Data Center Cooling Market by Solution (Air Conditioning, Chilling Unit, Cooling Tower, Economizer System, Liquid Cooling System, Control System, and Others), Service, Type of Cooling, Data Center Type, Industry, and Region - Global Forecast to 2021

The data center cooling market size is estimated to grow from USD 7.12 Billion in 2016 to USD 14.28 Billion by 2021, at a Compound Annual Growth Rate (CAGR) of 14.95%. The market is driven by factors such as the growing need to improve processing capabilities, reduce the heat generated by increased data center power densities, and focus on developing cost effective and green data centers solutions. In this study, 2015 has been considered as the base year and 2016-2021 as the forecast period.

Objectives of the Study:

The main objective of this report is to define, describe, and forecast the global data center cooling market on the basis of solutions, services, types of cooling, data center types, industries, and regions. The report provides detailed information regarding the major factors influencing the growth of the market (drivers, restraints, opportunities, and industry-specific challenges). The report aims to strategically analyze micromarkets with respect to individual growth trends, future prospects, and contributions to the total market. The report attempts to forecast the market size with respect to five main regions, namely, North America, Europe, Asia-Pacific (APAC), Middle East & Africa (MEA), and Latin America. The report strategically profiles key players and comprehensively analyzes their core competencies. This report also tracks and analyzes competitive developments such as joint ventures, mergers & acquisitions, new product developments, and research & development activities in the data center cooling market.

The research methodology used to estimate and forecast the data center cooling market begins with capturing data on key vendor’s revenues through secondary research sources such as the U.S. Department of Energy, Springer, American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE), the Data Center Journal, and others. The vendor offerings are also taken into consideration to determine the market segmentation. The bottom-up procedure was employed to arrive at the overall market size of the global market from the revenue of the key players in the market. After arriving at the overall market size, the total market was split into several segments and subsegments, which were then verified through primary research by conducting extensive interviews with key people, such as CEOs, VPs, directors, and executives. The data triangulation and market breakdown procedures were employed to complete the overall market engineering process and to arrive at the exact statistics for all segments and subsegments. The breakdown of primary profiles is depicted in the figure below:

To know about the assumptions considered for the study, download the pdf brochure

The data center cooling ecosystem comprises vendors, such as, Schneider Electric SE (France),  Black Box Corporation (U.S.), Nortek Air Solutions, LLC (U.S.), Airedale International Air Conditioning Ltd. (U.K.), Rittal GmbH & Co. KG (Germany), STULZ GmbH (Germany), Vertiv Co. (U.S.), Asetek (Denmark), AdaptivCOOL (U.S.), and Coolcentric (U.S.); service providers, system integrators, and enterprises.

Key Target Audience:

• Telecom services providers
• Original equipment manufacturers
• Value-added service providers
• Data center cooling solution vendors
• Data center operators
• Data center colocation service providers
• System integrators
• Cloud service providers
• Colocation providers

"Study answers several questions for the stakeholders, primarily which market segments will focus in next two to five years for prioritizing the efforts and investments".

Scope of the Data Center Cooling Market Research Report:

The research report categorizes the data center cooling market to forecast the revenues and analyze the trends in each of the following subsegments:

By Solution:

• Air conditioning
• Chilling units
• Cooling towers
• Economizer systems
• Liquid cooling systems
• Control systems
• Others

By Service:

• Consulting
• Installation and Deployment
• Support and Maintenance

By Type of Cooling:

• Room Based Cooling
• Row/Rack Based Cooling

By Data Center Type:

• Mid-Sized Data Centers
• Enterprise Data Centers
• Large Data Centers

By Industry:

• BFSI
• IT and Telecom
• Research and Academic
• Government and Defense
• Retail
• Energy
• Manufacturing
• Healthcare
• Others (media & entertainment and transportation & logistics)

By Region:

• North America
• Europe
• Middle East and Africa (MEA)
• Asia-Pacific (APAC)
• Latin America

Available Customizations:

With the given market data, MarketsandMarkets offers customizations as per the company’s specific needs. The following customization options are available for the report:

Product Analysis:

Product matrix which gives a detailed comparison of product portfolio of each company

Geographic Analysis:

• Further breakdown of the North America data center cooling market
• Further breakdown of the Europe market
• Further breakdown of the APAC market
• Further breakdown of the MEA market
• Further breakdown of the Latin America market

Company Information:

• Detailed analysis and profiling of additional market players

Substantial growth with data center and power density and increasing demand for cost effective data center solutions to drive the global data center cooling market to USD 14.28 billion by 2021

Data center cooling technology consists of tools, equipment, techniques, and processes that reduce the heat generated from data center hardware and maintain the temperature of data center facilities for efficient and smooth functioning. Various data center cooling methods such as air-based cooling and liquid-based cooling are used in providing cooling and ventilation and aid in maintaining the ideal operating temperature of all the devices.

Data centers have radically grown in terms of number and performance in the past few years. Moreover, data center power densities have increased to an average of up to 1.5 kW per rack causing an increase in the heat generated causing a further increase in the demand for data center cooling solutions across various industries.

In a typical data center, the cooling costs account for a considerable portion of the total energy consumption. Data center owners are, therefore, keen on addressing this cost issue by deploying economical and effective cooling solutions. Large data centers have been able to curb operational and capital cooling expenses through the use of chiller-less data centers that are dependent on the use of outside air for their cooling needs. Additionally, data center cooling solutions such as economizers utilize the outside climatic conditions for cooling data centers, which further result in reduced energy and cooling costs. These benefits provided by data center cooling solutions have fuelled their demand across SMEs and large enterprises

Growing requirement for modular data center cooling approach and Emergence of liquid cooling technologies are major opportunities in the market

The increasing volume of data has led data centers operators to opt for servers with higher density. These high density servers install benefits with High-Performance Computing (HPC), but generate heat at a faster rate resulting in greater temperature levels. Liquid cooling provides many benefits to cool high density facilities, which is why liquid cooling witnessed an increased demand from high-density data centers. Moreover, liquid cooling solutions, owing to the availability of engineered fluid coolants, are expected to have reduced upfront build costs and operating expenditures for low-density data centers in the coming years further boosting market growth.

Data center cooling modules or facility modules are pre-engineered, pre-tested, and pre-integrated data center physical infrastructure systems that operate as plug-in modules to a data center site. In addition, data center cooling modules provide for additional cost-saving by up to 30% and are 60% faster to operate. Data center facility cooling modules are increasingly finding adoption in data centers that are restricted by space and have limited budgets. Data center facility cooling modules offer benefits such as simplified planning, improved reliability, agility, faster deployment, and improved overall efficiency. Owing to these benefits, data center cooling vendors are expected to find opportunity in development and deployment of data center cooling modules to gain a competitive advantage in the data center cooling market.

Data Center Cooling Market Dynamics

Table of Contents

1 Introduction (Page No. - 15)
    1.1 Objectives of the Study
    1.2 Market Definition
    1.3 Market Scope
           1.3.1 Markets Covered
           1.3.2 Years Considered in the Report
    1.4 Currency
    1.5 Limitations
    1.6 Stakeholders

2 Research Methodology (Page No. - 18)
    2.1 Research Data
           2.1.1 Secondary Data
                    2.1.1.1 Key Data From Secondary Sources
           2.1.2 Primary Data
                    2.1.2.1 Key Data From Primary Sources
                    2.1.2.2 Key Industry Insights
                    2.1.2.3 Breakdown of Primaries
    2.2 Market Size Estimation
           2.2.1 Bottom-Up Approach
           2.2.2 Top-Down Approach
    2.3 Market Breakdown and Data Triangulation
    2.4 Research Assumptions

3 Executive Summary (Page No. - 26)

4 Premium Insights (Page No. - 30)
    4.1 Attractive Market Opportunities in the Data Center Cooling Market
    4.2 Market Snapshot: By Solution and Service, 2016–2021
    4.3 Market Snapshot: By Top Three Industries and Regions, 2016
    4.4 Market Snapshot: By Region, 2016 vs 2021
    4.5 Lifecycle Analysis, By Region

5 Market Overview (Page No. - 33)
    5.1 Introduction
    5.2 Market Segmentation
           5.2.1 By Solution
           5.2.2 By Service
           5.2.3 By Type of Cooling
           5.2.4 By Data Center Type
           5.2.5 By Industry
           5.2.6 By Region
    5.3 Evolution
    5.4 Market Dynamics
           5.4.1 Drivers
                    5.4.1.1 Improving Efficiency in Data Centers
                    5.4.1.2 Substantial Growth With Data Center and Power Density
                    5.4.1.3 Increasing Demand for Cost-Effective Data Center Solutions
                    5.4.1.4 Growing Importance of Eco-Friendly Data Center Solutions
           5.4.2 Restraints
                    5.4.2.1 Higher Investment Costs
                    5.4.2.2 Requirement of Specialized Infrastructure
           5.4.3 Opportunities
                    5.4.3.1 Emergence of Liquid Cooling Technology
                    5.4.3.2 Growing Requirement for Modular Data Center Cooling Approach
           5.4.4 Challenges
                    5.4.4.1 Cooling Challenges During Power Outage

6 Industry Trends (Page No. - 43)
    6.1 Introduction
    6.2 Value Chain Analysis
           6.2.1 Data Center Original Equipment Manufacturers
           6.2.2 Data Center Cooling Original Equipment Manufacturers
           6.2.3 System Integrators
           6.2.4 Value-Added Service Providers
           6.2.5 End Users
    6.3 Strategic Benchmarking
           6.3.1 Innovation and Product Enhancements
           6.3.2 Collaborations, Partnerships, and Acquisitions
    6.4 Technology Trends and Standards
           6.4.1 Introduction
           6.4.2 Standards and Guidelines for Data Center Cooling
                    6.4.2.1 American National Standards Institute
                    6.4.2.2 American Society of Heating, Refrigerating and Air-Conditioning Engineers
                    6.4.2.3 Institute for Energy and Transport of the Joint Research Center of the European Commission
                    6.4.2.4 Distributed Management Task Force
                    6.4.2.5 Telecommunication Industry Association
                    6.4.2.6 National Electrical Manufacturers Association
                    6.4.2.7 Canadian Standards Association Group
                    6.4.2.8 Underwriters Laboratory
                    6.4.2.9 Factory Mutual Approved
                    6.4.2.10 United States Department of Energy
                    6.4.2.11 United States Environmental Protection Agency
                    6.4.2.12 Statement on Standards for Attestation Engagements No. 16
                    6.4.2.13 International Standards Compliance

7 Data Center Cooling Market Analysis, By Component (Page No. - 49)
    7.1 Introduction

8 Market Analysis, By Solution (Page No. - 51)
    8.1 Introduction
    8.2 Air Conditioning
    8.3 Chilling Units
    8.4 Cooling Towers
    8.5 Economizer Systems
    8.6 Liquid Cooling Systems
    8.7 Control Systems
    8.8 Others

9 Data Center Cooling Market Analysis, By Service (Page No. - 58)
    9.1 Introduction
    9.2 Consulting
    9.3 Installation and Deployment
    9.4 Maintenance and Support

10 Market Analysis, By Type of Cooling (Page No. - 62)
     10.1 Introduction
     10.2 Room-Based Cooling
     10.3 RoW/Rack-Based Cooling

11 Market Analysis, By Data Center Type (Page No. - 65)
     11.1 Introduction
     11.2 Mid-Sized Data Centers
     11.3 Enterprise Data Centers
     11.4 Large Data Centers

12 Data Center Cooling Market Analysis, By Industry (Page No. - 69)
     12.1 Introduction
     12.2 Banking, Financial Services, and Insurance
     12.3 IT and Telecom
     12.4 Research and Academic
     12.5 Government and Defense
     12.6 Retail
     12.7 Energy
     12.8 Manufacturing
     12.9 Healthcare
     12.10 Others

13 Geographic Analysis (Page No. - 77)
     13.1 Introduction
     13.2 North America
     13.3 Europe
     13.4 Asia-Pacific
     13.5 Middle East and Africa
     13.6 Latin America

14 Competitive Landscape (Page No. - 97)
     14.1 Overview
     14.2 Data Center Cooling Market: Vendor Coverage
     14.3 Competitive Situations and Trends
             14.3.1 New Product and Technology Launches
             14.3.2 Partnerships, Agreements, and Collaborations
             14.3.3 Mergers and Acquisitions

15 Company Profiles (Page No. - 103)
(Business Overview, Products & Services, Key Insights, Recent Developments, SWOT Analysis, MnM View)*
     15.1 Introduction
     15.2 Schneider Electric Se.
     15.3 Black Box Corporation
     15.4 Nortek Air Solutions, LLC
     15.5 Airedale International Air Conditioning Ltd.
     15.6 Rittal GmbH & Co. Kg
     15.7 Stulz GmbH
     15.8 Vertiv Co.
     15.9 Asetek
     15.10 Adaptivcool
     15.11 Coolcentric

*Details on Business Overview, Products & Services, Key Insights, Recent Developments, SWOT Analysis, MnM View Might Not Be Captured in Case of Unlisted Companies.

16 Key Innovators (Page No. - 130)
     16.1 Integrated Eco Technologies Ltd.
     16.2 Submer Technologies
     16.3 Ebullient, Inc.
     16.4 Liquid Cool Solutions, Inc.

17 Appendix (Page No. - 133)
     17.1 Insight of Industry Experts
     17.2 Recent Developments
             17.2.1 New Product Launches
             17.2.2 Agreements, Partnerships, Collaborations, and Joint Ventures
     17.3 Discussion Guide
     17.4 Knowledge Store: MarketsandMarkets’ Subscription Portal
     17.5 Introducing RT: Real-Time Market Intelligence
     17.6 Available Customizations
     17.7 Related Reports
     17.8 Author Details

List of Tables (66 Tables)

Table 1 Data Center Cooling Market: Assumptions
Table 2 Market Size and Growth Rate, 2014–2021 (USD Billion, Y-O-Y %)
Table 3 Market Size, By Component, 2014–2021 (USD Billion)
Table 4 Market Size, By Solution, 2014–2021 (USD Billion)
Table 5 Air Conditioning: Market Size, By Region, 2014–2021 (USD Million)
Table 6 Chilling Units: Market Size, By Region, 2014–2021 (USD Million)
Table 7 Cooling Towers: Market Size, By Region, 2014–2021 (USD Million)
Table 8 Economizer Systems: Market Size, By Region, 2014–2021 (USD Million)
Table 9 Liquid Cooling Systems: Market Size, By Region, 2014–2021 (USD Million)
Table 10 Control Systems: Market Size, By Region, 2014–2021 (USD Million)
Table 11 Others: Market Size, By Region, 2014–2021 (USD Million)
Table 12 Data Center Cooling Market Size, By Service, 2014–2021 (USD Billion)
Table 13 Consulting Services: Market Size, By Region, 2014–2021 (USD Million)
Table 14 Installation and Deployment: Market Size, By Region, 2014–2021 (USD Million)
Table 15 Maintenance and Support: Market Size, By Region, 2014–2021 (USD Million)
Table 16 Market Size, By Type of Cooling, 2014–2021 (USD Billion)
Table 17 Room-Based Cooling: Market Size, By Region, 2014–2021 (USD Million)
Table 18 RoW/Rack-Based Cooling: Market Size, By Region, 2014–2021 (USD Million)
Table 19 Data Center Cooling Market Size, By Data Center Type, 2014–2021 (USD Billion)
Table 20 Mid-Sized Data Centers: Market Size, By Region, 2014–2021 (USD Million)
Table 21 Enterprise Data Centers: Market Size, By Region, 2014–2021 (USD Million)
Table 22 Large Data Centers: Market Size, By Region, 2014–2021 (USD Million)
Table 23 Market Size, By Industry, 2014–2021 (USD Billion)
Table 24 Banking, Financial Services, and Insurance: Market, By Region, 2014–2021 (USD Million)
Table 25 IT and Telecom: Market Size, By Region, 2014–2021 (USD Million)
Table 26 Research and Academic: Market Size, By Region, 2014–2021 (USD Million)
Table 27 Government and Defense: Market Size, By Region, 2014–2021 (USD Million)
Table 28 Retail: Market Size, By Region, 2014–2021 (USD Million)
Table 29 Energy: Market Size, By Region, 2014–2021 (USD Million)
Table 30 Manufacturing: Market Size, By Region, 2014–2021 (USD Million)
Table 31 Healthcare: Market Size, By Region, 2014–2021 (USD Million)
Table 32 Others: Market Size, By Region, 2014–2021 (USD Million)
Table 33 Data Center Cooling Market Size, By Region, 2014–2021 (USD Billion)
Table 34 North America: Market Size, By Component, 2014–2021 (USD Million)
Table 35 North America: Market Size, By Solution, 2014–2021 (USD Million)
Table 36 North America: Market Size, By Service, 2014–2021 (USD Million)
Table 37 North America: Market Size, By Type of Cooling, 2014–2021 (USD Million)
Table 38 North America: Market Size, By Data Center Type, 2014–2021 (USD Million)
Table 39 North America: Market Size, By Industry, 2014–2021 (USD Million)
Table 40 Europe: Data Center Cooling Market Size, By Component, 2014–2021 (USD Million)
Table 41 Europe: Market Size, By Solution, 2014–2021 (USD Million)
Table 42 Europe: Market Size, By Service, 2014–2021 (USD Million)
Table 43 Europe: Market Size, By Type of Cooling, 2014–2021 (USD Million)
Table 44 Europe: Market Size, By Data Center Type, 2014–2021 (USD Million)
Table 45 Europe: Market Size, By Industry, 2014–2021 (USD Million)
Table 46 Asia-Pacific: Data Center Cooling Market Size, By Component, 2014–2021 (USD Million)
Table 47 Asia-Pacific: Market Size, By Solution, 2014–2021 (USD Million)
Table 48 Asia-Pacific: Market Size, By Service, 2014–2021 (USD Million)
Table 49 Asia-Pacific: Market Size, By Type of Cooling, 2014–2021 (USD Million)
Table 50 Asia-Pacific: Market Size, By Data Center Type, 2014–2021 (USD Million)
Table 51 Asia-Pacific: Market Size, By Industry, 2014–2021 (USD Million)
Table 52 Middle East and Africa: Market Size, By Component, 2014–2021 (USD Million)
Table 53 Middle East and Africa: Market Size, By Solution, 2014–2021 (USD Million)
Table 54 Middle East and Africa: Market Size, By Service, 2014–2021 (USD Million)
Table 55 Middle East and Africa: Market Size, By Type of Cooling, 2014–2021 (USD Million)
Table 56 Middle East and Africa: Market Size, By Data Center Type, 2014–2021 (USD Million)
Table 57 Middle East and Africa: Data Center Cooling Market Size, By Industry, 2014–2021 (USD Million)
Table 58 Latin America: Market Size, By Component, 2014–2021 (USD Million)
Table 59 Latin America: Market Size, By Solution, 2014–2021 (USD Million)
Table 60 Latin America: Market Size, By Service, 2014–2021 (USD Million)
Table 61 Latin America: Market Size, By Type of Cooling, 2014–2021 (USD Million)
Table 62 Latin America: Market Size, By Data Center Type, 2014–2021 (USD Million)
Table 63 Latin America: Market Size, By Industry, 2014–2021 (USD Million)
Table 64 New Product and Technology Launches, 2015-2016
Table 65 Partnerships, Agreements, and Collaborations, 2015-2016
Table 66 Mergers and Acquisitions, 2014-2016

List of Figures (43 Figures)

Figure 1 Market Research Design
Figure 2 Breakdown of Primary Interviews: By Company, Designation, and Region
Figure 3 Market Size Estimation Methodology: Bottom-Up Approach
Figure 4 Market Size Estimation Methodology: Top-Down Approach
Figure 5 Market Breakdown and Data Triangulation
Figure 6 Global Data Center Cooling Market: By Solution and Service, 2016 vs 2021
Figure 7 Liquid Cooling Systems Solution is Expected to Grow at the Highest Rate During the Forecast Period
Figure 8 Top Segments in the Market By 2021
Figure 9 North America is Expected to Hold the Largest Market Share in 2016
Figure 10 Growth Trend of the Market
Figure 11 Data Center Services Segment is Projected to Grow at the Highest CAGR During the Forecast Period
Figure 12 IT and Telecom Industry and North America Region Expected to Hold the Largest Market Share in 2016
Figure 13 Asia-Pacific is Expected to Register the Highest Growth in the Data Center Cooling Market
Figure 14 Data Center Cooling Market Regional Lifecycle: Asia-Pacific is Expected to Have A High Growth in the Coming Years
Figure 15 Market Segmentation: By Solution
Figure 16 Market Segmentation: By Service
Figure 17 Market Segmentation: By Type of Cooling
Figure 18 Market Segmentation: By Data Center Type
Figure 19 Market Segmentation: By Industry
Figure 20 Market Segmentation: By Region
Figure 21 Evolution of Data Center Cooling
Figure 22 Data Center Cooling Market: Drivers, Restraints, Opportunities, and Challenges
Figure 23 Value Chain Analysis
Figure 24 Strategic Benchmarking: Innovations and Product Enhancements
Figure 25 Strategic Benchmarking: Collaborations, Partnerships, and Acquisitions
Figure 26 Regional Snapshot (2016–2021): North America is Expected to Hold the Largest Market Share in 2016
Figure 27 North America Market Snapshot
Figure 28 Asia-Pacific Market Snapshot
Figure 29 New Product & Technology Launch and Partnership, Agreement & Collaboration are the Key Growth Strategies in the Data Center Cooling Market
Figure 30 Evaluation Overview Table: Product Coverage
Figure 31 New Product Launch is the Key Strategy Used By the Major Market Players From 2014 to 2016
Figure 32 Battle for Market Share: New Product and Technology Launch is the Key Strategy Adopted By Major Players Between 2014-2016
Figure 33 Geographic Revenues Mix of Top Market Players
Figure 34 Schneider Electric SE: Company Snapshot
Figure 35 Schneider Electric SE: SWOT Analysis
Figure 36 Black Box Corporation: Company Snapshot
Figure 37 Black Box Corporation: SWOT Analysis
Figure 38 Nortek Air Solutions, LLC: Company Snapshot
Figure 39 Nortek Air Solutions, LLC: SWOT Analysis
Figure 40 Airedale International Air Conditioning Ltd.: SWOT Analysis
Figure 41 Rittal GmbH & Co. Kg : SWOT Analysis
Figure 42 Vertiv Co.: Company Snapshot
Figure 43 Asetek: Company Snapshot

The data center cooling market is estimated to grow from USD 7.12 Billion in 2016 to USD 14.28 Billion by 2021, at a high Compound Annual Growth Rate (CAGR) of 14.95% during the forecast period. Data center cooling solutions are witnessing an increasing demand due to the various benefits for effective heat removal provided by these solutions. Additionally, data center cooling solutions are becoming more environment-friendly and energy-efficient, requiring less operational costs. Organizations are rapidly adopting these advanced cooling systems to overcome the shortcomings associated with traditional cooling systems for data centers, which has resulted in the increased adoption of these solutions across major industry verticals.

The report provides detailed insights into the global data center cooling market, which is segmented by solution, service, type of cooling, data center type, industry, and region.

In the segment of solutions, air conditioning holds the largest market share as it facilitates precision cooling with directed air flow for efficient cooling; whereas, the liquid cooling solutions segment is expected to show great growth opportunities and grow at the highest CAGR. Data center liquid cooling solutions enable low costs and reliable cooling for a variety of data center needs. This technology has become popular among enterprises and is expected to decide the future of data centers.

In terms of services, the installation and deployment services segment is expected to dominate the data center cooling market and contribute the largest market share; whereas, the maintenance and support services segment is set to grow at the highest CAGR during the forecast period. Growing investments in data center cooling across the world and the increasing adoption of these solutions are further fueling the growth of the data center cooling market.

The report covers all the major aspects of the data center cooling market and provides an in-depth analysis across the regions of North America, Europe, Asia-Pacific (APAC), Middle East & Africa (MEA), and Latin America. The market in North America is expected to hold the largest share of the market. The APAC region is projected to have great opportunities in this market and would grow at the highest CAGR by 2021, due to the presence of various developing countries, growing number of data centers, and an increasing adoption of data center cooling technology.

However, high investment costs may act as the restraining factor for the market. Various vendors are coming up with innovative data center cooling solutions and products due to the emerging demand for efficient, cost-effective, and eco-friendly. Nortek Air Solutions provides data center cooling solutions & services, and has decades of experience in data center cooling and related infrastructure offerings. It has also adopted strategies such as new product launches and acquisitions in this market. The other major vendors providing cooling data center solutions and services are Schneider Electric SE (France),  Black Box Corporation (U.S.), Airedale International Air Conditioning Ltd. (U.K.), Rittal GmbH & Co. KG (Germany), STULZ GmbH (Germany), Vertiv Co. (U.S.), Asetek (Denmark), AdaptivCOOL (U.S.), and Coolcentric (U.S.). These players adopted various strategies such as new product launches, partnerships, collaborations, and acquisitions to become competitive in the market.

Data center cooling types are important as they reduce the total cost of deployment. The various means used for cooling data centers are air conditioning, chilling units, cooling towers, economizer systems, liquid cooling systems, control systems, and others (pumping units, humidifiers, and air coolers). Data centers are also deploying hybrid solutions, which combine the room and rack/row-based solutions.

Apart from established players in the industry, the new entrants in the market are introducing provide niche and emerging cooling solutions to lure customers across multiple industries

Banking, Financial Services, and Insurance

BFSI is a sector characterized by digitization and an increasing number of customers using various banking applications. This has resulted in the exponential growth of data in the banking and financial services industry. Data is considered the most crucial part of such organizations and consequently, there are many regulations regarding data storage and protection. The data centers in BFSI are characterized by larger server densities that generate high amounts of heat and require powerful cooling infrastructure. Moreover, with the increasing budget constraints, cost-effective infrastructure solutions are becoming essential in the BFSI industry. Thus, this industry focuses on lowering the energy consumption by installing advanced data center cooling and innovative building management tools. Data center cooling solutions are increasingly gaining traction in this sector, globally, owing to their capacity to provide reliable and efficient high performance cooling to large data center facilities. With the deployment of such advanced data center cooling solutions, the BFSI organizations can reduce the overall cost of operations, thereby improving the revenue margins.

IT and Telecom

The IT and telecom industry is increasingly adopting advanced technologies such as blade servers in order to cater to the growing computational requirements. However, these solutions are not only incredibly energy-hungry, but also are more difficult to cool. This increases the energy requirement of the data centers as well as the operating temperature, thus rendering them unstable to run. Moreover, the growing number of users is driving the demand for efficient and secure data centers across this industry. Data center cooling solutions help in providing efficient cooling for the high-density data centers that are deployed within organizations in the IT and telecom sector. This is expected to increase the demand for data center cooling solutions in the IT and telecom industry.

Research and Academic

Efficient data center operations for the academic sector improves learning environment, foster greater collaboration, and facilitates administrative services. Thus, eruptional institutes are increasingly storing their data in the digital form. Moreover, research and academic institutes requires HPC devices such as supercomputers, which are characterized by high-compute density. Thus, this industry is increasingly replacing its traditional data centers with advanced data centers that operate with high energy efficiency and reduce the environmental impact by installing solutions that focus on energy-efficiency and carbon reduction. Such institutes have started deploying innovative cooling solutions such as CRAH, cold-door cooling, aisle, and rack cooling units. This has resulted in an increasing demand for deploying data center cooling solutions in the research and academic industry.

Government and Defence

Increasing efforts are being made by the government agencies to increase data access & usage, data transparency, and data security. Thus, governments worldwide are undertaking initiatives toward the digitization of information. This growing digitization has resulted in an increased number of data center facilities for storing and processing the data. Moreover, there is increasing IT investment from the defense sector in order to broaden and strengthen its existing infrastructure. Such government and defense initiatives have led to an increase in the demand for high-performance data centers that require high server densities. Cooling such large data center infrastructure requires an infrastructure that can operate at a relatively lower cost. Cost-effective and energy-efficient data center cooling solutions such as liquid cooling are being increasingly adopted by government agencies.

Retail

The retail sector is increasingly focusing on enhancing its efficiency, speed, and flexibility, which improves consumer satisfaction and drives sales. Retailers are upgrading their IT infrastructure to take advantage of interconnected data center facilities that aid them in scaling their business needs. Data centers in retail also help in e-commerce and inventory management, and facilitate smooth retail operations. This sector is witnessing a surge in the number of data centers, which has in turn led to an increasing demand for powerful cooling systems. Data center cooling has been proved to facilitate efficient power usage in HPC environments and provide reliable cooling to the data center environment. The retail sector is expected to adopt these cooling solutions that help in reducing the operational and capital expenditures.

Energy

The energy industry comprises oil and gas, power generation, refining, and distribution. Companies in this sector are generally quite big and have presence across multiple regions with high investments. As the volume of business grows, the number of branches and business applications also grows. Owing to this growing business, the industry is under immense pressure to be more energy-efficient, conserve natural resources, and reduce global carbon emission. To accomplish this, the industry is adopting intelligent devices such as smart grids, meters, and appliances that have changed the way people interact with utility assets, companies, and services. The vast amounts of data generated from these devices need to be efficiently stored and readily available. These requirements have caused an increase in the demand for high-performance data centers, which has further increased the demand for effective cooling solutions.

Manufacturing

The manufacturing industry includes metal industries, heavy engineering &industrial product manufacturers, and others, which require efficient and flexible solutions to manage their data center needs. The manufacturing industry has high constraints associated with the cost of day-to-day operations. Data center cooling solutions significantly lower the operational cost and the capital expenditure and keep the equipment operational at ideal temperatures. The manufacturing sector demands cost-effective data center cooling, which can be fulfilled by implementing data center cooling solutions. Thus, energy-efficient data center cooling solutions are being adopted increasingly in the manufacturing industry, which contributes to considerable growth in this sector.

Healthcare

Healthcare institutes require setting up data centers to store patient logs and other confidential data. They also need to manage, transport, and process patient data. The industry relies on advanced electronic applications to accurately manage scheduled appointments and securely access or share patient’s electronic records. However, hospitals have to deal with high temperatures owing to this electronic infrastructure that generates large amounts of heat. Thus, the healthcare industry requires customized as well as standard cooling systems that can remove high-watt heat loads from data centers and other medical equipment.

Others

The other industries include media & entertainment and transportation & logistics. The increase in data from these industries gave rise to an increasing demand for data centers to store and secure the data with dedicate supply of power and cooling solutions. Moreover, deployment of advanced data center facilities have helped the enterprises to expand their business all over the world. The data center and data center cooling vendors offer the ability to control and access these data centers, thereby creating flexibility in the overall enterprise operations and reducing cost of operations. This is expected to increase the demand for data center cooling solutions in the media & entertainment and transportation & logistics industries.

Key questions

• Which are the substitute products and how big is the threat from them?
• Which are the top use cases where data center cooling can be implemented for revenue generation through new advancements such as availability of dielectric coolants?
• What are the potential opportunities in the adjacent markets, such as liquid cooling market?
• What should be your go-to-market strategy to expand the reach into developing countries across APAC, MEA, and Latin America?

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