Data Center Precision Air Conditioning Market - Global Outlook and Forecast 2020-2025

INDUSTRY INSIGHTS

The global data center precision air conditioning market size to cross USD 1.8 billion by 2025, growing at a CAGR of 2.5% during 2020-2025. The global precision air conditioners market is expected to become competitive with the growing adoption of HPC infrastructure for artificial intelligence and machine learning workloads among data centers. Initiatives such as Open Commute Projects are expected to bring several new cooling techniques and technologies to the market, thereby increasing the competition among vendors. Data center operators are searching for vendors providing systems with real-time monitoring and management solutions. This includes analytics to predict cooling equipment failures and maintenance requirements. Data center operators’ preference over a single cooling vendor is changing rapidly because of the increased innovations in the market. Several operators are also adopting units from different vendors to provide energy-efficient & cost-effective cooling for the facility. Therefore, the competition is expected to decrease the cost associated with cooling systems in the market.

SNIPPETS

• The APAC precision air conditioners market is expected to reach a revenue of $585 million by 2025 as several countries in the region are migrating from air-based cooling to water-based cooling solutions.
• The adoption of scalable and modular cooling solutions is expected to contribute significantly to market growth during the forecast period.
• Investments in Tier III and Tier IV facilities are expected to grow during the forecast period with Tier III facilities likely to witness the adoption of 2N redundant systems.
• Data center operators are likely to invest in automation, monitoring, and management solutions for real-time control of cooling systems.

DATA CENTER PRECISION AIR CONDITIONING MARKET SEGMENTATION

This research report covers a detailed segmentation by:

• Products
• Deployment
• Tier Standards
• Geography

INSIGHTS BY PRODUCTS

In terms of cooling infrastructure, the North American region has witnessed a strong growth of cooling systems, evaporative coolers, and free cooling chillers in the last few years. The increasing procurement of artificial intelligence-based infrastructure solutions is a major driving factor for the adoption of rack-based and row-based cooling solutions. CRAC and CRAH units will continue to be the largest revenue contributors, followed by evaporative coolers and chillers. The US offers free cooling for over 4,000 hours per year, which helps to reduce the operational cost of data center operators. The UK region has witnessed an increase in free cooling chillers and water-cooled cooling systems. The trend is likely to continue due to high investments from colocation service providers during the forecast period. The facilities in Denmark have an advantage as the region offers 85% free cooling annually. This can reduce electricity consumption by cooling units by up to 50%. The data center market in Denmark is likely to witness the demand for data center construction that is designed to transfer waste heat from the facility to nearby local communities under the district heating concept.

INSIGHTS BY DEPLOYMENT

The market is expected to witness the adoption of modular in-rack cooling solutions during the forecast period. In-row cooling technology, which is the most efficient, is used in data centers, which are equipped with a rack power density of over 5 kW per rack and above. As in-row cooling systems prevent the mixing of hot and cold air, they increase efficiency, thereby witnessing high adoption. The deployment of the 5G network is likely to increase the demand for high-performance computing infrastructure procurement as well as the construction of edge data centers. Hence, the installation of modular cooling infrastructure, which mostly include in-row cooling and rack-based cooling systems, is expected to grow during the forecast period.

INSIGHTS BY TIER STANDARDS

Most data centers in the US and Canada are Tier III certified and have multiple levels of redundancy. In western Europe, Tier IV facilities adopt a 2N+1 redundant configuration for cooling systems. European countries are the major revenue generators for adiabatic cooling units to cool data centers using outside free air. In the UK, most facilities are either Tier III or Tier IV certified by the Uptime Institute due to high standard design and construction that include redundant configuration. In the Nordic region, colocation service providers are developing Tier III standard facilities adopting N+1 or 2N redundant cooling systems. The majority of data center facilities developed by colocation service providers in Russia from 2019 to June 2020 follow Tier III standards.

INSIGHTS BY GEOGRAPHY

The North American data center precision air conditioning market share is expected to reach $791 million by 2025. The region witnessed the development and expansion of over 150 data center facilities, which include facilities that became operational in 2019 and are expected to be operational by June 2020. The US has witnessed more than 130 facilities that became operational in 2019. It was followed by Canada with more than 15 projects in the same period. The market witnessed more than 130 colocation facilities and more than 15 data center projects from enterprises and government in 2019. North America has always been a strong driver for the data center market, with several recent activities targeting the construction of hyperscale facilities with over 20 MW of power capacity. The region has witnessed increased investments in Tier III facilities, with the US dominating the market.

INSIGHTS BY VENDORS

The global data center precision air conditioning market comprises both global and local providers. There are several cooling infrastructure providers in the market offerings specific products or a complete range of infrastructure solutions to data centers. Over the past few years, the growing electricity consumption by data center cooling solutions has led to multiple innovations in the market by vendors. Innovations across infrastructure have led to the development of new products that have increased the efficiency of data center operations by 90% and reduce cooling OPEX up to 50%.  The market comprises multiple systems that provide sufficient cooling for the growing rack power density.

The data center precision air conditioning market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments:

By Products

• CRAC Units
• CRAH Units

By Deployment

• In-row cooling
• In-rack cooling

By Tier Standards

• Tier I & Tier II
• Tier III
• Tier IV

By Geography

• APAC
  • China & Hong Kong
  • Australia & New Zealand
  • India
  • Japan
  • Rest of APAC
• Western Europe
  • UK
  • Germany
  • France
  • Netherlands
  • Ireland
• Central Eastern Europe
  • Russia & Czech Republic
  • Poland & Austria
  • Others
• North America
  • US
  • Canada
• Southeast Asia
  • Singapore
  • Malaysia
  • Thailand
  • Indonesia
  • Others

• Nordic
  • Denmark
  • Norway
  • Sweden
  • Finland & Iceland
  • Others
• Middle East
  • GCC
  • Others
• Africa
  • South Africa
  • Others
• Latin America
  • Brazil
  • Others