The global data center cooling market size in 2014 was valued at USD 2.40 billion, and is expected to reach USD 5.77 billion by 2022. The growth may be attributed to a surge in number of data intensive organizations across the globe. Development in IT sector has led to innovative cooling technologies; rise in number of enterprises shifting to cloud computing is also expected to drive demand over the forecast period.
Need to achieve energy efficiency is anticipated to fuel growth over the next seven years. Rising cost of electricity in several countries such as the U.S., UK, and India is also estimated to impel demand in order to achieve cost efficiency. Stringent regulations pertaining to energy usage, primarily in European region may further spur growth over the forecast period. Increasing need to solve issues related to carbon footprint and sustainability has led companies to switch to more eco-friendly solutions.
The need for efficient cooling is of paramount importance in order to ensure proper server functioning and eliminate system downtime. High data volumes combined with rise in number of enterprises moving towards cloud computing is expected to drive the data center cooling market over the forecast period. Technological advancements and the development of energy cooling systems are on rise as traditional systems incur high operational cost owing to increased power consumption.
North America data center cooling market by application, 2012 – 2022 (USD Million)
Precision air conditioners are expected to witness high industry penetration over the forecast period. Organizations today face several challenges pertaining to high set-up cost associated with cooling solutions owing to which precision air conditioners are preferred, since they are highly cost efficient.
Precision air handling units are also estimated to witness moderate growth over the next seven years. However, high cost of installation associated with these units may negatively impact demand.
Chillers are primarily used to remove heat from electronic circuits and transferring it to the outside heat absorbing materials. However, the industry is slowly shifting to chiller-less design owing to growing concern over sustainable development. Air conditioners are mainly used in large rooms with high number of servers installed. They are not highly preferred components as they consume a significant amount of energy.
Managed services refer to facility management services provided by third party providers. These services primarily include hardware and software installations in data center facilities. In 2014, the segment accounted for over 60% of the overall revenue share.
OEM service providers deal in the manufacturing process, as well as provide maintenance and installation services to their customers.
Key solutions are extensively used in large enterprises owing to the large amount of data required to be managed in such organizations. Rise in the number of small and medium enterprises is expected to be a key factor fueling growth. Growing number of technology intensive startups may further fuel industry growth over the next seven years.
Telecom & IT is expected to contribute substantially to the data center cooling market share over the forecast period. This can be attributed to increasing number of external IT infrastructure service providers who manage business critical information and applications. Smartphone proliferation has also impacted the IT industry, with the proliferation of the BYOD phenomenon.
Growing need to manage and secure critical information and transactions in the BFSI sector is also expected to contribute towards growth. The healthcare sector is also expected to be a major contributor owing to the need to maintain patients’ medical history and related information.
North America accounted for considerable revenue share in 2014 owing to technological advancements and the matured IT sector. Increasing number of technology intensive startups in North America may also offer avenues for industry growth over the next few years. Proliferation of third party service providers in Asia Pacific is also estimated to surge regional demand over the next few years.
Competitive Market Share Insights
Key players in this industry focus on outsourcing data storage needs in order to capitalize the low-cost solution and services. Several prominent companies focus on providing the products to third party data management service providers and colocation centers in order to a establish strong global foothold. Key companies dominating the data center cooling market include Emerson, IBM, HP, Schneider Electric, Hitachi Ltd, and Fujitsu.
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