Dublin, July 15, 2021 (GLOBE NEWSWIRE) -- The "Data Center Liquid Cooling Market - A Global and Regional Analysis: Focus on Data Center Types and Solutions, End-Use Industry, Government Initiatives, Trends, Patent Analysis, Drivers, Challenges, Opportunities, and Country Analysis" report has been added to ResearchAndMarkets.com's offering.
The global data center liquid cooling market is expected to reach $7.7 billion by 2026, with a CAGR of 27.31% during the forecast period 2021-2026. High growth in the market is expected to be driven by the growing need for green and energy-efficient alternatives to existing cooling infrastructure.
Apart from this, increased emphasis on digitization, growing internet reach, and cloud migration has led to an increase in IT workloads globally. This will eventually increase the rack power densities. Liquid cooling technologies have higher efficiency for high rack densities as compared to air-based cooling systems. Thus, the growing demand for data centers is also responsible for such high growth in the data center liquid cooling market.
Global Data Center Liquid Cooling Market
Liquid cooling was initially designed for supercomputers during the 1960s. IBM utilized liquid cooling for its System360 mainframe computers; however, it was expensive and had few applications limited to supercomputers and mainframes only. These computers were very rare and were used for mission-critical applications. Thus, liquid cooling was essential to keep them running at an optimum temperature. However, in the 1970s and 1980s, due to negligible computing needs in most industries and lower adoption of computers, liquid cooling was not an ideal solution. The global data center liquid cooling market is at a growing stage as compared to well-established markets of other cooling methods.
Since the formation of the Kigali Amendment in 2016 (leading to a global ban of few industrial gases such as chlorofluorocarbons and limited consumption of hydrochlorofluorocarbons and hydrofluorocarbons) and similar movements across regions, such as the EU Green Deal formed in 2019, a greater emphasis is now given to sustainability and energy efficiency, which has pushed the demand for liquid cooling technologies as a cleaner and energy-efficient alternative to traditional cooling.
Impact of COVID-19 on Global Data Center Liquid Cooling Market
COVID-19 had a neutral impact on the data center liquid cooling market. The worldwide lockdown during the pandemic has increased the demand for data center services, which has witnessed a two-fold increase in traffic during the period. However, the supply chain of the majority of the industries across the globe got impacted due to COVID-19, which has negatively impacted the supply side of this market. Overall, the impact was neutral as data center demand increased, leading to various new deployments and the commissioning of new capacities.
Global Data Center Liquid Cooling Market by End-Use
The data center liquid cooling market by end-use industry is led by the IT and telecom industry. The telecom industry is the largest consumer of data centers. Data centers are a crucial part of the ICT industry as data transmission and data delivery operations require better connectivity. As communication is the biggest factor contributing to the success of the ICT industry, data centers have become critical to this industry. Thus, the demand for data center liquid cooling from the IT and telecom industry is highest amongst industries.
Global Data Center Liquid Cooling Market by Data Center Type
The market by data center type is dominated by hyperscale data center type. This is since most of the leading hyper-scale and cloud service providers have committed to increased energy efficiency and reduced carbon emissions. These companies include Google LLC, Facebook, Microsoft, and Amazon AWS. Another factor contributing to this is the growing emphasis on cloud migration. More companies globally are either planning or have already migrated some of their operations to cloud computing.
Global Data Center Liquid Cooling Market by Solution Type
The market for indirect cooling is expected to lead the market by solutions in the data center liquid cooling market by solution type. This is due to the wide adoption and better availability of indirect cooling systems. As compared to direct cooling technologies, such as immersion cooling and direct-to-chip cooling, the indirect cooling market has more vendors and manufacturers, which have helped it assume a leading market position.
Global Data Center Liquid Cooling Market by Region
Europe is the leading market for data center liquid cooling that is expected to reach $2.5 billion by 2026. This is due to the wide acceptance of environment-friendly policies and an increase in emphasis on energy efficiency in almost all industrial sectors. Apart from this, European Union has formed a Green Deal, which dictates plans to make the entire data center and information and communications technology (ICT) industry carbon neutral by 2030.
Key Market Players and Competition Synopsis
The companies that are profiled in the report have been selected based on a selective pool of players, primarily Tier-1 (which holds 50-60% of the market) and mid-segment players (comprise of 30-40% share), and small & emerging companies (holds the balance 10-20% share), based on various factors such as product portfolio, annual revenues, market penetration, research, and development initiatives, along with a domestic and international presence in the industry.
Aspen Systems Inc.
Cooler Master Co., Ltd.
DCX The Liquid Cooling Company
International Business Machines Corporation
Royal Dutch Shell plc
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