The Global Data Center Liquid Cooling Market was valued at $1.98 billion in 2020 and is predicted to grow at a CAGR of 25.2% to $7.6 billion by 2026, with a forecast period of 2021-2026. Increasing investments in high-density technology, high-performance computing, and smart city initiatives are driving state and local players to develop the most reliable and efficient cooling methods for their data centres.
The surge in IT investment, as well as the incorporation of IT into all aspects of activities, has resulted in the collection of massive amounts of data. Such information is stored, processed, and transported over a vast number of servers that are layered one on top of the other. Day in and day out, these systems, as well as possible cyber threats, face one major threat: heat. Every electrical gadget generates heat when it is powered by an alternating current (AC) or direct current (DC).
The heat generated by such servers and IT systems must be regulated to prevent any malfunctioning, melting, or damage to the server's chipsets and components. The IBM 3033 and the Cray-2 were the first computers to use liquid cooling in the 1970s. With greater awareness and initiative to go "green" to minimise energy usage in the last ten years, however, creating practical industrial-grade liquid cooling systems for data centre use has become a priority. Liquid immersion systems are now in use, which includes submerging servers and other components in thermally conductive but not electrically conductive liquids such as mineral-based lubricants.
Recent Developments
MARKET DRIVERS
Every commercial institution in the modern world relies on data generated from multiple sources. The storage and transfer of zillions of such data processes in the blink of an eye. Simultaneously, data centres are expanding rapidly to accumulate all the data generated every second. Such functioning of data centres consumes and exert a lot of heat and energy, hence, cooling facilities are needed to efficiently sustain the performance of the hardware. Cooling facilities are designed to be modified to provide adequate performance regardless of the heat generated, and growing concern about saving the environment and energy are just a few of the factors that could fuel and drive demand for data centre liquid cooling over the forecast period. The data centre liquid cooling industry is expected to develop as sophisticated engineering coolants are used to provide cooling with a lower carbon footprint. Liquids are superior conductors of heat energy because they are denser than air and hence provide an effective cooling medium.
MARKET RESTRAINTS
Along with electricity, the liquid is both conductive and corrosive, and any breach in the data centre liquid cooling system can be disastrous for the facilities and equipment. The data centre liquid cooling market faces a significant challenge as a result of this.
Market Segmentation
The solution sector dominated the data centre cooling market in 2020, and it is likely to continue to do so in the coming years, owing to an increase in the number of energy-efficient cooling solutions. Liquid cooling in data centres can take several forms, including sealed plates over processors, liquid compressors to cool air, or immersion in special engineered fluids for cooling. Major suppliers offer a variety of liquid cooling options, while niche and developing vendors offer niche and emerging liquid cooling solutions. Due to their usefulness in high-density cooling, data centre liquid cooling technologies are garnering a lot of interest from large end-users.
The component sector had the highest CAGR in the data centre cooling market, owing to an increase in the number of service providers for installation & deployment, support & maintenance, and consulting for data centre cooling solutions. Cooling systems in data centres must be installed correctly, as leaks in the cooling system can cause equipment damage.
Hyperscale data centres dominate the industry in terms of type. Since most of the major hyper-scale and cloud service providers have promised to better energy efficiency and lower carbon emissions, this is the case. Google LLC, Facebook, Microsoft, and Amazon AWS are among these companies. The rising emphasis on cloud migration is another element contributing to this. More businesses around the world are considering or have already made the switch to cloud computing for some of their operations.
In the data centre liquid cooling industry, the market for indirect cooling is predicted to lead the market by solution type. This is owing to the widespread use of indirect cooling systems and their increased availability. In comparison to direct cooling technologies such as immersion cooling and direct-to-chip cooling, the indirect cooling market has a larger number of vendors and manufacturers, allowing it to take the lead.
The IT and telecom industry leads the data centre liquid cooling market by end-use industry. The major user of data centres in the telecommunications industry. Because data transmission and delivery operations require better connectivity, data centres are an important part of the ICT industry. Because communication is the most important aspect of the ICT industry's success, data centres have become indispensable. As a result, the IT and telecom industries have the biggest need for data centre liquid cooling.
Regional Analysis
Europe's data centre liquid cooling market accounted for over 30% of revenue share in 2020, owing to the increasing expansion of data centres across the region. Because of favourable environmental characteristics such as easy availability of land, low power, accessible renewable energy, and tax advantages, data centre service providers are encouraged to invest in this location. By 2026, Europe will be the main market for data centre liquid cooling, with a market value of $2.5 billion. This is due to widespread support for environmentally friendly legislation and a growing emphasis on energy efficiency across practically all industrial sectors. Aside from that, the European Union has enacted a Green Deal that lays out ambitions to make the whole data centre and information and communications technology (ICT) business carbon neutral by 2030.
The data centre liquid cooling market in the United States is expected to increase at a 17 per cent annual pace through 2026, owing to government rules aimed at decreasing carbon footprints from high-density data centres. The Federal Energy Management Program (FEMP) of the United States government, for example, pushes companies and agencies to increase data centre energy efficiency through its Center of Expertise (CoE). Operators are working on deploying innovative cooling solutions to preserve efficiency because cooling systems account for 30 per cent to 60 per cent of energy usage in data centres.
Demand for data centre liquid cooling solutions from cloud service providers is predicted to expand at a CAGR of 27% in China by 2026, owing to an increase in the number of data centres being built in the country as a result of growing government worries about the security of client data. China's Cybersecurity Law, for example, imposes data localization requirements from important data centre operators to process, store, and analyse data within China's boundaries. This has prompted cloud service providers to build data centres in the country to handle enormous amounts of data securely.
Market Leader
LiquidStack is the largest liquid cooling provider for hyperscale, edge, and high-performance computing in the world. LiquidStack, the pioneer of 2-phase immersion cooling, has won numerous honours for designing the world's most energy-efficient data centres.
Key Players
1. Introduction
1.1 Market Definition
1.2 Scope of the report
1.3 Study Assumptions
1.4 Base Currency, Base Year and Forecast Periods
2. Research Methodology
2.1 Analysis Design
2.2 Research Phases
2.2.1 Secondary Research
2.2.2 Primary Research
2.2.3 Data Modelling
2.2.4 Expert Validation
2.3 Study Timeline
3. Report Overview
3.1 Executive Summary
3.2 Key Inferencees
4. Market Dynamics
4.1 Impact Analysis
4.1.1 Drivers
4.1.2 Restaints
4.1.3 Opportunities
4.2 Regulatory Environment
4.3 Technology Timeline & Recent Trends
5. Competitor Benchmarking Analysis
5.1 Key Player Benchmarking
5.1.1 Market share analysis
5.1.2 Products/Service
5.1.3 Regional Presence
5.2 Mergers & Acquistion Landscape
5.3 Joint Ventures & Collaborations
6. Market Segmentation
6.1 Data Center Liquid Cooling Market, By Component
6.1.1 Solutions
6.1.2 Services
6.1.3 Market Size Estimations & Forecasts (2021-2026)
6.1.4 Y-o-Y Growth Rate Analysis
6.1.5 Market Attractiveness Index
6.2 Data Center Liquid Cooling Market, By Data Centre Type
6.2.1 Hyperscale Centers
6.2.2 Enterprise type
6.2.3 Colocation Data Centers
6.2.4 Others
6.2.5 Market Size Estimations & Forecasts (2021-2026)
6.2.6 Y-o-Y Growth Rate Analysis
6.2.7 Market Attractiveness Index
6.3 Data Center Liquid Cooling Market, By Solution
6.3.1 Direct
6.3.2 Indirect Cooling
6.3.3 Market Size Estimations & Forecasts (2021-2026)
6.3.4 Y-o-Y Growth Rate Analysis
6.3.5 Market Attractiveness Index
6.4 Data Center Liquid Cooling Market, By End-User
6.4.1 IT and Telecom
6.4.2 BFSI
6.4.3 Government and Public Sector
6.4.4 Healthcare
6.4.5 Manufacturing
6.4.6 Retail
6.4.7 Others
6.4.8 Market Size Estimations & Forecasts (2021-2026)
6.4.9 Y-o-Y Growth Rate Analysis
6.4.10 Market Attractiveness Index
7. Geographical Landscape
7.1 Global Data Center Liquid Cooling Market, by Region
7.2 North America - Market Analysis (2021 - 2026)
7.2.1 By Country
7.2.1.1 USA
7.2.1.2 Canada
7.2.2 By Component
7.2.3 By Data Centre Type
7.2.4 By Solution
7.2.5 By End-User
7.3 Europe
7.3.1 By Country
7.3.1.1 UK
7.3.1.2 France
7.3.1.3 Germany
7.3.1.4 Spain
7.3.1.5 Italy
7.3.1.6 Rest of Europe
7.3.2 By Component
7.3.3 By Data Centre Type
7.3.4 By Solution
7.3.5 By End-User
7.4 Asia Pacific
7.4.1 By Country
7.4.1.1 China
7.4.1.2 India
7.4.1.3 Japan
7.4.1.4 South Korea
7.4.1.5 South East Asia
7.4.1.6 Australia & NZ
7.4.1.7 Rest of Asia-Pacific
7.4.2 By Component
7.4.3 By Data Centre Type
7.4.4 By Solution
7.4.5 By End-User
7.5 Latin America
7.5.1 By Country
7.5.1.1 Brazil
7.5.1.2 Argentina
7.5.1.3 Mexico
7.5.1.4 Rest of Latin America
7.5.2 By Component
7.5.3 By Data Centre Type
7.5.4 By Solution
7.5.5 By End-User
7.6 Middle East and Africa
7.6.1 By Country
7.6.1.1 Middle East
7.6.1.2 Africa
7.6.2 By Component
7.6.3 By Data Centre Type
7.6.4 By Solution
7.6.5 By End-User
8. Key Player Analysis
8.1 Asetek
8.1.1 Business Description
8.1.2 Products/Service
8.1.3 Financials
8.1.4 SWOT Analysis
8.1.5 Recent Developments
8.1.6 Analyst Overview
8.2 Rittal
8.3 Stulz
8.4 Vertiv
8.5 Schneider Electric
8.6 Alfa Laval
8.7 Fujitsu
8.8 Asperitas
8.9 Allied Control
8.10 DCX
9. Market Outlook & Investment Opportunities
Appendix
List of Tables
List of Figures
