EMEA Data Center Cooling Solutions Market Size 2024-2028

The EMEA Data Center Cooling Solutions Market size is forecast to increase by USD 3.87 billion at a CAGR of 12.49% between 2023 and 2028. The expansion of market share hinges on several pivotal factors, notably the growth in investments directed towards data centers. This influx of capital signifies a heightened recognition of the critical role information infrastructure plays in modern operations. Additionally, there is a notable trend towards immersion cooling solutions, driven by their efficiency and capacity to address the escalating heat dissipation challenges in information centers. Moreover, there's a growing emphasis on reducing power consumption within facilities, reflecting a broader commitment to sustainability and cost optimization. These trends collectively underscore the evolving landscape of information center technology, where innovation and efficiency are paramount in meeting the escalating demands of digital infrastructure.

Market Overview

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Market Dynamics and Customer Landscape

The market is witnessing significant growth driven by the exponential rise in data generation and the proliferation of OTT platforms and streaming services. With the increasing adoption of cloud services and the need for big information management, there's a growing demand for efficient and scalable cooling solutions. However, challenges such as high investment costs, stringent regulations, and environmental impact concerns pose significant hurdles. Addressing these challenges requires innovative approaches like energy-efficient cooling systems, intelligent power distribution, and precision air conditioners, ensuring sustainability while meeting the evolving demands of digital transformation.

Key Market Driver

The increasing investments in data centers are notably driving market growth. An integral part of any organization is the data center. The massive growth in the amount of information generated has compelled several companies to build their own centers. The increasing interest in information center computing will further drive the need for information centers.

Moreover, the demand for data center cooling solutions has become more and more apparent, as data centers grow in demand. Hence, such factors are positively impacting the market. The increasing number of information centers is expected to increase the use of information center cooling solutions, thereby propelling the growth of the market during the forecast period.

Significant Market Trends

The increase in the design of containment cooling solutions is a key trend propelling market growth. An increase in the generation of cold and hot air in information servers has encouraged information center operators to adopt aisle containments that prevent the mixing of cold and hot air. The level of complexity in data centers all over the world has also been reduced by implementing these solutions.

In addition, it's helping to reduce the hot spots and carbon footprints in data centers. The containment is attached to ceiling plenums, which can redirect hot air to the CRAC systems or outside of data centers. Hence, such factors are positively impacting the market. Innovations with regard to the use and designing the facility as per the industry guidelines are expected to aid in market growth during the forecast period.

Major Market Challenge 

The focus on the consolidation of data centers is a major challenge faced by the market during the forecast period. Consolidation of information centers is an operation in which organizations reduce the number of individual facilities or merge one or more facilities to reduce overall operating costs. There are various reasons why enterprises consolidate information centers.

However, the consolidation of the information center through acquisitions is helping enterprises to grow their market shares in different regions. The closure of information centers in the region is being pursued by a number of government agencies. Hence, such factors are negatively impacting the market. It is expected to hamper the market growth and trends during the forecast period.

Customer Landscape

The market research report includes the adoption lifecycle of the market research and growth, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.

Customer Landscape

Market Segmentation

By Technology

In the rapidly evolving landscape of information generation and management, the demand for efficient cooling solutions in EMEA (Europe, the Middle East, and Africa) is paramount. OTT platforms, streaming services, and cloud services drive massive data generation, necessitating strong cooling infrastructures. Big data and connected devices further amplify the need for scalable, secure, and flexible cooling solutions. Specialized infrastructure, including software-based information centers, caters to digital transformation needs. While high investment costs are a consideration, energy-efficient cooling systems like precision air conditioners address sustainability goals. Intelligent power distribution and monitoring systems ensure efficient operations, with incident response and recovery procedures enhancing reliability. From mechanical cooling to virtual containment, the market offers diverse solutions for installation, deployment, and maintenance services, even in non-raised floor environments.

The liquid-based cooling segment is estimated to witness significant growth during the forecast period. It is expected to maintain its dominance during the forecast period owing to the growing adoption of cooling in various applications such as air conditioning and chillers.  The most widely used cooling system is water-based cooling, a sub-segment of liquid-based cooling, which is commonly used in chillers, condensers, and economizers.

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The liquid-based cooling segment was the largest segment and was valued at USD 1.79 billion in 2018. The adoption of chilled water-based cooling should be the most prominent cooling technique. In addition, a few operators in the region also have gained increased attention for their use of liquid immersion cooling and direct-to-chip cooling techniques. The continued use of the liquid-based cooling technique will generate more revenue in the market in focus, thereby propelling the growth of the liquid-based cooling segment of the market during the forecast period.

By Product

Growing demand for data center construction and the need for air conditioning is driving the need for information center cooling solutions in the air conditioning segment of the market during the forecast period. As a result of the ever-increasing adoption of advanced technologies to meet operating needs, enterprises are prompted to expand their information center footprint worldwide. With increased thermal density at the rack, comfort cooling used in information centers has been found not to be effective. Also, concerns over high power consumption have led to the increased adoption of air conditioners. A large number of information centers in EMEA use air conditioning. The rise in the demand for data centers, especially in developing countries such as Saudi Arabia and South Africa, is likely to boost the overall segment growth during the forecast period. 

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Alfa Laval AB- The company offers data center cooling solutions such as free cooling with a chiller and free cooling with a chiller bypass. 

Asetek AS- The company offers data center cooling solutions such as Asetek lnRackCDU warm water cooling distribution unit system. 

Daikin Industries Ltd.- The company offers data center cooling solutions such as Daikin air-cooled chillers with RapidRestore technology. 

The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• Aermec S.p.A.
• ARANER
• Daikin Industries Ltd.
• Dell Technologies Inc.
• Delta Electronics Inc.
• EcoCooling
• FlaktGroup Holding GmbH
• Fujitsu Ltd.
• Hewlett Packard Enterprise Co.
• International Business Machines Corp.
• Mitsubishi Electric Corp.
• Nortek

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.

• Technology Outlook 
  • Liquid-based cooling
  • Air-based cooling

• Product Outlook
  • Air conditioning
  • Economizers
  • Cooling towers
  • Chillers

Market Analyst Overview

In the realm of IT infrastructure and data management, the market is pivotal. Scalability, security, and flexibility are paramount considerations, driving demand for advanced cooling equipment and energy management solutions. Compliance with rules and regulations underscores the need for environmentally friendly practices, prompting the adoption of modular components and innovative cooling techniques like liquid cooling. This market caters to diverse sectors, including IT & telecom, healthcare, and energy, with a focus on containment solutions like Hot Aisle Containment (HAC) and Cold Aisle Containment (CAC). As digitization and edge computing proliferate, the demand for efficient cooling solutions rises, with an emphasis on energy efficiency and green information center practices. Major players like Microsoft, AWS, and Google contribute to the evolving landscape, ensuring optimal performance and sustainability in hyperscale information centers and cloud storage environments.

Further, the solution segment encompasses innovative approaches like rack-based cooling, row-based cooling, and room-based cooling, addressing the demand for efficient temperature management. Meanwhile, services segment providers, including colocation service providers and IT solution providers, offer comprehensive support for data center operations. Containment solutions such as raised floors and specialized structures like Green Data Centre optimize space and energy usage. As technological advancements like AI, high-performance computing, and IoT devices continue to shape the IT landscape, the market adapts with solutions tailored to meet the demands of the Information Technology Industry and sectors like healthcare sectors and media applications sectors.

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What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth analysis between 2024 and 2028
• Precise estimation of the size of the market in focus on the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across EMEA
• A thorough analysis of the market's competitive landscape, market analysis and report, and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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