The global data center cooling market size was valued at USD 6,104.4 million in 2015 and is expected to reach USD 17,780.1 million by 2024, at a CAGR exceeding 11% from 2016 to 2024. The exponential growth of structured and unstructured data paired with the elevating demand for cloud computing is expected to drive the global market growth over the forecast period.
The challenges governing the increased data center density have elevated the importance of using an excellent cooling technology. The rise in computing capabilities has resulted in the increased power densities, thereby driving the need for efficient and effective cooling solutions. These solutions ensure a favorable ambient environment along with the proper functioning of the IT systems.
The rise in the number of data exhaustive organizations coupled with the need to manage big data has led to the development of advanced cooling solutions. Additionally, a surge in the number of organizations shifting towards cloud computing is also projected to spur the product demand over the next eight years.
Cooling systems consume over 30% of the electricity used by the data centers and is anticipated to act as a challenge to the industry growth. Therefore, equipment manufacturers seek ways to meet the customer demand for a sustainable growth. Server manufacturers take advantage of energy-efficient components such as fans, processors, and power supplies, for example, variable speed fans to meet this challenge.
North America data center cooling market by application, 2013 - 2024 (USD Million)
The need for efficient cooling is of paramount importance to ensure proper server functioning and eliminate the system downtime. High data volumes combined with arise in the number of enterprises moving towards cloud computing are expected to drive the cooling industry over the forecast period. Technological advancements and the development of energy cooling systems are on the rise as traditional cooling systems incur high operational cost owing to the increased power consumption.
The air conditioner segment emerged as a dominant product segment in the global data center cooling industry and accounted for over 30.0% of the overall revenue in 2015. Essential benefits, such as monitoring and maintaining the temperature, humidity, and air distribution offered by air conditioners, are the primary factors expected to fuel this segment. Features, such as ease of installation, minimal investment, low maintenance, are also the key factors that impact the growth of the air conditioners segment.
The rising number of smartphone and tablet users worldwide is anticipated to elevate the demand for data center cooling equipment over the next few years. Reliability, energy consumption, and maintenance are critical in the telecommunication facilities as thermal loads inside a telecom installation and electronic enclosure must be managed The telecom sector emerged as the largest segment in the global market and was valued at over USD 1,300 million in 2015. The developing telecommunication infrastructure requires similar data storage facilities to manage an enormous amount of data resulting in the development of new data centers, which is anticipated to catapult the demand for cooling solutions.
The North America market was valued at over USD 2.0 billion in 2015. The region accounted for a significant revenue share in 2015 owing to technological developments and the matured IT sector. A surge in the number of technology concentrated startups in North America offers avenues for the market growth. However, the region is anticipated to witness a moderate growth in comparison to the other regions. The Canadian data center cooling industry is alluring to the North American customers due to the data privacy protection and low power cost.
Competitive Market Share Insights
The data center cooling industry is moderately consolidated in nature with top six players accounting for 50% of the overall market share in the year 2015. Emerson Network power captured a sizeable market share in the 2015 market.
The company has an extensive product portfolio along with a strong regional presence, particularly in North America. The company also exhibits an adequate presence in other parts of the world by offering quality products with easy availability and after sales service. The other key players in the industry include Schneider Electric, Rittal GmbH & Co. KG, Air Enterprises, Climaveneta (Mitsubishi Electric), Asetek, and KyotoCooling.
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