This market research report on APAC data center cooling market offers analysis on market size & forecast, market share, industry trends, growth drivers, and vendor analysis. The market study also includes insights on segmentation by cooling infrastructure (cooling system and other infrastructure), by cooling technique (air-based cooling and liquid-based cooling), by liquid cooling technique (water-based cooling technique and direct liquid and immersion cooling technique), by cooling systems (CRAC & CRAH, chiller, cooling towers & dry coolers, economizers & evaporative coolers, and other cooling units), and by geography (China & Hong Kong, Singapore, Australia, and Rest of APAC).
APAC Data Center Cooling Market - Overview
The increasing internet penetration and high consumption of digital content are leading to increased development of facilities in the APAC region. The emergence of edge computing and need for datacenters across multiple cities in the region will propel the demand in the APAC data center cooling market. With electricity prices sky-rocketing the operators are focusing on adopting energy-efficient infrastructure powered by renewable energy sources to attract consumers in the APAC market. Countries such as China, Singapore, India, and Australia are the largest revenue generators in the APAC market. The companies are following standards and guidelines for the design, adoption, and operation of cooling solutions and other related infrastructure in the APAC market. With an increasing number of colocation providers building hyperscale facilities spanning over 200,000 square feet with rack power density of up to 40 kW will create new lucrative opportunities for leading vendors in the APAC market. Apple, Facebook, Alibaba, Baidu, Google, AWS, Microsoft, OVH, and China Telecom are investing billions of dollars for the development and construction of new facilities across the APAC market. The increasing number of M&A activities will enable the deployment of expansion projects to accommodate the growing demand for services. The entrant of several SaaS providers will lead to datacenter construction in the APAC market. The increasing efforts by government agencies to promote digitalization will drive the deployment of new facilities and demand for innovative infrastructure in the APAC market. Innovations will help enhance the operational efficiency, reduce power consumption, and decrease carbon emissions of facilities, resulting in higher revenues in the APAC data center cooling market.
The increasing use of cooling systems with reduced water consumption is creating new revenue opportunities for leading vendors operating in the APAC market. The success of research projects such as tropical climate datacenters and underwater facilities will have an impact on the market over the next few years. The APAC data center cooling market is anticipated to reach revenues of more than $2 billion by 2023, growing at CAGR of over 9% during 2017-2023. The market research report also offers market size by cooling systems during the forecast period.
The increasing construction of cryptocurrency facilities is fueling the need for efficient solutions in the APAC data center cooling market. Cryptocurrencies are virtual currencies, the most popular of which are Bitcoin, Litecoin, Ethereum, and Ripple (XRP). Mining cryptocurrency requires higher investment in hardware and higher dependency on power and cooling to support operations in the APAC market. The use of cryptocurrency is boosting the demand for colocation spaces and cloud platforms in the APAC market. The cryptocurrency miners are investing millions for the development of sustainable facilities that support their operations in the market. China is the leading country in cryptocurrency mining in the APAC region. The government initiatives to reduce the power consumption of these facilities will lead to the introduction of sustainable infrastructure in the APAC data center cooling market.
This market research report includes a detailed segmentation of the market by cooling infrastructure, cooling technique, liquid cooling technique, cooling systems, and by geography.
APAC Data Center Cooling Market – By Cooling Infrastructure
Adoption of the energy-efficient cooling system across countries will propel the growth of the APAC data center cooling market
The APAC data center cooling market by cooling infrastructure is classified into the cooling system and other infrastructure. Cooling system segment dominated the majority of market share in 2017, growing at a CAGR of more than 9% during the forecast period. The growing preference of chilled water systems in Southeast Asia, China, India, and Australia and use of indirect evaporative cooler and air/water-side economizers in China, Japan, South Korea, and New Zealand is driving the growth of cooling systems in the APAC. Many Tier IV facilities across APAC are adopting the 2N+1 redundant configuration for cooling systems, thereby, fueling the growth of the market. The growing popularity of the use of dual water feeds in facilities with on-site water treatment plants will create opportunities for leading vendors operating in the APAC data center cooling market. The incorporation of efficient solutions will help operators reduce CAPEX and OPEX, conserve facilities space, and reduce power consumption of cooling units in the APAC market.
The other infrastructure segment includes pump systems, piping units and valves, boilers, fire protection, and suppression systems, and sprinklers. Pump systems, piping units, and valves are the highest revenue generators of the other infrastructure segment in the APAC data center cooling market.
APAC Data Center Cooling Market – By Cooling Technique
Datacenter deployment in China & Japan is moving to northern cities to benefit from free cooling in the APAC data center cooling market
The cooling technique segment in the APAC data center cooling market is categorized into air-based cooling and liquid-based cooling. The air-based cooling technique is the fastest growing segment in the market, at a CAGR of over 13% during the forecast period. Air-based cooling methods comprises of DX-based CRAC units, free cooling technique solutions, air-cooled chiller-based cooling, and dry coolers. The growing popularity of free cooling solutions is prompting operators to construct facilities in locations that facilitate the technique in the APAC market. Japan is one of the largest countries that uses free cooling solutions. The increasing adoption of evaporative coolers that promote partial cooling with indoor CRAC units across facilities will propel the growth of this segment in the APAC data center cooling market. The innovations in the free cooling space such as the use of outside air to cool facilities without any on-site water requirement will revolutionize this market segment over the next few years.
Liquid-based cooling techniques include chilled-water based cooling, direct liquid cooling, and immersion cooling techniques. The increasing use of chilled water systems to cool facilities with on-site water storage or drawing water from the nearby river or ocean is driving the growth of this segment in the APAC data center cooling market.
APAC Data Center Cooling Market – By Liquid Cooling Technique
The use of modern chiller systems that reduce water consumption to up to 50% will boost the market for water-based cooling in the APAC data center cooling market
The APAC data center cooling market by the liquid cooling technique is segmented into water-based cooling technique and direct liquid and immersion cooling technique. Water-based cooling technique occupied more than 2/3rd of the total market share in 2017, growing at a CAGR of approximately 7% during the forecast period. The growing adoption of the adoption of free cooling chillers is propelling the growth of this segment. These chillers are designed to offer high efficiency at reduced costs. The efficiency of these modern chiller systems will play a vital role in the growth of these solutions in the APAC data center cooling market. Various operators are constructing facilities near the coastal regions as the use of ocean water will be a viable source of cooling during the forecast period. Additionally, the success of Microsoft’s under ocean datacenter experiment will transform water-based cooling solution.
Various leading vendors are offering liquid immersion cooling and direct liquid cooling as per demand to consumers in the APAC data center cooling market. For instance, Fujitsu deployed a liquid immersion cooling-based solution for the Automobile Research Institute in Japan.
APAC Data Center Cooling Market – By Cooling Systems
The installation of 2N CRAC and CRAH units will continue to grow in the APAC data center cooling market
The cooling systems segment in the APAC data center cooling market is divided into CRAC & CRAH, chiller, cooling towers & dry coolers, economizers & evaporative coolers, and other cooling units. Economizers and evaporative coolers are the fastest growing segment in the market, at a CAGR of more than 14% during the forecast period. DX-based CRAC units are suitable for smaller facilities that have low rack power density less than 3 kW. Most of these facilities are built to be modular.
In contrast, CRAH units facilitate chilled-water cooling making them suitable for medium to large facilities that use water for cooling. With facilities now built to handle more than 10 MW of IT load, these facilities use multiple CRAC, and CRAH units split across data halls and containment designs. The market for these units will continue to grow among datacenters that use DX or chilled-water cooling solutions, which is high across the APAC data center cooling market. The increasing adoption of multiple CRAC and CRAH units split across data halls, and containment designs are driving the growth of the APAC market. Chiller units are the most critical component of modern facilities design, and the adoption of energy-efficient chillers with smart technologies will grow in the APAC data center cooling market.
APAC Data Center Cooling Market – By Geography
Investment in a hyperscale datacenter in China, Hong Kong, Australia, Singapore, and India will propel the growth of the APAC data center cooling market
The APAC data center cooling market by geography is categorized into China & Hong Kong, Singapore, Australia, and Rest of APAC. China and Hong Kong dominated more than 1/3rd of the total market share in 2017, growing at a CAGR of over 9% during the forecast period. China and Hong Kong have the largest datacenter operation in the APAC market. The growing investment by internet, cloud, and telecommunication service providers such as Baidu, Alibaba, China Unicom, China Telecom, and China Mobile will boost the revenues across China and Hong Kong region over the next few years. The occupancy rate across facilities in China was over 70% during 2017. The rising demand for hybrid infrastructure services and the growing construction of wholesale colocation facilities will propel the growth of these countries in the APAC data center cooling market. The growing demand for cryptocurrency facilities will result in the development of datacenters with high-performance computing infrastructures across China and Hong Kong region in the APAC market.
The establishment of submarine cable projects that connects Australia and rest of the world such as Hawaiki Submarine Cable, Australia Singapore Cable, Indigo cable system, NEXT Cable, and Australia West Express (AWE) will increase greenfield datacenter development in the APAC market. The development of facilities that comprise multiple chillers, cooling towers, and CRAH units in 2N or N+N redundant configuration will boost revenues in the APAC data center cooling market.
Key Vendor Analysis
The APAC data center cooling market consists of several international and regional players that offer specific products or complete range of infrastructure solutions for facilities. The vendors are providing systems that use both air and water to cool facilities to sustain the intense competition in the APAC market. The top service providers are investing innovations to launch systems that increase the efficiency of facilities operations by 90% and reduce cooling OPEX up to 50% in the market. The establishment of a strong partnership among facility operators and service providers will intensify competition across the APAC data center cooling market.
The major vendors in the APAC market are:
Other prominent vendors include 3M, AIRSYS, Alfa Laval, Allied Control, Asetek, Climaveneta (Mitsubishi Electric), The Condair Group, CoolIT Systems, Daikin Applied, Data Aire, Delta Group, Green Revolution Cooling (GRC), Munters, Nortek Air Solutions, Pentair, Swegon, Trane (Ingersoll Rand), Renovo Zhuhai, United Technologies (Carrier), Vigilent, and Wakefield-Vette.
Key market insights include
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