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Data Center Cooling Market in Latin America - Industry Outlook and Forecast 2018-2023

SKU : ARZ180206
  • Published on : February 2018

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This market research report on Latin America 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 water-based cooling), by cooling systems (CRAC & CARH, chiller, cooling towers & dry coolers, and economizers & evaporative coolers), and by geography (Brazil, Chile, Colombia, and rest of Latin America.

Latin America Data Center Cooling Market - Overview

The rapid development of the computing power in the region and growing demand for innovative technologies such as cloud computing, IoT, and big data analytics across various industries will propel the growth of the Latin America data center cooling market. The growth of the sectors such as BFSI, healthcare, government, and heavy industries will boost the need for efficient IT infrastructure and facilities, thereby, augmenting the demand for cooling systems in the region. The growing requirement for high-performance computing (HPC) and virtualization will result in the increase of rack density to an average of 8-10kW in the Latin American market. The increase in rack power density will fuel the use of in-row and in-rack level cooling solutions in centers in the region. The increasing investment in the construction of modular data centers in region will attribute to the demand for rack/row cooling solutions in the Latin America data center cooling market.

The leading vendors in the region are focusing on innovating their product portfolios to introduce low-cost cooling systems, improve functional efficiency and suitable cooling systems that match the capacity of the facilities in the region. Countries such as Brazil, Chile, Colombia, Mexico, and Peru are the largest revenue contributors in the region. The Latin America data center cooling market is expected to generate revenues of around $255 million by 2023 and is expected to grow at a CAGR of more than 11% during the forecast period.

Latin America Data Center Cooling Market Size in Revenue

Latin America Data Center Cooling Market - Dynamic

The migration from comfort cooling to precision cooling will drive the growth of the Latin America data center cooling market. The leading colocation providers such as Ascenty and Equinix are investing in the construction of centers in Brazil with spaces crossing more than 10,000 square feet area and rack density of around 10kW. The construction of such mega centers will boost the demand for precision air conditions in the region. Moreover, the development of modular and colocation facilities in countries such as Chile and Colombia will fuel the demand for evaporative coolers, free cooling chillers, and economizers in the region. The rise in the rack power density and increased investment in large projects will encourage the use of modern precision cooling systems in Latin America data center cooling market over the next few years.

Latin America Data Center Cooling Market Segmentation

This market research report includes a detailed segmentation of the market by cooling infrastructure, by cooling technique, by cooling systems, by tier standards, and by geography.

Segmentation of Data Center Cooling Market in Latin America

Segmentation of Data Center Cooling Market in Latin America

Latin America Data Center Cooling Market – By Cooling Infrastructure

Demand of high capacity cooling systems to gain popularity in Latin America data center cooling market

The Latin America data center cooling market by cooling infrastructure is classified into cooling systems and other infrastructure. The cooling system was the largest segment in the market in 2017 and is projected to grow at a CAGR of more than 11% during the forecast period. The use of air and water cooling systems to reduce the heat generated in facilities is leading to the adoption of common cooling infrastructures such as computer room air conditioners (CRAC), computer room air handlers (CRAH), chillers, cooling towers, dry coolers, economizers, and evaporative coolers. Cooling systems with N+N redundancy for tier 3 facilities and 2N redundant infrastructure for tier 4 facilities will boost market growth in the region. Additionally, cooling systems with accessories and systems level monitoring controls will augment the growth of this market segment in Latin America. The development of cost-effective and highly functional systems will create new investment opportunities of vendors in the Latin America data center cooling market.

Latin America Data Center Cooling Market – By Cooling Technique

Free cooling technique to gain momentum in the Latin America data center cooling market during forecast period

The cooling technique segment in the Latin America data center cooling market is divided into air-based cooling and water-based cooling. The air-based cooling technique dominated the market in 2017 and is expected to grow at a CAGR of over 10% during the forecast period. The most widely available air-based cooling solutions in Latin America include CRAC units, free cooling technique solutions, air-cooled chiller-based cooling, and dry coolers. The adoption of free cooling technique will gain immense popularity in the Latin American market over the next few years. Moreover, the implementation of evaporative coolers in facilities across Chile and Colombia will drive the growth of this market segment in Latin America.

Latin America Data Center Cooling Market – By Cooling Systems

CRAC and CRAH units to dominate the market share in the Latin America data center cooling market during forecast period

The Latin America data center cooling market by cooling systems is categorized as CRAC & CARH, chiller, cooling towers & dry coolers, economizers & evaporative coolers. The CRAC & CARH unit segment dominated the market share in 2017 and is anticipated to grow at a CARG of over 11% during the forecast period. CRAC & CARH units work with other cooling units such as chillers, cooling tower, dry coolers, economizers, evaporative coolers, and condensers to remove heat in dat facilities. The use of multiple CRAC and CARH units that is split across data halls and containment designs will drive the growth of this market segment in Latin America. The growing popularity of chilled-water cooling and free cooling solutions will create lucrative opportunities for leading players in the Latin America market during the forecast period.

Latin America Data Center Cooling Market – By Geography

Colocation and cloud hosting providers such as Equinix, Ascenty, and AWS is expected to invest across Latin America during the forecast period

The geographical segmentation in the Latin America data center cooling market consists of Brazil, Chile, Colombia, and others. Brazil was the largest region in the market in 2017 and is expected to grow at a CAGR of over 9% during the forecast period. The increasing internet penetration, use of cloud-based services, and expansion of facilities operations will boost the demand for new projects and innovative cooling systems in the Brazilian market. The establishment of strong connectivity between the US and Brazilian market will drive the growth of region over the next few years. In 2017, operators such as Equinix and Ascenty contribute to around 90% of the total investment in Brazil. The expansion of facilities development by colocation provides in Brazil to other Latin American market will propel the growth of the Latin America data center cooling market.

Key Vendor Analysis

The presence of international infrastructure providers such as Vertiv and Schneider Electric in Latin America data center cooling market is intensifying the level of competition in the region. The leading vendors in the region are focusing on specific products or complete range of infrastructure solutions suitable for Latin American facilities to sustain the competition in the market. The growing focus on the development of new products that increase the efficiency of facilities operations and help reduce the OPEX and power consumption associated with cooling will help companies gain a larger market share in the region. Moreover, the development of energy-efficient cooling systems that help reduce the carbon emission levels and sustain frequent power outages will transform the market during the forecast period.

The major vendors in the market are:

  • Rittal
  • Schneider Electric
  • STULZ
  • Trane (Ingersoll Rand)
  • Vertiv

Other prominent vendors include AIRSYS, Alfa Laval, Daikin Applied (Daikin Industries), Geist Global, Munters, Nortek Humidity (Condair Group), and Pentair.

Key market insights include

  1. The analysis of the Latin America data center cooling market provides market size and growth rate for the forecast period 2018-2023.
  2. It offers comprehensive insights on current industry trends, trend forecast, and growth drivers about the Latin America data center cooling market.
  3. The report provides the latest analysis of market share, growth drivers, challenges, and investment opportunities.
  4. It offers a complete overview of market segments and the regional outlook of the Latin America data center cooling market.
  5. The report offers a detailed overview of the vendor landscape, competitive analysis, and key market strategies to gain competitive advantage.

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