Europe Data Center Cooling Market size surpassed USD 3.5 billion in 2020 and is anticipated to showcase around 15% growth rate between 2021 and 2027.
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The market growth is impelled by the increasing procurement of carbon-free energy sources. For instance, in July 2021, major European cloud and data center operators including Amazon Web Services, Inc., Google LLC, and Equinix, Inc., followed by regional and national providers have agreed to achieve carbon neutrality by 2030. According to the Climate Neutral Data Centre Pact, by 2025, 75% of the electricity provided to data centers will be renewable and all the facilities will be 100% carbon-free by 2030.
Due to strict lockdown measures imposed in several countries, the COVID-19 pandemic had a negative impact on the Europe data center cooling market in 2020. Owing to the shortage of raw materials and components, manufacturers in the data center cooling sector faced the risk of supply chain disruptions. In addition, due to strict travel restrictions enforced by government authorities, electronic component manufacturers experienced delays in product shipments. However, the Europe industry gained traction in the second half of 2020 due to lockdown relaxations and countries are focusing on recovering economic stability by the end of 2021. Increased data traffic due to the widespread usage of digital services, such as e-learning, OTT, and online banking, during the pandemic will drive the COVID-19 industry growth.
Europe Data Center Cooling Market, By Component
The liquid cooling systems segment is poised to witness remarkable growth during the forecast period, attributed to its advantages over air-cooled systems. Liquid cooling is commonly used as an effective solution for high-performance computing. The use of liquid cooling technologies enables a reduction in the overall area required for a specific IT load. Liquid cooling makes a data center compact, allowing servers and computation to be located in areas where air cooling is ineffective. Liquid cooling isolates the equipment from harsh environments and airborne contaminations. Liquid cooling supports high heat density racks with reduced power consumption. The high demand for edge computing in Europe has resulted in compact and denser IT equipment in data centers, which require liquid cooling infrastructure.
Europe Market, By Cooling Technique
The room-based data center cooling market in Europe is anticipated to dominate revenue share through 2027, as its distribution can be flexibly adjusted by reconfiguring the perforated tiles, which makes it suitable for data centers with low equipment density. It provides increased cooling capacity and constant mixing of hot & cold air to maintain an optimum temperature level and prevents hot spot formation. Rapid growth in big data volume due to the supportive policies of the European Commission is increasing data centers in various countries including the UK and Germany. This is expected to increase the need for low latency and high-capacity data centers, thereby boosting the use of room-based cooling systems.
Europe Market, By Application
The data center cooling market is propelled by a significant demand for colocation services from hyper-scale data centers. Various cloud service providers including Google Cloud and Microsoft Azure are leasing large capacity from colocation companies in Europe. Growth in colocation services is due to growing network connection and rising number of localized data centers in accordance with the General Data Protection Regulation (GDPR) is boosting the market growth. The adoption of disruptive technologies including autonomous vehicles is resulting in the rising demand for edge computing solutions in developed countries including the UK, Germany, and France.
Competitive Industry Landscape
Key players operating in the Europe data center cooling market include 3M, Asetek, Inc., BladeRoom Group Ltd., Delta Power Solutions, Eaton Corporation, Fujitsu Limited, Integrated Eco Technologies Ltd., Rittal GmbH & Co., KG, Schneider Electric SE, STULZ GMBH, Submer Technologies, Vertiv Group Co.
Manufacturers are introducing innovative solutions to remain competitive in the market. For instance, in July 2020, STULZ GMBH introduced a temperature and humidity control system that is especially built for handling air and cooling large, colocation & hyper-scale data centers. The CyberWall cooling solution consists of several air conditioning units designed for buildings with distinct aisles.