The data center cooling market is projected to grow from USD 9.4 billion in 2020 to USD 15.7 billion by 2025, at a CAGR of 10.7% from 2020 to 2025. The major reasons for the growth of the data center cooling market include improving efficiency in data centers, rising spending on data centers, and significant growth in number of data centers and their power density. Furthermore, factors like increasing demand for cost-effective data center solutions, and the rising significance of eco-friendly data center solutions are also responsible for driving the demand for data center cooling market.
Due to the COVID-19 pandemic, there has been a disruption felt across the world in almost all end-user industries, particularly severe in the IT & telecom sector. There have been ripple effects of COVID-19 on the overall world economy, and various data center projects across the world during the first six months of 2020 have taken a significant hit. This has limited the spending of big companies and service providers on infrastructure development and maintenance, thereby impacting the demand for data center solutions and services in 2020.
The solutions component segment of the data center cooling market is projected to dominate the global data center cooling market during the forecast period of 2020 to 2025.
The liquid cooling systems solution segment is projected to record the highest growth in the global data center cooling market, during the forecast period. The high growth of the liquid cooling systems solution segment is majorly attributed to their advantages over air cooled systems. The liquid cooling systems provide cooling at a reduced energy cost as compared to air cooling systems along with lower the noise levels originating from equipment such as fans in the air cooling systems.
The installment & deployment services segment is projected to dominate the global data center cooling market, during the forecast period. The installation & deployment services can be used by small and medium enterprises (SMEs) as well as large organizations to assist them in the deployment of energy-efficient data center cooling in a cost-effective manner. They also act as a one-stop-shop for hassle-free deployments with minimum downtime. These services are increasingly being used by organizations worldwide.
