|
Forecast Period
|
2024-2028
|
|
Market Size (2022)
|
USD 21.95 billion
|
|
CAGR (2023-2028)
|
7.73%
|
|
Fastest Growing Segment
|
Liquid Cooling Systems
|
|
Largest Market
|
North America
|
Market Overview
The Global Critical Power and Cooling Market was valued at USD 21.95
billion in 2022 and is growing at a CAGR of 7.73% during the forecast period. The
growing number of data centers for cloud computing and digitalization is
expected to drive market growth in the forecast period. The market will also
benefit from the increased demand for power in various sectors, including
hospitals, facilities, financial services, banking, and power plants. The
critical power supply and cooling system industry is projected to grow due to
the rising need for improved cooling efficiency in data centers, the
requirement to reduce power supply anomalies, and the implementation of
regulations and initiatives by institutions and associations.
Key Market Drivers
Increasing Reliance on Digital Infrastructure and Data Centers
The critical power and cooling market is witnessing significant growth
due to the escalating reliance on digital infrastructure and data centers
across diverse industries. In today's digital era, businesses, governments, and
organizations heavily rely on data processing, storage, and seamless connectivity
to ensure efficient operations. This dependence on digital technologies has
resulted in the proliferation of data centers, encompassing both large-scale
and edge facilities, to manage the vast volumes of data generated and processed
daily.
As the global data volume continues to soar, data centers necessitate
robust critical power and cooling solutions to ensure uninterrupted operation
and prevent costly downtime. The demand for high-performance uninterruptible
power supply (UPS) systems, precision cooling solutions, and advanced
monitoring and management tools has surged. These technologies ensure data
centers can maintain a stable operating environment, safeguard sensitive
equipment, and deliver uninterrupted services, which is vital for sectors such
as finance, healthcare, e-commerce, and cloud computing.
Furthermore, the growth of Internet of Things (IoT), artificial
intelligence (AI), and 5G technology further amplifies the need for critical
power and cooling solutions. These technologies require data processing at the
edge, closer to end-users, necessitating the deployment of edge data centers
that rely on resilient power and cooling infrastructure. As a result, the
critical power and cooling market are expected to continue flourishing in
response to the global digitization trend.
Increased Awareness of Energy Efficiency and Environmental
Sustainability
Energy efficiency and environmental sustainability have become paramount
concerns in the present world, driving the adoption of eco-friendly critical
power and cooling solutions. As businesses and organizations strive to reduce
their carbon footprint and energy consumption, they are increasingly turning to
energy-efficient technologies in critical infrastructure.
One of the key drivers in this regard is the rising cost of energy.
Energy expenses constitute a significant portion of operational costs for data
centers and critical facilities. To mitigate these costs, organizations are
seeking power and cooling solutions that optimize energy usage without
compromising reliability. Energy-efficient UPS systems, cooling units with
advanced economization features, and smart management systems are in high
demand.
Furthermore, environmental regulations and corporate sustainability
initiatives are pushing organizations to implement greener practices. Critical
power and cooling technologies that reduce energy consumption and utilize
refrigerants with lower global warming potential (GWP) are favored.
Additionally, some organizations are investing in renewable energy sources and
energy storage solutions to power critical infrastructure, further reducing
their environmental impact.
In summary, the increased awareness of energy efficiency and
environmental sustainability is a strong driver in the critical power and
cooling market. Manufacturers are responding by developing innovative solutions
that minimize energy consumption, enhance efficiency, and align with
sustainability goals.
Growth of Edge Computing and Decentralized Infrastructure
The rapid expansion of edge computing and decentralized infrastructure
is a significant catalyst for the critical power and cooling market. Edge
computing involves processing data in close proximity to the source or
end-users, resulting in reduced latency and enhanced real-time decision-making.
This trend holds particular significance for applications such as autonomous
vehicles, IoT devices, and augmented reality, where low-latency data processing
is of utmost importance.
In order to support edge computing, a network of decentralized smaller
data centers and micro data centers is emerging. These facilities are
strategically distributed across various locations, including the network edge,
retail stores, and manufacturing facilities. However, these edge data centers
face distinct challenges, including limited space, fluctuating environmental
conditions, and the requirement for reliable critical power and cooling
solutions.
As organizations invest in edge computing infrastructure, there is an
increasing demand for compact and energy-efficient critical power and cooling
solutions specifically designed for these smaller data centers. UPS systems
with a reduced footprint, scalable cooling solutions, and remote monitoring
capabilities are highly sought after to ensure the dependability of edge
infrastructure.
Furthermore, the deployment of edge data centers is often driven by the
need for redundancy and disaster recovery. In critical applications such as
autonomous vehicles and healthcare, uninterrupted data processing is absolutely
crucial. This dependency on redundant edge facilities further intensifies the
necessity for robust and efficient critical power and cooling solutions.
In conclusion, the growth of edge computing and decentralized
infrastructure is reshaping the critical power and cooling market. The demand
for compact, energy-efficient, and reliable solutions to support edge data
centers is projected to drive continuous market growth in the foreseeable
future.
Download Free Sample Report
Key Market Challenges
Increasing Energy Costs and Sustainability Pressures
One of the primary challenges facing the global critical power and
cooling market is the increasing energy costs and the mounting pressure for
sustainability. Critical facilities, such as data centers, hospitals, and
industrial complexes, are substantial electricity consumers due to their
constant need for uninterrupted operation. This substantial energy consumption
not only significantly raises operational expenses but also raises environmental
concerns regarding carbon emissions.
As energy prices continue to rise, operators of critical facilities are
grappling with the challenge of managing escalating operational costs. Energy
expenditure can become a significant portion of their budgets, impacting
profitability and overall competitiveness. In this context, prioritizing ways
to optimize energy usage and reduce consumption without compromising the
reliability of critical power and cooling systems is of utmost importance.
Simultaneously, global sustainability initiatives and environmental
regulations are driving organizations to reduce their carbon footprint and
embrace eco-friendly practices. There is a growing demand for critical power
and cooling solutions that are energy-efficient and environmentally
sustainable. This necessitates the development of innovative technologies, such
as advanced cooling systems with economization features, energy-efficient
uninterruptible power supply (UPS) systems, and renewable energy integration,
to align with sustainability goals.
Addressing these dual challenges of rising energy costs and
sustainability pressures requires substantial investment in research and
development to design and produce critical power and cooling solutions that are
not only highly reliable but also energy-efficient and environmentally
responsible.
Rapid Technological Advancements and Evolving Infrastructure Needs
The rapid pace of technological advancements and the evolving
infrastructure needs of critical facilities present a complex challenge for the
critical power and cooling market. Technology is continuously evolving, leading
to more sophisticated and power-hungry equipment within these facilities.
Consequently, the power and cooling infrastructure must keep pace with these
advancements to maintain reliable operation.
For instance, data centers are adopting high-performance computing
(HPC), artificial intelligence (AI), and machine learning (ML) technologies,
which generate substantial heat and require advanced cooling solutions. Meeting
the cooling demands of such technologies while ensuring energy efficiency is a
significant challenge.
Moreover, the expansion of edge computing and the deployment of
decentralized infrastructure introduce new requirements. Edge data centers are
often located in environments with limited space, harsh conditions, and unique
cooling challenges. Developing compact, resilient, and energy-efficient
critical power and cooling solutions tailored to these scenarios presents a
formidable obstacle.
Additionally, the COVID-19 pandemic highlighted the importance of remote
monitoring and management capabilities in critical facilities. This
necessitates the integration of advanced digital technologies, such as IoT
sensors and predictive analytics, into critical power and cooling systems.
To address these challenges, manufacturers must maintain a constant
focus on research and development, innovation, and collaboration with customers
to ensure that critical power and cooling solutions evolve to meet the
ever-changing technology landscape and infrastructure needs.
Strict Regulatory Compliance and Cybersecurity Concerns
Strict regulatory compliance and cybersecurity concerns pose significant
challenges for the global critical power and cooling market. Critical
facilities, particularly those in sectors like healthcare, finance, and data
centers, must adhere to strict regulatory frameworks to ensure the reliability
and security of their operations.
Complying with regulations related to data privacy, reliability, safety,
and environmental standards can be intricate and costly. For example, data
centers are subject to a multitude of regulations, including those governing
data security (e.g., GDPR), energy efficiency (e.g., ASHRAE standards), and
emissions (e.g., Kyoto Protocol). Meeting these requirements necessitates the
integration of specialized technologies and practices within critical power and
cooling systems.
Furthermore, as critical infrastructure becomes more interconnected and
digitally dependent, it becomes a prime target for cyberattacks. Ensuring the
cybersecurity of critical power and cooling systems is imperative to prevent
unauthorized access, data breaches, and potential system disruptions.
Manufacturers and operators in the critical power and cooling market
must invest in cybersecurity measures, such as firewalls, intrusion detection
systems, and secure communication protocols. Moreover, they must stay vigilant
in keeping up with evolving cybersecurity threats and compliance regulations,
adapting their solutions and practices accordingly.
In summary, successfully navigating the challenges of strict regulatory
compliance and cybersecurity concerns requires a multifaceted approach that
combines technological innovation, regulatory expertise, and a proactive
cybersecurity stance to ensure the reliability and security of critical power
and cooling systems in critical facilities.
Key Market Trends
Increased Focus on Energy Efficiency and Sustainability
One of the significant trends observed in the global critical power and
cooling market is the increased emphasis on energy efficiency and
sustainability. With the surge in energy costs and growing environmental
concerns, organizations across various industries are actively seeking ways to
reduce their carbon footprint and optimize energy consumption in critical
facilities. In this context, critical power and cooling solutions are
undergoing a transformation to enhance energy efficiency and promote
environmental friendliness.
Advanced Cooling Technologies: Cooling systems are being designed with cutting-edge technologies, such
as free cooling and indirect evaporative cooling, to minimize energy
consumption while ensuring precise temperature control within critical
facilities. These solutions enable data centers, industrial plants, and
commercial buildings to significantly reduce their cooling-related energy
costs.
Efficient UPS Systems: Uninterruptible Power Supply (UPS) systems are becoming more
energy-efficient through innovations like double-conversion technology with
high-efficiency modes. These systems effectively reduce energy losses and heat
generation, leading to lower operational costs and improved sustainability.
Renewable Energy Integration: Many organizations are exploring the integration of renewable energy
sources, such as solar and wind, into their critical power infrastructure. By
generating clean energy on-site or procuring renewable power, they aim to
reduce reliance on fossil fuels and minimize greenhouse gas emissions.
Energy Management Systems: The advent of digitalization and the use of energy management systems
enable real-time monitoring and optimization of power and cooling systems.
These systems can automatically adjust settings and schedules to minimize
energy consumption during periods of lower demand, contributing to significant
energy savings.
By addressing these aspects, organizations can effectively enhance the
energy efficiency and sustainability of their critical power and cooling
infrastructure while aligning with the global push towards greener practices.
Edge Computing and Edge Data Centers
The growth of edge computing is fueling a significant trend in the
critical power and cooling market. Edge computing involves processing data in
close proximity to its source or end-users, reducing latency and enabling
real-time data analysis. This trend is particularly relevant in applications
such as the Internet of Things (IoT), autonomous vehicles, and augmented
reality, where low-latency data processing is imperative.
The deployment of smaller data centers or micro data centers across
various locations, including the network edge, manufacturing facilities, and
retail stores, is essential for edge computing. These edge data centers have
distinct requirements for critical power and cooling:
Compact and Scalable Solutions:
Given the constrained spaces of edge data centers, it is crucial to have
compact and scalable critical power and cooling solutions that can fit into
these environments.
Redundancy and Reliability:
Ensuring uninterrupted data processing in critical applications like
autonomous vehicles or healthcare requires redundancy and high reliability in
power and cooling systems.
Energy Efficiency:
With the distributed nature of edge computing, energy efficiency plays a
pivotal role in minimizing operating costs and environmental impact.
The trend towards edge computing is driving the development of
specialized critical power and cooling solutions tailored to these unique
requirements. Manufacturers are designing equipment that can operate
efficiently in diverse environmental conditions while maintaining high levels
of reliability.
Segmental Insights
Critical Power Type Insights
The UPS segment
holds a significant market share in the Global Critical Power and Cooling
Market. The Uninterruptible Power Supply
(UPS) segment holds immense significance in the global critical power and
cooling market. UPS systems play a pivotal role in safeguarding against power
interruptions, ensuring continuous operation of critical infrastructure across
various industries.
Data centers,
encompassing both large-scale and edge facilities, stand out as major consumers
of UPS systems. The surge in demand for data centers, driven by cloud
computing, digital services, and the Internet of Things (IoT), has propelled
the UPS market forward. UPS systems assume a critical role in industrial
automation and control systems, guaranteeing uninterrupted operation and
mitigating costly downtime.
The advent of the
digital transformation has underscored the importance of uninterrupted power
supply. Organizations now heavily rely on data processing, real-time
communication, and digital services, making UPS systems indispensable in
preventing data loss and service disruptions.
The adoption of
lithium-ion batteries in UPS systems is on the rise, owing to their longer
lifespan, higher energy density, and smaller footprint compared to traditional
lead-acid batteries. Lithium-ion technology also facilitates faster recharge
times. Modular UPS designs offer scalability and redundancy, empowering
organizations to expand their critical power infrastructure as per their
requirements. This ongoing trend enhances flexibility and lowers the total cost
of ownership.
Cooling Solutions
Type Insights
The IT &
Telecommunication segment holds a significant market share in the Global Critical
Power and Cooling Market. The IT and Telecommunication segment is a crucial
component of the global critical power and cooling market. In this era of
digitalization, ensuring uninterrupted operation of IT infrastructure and
telecommunications networks is of utmost importance. Critical power and cooling
solutions play a pivotal role in ensuring reliability. The exponential growth
of digital data, cloud computing, and online services has led to the
proliferation of data centers worldwide. These power-intensive facilities
require robust critical power and cooling solutions to maintain round-the-clock
operation.
The ongoing digital
transformation across industries heavily relies on IT infrastructure and
telecommunications networks. Enterprises and organizations depend on data
processing, real-time communication, and digital services, making reliable
power and cooling solutions indispensable. Stringent data security and
compliance regulations mandate the use of critical power solutions to safeguard
sensitive information. Data breaches and network downtime can have severe
financial and reputational implications.
The adoption of
lithium-ion batteries in uninterruptible power supply (UPS) systems is
witnessing growth due to their higher energy density, longer lifespan, and
smaller physical footprint. These batteries offer advantages such as reduced
maintenance requirements and faster recharge times. Modular UPS designs provide
scalability and redundancy, empowering organizations to expand their critical
power infrastructure as per their requirements. This emerging trend enhances
flexibility and lowers the total cost of ownership.
Download Free Sample Report
Regional Insights
The North America region is expected to dominate the market during the
forecast period. North America plays a significant role in the global critical
power and cooling market, propelled by a combination of factors including
technological advancements, increased digitalization, adherence to regulatory
standards, and a robust demand for reliable power infrastructure.
North America houses a substantial number of data centers, driven by the
soaring demand for cloud computing, big data, and digital services. The
continuous expansion of data centers necessitates resilient critical power and
cooling solutions to ensure uninterrupted operations. The region has
experienced rapid growth in edge computing, with the deployment of edge data
centers to reduce latency and support real-time applications. These edge
facilities require specialized critical power and cooling infrastructure.
The United States and Canada have well-established emissions standards
for generators and cooling systems. Compliance with emissions regulations such
as Tier 4 in the U.S. fuels the adoption of advanced emission control
technologies. The region also upholds stringent data privacy regulations,
including the Health Insurance Portability and Accountability Act (HIPAA) and
the General Data Protection Regulation (GDPR). Compliance with these
regulations necessitates reliable power infrastructure to safeguard data
integrity and security.
Industries such as finance, healthcare, telecommunications, and
manufacturing heavily rely on uninterrupted power to ensure seamless business
continuity. This drives the demand for resilient critical power systems.
Critical facilities such as hospitals and emergency services depend on backup
power to guarantee patient care and public safety during grid outages or
natural disasters.
Recent Developments
- In February 2019,
nVent unveiled two cutting-edge smart precision liquid cooling platforms
designed to effectively manage high heat loads and critical cooling needs in
data center computing, server, and storage racks. The in-row chiller boasts an
impressive cooling performance of up to 55KW, when connected to a chilled water
inlet temperature of 14°C.
Key Market Players
- ABB Ltd.
- Ac Power Corp.
- Asetek A/S
- Eaton
Corporation
- General
Electric Company
- Riello
Elettronica Group
- Rittal GmbH
& Co. Kg
- SPX Corporation
- Schneider Electric
SE
- Siemens AG
|
By Critical Power Type
|
By Cooling Solutions Type
|
By End-Use
|
By Region
|
|
|
- Chilling Units
- Cooling Towers
- Air Conditioning
- Liquid Cooling Systems
- Others
|
- Commercial
- IT & Telecommunication
- Industrial
- Transportation
- Others
|
- North America
- Europe
- South America
- Middle East & Africa
- Asia Pacific
|
Report Scope:
In this report, the Global Critical
Power and Cooling Market has been segmented into the following categories, in
addition to the industry trends which have also been detailed below:
- Global Critical Power and Cooling
Market, By Critical Power Type:
o UPS
o Generators
o Others
- Global Critical Power and Cooling
Market, By Cooling Solutions Type:
o Chilling Units
o Cooling Towers
o Air Conditioning
o Liquid Cooling Systems
o Others
- Global Critical Power and Cooling Market, By End-Use:
o
Commercial
o IT & Telecommunication
o Industrial
o Transportation
o Others
- Global Critical Power and Cooling Market, By Region:
o
North
America
§ United States
§ Canada
§ Mexico
o Europe
§ France
§ United Kingdom
§ Italy
§ Germany
§ Spain
o
Asia-Pacific
§ China
§ India
§ Japan
§ Australia
§ South Korea
o
South
America
§ Brazil
§ Argentina
§ Colombia
o
Middle
East & Africa
§ South Africa
§ Saudi Arabia
§ UAE
Competitive Landscape
Company Profiles: Detailed
analysis of the major companies present in the Global Critical Power and
Cooling Market.
Available Customizations:
Global Critical Power and Cooling Market report with the given
market data, Tech Sci Research offers customizations according to a company's
specific needs. The following customization options are available for the
report:
Company Information
- Detailed analysis and profiling of
additional market players (up to five).
Global Critical Power and Cooling Market is an upcoming report to be
released soon. If you wish an early delivery of this report or want to confirm
the date of release, please contact us at [email protected]