Data Center Liquid Cooling Market Size, By Component (Solution [Direct-to-Chip Liquid Cooling, Immersive Liquid Cooling], Services [Managed Services, Professional Services]), By End-use (Enterprise [BFSI, Government, Healthcare, Manufacturing, IT Enabled Services (ITeS)], Telecom Service Providers, Cloud Service Providers), Industry Analysis Report, Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2020 - 2026
The data center liquid cooling market is expected to outline a significant rise in its growth graph owing to increasing digitization across industries like BFSI & healthcare, and rising adoption of artificial intelligence and machine learning across industrial processes. Liquid cooling is extremely crucial for reducing the energy consumption levels of cooling systems that are used in data centers as the heat capacities of liquids is significantly higher than that offered by air. Additionally, once the heat is transferred to the liquid cooling materials, it can be eliminated efficiently from the data center.
Conventionally reserved for academic supercomputers and mainframes, liquid cooling systems are expected to feature more prominently in enterprise data centers. Novel, more demanding industry workloads are actively driving up power densities, which is causing data center managers seeking more efficient liquid-based alternatives to cooling systems that are air-based.
Over the recent years several hyperscale cloud operators such as Google, Microsoft, Baidu, and Facebook, have created a group that is actively working on developing open specification for server racks that are liquid-cooled. Such efforts and shifting industry trends are expected to fuel the adoption of data center liquid cooling solutions.
Th overall data center liquid cooling industry is divided into different segments based upon component, end-use, and regional landscape.
In terms of component, the market is divided into solution and services. The solutions segment is bifurcated into direct to chip, and immersive. Among these, the direct immersion cooling segment is slated to build up higher traction in the industry. The demand for the solution is ascribed to high compatibility & reliability with GPUs and CPUs. The products boast of capacities that can cool solid-state drives, making the overall process more efficient than conventional methods. The technology further reduces heating & humidity effects on several network components, supporting higher operational performance further.
Based on services, the market is divided into managed services, and professional services. Among these, the professional services segment is projected to witness positive growth as numerous companies are offering consultation services, which includes guidance to rollout appropriate products based upon data center components. Enterprises opt for these services to launch efficient products and also maintain the performance while maintaining lowest possible investments.
With respect to end-use, the market is categorized into enterprise, telecom service provider, and cloud service provider. The enterprise segment is further classified into BFSI, retail & e-commerce, government, healthcare, manufacturing, IT enabled Services (ITeS), and others.
The IT enabled Services (ITeS) segment is forecast to undergo a remunerative period of growth. Increasing data components across the ITes sector owing to improved mobile connectivity, use of 5G networks, and adoption of internet is a major factor augmenting the market growth.
The others segment is slated to register considerable revenue growth. Data centers are increasingly becoming more complex, due to digitized operations, with a growing need to decrease heat at frequent intervals. Increasing temperature & heat changes lowers productivity and augments power consumption. Liquid cooling systems can meet the demand and help operators using efficient operation management, which is further pushing market demand.
From a regional reference frame, Latin America data center liquid cooling market will grow exponentially during the forecast timespan driven by establishments of numerous colocation and edge facilities in various countries. The rise in data capabilities owing to digitized processes across various industries like healthcare and BFSI throughout Latin American countries would be a prominent industry driver. Additionally, the adoption of machine learning and AI technologies within processes throughout the region’s manufacturing sector is also fostering the market growth.
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