Critical power cooling Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The critical power and cooling market is expected to grow at a fast pace. It is expected to grow from $26,200,000,000 in 2024 to $55,940,000,000 in 2032. This growth is expected to take place at a robust CAGR of 10.25% during the forecast period. This is mainly because of the growing demand for efficient cooling solutions and uninterrupted power supply in data centers, telecommunications, and industrial applications. As more and more organizations focus on improving their operational efficiency and reliability, they will be in need of advanced power management and cooling solutions. In addition to this, the rapid digital transformation in various industries, the growing popularity of cloud computing, and the growing number of IoT devices will also lead to a rise in the critical power and cooling market. These trends will increase the need for high-density data centers, which will, in turn, lead to an increase in the demand for critical power and cooling systems. The key players in the market, such as Schneider Electric, Eaton, and Vertiv, are adopting various strategies such as strategic alliances, expansions, and product launches, to increase their market share. These players are launching products such as energy-efficient cooling systems and integrated power management systems, which are designed to meet the demands of the evolving market.

Regional Market Size

Regional Deep Dive

IT is a field where a great deal of progress is being made. In the field of critical power and cooling, the demand for reliable and efficient cooling is growing in the data centers, in the industry, and in the commercial buildings. The rise of digital transformation, the growth of cloud computing and the Internet of Things is increasing the need for reliable and efficient power and cooling. The different regions have their own characteristics and their own dynamics and growth potential.

Europe

• Europe is focusing on sustainability, with the European Union's Green Deal promoting energy-efficient technologies, which is driving innovation in the critical power and cooling sector, particularly in renewable energy integration.
• Key players like Schneider Electric and Siemens are investing in smart grid technologies and energy management systems, enhancing the efficiency of power and cooling solutions in the region.

Asia Pacific

• The accelerated industrialization and urbanization of Asia and the Pacific has led to a rapid increase in the number of data centers, especially in China and India, and to an increase in the demand for cooling and power systems.
• Innovations in cooling technologies, such as the adoption of AI and machine learning for predictive maintenance, are being implemented by companies like Huawei and Alibaba to optimize energy usage and improve system reliability.

Latin America

• Latin America is witnessing a gradual shift towards digitalization, with increasing investments in IT infrastructure, particularly in Brazil and Mexico, which is driving the need for critical power and cooling solutions.
• Local companies are beginning to adopt innovative cooling technologies, such as evaporative cooling systems, to address the region's unique climate challenges and improve energy efficiency.

North America

• The North American market is witnessing a surge in investment in data center infrastructure, with major players like Amazon Web Services and Microsoft expanding their operations, leading to increased demand for critical power and cooling solutions.
• Regulatory changes, such as the push for energy efficiency and sustainability, are prompting companies to adopt advanced cooling technologies, including liquid cooling and free cooling systems, to reduce energy consumption and carbon footprints.

Middle East And Africa

• In the Middle East and Africa, the growing investment in smart city projects and infrastructure development is driving the demand for reliable power and cooling solutions, with countries like the UAE leading the charge.
• Government initiatives, such as Saudi Arabia's Vision 2030, are promoting the adoption of advanced cooling technologies to support the burgeoning data center market and enhance energy efficiency.

Did You Know?

“Did you know that data centers consume about 2% of the world's total electricity, and this figure is expected to rise as digital services continue to expand?” — International Energy Agency (IEA)

Segmental Market Size

The business field of critical power and cooling is a key part of the system for supplying energy to data centers and critical facilities. It is currently growing due to the rising demand for cooling and uninterruptible power supply solutions in the digital age and cloud computing. There are many reasons for this, such as the growing need for energy efficiency and the increasing importance of data centers for remote working and online services. In the meantime, the critical power and cooling solutions market has reached a maturity phase, with Schneider Electric and Eaton being the frontrunners in the area of innovation. North America and Europe are also in the lead when it comes to implementing advanced cooling and power systems. In addition to data centers, the main areas of application are telecommunications and medical facilities, where reliable power and cooling are required. In addition, the trend towards greater energy efficiency, which is driven by the implementation of government regulations and the resulting need to reduce carbon emissions, is accelerating growth. Artificial intelligence-based energy management and the trend towards more modular cooling solutions are shaping the development of the market.

Future Outlook

The Critical Power and Cooling market will grow at a robust CAGR of 10.25% between 2024 and 2032, resulting in an increase from $29.66 billion to $55.94 billion. This growth will be driven by a growing demand for uninterruptible power supplies and efficient cooling solutions in several sectors, including data centers, hospitals, and telecommunications. Digitalization will increase the importance of critical facilities and the need for advanced power and cooling systems to ensure operational resilience and reliability. Artificial intelligence and the Internet of Things are expected to boost the efficiency and performance of power management systems. The need to reduce the carbon footprint will increase the demand for energy-efficient cooling solutions, such as liquid cooling and the use of containerized data centers. Future trends, such as the shift towards renewable energy sources and the rise of edge computing, will further shape the market and increase investment in critical power and cooling solutions. By 2032, it is expected that over 60% of companies will place sustainability at the top of their critical power and cooling strategies, indicating the market’s transition towards more sustainable practices.