The global data center cooling market size was valued at USD 6.10 billion in 2015 and is expected to reach USD 17.78 billion by 2024, at a CAGR exceeding 11.0% from 2016 to 2024. The rapid growth of structured, as well as unstructured data along with the increasing demand for cloud computing, is expected to propel the global data center cooling market growth over the forecast.
Data center cooling solution is used to maintain environmental conditions ideal for information technology equipment (ITE) operation. This technology removes the heat produced by the ITE and transfers that heat to heat sink. Thus, in the absence of a suitable cooling system, data centers cannot function efficiently and may lead to system failure. Therefore, a rise in the number of data centers is estimated to impel the growth of the data center cooling market over the forecast period.
Furthermore, the growth in computing capabilities has led to increased power densities in data centers, thus increasing the need for efficient and effective data center cooling solutions. These solutions ensure an ambient environment in data centers along with the proper functioning of the IT systems. Moreover, the large amount of data traffic and the emergence of big data has further increased importance of secure data centers, in turn escalating the demand for data center cooling solutions.
Data center cooling accounts for 30% to 50% of the total energy consumption, this is the area where the companies can make substantial improvements in cost control. Thus, owing to the increased demand for environment friendly and cost-effective cooling solutions, manufacturers in the data center cooling industry strive to manufacture sustainable and profitable cooling technologies. For instance, KyotoCooling took the operating principle of the thermal wheel, which has been used for years to heat buildings, and exactly reversed it for use in data centers.
The ‘cold wheel’, which has been patented by KyotoCooling, is the basis for an efficient air-to-air heat exchanger. The system can save up to 80% of the energy used to cool data centers. Therefore, rising demand for environment friendly and cost-effective cooling solutions is expected to propel the market growth for data center cooling.
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. Air conditioners provides numerous advantages such as ease of installation, minimal investment, and low maintenance. These can be installed in existing server rooms without any problem, due to which the segment captured considerable market share over the last few years. However, air conditioners demanded regular maintenance, which resulted in a loss of market share over the forecast period.
On the other hand, precision air conditioners segment is estimated to grow at a CAGR exceeding 10.0% over the next eight years which can be accredited to the cost-effective nature of these products. These air conditioners are designed to handle greater levels of sensible heat and showcase improved air distribution. These maintain temperature and humidity within a very narrow range, which provides the environmental stability required by sensitive electronic equipment, allowing business to avoid expensive downtime. Thus, demand for such systems is on a rise and is now becoming one of the major factors for deployment of data center cooling systems. Furthermore, chillers and air handling units’ segment is also anticipated to grow at a substantial rate over the forecast period.
The telecom industry captured the largest market share and is also expected to grow at the fastest rate over the forecast period. The emerging telecommunication infrastructure requires equivalent data storage facilities to manage the huge amount of data resulting in development of new data centers, which in turn in expected to propel the market growth of data center cooling solutions.
Furthermore, the demand for data center cooling solution in the BFSI industry is expected to grow at a CAGR exceeding 10.0% over the forecast period, this growth is ascribed to the rising need to handle and safeguard critical user information & transactions in the banking and financial sector. Furthermore, the rise in a number of colocation IT service providers owing to mounting data generation coupled with the proliferation of the BYOD phenomenon are the key factors propelling the market growth of data center cooling solution in the IT Industry.
North America emerged as a market leader and accounted for approximately 40% of the total market share in 2015. The region is expected to grow at CAGR of over 9.0%, this growth is ascribed to the presence of high number of colocation facilities and data center service providers. More than 1600 data centers are present in North America. However, the U.S. market is expected to witness sluggish growth in comparison to the other regions owing to the relocation of data center facilities to other regions such as Canada and the Nordic countries.
Asia Pacific market is expected to grow at the fastest CAGR exceeding 15.0% over the forecast period. The regional growth is primarily driven by healthy demand from the South East Asian countries. This is because another significant growth is afoot for data centers in the South Asia region, wherein Singapore still remains to be the epicenter of cloud computing. Furthermore, the rising number of telecom subscribers using smartphones are also a key factor anticipated to elevate demand for data center cooling solution in the region. Furthermore, Latin America and Middle East & Africa are also projected to grow at a substantial rate over the forecast period.
The data center cooling market is characterized by severe competition with the presence of numerous major global players and other small vendors including Emerson Network Power, Schneider Electric, Rittal GmbH & Co. KG, Air Enterprises, Climaveneta (Mitsubishi Electric), Asetek, and KyotoCooling, among others held a major market share in 2015. Companies invest huge amounts in R&D activities to develop advanced energy-efficient data center cooling solutions so as to maintain a strong foothold in the industry.
Key players adopt various inorganic growth strategies including mergers & acquisitions and joint ventures to withstand competition. Furthermore, efficient adaptation to ever-evolving customer needs is another key strategy adopted to sustain competition.
This report forecasts revenue growth at global, regional, and country levels and provides an analysis on latest industry trends in each of the sub-segments from 2013 to 2024. For the purpose of this study, Grand View Research has segmented the global data center cooling market report on the basis of product, application, and region:
Product Outlook (Revenue, USD Million, 2013 - 2024)
Precision air conditioners
Air handling units
Application Outlook (Revenue, USD Million, 2013 - 2024)
Telecom & IT
Regional Outlook (Revenue, USD Million, 2013 - 2024)
Middle East & Africa
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