Data Center Liquid Cooling Market: Current Analysis and Forecast (2021-2027)

Report Description

Data Center Liquid Cooling Market is anticipated display a CAGR of around 25% over the forecast period (2021-2027). This is attributed to a substantial growth of data centers owing to the huge amount of data in the number of industrial businesses such as IT & telecommunication, finance, and many others. Moreover, the modern data center has evolved from a facility containing an on-premises infrastructure to one that connects on-premises systems with cloud infrastructures where networks, applications and workloads are virtualized in multiple private and public clouds. Furthermore, the data center industry is expected to grow due to an increasing use of high-end cloud computing solutions by all types of enterprises and organizations across the world. In addition, the global data center industry is booming, as increasing cloud adoption fuels new opportunities in big data and IoT investment, leading to the birth of more hyperscale data centers.. Therefore, efforts to reduce power consumption and carbon emissions, improve operations, and the deployment of liquid cooling to support AI and big data analytics.

Schneider Electric SE, Aquila Group, Asetek Inc., RITTAL GmbH & Co. KG, Vertiv Group Corp., Green Revolution Cooling Inc., Chilldyne Inc., Fujitsu Limited, ExaScaler Inc., and CoolIt Systems are some of the prominent players operating in the Data Center Liquid Cooling market. Several M&As along with partnerships have been undertaken by these players to facilitate customers with hi-tech and innovative products/technologies.

Insights Presented in the Report

“Amongst Component, Solutions kW category to hold significant market share”

Based on component, the Data Center Liquid Cooling Market is bifurcated into solutions and services. In 2020, solutions category held a significant market share in the global market. The solutions segment is further categorized into indirect liquid cooling and direct liquid cooling. During the forecast period, growing demand for precision cooling to drive growth of indirect liquid cooling category growth. Furthermore, changing government and international policies on carbon emissions and increased emphasis on energy efficiency is expected to drive adoption of liquid cooling in data centers. In addition, increased emphasis on digitization, expanding internet reach, and cloud migration have resulted in a growth in worldwide IT workloads. This will eventually increase the rack power densities. Thus, the growing demand for data centers is also responsible for such high growth in the data center liquid cooling market.

“Amongst Size, Large Data Centers to witness strong CAGR”

On the basis of size, the market is categorized into Small and Mid-Sized Data Centers and Large Data Centers. Among the two, Large Data Centers is expected to witness considerable growth during the forecast period, as organizations today are predominantly developing to match their user needs. Moreover, major market players are in the industry are focusing on integration of  rack- and row-based cooling solutions. This is further expected to result in higher adoption of immersion cooling solutions owing to the greater cooling requirements of high-density server racks. High density data centers offer the efficiency and cost savings that businesses need to thrive in a highly competitive environment. The amount of information processed online is predicted to increase by 10 times by 2030, which means that businesses will place higher and higher demands on their data centers.

“Amongst End-Use Industry, BFSI Category to Witness Higher CAGR”

Based on end-use industry, the Data Center Liquid Cooling Market has been bifurcated into IT and Telecom, BFSI, Media and Entertainment, Healthcare, Government and Defense, Retail, and Others. The market is the IT and telecom industry. Data centers are a crucial part of the ICT industry as data transmission and data delivery operations require better connectivity. As communication is the biggest factor contributing to the success of the ICT industry, data centers have become critical to this industry, However, BFSI industry to witness strong growth during the forecast period. This is mainly due to strict regulations for data storage and protection in this industry. Moreover, BFSI is a sector characterized by digitization, and the increasing number of customers that are using various banking applications has resulted in exponential growth of data in the banking and financial services industry. Data centers are increasingly becoming an important part for banking and financial industry, as the industry requires effective management of crucial data.

 “North America Dominated the Global Data Center Liquid Cooling Market in 2020”

In 2020, North America accounted for majority share in the data center liquid cooling market. This is mainly due to the growing adoption of processing-intensive computing applications as organizations adopt more cloud services coupled with increased use of artificial intelligence (AI) to power advanced analytics and automated decision making. North America is home to many technological innovators and have high demand for upcoming technologies such as cloud computing and IoT. To manage the increasing complexities of these technologies, powerful data center facilities are required. As a result, demand for data center services is likely to rise, and a number of American companies are entering the data center service market in this region. Most of the major data center service providers, such as HPE, Dell, and Cisco, have their headquarters in this region, which is one of the key reasons for the region’s strong market share..

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• The study includes market sizing and forecasting analysis validated by authenticated key industry experts
• The report presents a quick review of overall industry performance at one glance
• The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolio, expansion strategies, and recent developments
• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry
• The study comprehensively covers the market across different segments
• Deep dive regional level analysis of the industry

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Research Methodology

Analyzing the historical market, estimation of the current market, and forecasting the future market of the Data Center Liquid Cooling market were the three major steps undertaken to create and analyze the adoption of Data Center Liquid Cooling in major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the Data Center Liquid Cooling market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments the industry pertains to. Detailed methodology is explained below:

Analysis of Historical Market Size

Step 1: In-Depth Study of Secondary Sources:

Detail secondary study was conducted to obtain the historical market size of the Data Center Liquid Cooling through company internal sources such as annual report & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.

Step 2: Market Segmentation:

After obtaining the historical market size of the Data Center Liquid Cooling market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments included in the report as Type, Size, Component, and End-Use Industry. Further country-level analyses were conducted to evaluate the overall adoption of Data Center Liquid Cooling in that region.

Step 3: Factor Analysis:

After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of Data Center Liquid Cooling. Further, we conducted factor analysis using dependent and independent variables such as increasing digitalization of industries and urbanization in developing countries. A thorough analysis was conducted for demand and supply-side scenarios considering top partnerships, merger and acquisition, business expansion, and product launches in the Data Center Liquid Cooling sector across the globe.

Current Market Size Estimate & Forecast

Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the Data Center Liquid Cooling market, and market shares of the segments. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.

Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., top-down/bottom-up approach was applied to arrive at the market forecast about 2027 for different segments and subsegments across the major markets globally. The research methodology adopted to estimate the market size encompasses:

• The industry’s market size, in terms of value (US$) and the adoption rate of Data Center Liquid Cooling across the major markets domestically
• All percentage shares, splits, and breakdowns of market segments and sub-segments
• Key players in the Data Center Liquid Cooling market in terms of products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market

Market Size and Share Validation

Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, and Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.

Split of Primary Participants in Different Regions

Market Engineering

Data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers of each segment and sub-segment of the Data Center Liquid Cooling market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of type and their type of the Data Center Liquid Cooling market.

The main objective of the Data Center Liquid Cooling Market Study

The current & future market trends of Data Center Liquid Cooling were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments from the qualitative and quantitative analysis performed in the study. Current and future market trends were determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit as a first-mover advantage. Other quantitative goals of the studies include:

• Analyze the current and forecast market size of Data Center Liquid Cooling in terms of value (US$). Also, analyze the current and forecast market size of different segments and sub-segments
• Segments in the study include areas of type, size, component, and end-use industry.
• Define and analysis of the regulatory framework for the Data Center Liquid Cooling industry
• Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry
• Analyze the current and forecast market size of the Data Center Liquid Cooling market for the major region
• Major regions studied in the report include North America (the U.S, Canada, and Rest of North America), Europe (Germany, United Kingdom, France, Spain, Italy, and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, and Others), and the Rest of the World
• Company profiles of the Data Center Liquid Cooling market and the growth strategies adopted by the market players to sustain in the fast-growing market
• Deep dive regional level analysis of the industry