Data Center Cooling Systems

The Data Center Cooling Systems Emerging Market Analysis Report delivers current market analysis plus a five-year market and technology forecast.

Data Center Cooling Systems Are Required for Efficient Temperature and Environmental Management

According to ARC research, Data Center Cooling Systems are an integral part of smooth operation for a data center and account for about 30 to 40 percent of a data center’s total power consumption. Air-based cooling systems have been the traditional technology used, but high-performance liquid cooling is growing fast, along with increased usage of AI and machine learning among end users. Investment in technologies for remote management and monitoring tools in both IT services and the industrial space have increased drastically over the past couple of years. Digital transformation and remote operations in the industrial and retail space are anticipated to increase the online data traffic and subscription of virtual and digital services.

Data Center Cooling Systems Strategic Issues

data center cooling systems market trendsIn addition to providing a five-year market forecast, the Data Center Cooling Systems market research provides detailed quantitative current market data and addresses key strategic issues as follows.

Increasing Reliance on Natural Cooling

Several data center operators seek to reduce the operating costs of data centers by reducing the amount of energy needed to run data centers. As cooling takes up more than 40 percent of the power required to run a data center, several operators are resorting to free cooling or the use of natural cooling, which reduces the demand for cooling solutions.

Several companies are setting up data centers in cold climates or near aquifers to use natural cold water to cool data centers. This leads to a low use of advanced solutions such as immersion or liquid cooling solutions. Exploring new opportunities with natural cooling resources would aid data center operators for keeping the operational expenses low.

New Opportunities with Renewable Power Generation

Cooling of servers and other IT equipment is the most demanding application in a data center with respect to overall power consumption. Data center operators are looking toward efficient cooling technologies, as cooling consumes more than 40 percent of the power of operating data centers. Powering the cooling equipment via renewable energy is vital to enhance the center's total carbon footprint, reduce dependence on main grid's power supply, and reduce energy cost in the long run.

Renewable energy is seen as a feasible replacement for fossil fuel-based power from the main grid. A combination of renewable energy generation and battery storage will play an important role in replacing fossil fuel-powered primary sources. Hyperscale data centers can also leverage a combination of hydrogen PEM (proton exchange membrane) and fuel cells as a viable option for storing excess storage generated from renewable sources.

Data center operators in mature power markets can also take advantage of feed-in tariffs provided by local governments to supply renewable power to the grid, thereby seeking to generate revenue and reduce costs of running establishments.

Suppliers Need to Embrace Digitalization

Digital transformation is picking up speed and is a catalyst for long-term competitive advantages for end users. Most of all, digitalization helps create a path for the transition toward more connected and smarter systems to enhance the overall process efficiency.

Digitalizing the assets and using a cloud-based architecture with predictive analytics enable end users to monitor the health and performance of assets, allowing them to predict equipment failures before they happen and minimizing unnecessary shutdowns that can cost millions of dollars. Digitalizing the operation of a cooling system has significant benefit such as remote monitoring and diagnostic, predictive troubleshooting, and effective cooling functionalities for data center operators. End user companies could make substantial improvements in their operating performance, enabling them to succeed in today's highly competitive market by embracing such technologies. Therefore, it is vital to seek cooling solution suppliers, with digital services capabilities, that can become effective partners when it comes to digitalization of the electric utilities in data centers.

Market Data Research Available Datasets

This in-depth market data research is split into two key modules: Market Growth Outlook and Competitive Analysis.  Each of these modules is further configured into several sub-modules to meet the needs of executives as well as marketing, sales, and product development managers.  All of these modules and sub-modules may be purchased as a bundle or separately.  A brief description of these modules, sub-modules, and their use cases is included below.

Market Growth Outlook

ARC’s market growth outlook service delivers an in-depth market opportunity analysis including five-year market and technology forecasts and 3-year history trend lines where available. Besides providing an in-depth analysis of the market opportunity provided by each technology, this service allows technology suppliers to analyze their own customized markets consisting of multiple technologies. For example, customers can view different market scenarios by adding or removing technology markets from the analysis, providing them a Total Available Market (TAM) view of their own served market. A list of the available market growth outlook services can be seen in the list below.  

This service is designed to help accelerate your organization's ability to understand an up-to-date view of the market opportunity provided by your current product portfolio and analyze how your company’s market opportunity would change if you were to acquire or divest a particular product line. The service will also help you identify and capitalize on emerging markets, whether these markets are based on an emerging technology, region, vertical industry, or application. Built upon a proprietary market model and ARC’s field proven primary research, this service helps product and marketing managers optimize their business plans by identifying the opportunities provided by emerging trends. ARC’s reputation as the preeminent independent provider of market growth opportunity analyses for nearly four decades also provides greater weight to your business plans. ARC’s market growth outlook services are available in a variety of formats depending on whether you view your market opportunities via different technologies, industries, or world regions.  

In addition, ARC has a strong history of providing customized market opportunity reports and services to meet your specific needs.  For example, you may sell your products only to specific industries and/or in only one or two regions. You tell us your served markets and ARC can quickly configure a report or service designed to best serve your served market.

ARC provides several versions of these reports and services depending on your role in the organization. Executive Views are high level market opportunities designed to help executives quickly identify key trends and market opportunities around the world.  In-depth market opportunity analyses provide marketing and product managers more detailed technology specific market information to plan marketing and product development strategies.  The following table shows more specific information included in each version.

Market Growth Outlook AnalysisUse CasesTarget Role
Worldwide Market Growth Outlook by Industry & Region with 3-year history where availableIn-depth technology-specific strategic growth planning across multiple technologies, applications, regions, and industriesProduct & Marketing Managers
Worldwide Industry Growth Outlook by Region with 3-year history where availableStrategic technology growth planning for markets defined by a single or multiple vertical industriesIndustry Managers
Regional/Country Market Growth Outlook by Technology & Industry with 3-year history where available (includes country data)Strategic technology growth planning for markets defined by a single or multiple world regionsRegional & Country Sales Managers
Market Growth Outlook Executive ViewStrategic Total Available Market (TAM) growth planning dashboard covering multiple vertical industries, technologies, and world regionsExecutives
Market Competitive Analysis

ARC’s Competitive Analysis services deliver in depth competitive analyses across multiple technologies, applications, regions, and industries.  Besides providing an in-depth analysis of the market opportunity provided by each technology, this service allows technology suppliers to analyze their own customized markets consisting of multiple technologies. For example, customers can view different market scenarios by adding or removing technology markets from the analysis, providing them a Total Available Market (TAM) view of their own served market. A list of the available market growth outlook services can be seen in the list below.  

This service is designed to help product and marketing managers identify their company’s market positioning across multiple views within their Serviceable Available Market (SAM). Built upon a proprietary market model and ARC’s field proven primary research, this service helps product and marketing managers optimize their business plans by identifying how their company’s market position would change if the company were to acquire or divest a particular product line or technology. ARC’s reputation as the preeminent independent provider of competitive market benchmarking for nearly four decades lends greater weight to your business plans. ARC’s market competitive services are available in a variety of formats depending on whether you view your market opportunities via different technologies, industries, or world regions.  

In addition, ARC has a strong history of providing customized market opportunity reports and services to meet the specific needs of our clients.  For example, you may sell your products only to specific industries and/or in only one or two regions. You tell us your served markets and ARC can quickly configure a report or service designed to best serve your served market.

ARC provides several versions of these reports and services depending on your role in the organization. Executive Views are high level market competitive analyses designed to help executives quickly assess their SAM by world region, technology, or vertical industry. In-depth competitive market analyses provide marketing and product managers more detailed technology specific benchmarking information to plan marketing and product development strategies.  The following table shows more specific information included in each version. 

Competitive AnalysisUse CasesTarget Role
Worldwide Competitive Analysis by TechnologyIn-depth competitive market analysis that quantifies how your company’s market position has changed over time across multiple technologies, applications, regions, and industriesProduct & Marketing Managers
Worldwide Competitive Analysis by IndustryStrategic technology-based competitive analyses for markets defined by a single or multiple vertical industriesIndustry Managers
Regional/Country Competitive Analysis by IndustryStrategic technology-based competitive analyses for markets defined by a single or multiple world regionsRegional Sales Managers
Competitive Analysis Executive ViewStrategic Serviceable Available Market (SAM) analysis dashboard covering multiple vertical industries, technologies, and world regionsExecutives

Worldwide Research Focus Areas

Strategic Analysis

  • Executive Summary
  • Market Trends
  • Strategies for Buyers
  • Strategies for Product Suppliers
  • Growth Contributors and Inhibitors

Competitive Analysis

  • Market Share Analysis
  • Leading Suppliers for World Region
    • North America
    • Europe, Middle East, Africa
    • Asia
    • Latin America
  • Leading Suppliers for Industry
    • IT
    • BFSI
    • Government & Public Sectors
    • Telecom
    • Other Industries
  • Leading Suppliers by Cooling Type
    • Advanced Cooling
    • High Density Cooling
    • Server Room Cooling

Emerging Market Size and Forecast

  • Total Shipments of Data Center Cooling Systems
  • Shipments by Region
    • North America
    • Europe, Middle East, Africa
    • Asia
    • Latin America
  • Shipments by Industry
    • IT
    • BFSI
    • Government & Public Sectors
    • Telecom
    • Other Industries
  • Shipments by Cooling Type
    • Advanced Cooling
    • High Density Cooling
    • Server Room Cooling

Industry Participants

The research identifies all relevant suppliers serving this market. 

For More Information

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