Data Center Cooling Market Size, Share & Trends Analysis Report By Product (Air Conditioners, Chillers), By Application (Telecom, IT, Retail), By Containment, By Structure, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global data center cooling market size was USD 15,737.8 million in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 17.1% from 2023 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 service providers in the industry are planning expansions in the near future to meet the growing demand. Furthermore, the hyper-scale data center industry is also gaining traction.

The proliferation of cloud services, the growing prominence of big data, and the increased 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.

The increased spending in IT infrastructure due to the pandemic is creating avenues for the expansion of existing as well as new data center facilities globally. Moreover, software-based data centers are also contributing to market growth by providing an improved level of automation. A shift toward digital transformation amidst the pandemic further instigated the need for building data center facilities that offer scalability, security, and flexibility. Therefore, as investments in new data center facilities witness an uptick, the demand for the data center cooling industry witnesses a favorable outlook.

However, the need for specialized infrastructure and high investment costs for arranging and maintaining these data center solutions are anticipated to impede the data center cooling industry growth. Furthermore, cooling issues during power outages and reduced carbon emissions are anticipated to pose challenges to the data center cooling industry over the forecast period.

COVID-19 had a notable impact on the data center cooling industry. The lack of employees and limited investment costs hampered data center cooling technology production and sales. Moreover, the major market participants and government adopted new safety measures to develop and enhance the practices. As technology advanced, the data center cooling industry's sales rate increased because it targeted the right audience.

Moreover, data centers 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 data center investments in these verticals. However, data centers dissipate a high amount of heat and hence require cooling solutions to keep the system working without any outages. Therefore, data center cooling solutions are of paramount importance to any data center facility.

Product Insights

The air conditioners segment held the largest market share in 2022, capturing over 30% of the overall revenue. Air conditioners are a popular choice among most end-users since they meet the demand for 24-hour protection while lowering energy costs. During storage and analysis of data for effective decision-making, heavily packed racks generate a large amount of heat. As such, air conditioners enable businesses 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% over 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.

Containment Insights

The containment segment has been segregated into the raised floor with containment and raised floor without containment. The raised floor with containment segment has further been segregated into Hot Aisle Containment (HAC) and Cold Aisle Containment (CAC). The segment captured a sizeable share of over 50% in 2022 owing to the increased adoption of hot and cold aisle containment methods. 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.

The hot aisle containment reduces the mixing of air particles, ensures higher electrical cost savings, and increases economizer hours. Furthermore, 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 2022.

Application Insights

IT & telecom, retail, healthcare, BFSI, and energy are the key sectors with massive data center requirements. In 2022, the demand for data center cooling solutions in IT & telecom witnessed massive growth which is attributed to the pandemic. As the world moved toward the adoption of remote working culture, the demand for IT infrastructure witnessed a surge, creating avenues for new cooling solutions.

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

The telecom segment captured the largest market share and is anticipated to grow at a CAGR of nearly 18.5% over the forecast period. The expanding IT & telecommunication industries across the globe are also expected to fuel the demand for the data center cooling industry. Additionally, emerging telecommunication infrastructures require equivalent data storage facilities to manage a large number of data sets, which is expected to propel the demand for data center cooling solutions.

Structure Insights

Rack, row, and room-based cooling are the major cooling types by structure. Of the three, room-based cooling captured a significant share in 2022 and the segment is expected to grow at a CAGR exceeding 15.0% from 2023 to 2030. The room-based cooling technique has become a widely used technique, resulting in a higher market share. The method is popular as it maintains adequate temperature by continuously mixing hot & cold air, ensuring the prevention of hot spots.

Row-based cooling closely followed the room-based cooling technique with the market size surpassing USD 4,654.5 million in 2022. Row-based cooling is an effective technique to meet the shortcomings of the 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 over the forecast period.

Regional Insights

In 2022, North America led the global demand for data center cooling solutions and is projected to grow at an estimated CAGR exceeding 12.7%. The region promises to undergo matured adoption of new technology-based solutions with the prevalence of technology giants including Facebook, Amazon Inc., and Google Inc. 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 industry.

The Asia Pacific data center cooling market 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 20% of the overall data center cooling revenue in 2022.

Key Companies & Market Share Insights

The data center cooling industry is characterized by intense competition with the prevalence of global giants such as Asetek, Inc., Coolcentric, NTT Limited, Schneider Electric, Air Enterprises, and Fujitsu, among others. Focus on product quality while offering energy-efficient solutions is a key trend governing new strategies. mergers & acquisitons, and collaborations continue to accelerate with a huge investment appetite in the data center industry. Therefore, the need for cooling solutions has become even more imperative.

For instance, in August 2022, OneAsia Network Limited announced a launch of an immersion cooling solution for a data center in Hong Kong. This new solution effectively decreases the energy consumption of the data center and delivers reliable performance. This solution is an innovative shift for heavy energy-consuming companies toward future greenery by adopting sustainable technologies, innovative, and practices. Some prominent players in the global data center cooling market include:

• Air Enterprises

• Asetek, Inc.

• Climaveneta

• Coolcentric

• Fujitsu

• NTT Limited

• Schneider Electric

• STULZ GMBH

• Rittal GmBH & Co. KG

• Hitachi, Ltd.

• Telx Inc

• Vertiv Group Corp.

Data Center Cooling Market Report Scope

Global Data Center Cooling Market Segmentation

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

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

  • Air Conditioners

  • Precision Air Conditioners

  • Chillers

  • Air Handling Units

  • Others

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

  • Telecom

  • IT

  • Retail

  • Healthcare

  • BFSI

  • Energy

  • Others

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

  • Raised Floor with Containment

    • Hot Aisle Containment (HAC)

    • Cold Aisle Containment (CAC)

  • Raised Floor without Containment

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

  • Rack-Based Cooling

  • Row-Based Cooling

  • Room-Based Cooling

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

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • Nordic Countries

    • Rest of Europe

  • Asia Pacific

    • India

    • China

    • Japan

    • Southeast Asia

    • Rest of Asia Pacific

  • Latin America

    • Brazil

    • Mexico

    • Rest of Latin America

  • Middle East & Africa (MEA)