Data Center Cooling Market Size, Share & Trends Analysis Report By Product, By Application, By Containment, By Structure, By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global data center cooling market size was valued at USD 13.28 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 17.2% from 2022 to 2030. 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.

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.

Product Insights

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. While analyzing and storing data for effective decision-making, densely packed racks generate a large amount of heat.

As such, air conditioners enable organizations to maintain an adequate temperature level and ensure the proper functioning of data centers. Additionally, air conditioners are heat exchangers that maintain the required level of room temperature in a sensitive IT environment.

Meanwhile, 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. Additionally, these air conditioners offer benefits such as continuous operation, precise humidity control, demonstration of better air distribution, and automatic control of individual AC loads for efficient cooling.

Application Insights

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. The expanding IT & telecommunication industries across the globe is also expected to fuel the demand for datacenter cooling market. Additionally, the emerging telecommunication infrastructures require equivalent data storage facilities to manage large amounts of data, which is expected to propel the demand for data center cooling solutions.

IT & telecom, retail, healthcare, BFSI, energy are the key sectors with massive datacenter requirements. As such in 2021, the demand for datacenter cooling solutions in IT & telecom witnessed a massive growth which is attributed to the pandemic. As the world moved towards adopting the newly minted WFH mode, the demand of IT infrastructure witnessed a surge, creating avenues for new cooling solutions.

The retail segment is estimated to grow at a CAGR exceeding 15.0% during the forecast period. This can be attributed to the extensive use of Image Processing Verification Tools (IPVT), smartphones, social media, and tablet computers, which has, in turn, led to the increasing volume of data, thereby increasing the demand for data center cooling solutions.

Containment Insights

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. This segment has further been segregated into Hot Aisle Containment (HAC) and Cold Aisle Containment (CAC). 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.

Hot aisle containment reduces the mixing of air, ensures higher electrical cost savings, and increased economizer hours. Implementing cold aisle containment in an existing raised floor data center is efficient, easy to retrofit into the existing raised floor data centers, and cost-effective. Owing to these features, cold aisle containment held the largest market share in 2021. Overall, the containment segment has been segregated into raised floor with containment and raised floor without containment.

Structure Insights

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. The room-based cooling technique has been the widely used technique over the years, resulting in its higher market share. The method is popular as it maintains adequate temperature by continuously mixing hot & cold air, thus ensuring prevention of hot spots. Rack, row and room-based cooling are the major cooling types by structure.

Row based cooling closely followed the room-based cooling technique with the market size surpassing USD 3 billion in 2021. Row-based cooling is an effective technique to meet the shortcomings of room-based cooling approach, which is proven to be less effective in case of heat generated by high and variable density IT equipment. Further, the room-based cooling approach for high density IT equipment results in unpredictable and inefficient cooling. As a result, both these cooling techniques are anticipated to gain traction during the forecast period.

Regional Insights

In 2021, North America led the worldwide demand for datacenter cooling solutions and is projected to grow at an estimated CAGR exceeding 13%. The region has reached maturity years in terms of new technology-based solutions, owing to the prevalence of giants including Facebook, Amazon Inc., and Google Inc., among others. The region has a considerable number of data centers marked by the presence of several IT companies, creating avenues for the data center cooling solutions market.

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. This may be attributed to the increasing number of service providers for external IT infrastructure services who operate and manage critical business information and applications. The region was closely followed by Europe, which captured over 22% of the overall datacenter cooling revenue share in 2021.

Key Companies & Market Share Insights

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. M&A and collaborations continue to accelerate with huge investment appetite in the data center industry. Therefore, the need for cooling solutions has become even more imperative.

In 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. The shipping container-sized data center prototype happens to be a self-contained server room sitting on a rock shelf, 117 feet below the water surface, and has been deployed to test the cooling efficiency and internet connectivity.

The project, which was carried out jointly by the company and incumbents of the marine industry, is also aimed at developing an underwater data center that can deliver cloud services to coastal cities. Some of the prominent players in the global data center cooling market include:

• Asetek

• Coolcentric

• Netmagic Solutions

• Schneider Electric

• Air Enterprises

• Fujitsu Limited

• Climaveneta Climate Technologies (P) Ltd.

Data Center Cooling Market Report Scope

Segments Covered in the Report 

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global data center cooling market report based on product, application, containment, structure, and region:

• Data Center Cooling Product Outlook (Revenue, USD Million, 2018 - 2030)

  • Air Conditioners

  • Precision Air Conditioners

  • Chillers

  • Air Handling Units

  • Others

• Data Center Cooling Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Telecom

  • IT

  • Retail

  • Healthcare

  • BFSI

  • Energy

  • Others

• Data Center Cooling Containment Outlook (Revenue, USD Million, 2018 - 2030)

  • Raised Floor With Containment

    • Hot Aisle Containment (HAC)

    • Cold Aisle Containment (CAC)

  • Raised Floor Without Containment

• Data Center Cooling Structure Outlook (Revenue, USD Million, 2018 - 2030)

  • Rack-based Cooling

  • Row-based Cooling

  • Room-based Cooling

• Data Center Cooling Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • Nordic Countries

  • Asia Pacific

    • China

    • India

    • Japan

    • South East Asia

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa