Product Code: 52713
The data center cooling market was valued at USD 8.07 billion in 2019 and is expected to reach a value of USD 16.62 billion by 2025 at a CAGR of 12.5% during the forecast period 2020-2025. There has been a surge in the number of data centers due to high computational requirements by A.I and Media applications. Furthermore, the growth is going to be fuelled by the adoption of edge computing and the increase in the number of IoT devices.
- Development in IT Infrastructure in emerging countries is driving the market. The increasing construction of hyperscale facilities with the power capacity of over 50 MW will fuel the need for innovative infrastructure in the market over the next few years globally in developed countries. According to the National Association of Software and Services Companies (NASSCOM), IT exports from India may exceed USD 330 billion by 2019-20. This accounts for nearly 14% of the projected worldwide spend, if India maintains its current share of the global offshore IT market.
- The estimates by various sources suggest that the data center accounts for 2% to 5% of the global Green House Gas (GHG) emissions. The cooling systems are responsible for almost 40% of the power consumption in a data center. Companies are trying to tackle this issue by setting up Green data centers which use Free air cooling systems instead of traditional Air conditioners. The growing trends toward the deployment of green data centers for storing, managing, and distributing information helped many software companies reduce energy consumption and the total energy cost.
- However, adaptability requirements and power outages are challenging the market to grow.A typical data center cooling system must be pre-engineered, standardized, and modular. It is required to be scalable and flexible to meet the needs of the data center. This is very difficult in today's world with companies looking to cut costs and not willing to spend much on the high-end customized cooling systems.
Scope of the Report
The data center cooling refers to the collective equipment, tools, techniques and processes that ensure an ideal operating temperature within a data center facility. With increasing capacity and higher density, there is an increasing need for energy-efficient cooling of the IT equipment. Furthermore, benefits offered by the technology and support from the government by imposing efficiency regulations on data centers are expected to help the growth of the data center cooling market directly in various application such as IT, BFSI, Telecommunication, etc.
Key Market Trends
Information Technology Industry to Witness Highest Growth
- The IT industry needs on-premise private data storage centers and hyperscale data centers for their operations according to the size of the organization. Additionally, the adoption of cloud storage has increased over the years due to growth in SaaS providers, which is enabling cloud storage providers to expand their capacities and is expected to increase the demand for data center cooling systems.
- Cloud storage providers, like Microsoft, AWS, and Google, are expanding their storage capabilities to offer more efficient work-flow on the cloud. These companies are making investments in hyperscale deals. In May 2018, Google announced that it was adopting liquid cooling systems for AI data crunching, as the heat generated its new tensor processing units (TPUs) exceeded the limits of its previous data center cooling solutions.
- Moreover, CloudHQ stated that, by 2022, the industry is expected to get the 350-megawatt storage campuses. In 2018, the company signed a 72-megawatt lease in Ashbum, which is the largest in the data center history.
- In February 2018, the second-largest grocery chain in America, Albertsons Companies, announced the adoption of cloud storage service from Microsoft to improve the retail experience. With this, the company planned to leverage the cognitive analytics, AI, and data science capabilities from Microsoft. Such advancements among top retailers are expected to launch new data center establishments which will drive the demand of data center cooling market.
Asia-Pacific to Register a Significant Growth
- Asia-Pacific to witness high market growth in future. China is one of the major markets for data center cooling solutions, owing to the exponential growth in the number of data centers in the country, along with the government's policies to support more energy-efficient infrastructure in the country.
- According to the report on Energy Consumption of Data Centers in China, the current numbers of small- and medium-sized data centers in China exceeded 400,000, and the annual total power demand reached 100 billion kWh, i.e., around 250,000 kWh for each data center, annually. Also, the rising trend of data localization in the country may further promote the development of data centers.
- Furthermore, the healthcare industry in Asia was expected to increase by 11.1% in 2018. This significant growth is driven by the increasing adoption of digital technologies, innovative healthcare access programs, and the delivery of care outside of traditional hospital settings. In June 2018, China's Guizhou Province launched a healthcare data center. Its plan to set up a national healthcare data network is approaching a major milestone, with the first of the five specialist data centers coming online.
- The growing demand for liquid cooling systems for data centers in the domestic market is also fueling foreign players to invest in the Japanese data center cooling market. For instance, a distributed data center company, Cloud&Heat Technologies, has shipped a container-based system to a Japanese vendor who plans to sell the German firm's liquid-cooled offerings in the local market.
- Moreover, in July 2019, Equinix, Inc. announced the opening of its eleventh IBX data center TY11 in Japan. It has deployed energy-efficient lighting systems, adaptive control systems that reduce power consumption and increases cooling capacity through active airflow management, and cold aisle containment that reduces energy consumption and enhances cooling.
The data center cooling market is fragmented as the benefits offered by the technology and support from the government by imposing efficiency regulations on data centers are expected to directly help the growth of the data center cooling market. Market penetration is growing with strong presence of major players in established markets and with the increasing focus on innovation, the demand for new technologies is growing, which, in turn, is driving investments for further developments. Key players are Vertiv Co., Schneider Electric SE, STULZ GMBH, etc. Some of the key developments in the market are -
- Aug 2019 - Nortek Air Solutions introduced the CDU1200, a 1,200-kW coolant distribution unit (CDU) that's the single most powerful, compact CDU and the newest addition to its ServerCool data center liquid cooling product line. The CDU1200 is a perfect new construction or retrofit liquid cooling solution for high performance computing (HPC) and enterprise data centers, as well co-location, corporate network edge, government, research and other data center formats.
- Jan 2019 - Vertiv, headquartered in Columbus, Ohio, USA, introduced new and upgraded thermal management products headlined by the new Vertiv VRC rack cooling system, designed to fit easily into racks in small server rooms, network closets and similar edge computing environments. The cooling system delivers 3.5 kW of IT cooling for data center cabinets, uniquely deploying load-matching, variable-capacity compressors and fans.
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Table of Contents
- 1.1 Study Deliverables
- 1.2 Study Assumptions
- 1.3 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET INSIGHTS
- 4.1 Market Overview
- 4.2 Industry Value Chain Analysis
- 4.3 Industry Attractiveness - Porter's Five Forces Analysis
- 4.3.1 Bargaining Power of Suppliers
- 4.3.2 Bargaining Power of Consumers
- 4.3.3 Threat of New Entrants
- 4.3.4 Threat of Substitute Products
- 4.3.5 Competitive Rivalry Within the Industry
- 4.4 Industry Policies
5 MARKET DYNAMICS
- 5.1 Introduction to Market Dynamics
- 5.2 Market Drivers
- 5.2.1 Increasing Volume of Digital Data
- 5.2.2 Emergence of Green Data Centers
- 5.3 Market Restraints
- 5.3.1 Adaptability Requirements and Power Outages
6 MARKET SEGMENTATION
- 6.1 By Solution
- 6.1.1 Air Conditioners/Handlers
- 6.1.2 Chillers
- 6.1.3 Economizer Systems
- 6.1.4 Liquid Cooling Systems
- 6.1.5 Row/Rack/Door/Over-head Cooling Systems
- 6.2 By Service
- 6.2.1 Installation and Deployment
- 6.2.2 Consulting, Support, and Maintenance Services
- 6.3 By End-user Verticals
- 6.3.1 Information Technology
- 6.3.2 BFSI
- 6.3.3 Telecommunication
- 6.3.4 Healthcare
- 6.3.5 Retail
- 6.3.6 Government
- 6.3.7 Other End-user Verticals
- 6.4 Geography
- 6.4.1 North America
- 220.127.116.11 United States
- 18.104.22.168 Canada
- 6.4.2 Europe
- 22.214.171.124 United Kingdom
- 126.96.36.199 Germany
- 188.8.131.52 Norway
- 184.108.40.206 Russia
- 220.127.116.11 Rest of Europe
- 6.4.3 Asia Pacific
- 18.104.22.168 China
- 22.214.171.124 Australia
- 126.96.36.199 Japan
- 188.8.131.52 India
- 184.108.40.206 Rest of Asia-Pacific
- 6.4.4 Latin America
- 6.4.5 Middle East & Africa
7 COMPETITIVE LANDSCAPE
- 7.1 Company Profiles
- 7.1.1 Vertiv Co.
- 7.1.2 Stulz GmbH
- 7.1.3 Schneider Electric SE
- 7.1.4 Rittal GmbH & Co. KG
- 7.1.5 Mitsubishi Electric Hydronics & IT Cooling Systems SpA
- 7.1.6 Asetek AS
- 7.1.7 Chilldyne Inc.
- 7.1.8 Johnson Controls Inc.
- 7.1.9 LiquidCool Solutions
- 7.1.10 CoolIT Systems Inc.
8 INVESTMENT ANALYSIS
9 MARKET OPPORTUNITIES AND FUTURE TRENDS