PUBLISHER: The Insight Partners | PRODUCT CODE: 1558408
PUBLISHER: The Insight Partners | PRODUCT CODE: 1558408
The data center cooling market size was valued at US$ 13.29 billion in 2023 and is expected to reach US$ 45.70 billion by 2031; it is estimated to record a CAGR of 16.7% from 2023 to 2031.
The data center cooling market is segmented into five major regions-North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South & Central America. North America dominated the market in 2023, followed by APAC and Europe, respectively. In North America, the data center cooling market has seen substantial developments and innovations, driven by the rising adoption of cost-effective, energy-efficient, and environment-friendly cooling solutions in line with various stringent conservational safety rules offered by governmental bodies. Moreover, companies are launching products to contribute to the growth of the North America data center cooling market. For instance, in November 2023, Vertiv, a global provider of critical digital infrastructure and continuity solutions, introduced the Vertiv SmartMod Max CW, a prefabricated modular data center built to address the increasing demand for rapid deployment of computing in North America. This configurable and scalable solution supports up to 200kW of total IT load in a single system and utilizes chilled water cooling for low environmental impact and high energy efficiency in data center operations. The introduction of this solution aligns with the increasing need for efficient and rapid deployment of computing resources in the region. This development reflects the significant growth and innovation in the data center cooling market in North America, driven by the rising demand for energy-efficient and environmentally friendly cooling solutions.
In April 2024, Vertiv unveiled end-to-end AI power and cooling solutions to simplify data center infrastructure selection and deployment in North America. As Artificial Intelligence (AI) and High-Performance Compute (HPC) continue to disrupt the data center landscape, the company announced a new portfolio of high-density data center infrastructure solutions to support the higher cooling and power requirements of the accelerated computing IT stack. The new Vertiv 360AI solutions are designed to accelerate AI adoption through pre-engineered infrastructure solutions, digitized management, and end-to-end service, resulting in up to 2x faster deployment compared to typical infrastructure installation. The availability of data center cooling solutions in North America emphasizes the region's importance in driving advancements in data center infrastructure and cooling technologies.
The Asia Pacific data center cooling market is projected to experience highest growth rate from 2023 to 2031. The global data center market players expanding their business in Asia Pacific is one of the major factors fueling the market growth. The growing need for hyperscale data centers and cloud computing to analyze and store data in real-time propels the data center industry's growth, which results in increased demand for sustainable and energy-efficient data center cooling solutions. Further, government investments to bolster the data center industry boost the market growth in the region.
Based on industry vertical, the data center cooling market is segmented into BFSI, manufacturing, IT & telecom, media & entertainment, retail, government & defense, healthcare, energy, and others. The IT & telecom segment held the largest data center cooling market share. An IT and telecom data center is a building owned and maintained by a telecom or service provider business, such as Verizon or AT&T. They are largely accountable for pushing content distribution and facilitating mobile and cloud services. Each data center server generates heat as it processes data. To avoid errors caused by overheating, these servers must be regularly cooled. Thus, various telecom operators are deploying data center cooling. For example, in February 2024, SK Telecom (SKT), Iceotope Technologies, and SK Enmove established a memorandum of understanding (MoU) to improve the energy efficiency of AI data centers using sophisticated liquid cooling techniques. This collaboration aims to address the high energy consumption of air conditioning and cooling systems in data centers by developing and deploying precision liquid cooling (PLC) solutions.
Asetek, Inc, Fujitsu Ltd, Mitsubishi Corp, Rittal GmbH & Co KG, Schneider Electric SE, Stulz SpA, Trane Technologies Plc, Vertiv Group Corp., Black Box Corporation, Carrier Global Corp, Aspen Systems, LLC., Daikin Industries Ltd, Delta Electronics Inc, Danfoss AS, Alfa Laval AB, Hewlett Packard Enterprise Development LP, Boyd Corp, Evapco Inc, Motivair Corporation, and Madison Industries are among the key data center cooling market players that are profiled in this market study.
The overall data center cooling market size has been derived using both primary and secondary sources. Exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the data center cooling market size. the process also helps obtain an overview and forecast of the market with respect to all the market segments. Also, multiple primary interviews have been conducted with industry participants to validate the data and gain analytical insights. This process includes industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the data center cooling market.