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North America Data Center Cooling Market - Forecasts from 2022 to 2027

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    Report

  • 100 Pages
  • December 2022
  • Region: North America
  • Knowledge Sourcing Intelligence LLP
  • ID: 5716766

The North America data center cooling market was valued at US$3.170 billion in 2020.

Data centre cooling equipment uses tools, systems, techniques, and processes to ensure ideal temperature and humidity levels within data centres. It ensures cooling of the equipment, proper ventilation, and humidity control that keeps the equipment within the desired temperature. As a result of the rise in cloud computing, and increasing IT requirements the temperature levels increase in data centres and many times damage the equipment. The data centre cooling system removes the access heat from the air and replaces it with cooler air by venting hot air outside and bringing in cooler air. Certain systems aid in recycling internal air by cooling it through a hot and cold aisle. The various types of data center cooling devices are computer room air handlers, computer room air conditioners, calibrated vector units, cold aisle, and hot aisle design, direct-to-chip cooling, and close coupled data center air conditioning units.

The rapid increase in digitization and adoption of energy-efficient technology due to environmental concerns are expected to boost the market for North American data centre cooling market.

Digitization and an increase in internet usage are increasing the demand for data centers in North America and further boosting the demand for data center cooling. IoT (Internet of Things) is increasingly used in the USA; followed by cloud computing, and hyper-scale technologies that are further boosting the market. For example, AI-assisted automatic cooling control is another form of cooling facility that is being adopted by businesses. One Company that has already adopted this technology is Alphabet which is the parent company of Google. The cloud-based AI engine collects data from sensors and predicts future consumption patterns that identify actions and minimizes energy usage.

Recent trends for energy efficiency or green technology are boosting the market owing to climate change, rise in temperature, humidity, and increase in electricity consumption. As per US Energy Information Administration, the electric power sector in the US accounted for 96% and the total energy consumption came from industrial, commercial, and residential sectors.

However, power density problems for effective management of data centers, higher energy consumption, and inexpensive cost of technology can hinder the growth of the data center cooling market in North America.

Key Development

  • Cadence Designs Systems announced the acquisition of Future Facilities which is a provider of electronics cooling analysis and energy performance solutions provider for data centers by using physics-based 3d digital twins, in July 2022. This will enable the company to make informed decisions about data center design and operations that reduce the carbon footprint.
  • Munter, a data center cooling manufacturer opened its largest data center cooling plant in Virginia, USA in September 2022 for the production of cooling equipment in the USA.
  • Johnson Controls acquired Canadian Data centre specialist Silent-Aire for £635 million in April 2021. The acquisition provided Johnson Controls access to hyper-scale cooling and expanded its market base in the data centre market.

During the forecast period, the USA is expected to acquire a dominant share in the North American data centre cooling market.

The U.S. is leading in the data center cooling market due to an increase in internet usage, cloud services, and the presence of big software companies namely Facebook, Twitter, IBM, Microsoft, Amazon, and others that have contributed to the growth of data center cooling equipment. According to World Bank Data, 91% of the population in the US was using the internet in 2020. Constant consumption of energy in the USA and heating of devices has resulted in reduced performance of devices which has increased the use of liquid immersion technology that transfers heat from the device using water and cools the devices. Air conditioners and other air-based cooling techniques are increasingly used in large enterprises as a result of rising data center requirements and a shift towards energy-efficient technologies. Hyperscale and colocation centres have further increased the demand for data centre cooling in the USA as hyper scale and colocation data centres require a large amount of power to store data, particularly in large enterprises such as software firms.

COVID-19 Insights

COVID-19 had a positive impact on the North American data center cooling market. The pandemic witnessed millions of people remotely and studying from home which required increased internet traffic, collaborative software for business, and data security that was provided by data centers to manage the data centers, the demand for data center cooling equipment increased. Most of the demand came from small and medium enterprises for catering to their data flow requirements, followed by IT companies and healthcare centers which are required to store and manage data related to the pandemic.

Market Segmentation:

By Solutions

  • Air Conditioner
  • Chillers
  • Economizers
  • Cooling Towers
  • Others

By Size

  • Small Enterprises
  • Medium Enterprises
  • Large Enterprises

By End-Users

  • Colocation Service Provider
  • Cloud Service Provider
  • Enterprise

By Industrial Vertical

  • Banking and Financial Services
  • Manufacturing
  • Healthcare
  • Communication and Technology
  • Energy
  • Education
  • Government
  • Media and Entertainment
  • Others

By Country

  • USA
  • Canada
  • Mexico

Table of Contents

1. INTRODUCTION
1.1. Market Overview
1.2. COVID-19 Scenario
1.3. Market Definition
1.4. Market Segmentation

2. RESEARCH METHODOLOGY
2.1. Research Data
2.2. Assumptions

3. EXECUTIVE SUMMARY
3.1. Research Highlights

4. MARKET DYNAMICS
4.1. Market Drivers
4.2. Market Restraints
4.3. Porter’s Five Force Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis

5. NORTH AMERICA DATA CENTER COOLING MARKET BY SOLUTIONS
5.1. Introduction
5.2. Air Conditioner
5.3. Chillers
5.4. Economizers
5.5. Cooling Towers
5.6. Others

6. NORTH AMERICA DATA CENTER COOLING MARKET BY SIZE
6.1. Introduction
6.2. Small Enterprises
6.3. Medium enterprises
6.4. Large Enterprises

7. NORTH AMERICA DATA CENTER COOLING MARKET BY END-USER
7.1. Introduction
7.2. Colocation Service Provider
7.3. Cloud Service Providers
7.4. Enterprise

8. NORTH AMERICA DATA CENTER COOLING MARKET BY INDUSTRY VERTICAL
8.1. Introduction
8.2. Banking and Financial Services
8.3. Manufacturing
8.4. Healthcare
8.5. Communication and Technology
8.6. Energy
8.7. Education
8.8. Government
8.9. Media and Entertainment
8.10 Others

9. NORTH AMERICA DATA CENTER COOLING MARKET BY COUNTRY
9.1. Introduction
9.2. United States
9.3. Canada
9.4. Mexico

10. COMPETITIVE ENVIRONMENT AND ANALYSIS
10.1. Major Players and Strategy Analysis
10.2. Emerging Players and Market Lucrative
10.3. Mergers, Acquisition, Agreements, and Collaborations
10.4. Vendor Competitiveness Matrix

11. COMPANY PROFILES
11.1. IBM
11.2. Fujitsu
11.3. HP
11.4. Eaton
11.5. Vertiv Group Corp
11.6. Hewlett Packard Enterprise Development LP
11.7. Schneider Electric
11.8. Parker Hannifin

Companies Mentioned

  • IBM
  • Fujitsu
  • HP
  • Eaton
  • Vertiv Group Corp
  • Hewlett Packard Enterprise Development LP
  • Schneider Electric
  • Parker Hannifin