Data Center Cooling Market Size, By Component (Solution {Air Conditioner, Chilling Unit, Cooling Tower, Control System, Economizer, Liquid Cooling System}, Service {Consulting, Maintenance & Support, Installation & Deployment}), By Cooling Technique (Rack/Row Based, Room Based), By Application (BFSI, Colocation, Energy, Government, Healthcare, Manufacturing, IT & Telecom), Industry Analysis Report, Regional Outlook (U.S., Canada, Mexico, UK, Germany, France, Spain, Russia, China, India, Japan, Singapore, Australia, Brazil, Colombia, Venezuela, Bolivia, Chile, Peru, Argentina, Saudi Arabia, UAE, South Africa), Application Potential, Competitive Market Share & Forecast, 2017 – 2024

Industry Trends

Data Center Cooling Market size valued at over USD 7.5 billion in 2016 and is anticipated to witness around 11% growth from 2017 to 2024.
 

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The need for intelligent and energy-efficient solutions are expected to drive the data center cooling market growth. Stringent environmental policies in several countries are compelling organizations to reduce their carbon footprint and deploy efficient & green cooling solutions. Efficient cooling systems ensure reduced operational costs by improving the data center performance, helps systems & processors from damage by removing excessive heat from the infrastructure, provides a balanced temperature, and controls the humidity level. Manufacturers offer innovative cooling techniques to help enterprises reduce energy and power consumption. For instance, Condair Group AG, a Swiss-based manufacturer of commercial & industrial humidification systems offers ME series evaporative humidifier, that operates on less than 0.3kW of electricity, enabling organizations to save energy cost and reduce environmental impacts.
 

The rise in adoption of cloud, big data, and IoT has led to the increase in data traffic generation in several organizations. It is anticipated that by 2024, IoT enabled devices (connected devices) will surpass 60 billion units. The flourishing telecommunications industry and proliferation of the internet will fuel the data center cooling market revenue in the coming years. Internet penetration in Asia Pacific and Europe is leading to the rise in demand for a large number of data centers. Cloud service providers and enterprises are focusing on keeping their servers close to the users to achieve high latency and are also constructing new data centers. In addition, enterprises and businesses are strongly relying on cloud technologies to secure interconnection between different divisions. The escalating demand for on-demand services and data availability enabled by the penetration of big data and virtualization technologies has led to an increase in the number of data centers, driving the need for efficient cooling equipment.
 

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By Component

Air conditioning solutions will witness immense growth in the data center cooling market owing to their energy-efficiency properties and cost-effectiveness. These systems supply cold air through the inlet of data center racks and remove hot air from the air outlet. They are widely adopted across the data center industry owing to the need to control humidity and temperature levels in the IT facilities. In data centers, overheating of servers or devices results in the emergence of hot spots, which requires precision cooling. This has led to the high adoption of precision air conditioners over standard ones. Manufacturers are focusing on offering efficient and modern precision air-conditioning systems with enhanced performance, speed, and cooling efficiency. For instance, STULZ GMBH offers CyberAir 3 PRO DX ASR, which provides 40% energy savings through indirect dynamic free cooling technique, thus ensuring the reliability of the data centers. Moreover, these systems cool precisely, reliably, quietly, and are compact in design allowing easier transport and installation.
 

By Cooling Technique

Europe data center cooling industry size, by cooling technique, 2016

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In 2016, the room-based cooling techniques accounted for majority of the data center cooling market share owing to their easy adoption and ability to cool a wide area. These techniques consist of one/more air conditioners that supply cool air by being entirely unrestricted by dampers and vents. In these methods, airflow is dependent on the unique constraints of the room such as ceiling height, room shape, rack layout, location, and the distribution of power among the IT loads. Organizations are highly focusing on evaluating data center architectures, which would offer them flexibility, agility, and selecting the right cooling solution. In the hyperscale data center industry, room-based cooling solutions are widely adopted as they help in cooling the entire IT facility at reduced costs. The technique uses a small number of ducts and pipes compared to other cooling techniques. Moreover, it helps to maintain the temperature within a permissible limit and cools data center by passing air through the outlets. The cooling technique is witnessing high adoption due to its energy-efficient cooling.
 

By Application

Healthcare applications will expand at a CAGR of over 7% over the forecast timeline owing to the expansion in the healthcare infrastructure and the need to scale data center capacities. This growth is largely facilitated by the increase in data collected by medical practitioners such as the complete medical history of a patient, prescriptions & diagnosis information, and information of the doctor/surgeon, among others. Industries are actively adopting data center solutions due to its high-efficiency and cost-effectiveness benefits. Moreover, the increasing inclination toward digitalization and the resultant demand for data storage & availability has driven the demand for effective cooling solutions in the healthcare sector. The rise in urbanization in the developed countries coupled with the rising government investments for the development of healthcare infrastructure will also provide an impetus for the data center cooling market demand.
 

By Region

Asia Pacific data center cooling market size, by country, 2024

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Asia Pacific will witness high demand for cooling solutions owing to the increasing number of SMEs in the region. These enterprises are generating a large amount of data relating to the business and customers. Enterprises are highly investing in the region to construct large scale data centers. For instance, in February 2019, CtrlS announced to invest around USD 280 million in three hyperscale data centers in India, to cater to the increasing demand for data localization, resulting from changes in the government policy. The ongoing government initiatives, such as the “Make in India” and “Made in China”, has allowed several regional businesses to thrive. Additionally, the region is also a highly active hub for IT & telecom, manufacturing, and outsourced business activities owing to the abundance of low-cost resources such as labor and electricity.
 

Competitive Market Share

Key players operating in the data center cooling market include Ebullient, Inc., Rittal GmbH & Co. KG, Air Conditioning Ltd., Nortek Air Solutions, LLC, AdaptivCOOL, Schneider Electric SE, Airedale International, Black Box Corporation, Liquid Cool Solutions, Inc., Submer Technologies, Coolcentric, and Asetek, among others. These companies are increasingly investing in the development of advanced cooling solutions to sustain in the market. For instance, in January 2019, Vertiv Co. introduced its upgraded thermal management VRC rack cooling system for small server rooms, enclosures, and edge computing environment. The cooling system delivers 3.5 kW cooling to the data center cabinets and uniformly deploys load matching, variable capacity fans, and compressors. Moreover, companies are entering into partnerships with international/regional players. In June 2017, Alibaba announced the launch of an immersion data center cooling technology with the Open Compute Project (OCP), an initiative to design energy-efficient data centers globally.
 

Industry Background

The companies operating in the data center cooling industry are investing highly in R&D and engineering for product innovation to expand their product offerings and attract a large customer base. For instance, in 2017, Asetek invested over USD 4 million to provide advanced cooling equipment and smart technologies. Companies are providing wide and diversified equipment to cater to the varying demands of the customers based on the financial budgets and types of equipment required. The industry is focusing on delivering green cooling technologies, which helps to minimize the power consumption levels in the data centers. In several regions, government bodies are compelling businesses to reduce their greenhouse emissions by enforcing stringent regulations. For instance, the Australian and Chinese government have launched a carbon trading system on emissions penalizing organizations exerting the specified carbon emission limit. This is anticipated to encourage organizations toward adopting eco-friendly and efficient cooling solutions in the data centers.