Central Processing Unit (CPU) Cooler Market - Forecasts from 2020 to 2025

The central processing unit (CPU) cooler market is anticipated to experience growth with a CAGR of 3.81% to reach a market size of US$2,092.807 million by 2025, from US$1,672.222 million in 2019

The CPU cooler market will grow on account of increasing adoption of personal computer, workstation and server computers all around the world. The market will also grow due to the positive trend towards adoption of big data and automation services. However, the high prices of efficient cooling solutions will limit the growth of the CPU cooler market. The North American region holds a substantial share in the market due to early adoption of technology and high investment in research and development in computing devices. The Asia Pacific market will see many growth opportunities owing to the rising demand for consumer electronics, including personal computers, and the increasing investment in cloud computing solutions in emerging countries like China, Japan and India. Furthermore, with increasing middle-class population creating a high consumer base and rise in disposable income, there is a high demand for portable computing device which include laptops and tablets fueling the market demand for CPU coolers over the forecast period.

The growing electronics industry owing to the growing adoption of computing devices is fueling the market demand for central processing unit coolers.
The electronic industry is among the fastest-growing industries owing to the high demand for electronic products which include consumer electronics as well. This is because of the fact that society is growing smarter and is continuing to remain digitally connected. China from the APAC region is known as the electronic hub but this is slowly shifting to the countries of Southeast Asia which include Malaysia, Indonesia, Philippines, Vietnam, and India.

Many multinationals (MNCs) are shifting their production in India due to the increasing labour charges, low manufacturing costs, and lucrative investment opportunities. Furthermore, the electronics industry in India is growing at a fast pace due to the burgeoning domestic demand for electronic products and rising disposable income. Government initiatives such as Make in India, Digital India, projects regarding the building of smart cities, modernization of railways, growing automotive industry, and growing automation in the industries are also contributing towards the growth in the electronics industry, further propagating the market growth during the forecast period. In addition, India is home to talented individuals who have a strong capability in designing and research and development activities, contributing to boosting industrial growth. Additionally, the growing consumption in the Middle East region, Latin America, and the North African region is fueling the electronics industry.

The growing number of data centers is boosting the market demand for CPU. The advent of managed data center services is further providing an opportunity for the market to thrive in the forecast period and in the upcoming years

The number of data centers worldwide are set to increase with companies investing in the building of new data centers and renovating the old ones. Also, with the growing number of data and increasing internet penetration, the market is expected to fuel with the growing number of data centers at the global level. The number of internet users worldwide grew from 2,242 million in 2011 to 4,131 million in 2019 (source: ITU).

In addition, with the introduction of managed data center services, the market demand for data centers has significantly increased with a high growth rate, fueling the market demand for CPU coolers as well. Some of the major factors driving the demand for managed data center services are its cost-effectiveness and growing adoption of cloud computing solutions amongst SMEs, especially in developing countries. Increasing investment towards the setup of edge data centers to reduce latency in Tier-II cities poses a significant market opportunity for managed data center services.

An increasing trend towards large and medium enterprises opting for managed data centers is being widely observed owing to its cost-efficiency, flexibility and improvement in organizational efficiency it offers. The cost of setting up an in-house data center involves high capital expenditure, along with maintenance expenditure on a periodic basis. In addition, an enterprise has to incur high wages for hiring technical staff for upgrading, maintenance, and compliance with stringent government regulations. The space in an in-house data center is also limited and it can be scaled by increasing the capital expenditure on IT infrastructure.

Resultantly, enterprises are opting for managed data centers as it saves on huge capital expenditure on IT infrastructure. In addition, managed data centers offer flexibility and scalability by offering pay-per-use model and any enterprise can increase their use as per their convenience without the need for incurring any substantial expenditure. Furthermore, increasing investment towards the adoption of automation solutions and big data across industry verticals coupled with state-of-the-art services offered by vendors so as to comply with standard government regulations will further propel the demand for managed data center services, fueling the market growth in the forecast period.

By geography, North America and Europe are expected to hold a dominant market share in the number of data centers/managed data center services owing to the early adoption of technology, presence of key market players and booming expenditure on IT infrastructure. The Asia Pacific region is projected to experience substantial growth in the forecast period on account of the growing number of SMEs adopting cloud computing solutions and booming investment in big data and Industry 4.0 across industry verticals over the forecast period.

Germany is one of Europe’s largest economies in terms of size, population and also in terms of the number of colocation data centers. It is among the four leading colocation markets along with the United Kingdom, France, and the Netherlands. Frankfurt is known for its largest number of data centers, in addition to being considered as one of Europe’s nerve centers regarding bandwidth. The country has one of the world’s most technologically advanced communication systems with an extensive network of automatic telephone exchanges, boosting the global colocation market owing to the thriving country’s data center industry. The ICT sector of the country is considered as the most innovative one. Additionally, German is one of the largest ICT markets globally. ICT is at the topmost priority of the German government where the country’s economic and innovation policy is focused on digital infrastructure, digital economy, and digital workplaces. Hence, this is providing strong growth prospects for the market to prosper in the forecast period.

Segmentation:

By Product Type

• Air CPU Cooler
• Liquid CPU Cooler

By Application

• Personal Computers
• Workstations
• Servers and Data Centers

By End-User/b>

• Residential
• Commercial
• Government

By Geography

North America

• USA
• Canada
• Mexico

South America

• Brazil
• Argentina
• Others

Europe

• UK
• Germany
• France
• Others

Middle East and Africa

• UAE
• Israel
• Saudi Arabia
• Others

Asia Pacific

• Japan
• China
• India
• Australia
• Others