IT, environmental concerns, need to acquire power and cost efficacy drive growth of data center cooling market
The global data center cooling market is segmented into various products like cooling towers, precision air conditioners, chillers, economizers, air conditioners, and servers cooling and management systems.
The global data center cooling market size was evaluated at $2.58 billion for 2015 and is predicted to cross $6.0 billion by the end of the forecast period, registering a compound annual growth rate (CAGR) of more than 11%. The growth can be contributed to an increase in proportion of data-intensive firms across the world. Growth of the information technology (IT) segment has resulted in innovation of cooling technologies, and this has contributed to the demand and growth of the industry during the forecast period. Requirements to acquire power efficacy and cost efficacy are the factors predicted to promote the demand for data center cooling technologies in the future.
Excessive heating of data center infrastructure disrupts the entire performance of any firm due to data loss. This has resulted in heavy demand for efficient data center cooling systems that can ensure servers function properly and remove any downtime. An increase in the number of firms moving toward cloud computing is predicted to promote data center cooling market growth.
The global data center cooling market's products segment includes cooling towers, precision air conditioners, chillers, economizers, air conditioners, and server cooling and management systems.
Precision air conditioners are predicted to heavily penetrate the industry during the forecast period due to their cost-effectiveness. The product category claimed more than 70% of the total industry share for 2015. Today, firms face many challenges associated with high deployment costs of cooling systems due to which precision air conditioners are preferred.
Air conditioners are forecast to register more than 11% CAGR in future. Chillers dominated the global industry by contributing more than 80% of the total share of the industry for 2015.
The global industry's services segment includes monitoring services, system integrators, and managed services.
Managed services are facility-management services offered by third parties. These services include software and hardware deployment in data centers. The segment contributed more than 60% of the total revenue of the global industry.
The global market's end-user applications segment includes banking, oil and gas, public sector, health care, energy, education, telecom and IT, BFSI (banking, finance, and insurance), and utility and government.
The telecom and IT category is predicted to contribute significantly to the industry share during the forecast period. The factors attributing to the growth include the growing number of external IT infrastructure service providers and smartphone proliferation. The category is predicted to dominate the global industry in terms of revenue due to its high rate of acceptance.
The growing requirement for securing critical information and deals in BFSI is also predicted to contribute toward the growth of the global industry. Growth can be attributed to factors like demand for good cooling facilities, low turnaround time, and high system accessibility for BFSI applications. It is predicted to register CAGR of 11.5% during the forecast period.
Health care is also predicted to be a key contributor to the global industry due to the growing requirement to maintain databases about patient medical history.
The global industry user-type segment includes cloud providers, enterprises, and collocation providers. Enterprises are broken into three types: small, midsize, and large. The growing amount of small and midsize enterprises is predicted to be a key aspect propelling the growth of the global industry. Small enterprises are predicted to register CAGR of 11.5% during the forecast period.
The global industry's cooling-type segment includes rack cooling and room cooling.
The global data center cooling market is broken into key geographical regions that include North America, Asia-Pacific (APAC), Europe, Latin America, and Middle East-Africa (MEA).
North America contributed more than $1.0 billion of the industry share for 2015 in terms of revenue. The factors credited to the growth of the industry in the region were a matured IT segment and technological breakthroughs. Also, the U.S. market for data center cooling led to the region dominating the global industry in terms of revenue. The growing number of startup firms in North America can also provide future business-growth opportunities for the industry.
The APAC market size for data center cooling is projected to touch $1.3 billion by end of the forecast period, owing to heavy demand from countries like India and China for data center cooling systems. Further, an increase in third-party service providers is also predicted to increase future demand for the cooling systems.
Europe's data center cooling industry is witnessing rapid growth due to strict government rules, environmental concerns, and power efficacy.
Key industry players stimulating the growth of the global industry include:
- Emerson Network Power
- Vigilent Inc.
- Fujitsu Ltd.
- Black Box Corp.
- Airedale International Air Conditioning Ltd.
- Intel Corp.
- American Power Conversion Corp.
- Hewlett-Packard Co.
- IBM Corp.
- Hitachi Ltd.
- Rittal GmbH & Co. KG
- Stulz GmbH
- Schneider Electric
- Itaire Inc.
-This article originally appeared on Global Market Insights. Global Market Insights is a CFE Media content partner.