The Global "Data Center Cooling Solutions Market" is expected to grow at a high CAGR of 14.7% during the forecasting period (2021-2029).
Data Centre Cooling solutions are used for the maintenance of optimal operating conditions required for the smooth operation of data centers. The data centers process a massive amount of data within a short interval of time, which produces a lot of heat and might damage the equipment. Cooling is necessary for optimum operation of data centers and hence consumes a majority of power. The data centers cooling operation consume around 38% of the total power consumed by the data center.
The global data center cooling solutions market is primarily driven by an increase in data storage needs, an increase in adoption of cloud computing, the robust growth of big data in various industries, and the development of IT infrastructure in developing and under-developed regions. High humidity levels which restrict the use of natural air for data center cooling are also one of the key factors boosting market growth.
However, the high cost of setup, high electricity consumption, and rising concern over carbon emission will hamper the market growth. According to the US Department of Energy, data centers are one of the most energy-intensive building types, consuming about 10 to 50 times the energy per floor space as compared to a typical commercial building.
In addition, new innovations with the use of natural sources of cooling will also restrict the market potential. For instance, in June 2018, Microsoft tested an undersea data center that could decrease the cost of cooling by 90%. New developments within data center cooling would provide lucrative opportunities to the market in the next couple of years.
By cooling technique, the global data center cooling solutions market is segmented into an Air-based cooling technique and Liquid-based cooling technique. Traditionally, Air conditioners were widely used for cooling the centers. However, with technological advancement and awareness about building greener data centers, liquid-based cooling systems will take over the market due to their higher efficiency and lower power consumption. It is expected that the liquid-based cooling systems segment will grow at a CAGR of ~10% during the forecast period.
By industry type, the global data center cooling solutions market is segmented into Telecom, IT, Retail, Healthcare, BFSI, Energy, and Others. Telecom, IT, and BFSI industry sectors collectively held the majority market share in the global data center cooling solutions market. IT industry dominated the market in 2018 and will continue to dominate the market during the forecast period. With the growing market of cloud services, an increased number of data centers will be needed to hold the internet traffic and will further fuel market growth. Growing internet penetration globally will also give rise to an increase in internet traffic, therefore, forcing organizations to open more server rooms and data centers for smoother internet traffic flow.
By architecture, the market is segmented into room-based cooling and rack and row-based cooling. In 2018, the room-based cooling system held the major market share in the global data center cooling market. In a room-based cooling system, cold air is circulated in the data center from the centralized or by installing air-conditioners in the data center. However, with the growing popularity of rack and row-based cooling systems due to technological advancements and their cost-effectiveness, it is expected that rack and row-based cooling systems will post a higher CAGR of ~15% during the forecast period. In rack and row-based c0oling system, there is a dedicated cooling system placed among the rack and rows resulting in smooth airflow resulting in high efficiency and low utility costs.
By geography, the global data center cooling solutions market is segmented into North America, Asia-Pacific (APAC), Europe, South America, and the Middle-East and Africa (MEA).
North America holds the largest share of the global data center cooling solutions market. It is attributed to the significant rise in the number of data centers being built in the region. However, APAC is not far enough and will take over North America in terms of market share by the end of the forecast period.
APAC will post a high CAGR of ~15% during the forecast period. In APAC, it is expected that during the forecast period, internet penetration will grow at a significant rate due to rapid urbanization and infrastructure enhancement by government and private entities, especially in developing countries like China and India. For instance, CtrlS Datacenters, a company based out of India, announced in 2018 that it would invest ~$292 million in the country and open three new data centers. China also witnessed a significant rise in the construction of data centers by companies like China Mobile, Alibaba, China Unicom, and others. With rising internet penetration huge chunk data will be produced and data centers will be required to store and process the data. Market participants in regions like North America and Europe will focus more on investing and implementing on cost-effective and environment-friendly cooling systems.
Major players in the market are adopting strategies such as mergers and acquisitions, regional expansions, and product launches to stand out as strong competitors in the market. The global data center cooling solutions market is competitive with the presence of various global and regional players in the market. The major players include Airedale Air Conditioning, Climaveneta, Data Aire, Vertiv, Rittal, Schneider Electric, and STULZ. Other key players in the market include AIRSYS Refrigeration Allied Control (BitFury Group), Motivair, CITEC International, Daikin Industries, Delta Power Solutions, FUJITSU, and Green Revolution Cooling.
In October 2018, Fujitsu announced that it had developed a cooling control technology to substantially reduce data center energy consumption. Cooling system energy consumption cut 29% by calculating the appropriate combination of internal air circulation and intake of outside air. In 2016, STULZ acquired Spanish HVAC equipment manufacturer Technical.
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