Data Center Cooling Market is Projected to Witness Significant Growth owing to Enhancing Data Center Efficiency | Hexa Research

25 February 2019, The Global Data Center Cooling Market is anticipated to witness substantial growth in the coming years owing to increasing need for enhancing data center efficiency by reducing extra heat. In addition, growing focus on the development of cost-efficient and environment friendly data center systems can drive the market in coming years. Data centers require a cool setting to avoid recirculation of heat as additional heat can lead to loss of data interrupted flow of information or system damage. Increasing structured and unstructured information in the organizations and high adoption of cloud computing are also anticipated to support market growth in the coming years.

Rising demand for green data centers and growing need for energy efficient cooling systems are the key driving factors in the market. In addition, acceptance of containerized data centers and development of modular data centers to gain high efficiency are likely to present lucrative growth opportunities in the market. Their ability to reduce energy consumption and carbon emissions is expected to support market growth. Rising adoption of these systems in enterprises due to their capability to adjust in fluctuating temperatures and humidity can boost market growth in coming years.

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High cost of these equipment along with associated maintenance costs are expected to challenge the market. In addition, rise in heat energy densities and emission of harmful gasses are anticipated to restrain market growth. However, use of liquid cooling solutions, which utilize advanced engineered coolants to reduce carbon footprint, is expected to boost market growth in coming years. They offer effective cooling for highpower and server density data centers.

Data center cooling solutions are extensively used in several industries, such as BFSI, telecom and IT, retail, energy, and healthcare. Rapid digitization and high adoption of cloud and big data technologies have increased the need for effective cooling solutions in IT and telecom sector. These technologies require better storage solution for digital information and high availability. In addition, demand for better connectivity, advanced infrastructure, and greater storage is increasing in the organizations. High penetration of smart devices and need for protecting critical information has augment the demand for effective cooling solutions. Air conditioners (AC) are commonly used to maintain room temperature in IT infrastructure. They can be effectively used in data center cooling applications by selecting a suitable size. Furthermore, demand for maintenance services are likely to increase in coming years. This could be attributed to high adoption of data center cooling solutions in enterprises and large data
centers, which need third-party support for antennae. The service providers offer management of physical servers and storage facility.

North America is a leading region in the market due to presence of data center providers and high adoption of colocation facilities. Europe is likely to emerge highly lucrative in future owing to presence of strict government guidelines pertaining to energy efficiency.

Asia Pacific is anticipated to witness momentous growth in coming years due to strong demand for cooling solutions from South East Asian countries. Singapore is considered one of the important adopters of cloud computing. Moreover, increasing telecom subscribers due to high penetration of smartphones is boost the demand for cooling solutions in the region. Emerging countries, such as India and China, are also expected to contribute significantly to regional growth in the coming years due to increasing investment for improving data center infrastructure.

Some of the leading companies operating in the data center cooling market are Schneider Electric, Emerson Network Power, Rittal GmbH & Co. KG, KyotoCooling, and Air Enterprises.

Key players are adopting several inorganic growth strategies, such as partnerships and mergers and acquisitions, in order to cope with intense competition in the market. For instance, CoolIT Systems partnered with Intel to develop high performance Direct Liquid Cooling solutions for IntelXeon Scalable CPUs.

Similarly, Hitachi Vantara, a subsidiary of Hitachi, Ltd, announced its expansion of Smart Data Center, which consist of AI and real-time analytics. This facility is intended to optimize global data center service health, performance management, capacity management, and cooling. The self-optimizing data centers reduce IT operational costs by making use of AI, machine learning, and automation

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