Data Center Liquid Cooling Market size worth over $6.5bn by 2027
Published Date: July 21, 2021 Authors: Preeti Wadhwani, Saloni Gankar
Data Center Liquid Cooling Market size is set to surpass USD 6.5 billion by 2027, according to a new research report by Global Market Insights Inc.
The rising adoption of AI and IoT technologies in several industrial sectors is expected to drive the market growth. These technologies generate a huge amount of data that need to be processed, transferred, and stored in large servers. The excessive heat generated within these servers requires proper controlling to prevent damages, melting, and malfunctioning of server components & chipsets. High temperatures can impact the component performance, shorten the equipment lifespan, and cause system downtime in data centers. Market players are devolving liquid cooling systems to improve energy efficiency and reduce data center costs.
Growing demand to reduce power consumption in data centers will propel the market expansion over the forecast time period. The data center power consumption amounts to around 416 terawatts or 3% of all electricity generated globally. This has resulted in increasing regulatory compliances to reduce energy consumption in data centers.
The ongoing COVID-19 pandemic negatively impacted the data center liquid cooling market progression in FY2020 attributed to a decline in investments in new data center projects. The pandemic significantly disrupted the construction of data centers due to the imposed lockdown and supply chain disruptions. For instance, in March 2020, Facebook Inc. stopped the construction of two data center projects owing to the coronavirus pandemic. This resulted in the decreased market demand and sales of data center liquid cooling solutions during the first half of 2020. With the growth in the usage of digital services, companies are focusing on the expansion of data centers in the first half of 2021.
The growing acceptance of advanced liquid cooling systems will foster the demand for data center maintenance services in the market
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The services segment in the data center liquid cooling market is likely to witness 24.5% growth rate through 2027 impelled by an increasing need for continuously monitoring & managing liquid cooling systems in data center facilities. Service providers and market players offer a range of services including consulting, maintenance & support, and installation that are capable of supporting scalability in data centers. For instance, Kroeschell, Inc. offers various data center maintenance services such as completing equipment upgrades, retrofits & replacements, and implementing predictive maintenance. Installation services will grow at a significant rate in the industry as they help in managing the entire process and offer professional structured cabling & installation of power strips.
Browse key industry insights spread across 350 pages with 348 market data tables and 33 figures & charts from the report, “Data Center Liquid Cooling Market Size By Component (Solution [Direct-to-Chip Liquid Cooling, Immersive Liquid Cooling], Services [Managed Services, Professional Services]), By End-use (Enterprise [BFSI, Government, Healthcare, Manufacturing, IT-enabled Services (ITeS)], Telecom Service Providers, Cloud Service Providers), COVID-19 Impact Analysis, Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2021 – 2027” in detail along with the table of contents:
Need for data center infrastructure in the telecom sector will fuel the industry expansion
The usage of liquid cooling solutions among telecom service providers is anticipated to expand at a significant rate in the data center liquid cooling market. The growing emergence of 5G and a significant rise in internet consumption have led to the generation of a massive amount of data. Telecom service providers are investing in the establishment of large data center facilities to store customers’ vital information. Telecom data centers deploy high-density servers that generate an excessive amount of heat & temperature within the facilities and thus require powerful data center cooling solutions.
Rising acceptance of cloud services to spur the industry progression
North America data center liquid cooling market will expand at over 17% CAGR by 2027 led by the rising adoption of cloud computing across the region. For instance, the cloud infrastructure spending in the U.S. rose by 29% in the first quarter of 2021, reaching USD 18.6 billion, as the COVID-19 pandemic accelerated digital transformation in the country. Growth in cloud services is driving the expansion of data centers across the country, propelling the usage of liquid cooling solutions. The U.S. is home to several cloud service providers including Google LLC., Apple Inc., and Facebook Inc., which are focusing on new strategies to cool their data centers.
Investments in research & development to introduce advanced products and enhance product portfolio are key strategies among market players
Key companies operating in the data center liquid cooling market include Chilldyne Inc., IBM Corporation, Submer Technologies, STULZ GmbH, Schneider Electric SE, Liquid Cool Solutions, Inc, Vertiv Group Co., The 3M Company, Silverback Migration Solutions, Inc., Rittal GmbH & Co., KG, Iceotope Technologies Limited, Alfa Laval AB, Midas Green Technologies LLC, Black Box Corporation, Ebullient, Inc., Green Revolution Cooling, Inc., Allied Control Ltd., Asetek AS, CoolIT Systems Inc., and Mitsubishi Electric Corporation. Market leaders are investing in R&D activities to launch innovative products and attract a large customer base.