Critical Power and Cooling Market Information By Type (Uninterrupted Power Supply, Generators, Air Conditioning, and Chilling Units), By End User (Industrial, Commercial, IT & Telecommunication, and Transportation), and By Region (North America, Europe, Asia-Pacific, and the Rest of the World)—Forecast till 2030

The critical power and cooling market share to reach approximately USD 53,101.8 Million, registering a CAGR of 11.8% from 2022 to 2030.

Global Critical Power and Cooling Market Research (MRFR Insights)

Increasing electricity demand and rising residential, commercial, and industrial applications. Moreover, the power controlling capacity of current-sense amplifiers and the high-precision, low offset, and high flexibility offered by current-sense amplifiers are the major factors supporting the current-sense amplifiers market's growth.

COVID-19 Impact Analysis

The COVID-19 pandemic disrupted the market demand and supply chain in 2020. China is one of the major consumers and producers of electronic products. Still, it also caters to a huge range of countries by exporting several input supplies that are essentially utilized to produce finished goods. The restriction of production in China has forced other air conditioner manufacturers based in the US and Europe to temporarily hold the production of finished goods. This led to an increase in the supply and demand gap in the market.

Critical Power & Cooling Market Dynamics

The critical power is bifurcated into the UPS, generator, and others. Both the generator and UPS are prepared to be a power backup in case of a power outage, but there is a key difference between them. Generators are a temporary power source to keep machines operational, whereas UPS keeps equipment running without interruption during a power outage. The huge growth in digitization, cloud computing, and telecommunication is paving the way for an increase in demand for data centers which require a chill atmosphere for their efficient operation. Also, the industrial and commercial power and cooling market are experiencing ongoing growth. Developing a critical power supply and cooling system requires a high initial investment, considered a major restraint for growth. Diesel generators are quietly utilized for providing critical power, which emits greenhouse gases that may cause severe health and environmental issues that are anticipated to hamper the market growth.

Market Drivers

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  An increasing number of data centers augmenting the market growth

  
  

The increasing number of data centers for cloud computing and digitalization will augment the market growth during the forecast period. The market would also benefit from the enhanced need for power in various end-use sectors, such as hospitals, facilities, financial services and institutions, banking, and power plants. The critical power supply and cooling system industry is predicted to enhance ly due to the rising demand for better cooling efficiency in data centers, a need to decrease power supply anomalies, and regulations and initiatives by institutes and associations. Huge investment prices and environmental and health risks hamper the critical power supply and cooling sector.

Market Restraints:

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  High investment costs

  
  

High investment costs and environmental and health issues are associated with installing critical power supply and cooling solutions. Diesel is used as a fuel in generators that emits greenhouse gases that may cause severe health issues; however, most countries such as China, India, and the US are increasingly focusing on reducing carbon emission levels by encouraging the use of alternative sources such as gas generators and hybrid generators. Additionally, major companies are investing heavily in R&D activities to develop innovative solutions to improve such systems' efficiency and performance, thereby reducing emission levels. This is expected to reduce their impact on the market for critical power supply and cooling solutions during the forecast period.

Market Opportunities:

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  The growing popularity of digitalization and cloud computing

  
  

The growing popularity of digitalization and cloud computing and the rising need to improve cooling efficiency in data centers is expected to propel the growth of the critical power and cooling solutions market during the forecast period. The increasing adoption of digitalization and cloud computing has increased the data center infrastructure during the forecast period. Such a trend is expected to continue during the forecast period and would further bolster the demand for critical power supply and cooling solutions during the forecast period. Furthermore, the increasing need for power generation and data storage in Asia-Pacific is expected to further drive the market for critical power supply and cooling solutions during the forecast period on account of the high industrial growth rate and increasing awareness of the need for backup power and cooling solutions to ensure protection against hardware damage, data loss, and downtime.

Critical Power and Cooling Market Segmentation

Type Insights

The critical power and cooling market segmentation, based on type, is uninterrupted power supply, generators, air conditioning, and chilling units. The critical power and cooling market growth were prominently high under the uninterrupted power supply category in 2021 due to the ongoing evolution in the industrial and commercial sector that requires a reliable and uninterrupted power supply. However, chilling units was the fastest-growing category in 2021 and will continue over the forecast period due to its cost-effectiveness.

End User Insights

The critical power and cooling market segmentation, based on end user, is industrial, commercial, IT & telecommunication, and transportation. In 2021, the industrial category accounted for the largest share of the market due to the industrial sector's increased adoption of critical power supply and cooling. However, the transportation category is to register the highest growth rate during the forecast period due to the growing prevalence of critical power supply and cooling for air-conditioners in the transport industry.

Global Critical Power and Cooling Market Share, by Region, 2021 (%)

Critical Power and Cooling Solutions Market Overview, by Region

By region, the critical power and cooling market have been divided into North America, Europe, Asia-Pacific, and the Rest of the World. North America accounted for the most extensive market share. Asia-Pacific will exhibit the highest CAGR during the forecast period.

North America

North America dominated the market share in 2021 due to the increasing demand for data centers and other commercial areas, the rising need for data processing power, growing need for information storage in the countries such as the US, Canada, and Mexico. The existence of top tech giants, like Amazon, Microsoft, Apple, and Google, has huge power outages and data centers. Many IT companies operating in Silicon Valley that are regarded as centers for social media, innovation, and technology are adding to the region's critical power and cooling industry growth.

Asia-Pacific

Asia-Pacific accounted for the second-largest market share in the market in 2021 Due to the high industrial growth rate and growing awareness of the need for backup power and cooling solutions to ensure protection against data loss, hardware damage, and downtime in this region during the forecast period. Moreover, the enhanced demand for electricity in various end-use categories, such as facilities, hospitals, banking, power plants, financial services, and institutions, is anticipated to drive demand for critical power supply and cooling solutions over the forecast period.

Critical Power and Cooling Market Competitive Landscape

The market includes tier-1, tier-2, and local players. The tier-1 and tier-2 players have reach with diverse product portfolios. Companies such as Schneider, ABB, General Electric, Eaton Corporation, Delta Electronic, Inc., and Critical Power dominate the market due to product differentiation, financial stability, strategic developments, and diversified regional presence. The players are concentrating on supporting research and development. Furthermore, they embrace strategic growth initiatives, such as development, joint ventures, product introduction, and partnerships, to strengthen their market position and capture an extensive customer base. For instance, in November 2022, French industrial firm Legrand acquired UK uninterrupted power supply (UPS) provider Power Control. the acquisition will allow Power Control and Legrand to help customers ensure that they have the right UPS and other mission-critical power solutions in place to meet potential supply volatility over the coming months.

Prominent players in the critical power and cooling services market research include Xiamen Kehua Hengsheng Co., Ltd., Socomec, Falcon Electric, Inc., Daikin Industries, Ltd., Stulz GmbH, Asetek A/S, Siemens, Johnson Controls Inc., SPX Corporation, and Nortek Air Solutions, LLC. among others.

Scope of the Critical Power and Cooling Market Report

Type Outlook

• Uninterrupted Power Supply


• Generators


• Air Conditioning


• Chilling Units

End User Outlook

• Industrial


• Commercial


• IT & Telecommunication


• Transportation

Region Outlook

• North America




• US


• Canada


• Mexico




• Europe




• UK


• Germany


• France


• Italy


• Spain


• Rest of Europe




• Asia-Pacific




• China


• India


• Japan


• Australia and New Zealand


• Rest of Asia-Pacific




• Rest of the World




• South America


• Middle East


• Africa

Objectives of the Study

The objectives of the study are summarized in 5 stages. They are as mentioned below:

Critical Power and Cooling Market Forecast & Size:

To identify and estimate the market size for the critical power and cooling market report segmented by type and end-user by value (in US dollars). Also, to understand the consumption/ demand created by consumers in the critical power and cooling market forecast between 2022 and 2030

Market Landscape and Trends:

To identify and infer the drivers, opportunities, restraints, and challenges in the critical power and cooling market growth (Profitability, Benchmarking, Volume, Value, Macro-Economic Factors, Y-o-Y Growth Analysis)

Market Influencing Factors:

To find out the factors which are impacting the critical power and cooling market size among consumers (Gross Margin, Sales Footprint, Strategy, Channels, Economic Outlook, Growth Projections)

Impact of COVID-19:

To identify and understand the several factors involved in the market affected by the pandemic

Company Profiling:

To provide a detailed insight into the major companies operating in the market. The profiling will include the financial health of the company in the past 2-3 years with segmental and regional revenue breakup, product offering, SWOT analysis, recent developments, and key strategies.

Intended Audience

• critical power supply and cooling producers


• Raw material suppliers


• Retailers, wholesalers, and distributors


• Governments, associations, and industrial bodies