Asia Pacific Data Center Cooling Market - Growth, Trends, Forecasts (2020 - 2025)

The Asia Pacific Data Center Cooling Market is segmented by Solutions (Air Conditioners/Handlers, Chillers, Economizer Systems, Liquid Cooling Systems, Row/Rack/Door/Over-head Cooling Systems), Service (Installation and Deployment, Consulting, Support, and Maintenance Services), End-user Verticals (Information Technology, BFSI, Telecommunication, Healthcare, Retail, Government), and Country.

Market Snapshot

11.7
Study Period: 2020-2025
Base Year: 2019
CAGR: 11.7 %

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Market Overview

The Asia Pacific Data Center Cooling Market is expected to grow at a CAGR of 11.7% over the forecast period 2020 to 2025. Owing to the surge in the internet usage and number of data centers due to enormous computational requirements by A.I and Media applications in the APAC region, there is a massive growth of the Data Center Cooling Market. According to Internet World Stats (IWS), as of May 2020, with a penetration rate of 55.1% and nearly 2.4 billion Internet users, Asia-Pacific accounted for 50.9% of the global internet users. According to the US Census Bureau, as of January 2020, China ranked first with around 854.5 million internet users, while India achieved second place with 687.6 million internet users. 

  • According to IEA, hyperscale data centers have doubled their energy demand from around 31.11 terawatt-hours in 2015 to 69.72 terawatt-hours in 2019 and is expected to reach 86.58 terawatt-hours by 2021. The concern about the increasing percentage of energy expenditure by data centers, over the years, has warned governments across the region to regulate energy consumption regularly, which is the primary factor driving the market. 
  • Development in IT Infrastructure in emerging countries of APAC is propelling the market. The increasing construction of hyperscale facilities with over 50 MW's power capacity will feed the necessity for innovative infrastructure in the market over the next several years in APAC's developed nations. 
  • According to the National Association of Software and Services Companies (NASSCOM), IT exports from India may exceed USD 330 billion by 2019-20. This values for nearly 14% of the projected worldwide use if India maintains its current global offshore IT market share. Besides, according to Credit Suisse, the percentage of China in the hyperscale data centers market has increased from 7% in 2017 to 10% in 2019. 
  • According to DXC Technology Company, it is estimated that data centers consume about 3% of the global electricity supply and account for about 2% of total GHG emissions. In fact, the Berkeley Lab report states that data centers are on course to use 73 billion kW hours of electricity by 2020. Generating electricity consumed by data centers will end in the discharge of 100 million metric tons of carbon dioxide (CO2) by 2020, according to the Natural Resources Defense Council. 
  • However, in the APAC region like Australian, data centers are a massive generator of building energy-related GHG emissions. The National Australia Bank has deployed a series of energy efficiency programs in its data centers, contributing to its efforts to reduce GHG emissions.
  • Companies in the APAC region are trying to tackle this issue by setting up Green data centers that use Free air cooling systems instead of traditional Air conditioners. The increasing trends toward deploying green data centers for managing, storing, and distributing information helped many software businesses decrease energy consumption and the total energy cost.
  • However, adaptability demands and power outages in the Asia-Pacific region are confronting the market to grow. A typical data center cooling system must be pre-engineered, standardized, and modular. It is expected to be flexible and scalable to match the data center's requirements in the region. This is very challenging in today’s world, with firms looking to lower costs and not spend much on the high-end customized cooling systems.

Scope of the report

The data center cooling refers to the collective equipment, tools, techniques, and processes that ensure an ideal operating temperature within a data center facility. With increasing capacity and higher density, there is an increasing need for energy-efficient cooling of the IT equipment. Furthermore, benefits offered by the technology and support from the government by imposing efficiency regulations on data centers are expected to help the growth of the data center cooling market directly in various applications such as IT, BFSI, Telecommunication, etc.

Solution
Air Conditioners/Handlers
Chillers
Economizer Systems
Liquid Cooling Systems
Row/Rack/Door/Over-head Cooling Systems
Service
Installation and Deployment
Consulting, Support, and Maintenance Services
End –user Vertical
Information Technology
BFSI
Telecommunication
Healthcare
Retail
Government
Other End-user Verticals

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Key Market Trends

Information Technology Industry to Witness Highest Growth

  • According to its size, the IT industry demands on-premise private data storage centers and hyperscale data centers for its operations. Additionally, the adoption of cloud storage in the region has grown over the years due to growth in SaaS providers, allowing cloud storage providers to develop their capacities and is anticipated to heighten the demand for data center cooling systems in the APAC region.
  • Larger tech firms like Google in the Asia Pacific region are even leveraging the potential of artificial intelligence to enhance cooling performance. And earlier, farfetched solutions like liquid server cooling systems are swiftly becoming commonplace as businesses experiment with innovative ideas to cool a new generation of high-performance processors.
  • Development in IT Infrastructure in the Asia-Pacific region is propelling the market. The building construction of hyperscale facilities with over 50 MW's power capacity will feed the requirement for infrastructure in the market over the next several years globally in developed nations.
  • According to the State of the Edge, Asia Pacific is the region that will have the most massive edge computing footprint worldwide, accounting for 36.7% of the overall IT power footprint for edge computing infrastructure by 2028 - the equivalent to 25,409 megawatts (MW).
  • According to NEC Corporation, around 30% to 40% of the power used at data centers is utilized by air-conditioning systems for cooling IT equipment. Large amounts of power are used in hot climates and during summertime. Data centers have been established in colder climates, and other mitigating approaches were taken in terms of installation and establishment to mitigate this.
  • China influences the world in internet consumption, with 710 million people online, according to a new report by CNNIC (China’s Internet Network Information Center). As the requirement for cloud computing and other data services stretches to grow in China, improvements in the data center and Information technology can be exacted to play an indispensable role in both the int­­­egration of these technologies with modern manufacturing and China’s gradual transition to a service economy.
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Emergence of Green Data Centers to Drive the Market

  • With the growing need to expand, storage capacity has emerged as a big opportunity for every one of the major enterprises, in the data center and storage space market, as there has been a consistent rise in the number of data-hungry customers and applications. Globally, the amount of data is set to grow drastically, in the next few years.
  • According to Huawei, the global estimate of data center demand is expected to increase by 3 to 10 times, by 2030. Green Data Center (GDC), which provides effective and eco-friendly solutions, in terms of data storage and reduction in energy consumption, is expected to witness great demand, owing to the positive outlook of the data center storage needs and new constructions, which has been brought about, due to the regulations and the anticipated rise in need to reduce the operational expenditure.
  • According to Green House Data Inc., the data center industry sucks down over 30 GW of energy per year and that amount increases every day. The carbon footprint of a medium 10 MW data center can range from 3,000,000 to over 130,000,000 kilograms of CO2. Reducing that carbon footprint through efficiency and renewable energy use has a dramatic effect. Depending on the electric grid region, PUE improvements can eliminate millions of pounds of CO2 emissions, consequently boosting the growth of the market.
  • Despite the long-term savings and ROI, the renewable energy data centers have a high cost of the initial investment. A green data center solution consists of green power and cooling infrastructure solutions, coupled with energy-efficient equipment and management system, which are the factors driving the demand for green data center, over the other data centers.
  • Power is an important part of the green data center investments. Both low-power solutions and effective solutions support organizations, to reach their coveted objectives. However, results from contemporary researches have shown that this trend is lagging down, due to the effective green efficiency actions taken up in mature markets Asia-Pacific region. With the rising electricity usage, enhanced billings, and growing emissions of CO2 from these data centers, the need for green data centers is set to grow, thereby, driving the data center cooling market forward in the region.
  • For instance, according to IEA, the volume of global energy-related carbon dioxide emissions has steadily risen over the last decade, from 28.7 billion metric tons carbon dioxide emissions in 2009 to 33.3 billion metric tons in 2019. Also, Google emitted just above 15 million tons of carbon dioxide equivalents in 2018. Google reported that all of its emissions were neutralized by carbon offset projects.
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Competitive Landscape

The Asia Pacific Data Center Cooling Market is fragmented as the benefits offered by the technology and support from the government by imposing efficiency regulations on data centers are expected to directly help the growth of the data center cooling market. Market penetration is growing with a strong presence of major players in established markets and with the increasing focus on innovation, the demand for new technologies is growing, which, in turn, is driving investments for further developments. Key players are Vertiv Co., Schneider Electric SE, STULZ GMBH, etc.

  • April 2020 - Rittal and ZutaCore, announced innovative solutions for high-performance cooling and other scenarios that require intense computer power under the name “Rittal HPC Cooled-by-ZutaCore”. The partners are backing the transformation of the data center industry with an unprecedented cooling output of 900 W and more per server. The new system works on the basis of evaporative cooling, using latent energy to evaporate refrigerant (“direct contact evaporative cooling”).
  • Aug 2019 - Nortek Air Solutions introduced the CDU1200, a 1,200-kW coolant distribution unit (CDU) that’s the single most powerful, compact CDU and the newest addition to its ServerCool data center liquid cooling product line. The CDU1200 is a perfect new construction or retrofit liquid cooling solution for high-performance computing (HPC) and enterprise data centers, as well as co-location, corporate network edge, government, research, and other data center formats.

Table of Contents

  1. 1. INTRODUCTION​

    1. 1.1 Study Assumptions​ and Market Definition​

    2. 1.2 Scope of the Study​

  2. 2. RESEARCH METHODOLOGY​

  3. 3. EXECUTIVE SUMMARY​

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview​

    2. 4.2 Market Drivers

      1. 4.2.1 Increasing Volume of Digital Data

      2. 4.2.2 Emergence of Green Data Centers

    3. 4.3 Market Restraints

      1. 4.3.1 Adaptability Requirements and Power Outages

    4. 4.4 Current Opportunities in the Market

    5. 4.5 Technology Snapshot

    6. 4.6 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.6.1 Bargaining Power of Suppliers

      2. 4.6.2 Bargaining Power of Consumers

      3. 4.6.3 Threat of New Entrants

      4. 4.6.4 Threat of Substitutes

      5. 4.6.5 Intensity of Competitive Rivalry

    7. 4.7 Industry Value Chain Analysis

    8. 4.8 Assessment of Impact of Covid-19 on the Industry

  5. 5. MARKET SEGMENTATION**

    1. 5.1 Solution

      1. 5.1.1 Air Conditioners/Handlers

      2. 5.1.2 Chillers

      3. 5.1.3 Economizer Systems

      4. 5.1.4 Liquid Cooling Systems

      5. 5.1.5 Row/Rack/Door/Over-head Cooling Systems

    2. 5.2 Service

      1. 5.2.1 Installation and Deployment

      2. 5.2.2 Consulting, Support, and Maintenance Services

    3. 5.3 End –user Vertical

      1. 5.3.1 Information Technology

      2. 5.3.2 BFSI

      3. 5.3.3 Telecommunication

      4. 5.3.4 Healthcare

      5. 5.3.5 Retail

      6. 5.3.6 Government

      7. 5.3.7 Other End-user Verticals

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles*

      1. 6.1.1 Vertiv Co.

      2. 6.1.2 Stulz GmbH

      3. 6.1.3 Schneider Electric SE

      4. 6.1.4 Rittal GmbH & Co. KG

      5. 6.1.5 Mitsubishi Electric Hydronics & IT Cooling Systems SpA

      6. 6.1.6 Asetek AS

      7. 6.1.7 Chilldyne Inc.

      8. 6.1.8 Johnson Controls Inc.

      9. 6.1.9 LiquidCool Solutions

      10. 6.1.10 CoolIT Systems Inc.

    2. 6.2 INVESTMENT ANALYSIS

    3. 6.3 MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

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Frequently Asked Questions

The Asia Pacific Data Center Cooling Market market is studied from 2020 - 2025.

The Asia Pacific Data Center Cooling Market is growing at a CAGR of 11.7% over the next 5 years.

Vertiv Co, Stulz GmbH, Schneider Electric SE, Rittal GmbH & Co. KG, Mitsubishi Electric Hydronics & IT Cooling Systems SpA are the major companies operating in Asia Pacific Data Center Cooling Market.

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