Data Center Chiller Market Overview
Data Center Chiller Market Size was estimated at 4.57 (USD Billion) in 2022. The Data Center Chiller Market industry is expected to grow from 4.95(USD Billion) in 2023 to 10.1 (USD Billion) by 2032. The Data Center Chiller Market CAGR (growth rate) is expected to be around 8.26% during the forecast period (2024-2032).
Key Data Center Chiller Market Trends Highlighted
Recent advancements in microprocessors, cloud, and virtualization technologies have necessitated more efficient cooling solutions for high-density data centers. The rising adoption of these technologies and the growing demand for energy efficiency in data centers are major drivers for the data center chiller market. Furthermore, the expansion of cloud-based services, which generates substantial heat, has also increased the demand for specialized cooling systems.
Opportunities in the data center chiller market lie in the growing popularity of immersive cooling techniques, which offer higher cooling capacities and energy savings. Additionally, the emergence of IoT and AI technologies offers opportunities for remote monitoring, predictive maintenance, and advanced control of data center cooling systems. The market also presents opportunities for the development of more sustainable and environmentally friendly cooling solutions, such as chillers that use natural refrigerants or hybrid technologies.
Market trends include the increasing adoption of water-cooled chillers, which are more efficient than air-cooled chillers. Another trend is the growing popularity of modular chillers, which offer flexibility and scalability in cooling capacity. The market is also witnessing the emergence of intelligent chillers, which use sensors and AI algorithms to optimize performance and reduce energy consumption. These advancements aim to meet the evolving cooling demands of modern data centers and ensure uninterrupted operations in a rapidly evolving digital landscape.
Figure1: Data Center Chiller Market, 2018 - 2032 (USD Billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Data Center Chiller Market Drivers
Growing Demand for Data Centers
The rapid growth of the digital economy is driving the need for more data centers to store and process vast amounts of data. As a result, the demand for data center chillers is increasing, as they are essential for maintaining optimal operating temperatures within data centers. The growing adoption of cloud computing, big data analytics, and artificial intelligence is further fueling the demand for data centers, and thus, data center chillers. Additionally, the increasing number of connected devices and the proliferation of the Internet of Things (IoT) are contributing to the growth of the data center chiller market.
Technological Advancements
Technological advancements in data center chillers are improving their efficiency and performance. For instance, the adoption of variable-speed drives (VSDs) and magnetic bearing compressors is helping to reduce energy consumption and operating costs. Moreover, the integration of advanced control systems and remote monitoring capabilities is enhancing the reliability and uptime of data center chillers. These technological advancements are making data center chillers more attractive to data center operators, contributing to the growth of the Data Center Chiller Market.
Government Regulations and Incentives
Governments worldwide are implementing regulations and providing incentives to promote energy efficiency in data centers. These regulations and incentives are encouraging data center operators to invest in energy-efficient technologies, including data center chillers. For example, the U.S. Environmental Protection Agency (EPA) has established the ENERGY STAR program, which certifies data center chillers that meet certain energy efficiency criteria.Such government initiatives are driving the adoption of data center chillers, thereby contributing to the growth of the Data Center Chiller Market.
Data Center Chiller Market Segment Insights
Data Center Chiller Market Cooling Capacity Insights
The cooling capacity segment plays a crucial role in the Data Center Chiller Market, influencing market growth and industry dynamics. The segment is categorized into four sub-segments: Below 500 kW, 500-1,000 kW, 1,000-2,000 kW, and Above 2,000 kW. Each sub-segment caters to specific cooling requirements of data centers, ranging from small-scale facilities to large-scale hyperscale data centers. In 2023, the 'Below 500 kW' sub-segment held a significant market share, driven by the growing adoption of edge data centers and small-scale IT infrastructure.The increasing demand for efficient cooling solutions in these facilities has fueled the growth of this sub-segment. The '500-1,000 kW' sub-segment is also expected to witness steady growth, supported by the rising number of mid-sized data centers and the need for reliable cooling systems. The '1,000-2,000 kW' sub-segment is projected to experience significant growth over the forecast period, owing to the increasing adoption of high-performance computing (HPC) and artificial intelligence (AI) applications, which generate substantial heat and require robust cooling solutions.The 'Above 2,000 kW' sub-segment is expected to witness the highest growth rate, driven by the rapid expansion of hyperscale data centers and the need for highly efficient and scalable cooling systems. Overall, the cooling capacity segment is a key growth driver for the Data Center Chiller Market, with different sub-segments catering to diverse cooling needs. The market is anticipated to witness continued growth in the coming years, fueled by the rising demand for data center infrastructure and the need for efficient and reliable cooling solutions.
Figure2: Data Center Chiller Market, By Cooling Capacity, 2023 & 2032 (USD billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Data Center Chiller Market Type Insights
The Data Center Chiller Market segmentation by Type, covering Air-Cooled Chillers, Water-Cooled Chillers, and Adiabatic Chillers, offers valuable insights into the market dynamics. Air-Cooled Chillers held a significant market share in 2023 and are projected to maintain their dominance throughout the forecast period. They are widely used in regions with limited water resources or high water costs. Water-Cooled Chillers, on the other hand, are expected to witness steady growth due to their high efficiency and ability to achieve lower operating temperatures.Adiabatic Chillers, which utilize evaporative cooling to improve efficiency, are gaining traction in data centers seeking sustainable cooling solutions. The Data Center Chiller Market segmentation provides a comprehensive understanding of the market landscape, enabling stakeholders to make informed decisions and capitalize on growth opportunities.
Data Center Chiller Market Deployment Insights
The Data Center Chiller Market segmentation by deployment type comprises new installations and replacements. Among these, the new installations segment held a larger revenue share in 2023 and is projected to maintain its dominance throughout the forecast period. The increasing demand for data centers due to the proliferation of cloud computing, big data, and the Internet of Things (IoT) is driving the growth of the new installations segment. Additionally, the growing adoption of energy-efficient chillers to reduce operational costs is further contributing to the segment's growth.The replacements segment is expected to witness significant growth during the forecast period. The aging infrastructure of existing data centers and the need for upgrades to improve efficiency and reliability are key factors driving the growth of this segment. Furthermore, government regulations mandating the use of energy-efficient technologies in data centers are also contributing to the growth of the replacements segment.
Data Center Chiller Market End User Insights
The End User segment of the Data Center Chiller Market is categorized into Large Data Centers, Small to Medium Data Centers, Cloud and Colocation Providers, and Other (e.g., manufacturing, healthcare). Among these segments, Large Data Centers held the largest market share in 2023, and is projected to maintain its dominance throughout the forecast period. The rising demand for high-performance computing (HPC) and the increasing adoption of cloud and edge computing services are key factors driving the growth of this segment. Small to Medium Data Centers are expected to witness significant growth during the forecast period.The increasing number of small and medium-sized businesses adopting digital technologies is fueling the demand for efficient and reliable cooling solutions for their data centers. Cloud and Colocation Providers are also expected to contribute to the market growth. The growing popularity of cloud computing and the increasing demand for data storage and processing services are driving the need for reliable and energy-efficient cooling systems in cloud data centers and colocation facilities. Other end users, such as manufacturing and healthcare industries, are also expected to drive market growth.The increasing use of data analytics and the implementation of smart manufacturing and healthcare systems are creating a demand for efficient cooling solutions in these industries.
Data Center Chiller Market Regional Insights
Regionally, North America held the largest revenue share in 2023, accounting for over 38%. The region's dominance is attributed to the presence of major data center hubs and the increasing adoption of cloud computing and AI technologies. Europe follows North America, driven by the growing demand for data centers due to the region's stringent data protection regulations and the rising adoption of digital technologies. APAC is projected to witness the fastest growth over the forecast period, owing to the rapid expansion of the IT and telecom sectors, particularly in countries like China and India.South America and MEA are expected to experience steady growth, supported by government initiatives to promote digital infrastructure and the increasing demand for data center services.
Figure3: Data Center Chiller Market, By Regional, 2023 & 2032 (USD billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Data Center Chiller Market Key Players And Competitive Insights
Major players in Data Center Chiller Market are constantly striving to gain a competitive edge through strategic partnerships, acquisitions, and technological advancements. Leading Data Center Chiller Market players are focusing on expanding their footprint and increasing their market share by introducing innovative products and solutions. To stay ahead in the competitive landscape, companies are investing heavily in research and development to offer more efficient and sustainable data center cooling solutions. The Data Center Chiller Market development is driven by the increasing demand for data center capacity, which in turn is fueled by the exponential growth of data generation and consumption.One of the leading companies in the Data Center Chiller Market is Emerson. Emerson offers a comprehensive portfolio of data center cooling solutions, including air-cooled chillers, water-cooled chillers, and evaporative coolers. The company has a strong presence and a wide customer base, including some of the largest data center operators in the world. Emerson is known for its innovative products and its commitment to sustainability.A competitor company in the Data Center Chiller Market is Rittal. Rittal offers a range of data center cooling solutions, including liquid cooling systems, air-cooled chillers, and modular cooling systems. The company has a strong presence in Europe and Asia, and it is rapidly expanding its presence in North America. Rittal is known for its high-quality products and its customer-centric approach.
Key Companies in the Data Center Chiller Market Include
Data Center Chiller Industry Developments
The data center chiller market is projected to grow from USD 4.95 billion in 2024 to USD 10.1 billion by 2032, exhibiting a CAGR of 8.26% during the forecast period. The increasing demand for data centers and the need for efficient cooling solutions are driving the market growth. Additionally, the growing adoption of cloud computing and artificial intelligence (AI) is fueling the demand for data centers, which in turn is driving the demand for chillers.Recent news developments in the market include the launch of new products and technologies. For instance, in 2023, Stulz launched a new line of chillers designed for high-density data centers. These chillers feature a compact design and high energy efficiency, making them ideal for space-constrained and power-conscious applications.Overall, the data center chiller market is expected to witness significant growth in the coming years, driven by the increasing demand for data centers and the need for efficient cooling solutions.
Data Center Chiller Market Segmentation Insights
Data Center Chiller Market Cooling Capacity Outlook
- Below 500 kW
- 500-1,000 kW
- 1,000-2,000 kW
- Above 2,000 kW
Data Center Chiller Market Type Outlook
- Air-Cooled Chillers
- Water-Cooled Chillers
- Adiabatic Chillers
Data Center Chiller Market Deployment Outlook
- New Installations
- Replacements
Data Center Chiller Market End User Outlook
- Large Data Centers
- Small to Medium Data Centers
- Cloud and Colocation Providers
- Other (e.g., manufacturing, healthcare)
Data Center Chiller Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
4.57(USD Billion) |
| Market Size 2023 |
4.95(USD Billion) |
| Market Size 2032 |
10.1(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
8.26% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Danfoss, Mitsubishi Electric, Munters, GEA Refrigeration Technologies, Carrier, Alfa Laval, Trane, Baltimore Aircoil Company, Johnson Controls, SPX Cooling Technologies, Emerson Electric, Stulz GmbH, Fujitsu General, Evapco, Daikin Industries |
| Segments Covered |
Cooling Capacity, Type, Deployment, End User, Regional |
| Key Market Opportunities |
Green data center implementation Rising demand for cooling efficiency Growing adoption of liquid cooling Expansion of hyperscale data centers Increasing need for reliable and efficient cooling |
| Key Market Dynamics |
Rapid technological advancements Expanding data centers Growing demand for energy efficiency Stringent government regulations Increasing adoption of cloud computing |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Data Center Chiller Market size is estimated to reach $10.1 billion by 2032, growing at a CAGR of 8.26% from 2023 to 2032.
North America is expected to dominate the Data Center Chiller Market, with a market share of 35.5% in 2023.
The growth of the Data Center Chiller Market is driven by the increasing demand for data centers, the need for energy-efficient cooling solutions, and the growing adoption of cloud computing.
Data Center Chillers are primarily used for cooling data centers, which house servers and other IT equipment.
Major players in the Data Center Chiller Market include Johnson Controls, Carrier, Trane, and Daikin.
The Data Center Chiller Market is expected to grow at a CAGR of 8.26% from 2023 to 2032.
The Data Center Chiller Market size is estimated to be $4.95 billion in 2023.
The Data Center Chiller Market size is expected to reach $10.1 billion by 2032.
Asia Pacific is expected to grow at the highest CAGR of 9.1% in the Data Center Chiller Market.
The Data Center Chiller Market faces challenges such as the high cost of installation and maintenance, and the need for skilled technicians.
