable pricing. With rise in number of data centers, the market is getting competitive.

Moreover, demand for data center cooling solutions is continuously on the rise in Asia-Pacific as well as Europe, which is expected to provide lucrative opportunities for the market expansion during the forecast period. Increase in use of cooling systems with reduced water consumption creates new revenue opportunities for leading vendors operating in Asia-Pacific. In addition, success of research projects such as tropical climate datacenters and underwater facilities is expected to drive the market growth in the next few years. Furthermore, the data center cooling market in Asia-Pacific is driven by growth in need for innovative and energy-efficient cooling infrastructure solutions.

Moreover, in Europe a number of companies are majorly focused on reducing costs associated with data center operations, which propels the need for efficient data center cooling solutions. In addition, in Europe, demand for new data centers is continuously on the rise, which is opportunistic for the market growth. For instance, in 2018, Apple, Inc. announced that it would spend around $1.9 billion to build two data centers in Europe that would be entirely powered by renewable energy. The company has declared that data centers in Denmark and Ireland would power Apple's online services, including the App Store, iTunes Store, Maps, iMessage, and Siri for customers across Europe.

The global data center cooling market is highly competitive, owing to strong presence of existing vendors. Data center cooling system vendors who have access to extensive technical and financial resource are anticipated to gain a competitive edge over their rivals, as they have the capacity to cater to global market requirements. Competitive environment in this market is expected to further intensify with increase in technological innovations, product extensions, and different strategies adopted by key vendors.

Author Name(s) : Vishwa Gaul | Vineet Kumar

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Data Center Cooling Market

Global Opportunity Analysis and Industry Forecast, 2020-2027