Data Center Liquid Cooling Market

[132 Pages Report] The data center liquid cooling market size is estimated to grow from USD 827.8 million in 2016 to USD 2969.8 million by 2021, at a Compound Annual Growth Rate (CAGR) of 29.11%. Major growth drivers of the market include increasing server rack density, increasing need for cost-effective cooling solutions, growing need for eco-friendly data center solutions, and availability of advanced coolants. In this study, 2015 has been considered as the base year and 2016-2021 as the forecast period.

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Market Dynamics

Drivers

• Increasing Server Rack Density
• Increasing need for cost effective cooling solutions
• Growing need for eco-friendly data center solutions
• Availability of advanced coolants

Restraints

• High maintenance requirements
• Requirement of specialized infrastructure

Opportunities

• Adoption in low density data centers
• Deployment in harsh environments

Challenges

• High investment in pre-existing infrastructure

Increasing rack server density to drive the global data center liquid cooling market

Traditionally, data centers were simple and the performance required by them did not demand high-density servers. However, with advancement in technology and increase in computing power and performance requirement, data center server rack densities have also increased steadily. Many of the current generation data centers operate at 20–40 watts per square and some of these are approaching 100 watts per square feet load density thus causing an upsurge in the amount of heat load and heat density generated by the data centers. Cooling such heat load requires cost-effective and efficient solutions. Liquid cooling solutions that make use of immersion cooling are able to cool such high-density server racks at very low cost. Moreover, they also provide a non-hazardous and environment-friendly approach to data center cooling. Benefits of using non-toxic and less corrosive mineral oil for liquid immersion cooling is helping in attracting a larger number of customers and further driving the data center liquid cooling market.

The following are the major objectives of the study.

• To define, describe, and forecast the global data center liquid cooling market on the basis of cooling solutions, services, data center types, industry verticals, and regions
• To provide detailed information regarding the major factors influencing the growth of the market (drivers, restraints, opportunities, and industry-specific challenges)
• To strategically analyze micromarkets1 with respect to individual growth trends, future prospects, and contribution to the total market
• To forecast the market size with respect to five main regions, namely, North America, Europe, Asia-Pacific (APAC), the Middle East and Africa (MEA), and Latin America
• To strategically profile key players and comprehensively analyze their core competencies2
• To track and analyze competitive developments such as joint ventures, mergers and acquisitions, new product developments, and Research and Development (R&D) activities in the market

The research methodology used to estimate and forecast the market begins with capturing data on key vendor’s revenues through a secondary research. 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 data center liquid cooling 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:

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The data center liquid cooling ecosystem comprises vendors, such as, Asetek (Denmark), Rittal GmbH and Co. Kg. (Germany), Emerson Electric Co. (U.S.), Schneider Electric SE (France), IBM Corporation (U.S.), Green Revolution Cooling Inc. (U.S.), Midas Green Technologies LLC (U.S.), Allied Control Ltd. (Hong Kong), Green Data Center LLP (Malaysia), and Horizon Computing Solutions (France); service providers, system integrators, and enterprises. Other stakeholders of the data center liquid cooling market include telecom service providers, OEM, value added service providers, data center cooling, solution vendors, data center operators, data center colocation service providers, system integrators, and cloud services providers.

Major Market Developments

• In August 2016, Asetek partnered with HP to cool HP’s newly developed OMEN X Desktop Gaming PC.
• In April 2016, Rittal collaborated with DB Space to distribute its climate control units, enclosures, power distribution, IT infrastructure, and software services to clients across Namibia.
• In October 2016 Emerson launched a Liebert DCL modular rack cooling system targeted towards small and medium sized data centers in the Europe, Middle East, and Africa (EMEA) region

The target audiences of the data center liquid cooling market report are:

• Telecom Services providers
• OEM
• Value Added Service Providers
• Data Center Cooling Solution Vendors
• Data Center Operators
• Data Center Colocation Service Providers
• System Integrators
• Cloud Services 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 Report:

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

By Type of Cooling Solutions:

• Indirect Liquid Cooling
• Direct Liquid Cooling

By Services:

• Design and Consulting
• Installation and Deployment
• Support and Maintenance

By Data Center Type:

• Small and Medium-Sized Data Centers
• Enterprise Data Centers
• Large Data Centers

By Industry Verticals:

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

By Region:

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

Critical questions which the report answers

• What are new application areas which the liquid cooling companies are exploring?
• Which are the key players in the market and how intense is the competition?

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 Liquid 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

The Data center liquid cooling market is estimated to grow from USD 827.8 million in 2016 to USD 2969.8 million by 2021, at a high Compound Annual Growth Rate (CAGR) of 29.11% during the forecast period. Liquid cooling data center solutions are gaining a significant importance among organizations as they are scalable and universally designed. Liquid cooling data center concept uses mineral-based or chilled water coolants to address the rising temperatures within data centers and facilitates efficient heat removal. The enterprises are moving beyond the traditional concepts of air cooling for data centers to address rapid technology changes and today’s business needs, that is helping in the increasing adoption of liquid cooling approach.

The report provides detailed insights into the global data center liquid cooling market, which is segmented by cooling solutions, services, data center type, industries, and regions. In the segment of cooling solutions, indirect liquid cooling holds a higher market share as it facilitates easy addition of cooling infrastructure and provides a smoother transition from traditional systems; whereas, direct liquid cooling solutions show great growth opportunities and is anticipated to overtake indirect liquid cooling market by the next five years. Data center direct liquid cooling solutions enable low costs and reliable cooling for a variety of data center needs. This technology has become popular amongst enterprises and is expected to decide the future of data centers. In terms of services, installation and deployment services are expected to dominate the data center liquid cooling market and contribute the largest market share; whereas, support and maintenance is set to grow at the highest CAGR during the forecast period. Growing investments in liquid cooling data centers across the world and the increasing adoption of these solutions are further fueling the growth of the data center liquid cooling market.

Liquid cooling applications in BFSI, IT and Telecom, Government and Defense verticals to drive the growth of reed sensor market

BFSI

BFSI is a sector characterized by digitization and increasing number of customers that are using various banking applications. This has resulted in the exponential growth of data in the banking and financial services industry. Data is the most crucial part of such organizations owing to the high regulations for 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. Liquid cooling solutions are increasingly finding traction in this sector globally owing to their capacity to provide reliable and efficient high performance cooling to large data center facilities.

IT and Telecom

Growing number of users and increasing adoption of various technologies related to media and digital content are driving the demand for efficient and secure data centers across this vertical. Liquid cooling solutions help in providing efficient cooling for the high-density data centers that are deployed within organizations in the IT and telecom sector. The data centers are integrated with advanced IT equipment and provisioned for use in high-density network zones. Moreover, the IT and telecom sector is observing an ever-increasing demand for these solutions, which is due to growth in data center infrastructure and related resources. This requirement of scalability subsequently requires the utilization of scalable cooling infrastructure, which is provided by the liquid cooling solutions, which has further led to an increase in demand for liquid cooling solutions in this sector.

Government and Defense

Growing number of government initiatives towards digitization of information have caused an increase in the number of data center facilities. Increasing requirement for information security and availability has led to an increase in demand for high-performance data centers that require higher server densities. Cooling such large data center infrastructure requires an infrastructure that can operate at relatively lower cost. Liquid cooling solutions are more cost-effective and efficient than air-cooled solutions. This is driving the migration of government organizations to liquid-cooled data centers.

Healthcare

Healthcare institutes require setting up data centers to store patient logs and other confidential data. Hospitals have to deal with high temperatures owing to electronic infrastructure that generates large amounts of heat. The healthcare sector requires customized as well as standard cooling systems that include cold plates, liquid recirculating chillers, and heat exchangers to remove high-watt heat loads from data centers and other medical equipment. Moreover, the immersion liquid cooling solutions use coolants that are non-toxic and are seen motivating the adoption of these solutions in this industry. These benefits of liquid cooling solutions have been instrumental in driving the growth of the liquid cooling market in the healthcare sector.

Critical questions the report answers:

• Where will all these developments take the industry in the mid to long term?
• What are the upcoming industry applications for liquid cooling?

The report covers all the major aspects of the data center liquid cooling market and provides an in-depth analysis across the regions of North America, Europe, Asia-Pacific (APAC), the 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 liquid cooling data center technology.

However, high investments in pre-existing infrastructure may act as the restraining factor for the data center liquid cooling market. Various vendors are coming up with innovative data center liquid cooling solutions and products due to the emerging demand for high energy-efficient data centers and reducing carbon footprints. Schneider Electric provides indirect type of data center liquid cooling solutions & services, and has decades of experience in data center and related infrastructure offerings. It has also adopted strategies as new product development and collaborations in this market. The other major vendors providing liquid cooling data center solutions and services are Asetek (Denmark), Rittal GmbH and Co. Kg. (Germany), Emerson Electric Co. (U.S.), IBM Corporation (U.S.), Midas Green Technologies LLC (U.S.), Allied Control Ltd. (Hong Kong), Green Data Center LLP (Malaysia), and Horizon Computing Solutions (France). These players adopted various strategies such as new product launches, partnerships, collaborations, and expansions to become competitive in the market.

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