PUBLISHER: The Business Research Company | PRODUCT CODE: 1436182
PUBLISHER: The Business Research Company | PRODUCT CODE: 1436182
Data center cooling separates hot and cold air in data centers to prevent equipment overheating, aiming to enhance cooling efficiency and reduce the need for extensive cooling.
Data center cooling comprises various types based on the scale, including large data centers, enterprise data centers, and mid-sized data centers. Large data centers, operating at a massive scale, consume power akin to that of a small town. Cooling technologies employed within these data centers include rack/row-based and room-based solutions, encompassing both solution and service components. These cooling technologies cater to a wide array of industries such as banking, financial services and insurance (BFSI), information technology (IT) and telecommunications, research and academia, government and defense, retail, energy, manufacturing, healthcare, and various other sectors requiring robust data center cooling solutions.
The data center cooling market research report is one of a series of new reports from The Business Research Company that provides data center cooling market statistics, including data center cooling industry global market size, regional shares, competitors with a data center cooling market share, detailed data center cooling market segments, market trends and opportunities, and any further data you may need to thrive in the data center cooling industry. This data center cooling market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The data center cooling market size has grown rapidly in recent years. It will grow from $14.66 billion in 2023 to $17.09 billion in 2024 at a compound annual growth rate (CAGR) of 16.6%. The growth observed in the historical period can be attributed to the swift expansion of data centers, the adoption of high-density computing, heightened concerns about energy efficiency, compliance with regulatory standards, the global distribution of data storage, and an increase in the heat load per rack.
The data center cooling market size is expected to see rapid growth in the next few years. It will grow to $31.93 billion in 2028 at a compound annual growth rate (CAGR) of 16.9%. Anticipated growth in the forecast period is expected to be driven by the integration of renewable energy sources, a heightened emphasis on water conservation efforts, the implementation of heat recovery systems, the adoption of modular data center solutions, and the integration of immersive cooling technologies.
Projections from Science Direct indicate that by 2030, data centers might account for 2.13% of the global electricity supply. This underscores the significance of these initiatives in mitigating energy consumption. For instance, in 2021, Microsoft successfully integrated such technology into its Azure data centers. Microsoft's Azure data centers stand out as unique physical structures equipped with specialized power, cooling, and networking infrastructure to house thousands of physical servers. Consequently, the focus on green initiatives and eco-friendly solutions within data centers is a driving force behind the growth observed in the data center cooling market.
The escalating adoption of cloud technology is anticipated to drive growth within the data center cooling market. Cloud adoption involves integrating cloud computing services into existing IT structures among individuals, organizations, or businesses. Effective data center cooling is vital for ensuring seamless operations of cloud services, amplifying performance, reliability, cost efficiency, and sustainability objectives. For example, in December 2021, a survey conducted by O'Reilly Media Inc. revealed that 90% of 2,834 global respondents reported using cloud-based applications within their organizations. Looking ahead, 48% of these respondents are planning to migrate over half of their applications to the cloud within the next year, and 20% aim for a complete transition to cloud-based solutions. Consequently, the burgeoning trend of increased cloud adoption is a driving force behind the growth observed in the data center cooling market.
Prominent players in the data center cooling sector are introducing novel products such as immersion cooling fluids to bolster their market competitiveness and profitability. These specialized fluids are utilized in immersion cooling systems within data centers to absorb and disperse heat produced by electronic hardware, such as servers. In October 2023, ExxonMobil Corporation, a leading US-based natural gas company, unveiled its range of data center immersion cooling fluids. Engineered for optimal energy efficiency and performance, ExxonMobil's fluids offer a diverse selection of synthetic and non-synthetic options with varying thermal capacities. These fluids are tailored to lower viscosity for effective heat dissipation while ensuring compatibility with a wide range of materials, thereby supporting extended equipment lifespan. The utilization of immersion cooling fluids is pivotal for liquid cooling in data centers, aiming to augment energy efficiency, curtail water usage, and boost rack density, consequently claiming to reduce the total cost of ownership for IT equipment by up to 40%.
Prominent entities within the data center cooling sector are introducing innovative solutions such as immersion cooling technology to drive their market profitability. This technology involves submerging crucial IT hardware, including servers and electronic components, in a non-conductive liquid coolant to effectively disperse heat generated during their operation. As an example, in September 2022, Dow Inc., a US-based material science company, unveiled its DOWSIL Immersion Cooling Technology. This data center cooling innovation prioritizes sustainability and efficiency, focusing on straightforward and cost-effective single-phase cooling systems.
In April 2021, Johnson Controls, an Ireland-based company specializing in Fire HVAC Security Equipment and Controls, completed the acquisition of Silent-Aire for $870 million. This strategic move positions Johnson Controls to leverage their extensive global manufacturing and service capabilities alongside Silent-Aire's leading-edge innovation and diverse technology portfolio. Together, they aim to strengthen their commitment to serving hyper-scale providers within the data center vertical, thereby catalyzing growth in this promising sector. Silent-Aire, headquartered in Canada, is renowned for its expertise in crafting mission-critical custom air handlers and modular designs for data centers, excelling in engineering and manufacturing solutions tailored to these specialized needs.
Major companies operating in the data center cooling market report are Hitachi Ltd., Mitsubishi Electric Corporation, Schneider Electric SE, Fujitsu Limited, ABB Group, Hewlett Packard Enterprise Company, Daikin Industries Ltd., Johnson Controls International PLC, Eaton Corporation, Emerson Electric Co., Trane Technologies PLC, Climaveneta Climate Technologies S.p.A., Vertiv Group Corporation, Alfa Laval AB, Rittal GmbH & Co. KG, Ebullient Inc., Munters Group AB, Black Box Corporation, Nortek Air Solutions LLC, Coolcentric Inc., Airedale International Air Conditioning Limited, Asetek Inc., Usystems Inc., Midas Green Technologies Inc., Liquid Cool Solutions LLC, Green Revolution Cooling Inc., Submer Technologies Inc., Delta Power Solutions, Adaptivcool Ltd., Interxion Holding NV
Asia-Pacific was the largest region in the data center cooling market in 2023. North America was the second-largest market in the data center cooling market share. The regions covered in the data center cooling market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the data center cooling market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The data center cooling market includes revenues earned by entities by providing computer room air handler (CRAH), computer room air conditioner (CRAC), calibrated vector unit, cold aisle and hot aisle design. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Data Center Cooling Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on data center cooling market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for data center cooling ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The data center cooling market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of covid 19 on supply chains and consumption patterns.