Global Data Center Liquid Cooling Market is set to grow from its current market value USD 750 Million to USD 2.5 Billion by 2025, according to a new research report by Global Market Insights, Inc.
Increasing storage densities, workloads, and a high number of servers in the infrastructure is driving the demand for data center liquid cooling market to avoid excessive heating. As a result, solution manufacturers have developed liquid-based offerings to address such high-density requirements. Additionally, to reduce the high network latency in conventional facilities, several edge data centers have emerged, further driving the industry growth. Dense computing features and remote locations of these infrastructures require efficient cooling due to the high amount of heat generation, further increasing the data center liquid cooling market demand.
The trend of AI and machine learning implementations in newly developed software & industrial solutions is driving the industry growth. The introduction of TPU 3.0 by Google in its data centers created the requirement for efficient cooling solutions resulting in the deployment of liquid coolers across several locations. The data center liquid cooling market is hindered by the lack of regulations & standards for manufacturing such solutions. This phenomenon can result in harmful effects on the complex infrastructures. Also, the implementation of these advanced products requires two cooling systems as compared to one in air-based cooling, which limits the deployment cases.
Large data centers dominated the market with an overall revenue of over 75% generated in 2017 due to the high adoption of these solutions to address complex & dense storage capabilities of these infrastructures. Data center liquid cooling market products are developed with the ability to support efficient cooling of the high-density components and also support the AI integrations. The emergence of edge & colocation facilities across various regions and industry verticals is a major factor driving the growth of the solution segment. Small & medium sized infrastructures also have the requirement for these products due to the incompatibility and inefficiency of air-based coolers.
Direct immersion cooling solutions are expected to gain high traction in the data center liquid cooling market. This demand is attributed to the high reliability & compatibility with both CPUs and GPUs. The products have capacities to cool solid-state drives, which makes the entire process more efficient in comparison with traditional methods. The technology also reduces humidity & heating effects on various network components, further supporting high operational performance. Additionally, installation & deployment services are also gaining penetration in the industry due to product innovations and the unavailability of skilled deployers with the data center operators. Solution developers provide efficient maintenance & installation services to customers, further supporting industry expansion.
Colocation application in the data center liquid cooling market is expected to witness a high growth rate due to the establishment of several colocation facilities across the globe. The increasing requirement of managing high data storage capabilities in various industry verticals, such as BFSI, IT & telecom, etc., is responsible for the establishment of colocation facilities. As a result, liquid coolers are being used across various regional infrastructures. Additionally, the increasing data components in IT & telecom sectors owing to enhanced mobile connectivity, utilization of 5G networks, and usage of the internet is a major factor accounting the data center liquid cooling market growth.
The Europe data center liquid cooling market will grow over the forecast time span due to establishments of several edge & colocation facilities in various countries. The increase in data capabilities due to digitized processes in various industries such as BFSI, health care in European countries is a major industry driver. Additionally, the adoption of AI & machine learning technologies in processes across the European manufacturing sector is also developing the data center liquid cooling market.
Leading players in the data center liquid cooling market include Alfa Laval, Rittal GmbH & Co. Kg, Schneider Electric, Vertiv Co., Chilldyne Inc., Asetek AS, Mitsubishi Electric Corporation, CoolIT Systems Inc., Liquid Cool Solutions, etc. These companies continuously develop new cooling solutions with capabilities to cool highly dense storage components. They also invest in R&D activities to create alternative solutions that further support developments in the data center liquid cooling market. For instance, in January 2019, nVent Electrical announced the launch of its products including two new liquid cooling systems & PDUs.