New technological innovations have led to increase in number of data centers across the globe which in turn has resulted in heavy demand for data center cooling systems. According to Global Market Insights, Inc., “Data Center Cooling market share worth USD 2.5 billion in 2015, is anticipated to exceed USD 6 billion by 2023, recording a CAGR of 11% over 2016-2023.” Rising need for reducing greenhouse emissions has enhanced the popularity of data center cooling systems worldwide. Rapid expansion of IT services and enormous efforts to minimize infrastructure costs have resulted in heavy demand for data center cooling systems worldwide.
Data center cooling system finds applications in Retail, BFSI, IT & Telecom, Energy, and Healthcare sectors. IT & Telecom industry accounted for 40% of data center cooling market share in 2015, and is predicted to grow at a rate of 11.8% over 2016-2023. The high growth can be credited to the growing application of eco-friendly and cost-effective cooling systems across IT & Telecom sector. Data center cooling market size in BFSI sector is expected to grow at a rate of 11.5% over the period of 2016-2023 owing to its low transaction turnaround time, better cooling facilities, periodic peak load, and easy availability.
Major data center cooling system products include chillers and air conditioners. Chiller data center cooling market, which contributed over 80% of the overall revenue in 2015, is forecast to witness a high growth over the coming seven years as it helps in controlling damage to hardware and preventing data corruption of mission critical systems. Air conditioner data center cooling market may record a CAGR of 11% over the period of 2016-2023.
Based on the services, data center cooling market is segmented into OEM and managed services. OEM service segment is forecast to record a CAGR of 11.6% over the period of 2016-2023. Managed services segment contributed over 60% of the overall revenue, and is anticipated to witness significant growth over the coming timeframe.
Asia pacific data center cooling market size is expected to reach USD 1.30 billion by 2023 owing to surge in demand from IT segment. India and China are expected to contribute considerably towards the overall revenue of the region in near future. North America data center cooling market price is expected
to surpass USD 2.4 billion by 2023. U.S. market, which accounted for over USD 1 billion in 2015, is predicted to witness a high revenue surge over the period of 2016-2023.
Market players will try to increase their profits through R&D investments and product differentiation. They will make great efforts to improve product performance and fulfill consumer requirements to retain their market position. Key industry players include Schneider Electric Automation Company, Hitachi, Emerson Electric, Hewlett Packard, and IBM Corporation.