As service providers and hyperscale providers progress in advancing artificial intelligence, algorithms, 5G networks, and augmented and virtual reality, it is creating a greater demand for data center liquid cooling.
According to the latest research by InsightAce Analytic, the global data center liquid cooling market size was valued at $3.56 billion in 2022, and it is expected to reach $31 billion in 2031, recording a promising CAGR of 27.2% during the forecast period of 2023-2031. The research firm said that solutions in the IT and telecom industries will be substantial during the forecast period, assisting market expansion.
The growing use of modern technologies such as cryptocurrency, the Internet of Things (IoT), artificial intelligence (AI), and machine learning (ML) is expected to create profitable prospects for the market, further accelerating the growth rate of the data center liquid cooling market.
However, InsightAce Analytic points out that these factors like the requirement for additional instruments and controls to monitor liquid leaks raise the cost of deploying liquid cooling technology. These high prices are also projected to hamper market growth during the forecast period.
From a regional perspective, the research firm said the North American market is projected to register a significant market share. The region had a massive surge in the penetration of linked devices. Datacenter sponsors are increasingly funding direct-to-chip and liquid immersion cooling technologies. Also, the development of 5G wireless networks in the United States has increased the importance of edge data centers.
Several American operators, including Edge Presence, Edge Micro, and American Towers, have begun to invest in these centers. The Asia Pacific region had a substantial share of the market. Increasing online usage understanding is also likely to stimulate cooling product sales. The Internet generates much data, necessitating big data and liquid cooling solutions.
Furthermore, the increased demand for cloud data storage and file cabinets is driving the growth of the data center liquid cooling market. Additionally, big data across industry verticals is a powerful driver for this industry.
However compelling the cooling opportunity is, it will face various challenges during the forecast period. For one, the research firm said there will be a need to establish standards for liquid cooling systems. Establishing liquid cooling systems is more expensive than implementing air cooling systems, and the parts and accessories necessary for liquid cooling must be of high quality. InsightAce Analytic said, “All these factors raise the cost of deploying liquid cooling technology,” and the high prices are “projected to hamper market growth during” the forecast period.
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