Global Computer Room Air Conditioning (CRAC) Units Market: Global Size, Trends, Competitive, and Historical & Forecast Analysis, 2024-2030: The market is anticipated to expand due to the rising adoption of wearable devices, rise in demand for fitness tracking devices, and contactless payments.
Global Computer Room Air Conditioning (CRAC) Units Marketis valued at USD 4,742.0 Million in 2024 and it is expected to reach US$ 9,135.3 Million by 2030 with a CAGR of 11.5% over the forecast period.
A Computer Room Air Conditioner (CRAC) unit is a type of air conditioning system specifically designed to provide precise temperature and humidity control for data centers and other environments housing sensitive electronic equipment. CRAC units are designed to maintain consistent and precise temperature and humidity levels, which are critical for the performance and longevity of IT equipment.
Computer Room Air Conditioner (CRAC) units are essential for various applications that require precise climate control to ensure the reliability and performance of sensitive electronic equipment. CRAC units are critical in data centers to maintain optimal temperature and humidity levels for servers, storage systems, and networking equipment, ensuring continuous operation and preventing overheating. Smaller-scale server rooms also rely on CRAC units to provide consistent cooling and protect the equipment from thermal damage, which can lead to data loss or hardware failure. Computer Room Air Conditioner units help maintain the necessary environmental conditions to ensure uninterrupted communication services in telecommunication facilities. Research and development labs, especially those dealing with electronics, bioinformatics, and computational sciences, use CRAC units to keep the environment stable for sensitive experiments and high-performance computing systems. As well as in critical care units and areas with medical imaging equipment like MRI and CT scanners use CRAC units to maintain the optimal operating environment for these sensitive machines.
The general structure of the global market for Computer Room Air Conditioning (CRAC) units comprises of a number of stages ranging from procurement of materials to delivery of the finished product to consumers. First, the supply chain comprises the acquisition of the basic ingredients that include metals, plastics, and electronic components that are acquired from different parts of the world. These raw materials are then transported to manufacturers who focus on creating the vital parts of CRAC units such as the compressors, fans, heat exchangers, as well as the control system. They are put together in manufacturing facilities, which are situated in locations that are technologically developed and have adequate supply of skilled workforce worldwide they are placed in North America Europe and Asia. Following the assembly process, all the units go through various tests to ensure that they meet set standards to go to the distribution centers. Further, they are supplied to the regional wholesalers, retailers, and directly to the large-scale consumers those include data centers, telecommunication facilities, and other IT infrastructure places. In this respect, proper logistics and supply chain management, as well as proper cooperation with the suppliers and compliance with appropriate industry rules and regulations, is very important to guarantee the proper functioning of the supply chain and introduction to the market of the CRAC units.
The way revenue is generated in the CRAC units market globally mainly involves selling to data centers IT facilities and large enterprises along, with service contracts and maintenance agreements. The key sources of revenue come from these sales at price points based on factors like capacity, energy efficiency, and technological features. Manufacturers also earn revenue through long-term service contracts that cover installation, regular maintenance, and emergency repairs. These agreements ensure income flow. Build customer loyalty by ensuring the CRAC units perform optimally for a long time. Additionally, manufacturers and service providers offer services like monitoring, predictive maintenance, and system upgrades to improve the efficiency of CRAC units while creating more revenue opportunities. Licensing patented technologies and forming partnerships, with IT infrastructure providers further contribute to generating revenue by expanding market reach and integrating cooling solutions into data center management systems. The mix of sales, service contracts, and additional services forms a diverse revenue model that supports continuous growth in the CRAC units market.
The global CRAC units market value chain consists of certain important steps that contribute significantly to the final product. The first stage refers to the research and development (R&D) phase where massive sums of money are spent on the innovation of new technologies that are aimed at ameliorating energy efficiency, cooling performance, and environmental sustainability. After the aforementioned stage comes the acquisition of high-grade raw materials and components, required for manufacturing robust and reliable CRAC units. The value is increased during the production process through the strictness of the manufacturing processes which entails the use of high-precision engineering, advanced assembling techniques, and the adherence to strict quality control methods that help in the assurance that every unit will meet the preferred performance standard. The logistics and distribution phase, which is after the manufacturing stage, has become a value-adding process by the effective management of transports and deliveries of CRAC units to different global markets in order to achieve the schedule and decrease lead times. The promotion of the products and the sales activities of the company attract the customers by explaining them the advantages of CRAC systems, thus, increasing the demand. Customer satisfaction and functionality of the units will be guaranteed by customer support services, including installation, supervision, and technical support if necessary. This value chain is very coherent and includes a perfect balance among the three stages, i.e. efficiency, reliability, and desirability of CRAC units, which ensures the market's development and stability.
The COVID-19 pandemic has had diverse effects on CRAC unit market. The limited investment costs and a lack of employees hampered CRAC unit sales and production. Many organizations faced budget cuts and financial uncertainty during the pandemic, leading to postponed or scaled-down investments in new data center cooling infrastructure. Companies prioritized essential expenditures, delaying non-critical upgrades and expansions. Lockdowns and health concerns led to workforce shortages, slowing down manufacturing processes and on-site installations of CRAC units which negatively impacted the market.
The computer room air conditioning units market globally is inhabited by a few major players who have been credited with their technological ability and wide market spread in the industry. In this category are Schneider Electric, Emerson Electric Co., and Mitsubishi Electric Corporation known to come up with advanced cooling systems and an expansive portfolio of products. Other key players include Stulz GmbH, Hitachi Ltd., and Daikin Industries, Ltd. manufacturers of energy-efficient and reliable CRAC units. The other major contributors in this space include Vertiv Group Corp., Rittal GmbH & Co. KG, and Johnson Controls International plc, well-known for advanced technologies with stronger customer support services. Other key players include Fujitsu Ltd., Huawei Technologies Co., Ltd., and Airedale International Air Conditioning Ltd., each providing highly innovative and customized solutions. Trane Technologies plc, Data Aire, Inc., and ClimateWorx International Inc. are some of the other major contributors that deliver quite efficient and customized solutions. The other major participants are Parker Hannifin Corporation, Blue Box Group S.r.l., and Coolcentric each of these companies commands a considerable presence across markets. The other key players are EATON Corporation plc, Green Revolution Cooling, Inc., and Nortek Air Solutions, LLC, apart from Motivair Corporation, Swegon AB, and Koldwave. Couching it finally in, Iceotope Technologies Ltd., Delta Power Solutions, and AdaptivCOOL by Degree Controls, Inc. are some of the major players shaping innovation and growth for the global market in CRAC units.
CRAC (Computer Room Air Conditioning) units are essential for maintaining optimal climate control in data centers, typically designed to always handle maximum load to prevent overheating, which results in operational inefficiencies such as over selection and over commissioning, and an inability to convert excess capacity into usable energy. These systems require a specific, predefined chilled water temperature, preventing the use of energy-saving chilled water reset strategies and often suffering from low delta T syndrome, where the temperature difference between supply and return water decreases, increasing operational costs and reducing efficiency. For example, the Belimo Energy Valve™ addresses these inefficiencies through power control and delta T management, modulating water flow based on real-time requirements to ensure optimal performance with varying water temperatures. By setting the design power required, the valve adjusts the flow rate according to the delta T, ensuring the CRAC unit can meet its cooling demands even with temperature fluctuations.
For instance, a CRAC unit designed to deliver 29.4 kW (100,000 BTU) with a design flow rate of 1 l/s (16 GPM), typically operating with a supply water temperature of 7 °C (45 °F) and a return temperature of 14 °C (57 °F), can still meet cooling demands under low system load by increasing the flow rate to 1.4 l/s (22 GPM) when the supply temperature rises to 10 °C (50 °F). This integration represents a significant advancement in HVAC control technology, providing a flexible, energy-efficient solution that enhances system reliability, maintains optimal delta T, and promotes substantial energy savings, thus improving the overall efficiency and cost-effectiveness of data center cooling systems.
Furthermore, some companies are focusing on launching new products to improve the efficiency and performance of CRAC (Computer Room Air Conditioning) units. These innovative products aim to address the operational inefficiencies traditionally associated with CRAC systems, such as over selection, fixed water temperature requirements, and low delta T syndrome. For instance, on 18th March 2023, Delta T Systems, a leading provider of innovative process cooling solutions, announced the launch of its latest product, the Free Cooling System. This high-performance fluid or dry cooler was designed to deliver energy-efficient cooling for a wide range of industrial and commercial applications. The Free Cooling System utilized ambient air to cool process fluid, offering an environmentally friendly and cost-effective alternative to traditional refrigeration chillers. With advanced technology including a microprocessor controller for precise temperature control and an integrated free cooling module maximizing ambient air usage, this system was suitable for various industries such as food and beverage, pharmaceuticals, and data centers. Its modular design enabled easy installation, maintenance, and customization to meet specific application needs.
In conclusion, CRAC units in data centers face operational inefficiencies due to their fixed load handling and temperature requirements, leading to high costs and reduced efficiency. Innovations like the Belimo Energy Valve™ address these issues by dynamically adjusting water flow based on real-time conditions, enhancing system reliability and energy savings. Additionally, companies like Delta T Systems are introducing new products like the Free Cooling System to improve CRAC efficiency and performance, offering energy-efficient alternatives for industrial and commercial applications.
Thus, the efforts towards enhancement of efficiency and reliability in data centers push the market growth.
The major players in the industry are focusing on collaboration and partnership with the local player to increase the market presence and market share. For instance, on 28th February 2024, SK Telecom, Iceotope Technologies, and SK Enmove recently signed an MOU to collaborate on developing a liquid cooling solution to enhance the energy efficiency of AI data centers. Given that cooling systems consume the largest portion of energy in data centers, reducing their power consumption is crucial for achieving energy efficiency. Under this partnership, SKT, Iceotope, and SK Enmove will implement Precision Liquid Cooling (PLC) using SK Enmove’s thermal fluid at SKT’s AI Data Center Testbed. This deployment aims to showcase PLC's effectiveness in cooling efficiency and power savings.
Additionally, SKT will work on developing an integrated Coolant Distribution Unit (CDU) to support various liquid cooling systems with technical assistance from Iceotope. Looking ahead, SKT plans to introduce an AI-based autonomous cooling system, which will analyze temperature and power load in the AI data center to automatically adjust the supply temperature and flow rate of thermal fluids in the CDUs. This initiative is poised to significantly enhance the operational efficiency of AI data centers.
Furthermore, some companies are focusing on various features that can help them to increase their market presence and revenue. For instance, on 16th February 2022, Kaltra announced the launch of its latest innovation, the Lambda DX/DXU II precision air conditioners, with updated microchannel evaporators. This new offering promised enhanced efficiency driven by segmented microchannel evaporator coils and cutting-edge radial fan technology. With two independent refrigeration circuits, the Lambda DX/DXU II ensured high reliability for mission-critical applications, boasting 35% more cooling capacity than its predecessor. Particularly, this system operated as a 2-in-1 air conditioner, allowing for on-the-fly maintenance without system shutdown. Targeted at thermal-sensitive environments such as clean rooms, laboratories, and data centers, the Lambda DX/DXU II offered versatility and efficiency. Furthermore, it was compatible with various condenser options, ensuring optimal performance across diverse operating conditions.
In conclusion, industry leaders are prioritizing collaboration for market expansion and efficiency. SK Telecom, Iceotope Technologies, and SK Enmove are teaming up to develop a liquid cooling solution for AI data centers, aiming to enhance energy efficiency. Meanwhile, Kaltra's Lambda DX/DXU II precision air conditioners offer enhanced efficiency and reliability for thermal-sensitive environments, demonstrating the industry's focus on innovation.
The burgeoning demand for power in data centers presents a significant challenge for Computer Room Air Conditioning (CRAC) unit manufacturing companies. As data centers expand to meet the growing needs of cloud computing, artificial intelligence, and big data, the energy consumption required for cooling becomes increasingly critical. A study by the U.S. Department of Energy highlights that data centers consume about 1.8% of the nation's total electricity, which equates to approximately 70 billion kilowatt-hours annually. This staggering figure underscores the immense power required to maintain optimal operating temperatures and ensure the reliability of these facilities.
Furthermore, CRAC units are pivotal in this equation, tasked with the vital role of dissipating the heat generated by densely packed servers and networking equipment. However, traditional cooling methods are often energy-intensive, adding substantial costs and environmental impact. The push for energy efficiency in data centers is not just a financial imperative but also a regulatory and environmental one. According to a 2023 report by the International Energy Agency (IEA), improving the energy efficiency of data centers, including their cooling systems, could reduce global electricity demand by up to 40% by 2030.
In conclusion, the escalating power demands of data centers pose a significant challenge for CRAC unit manufacturers. With data centers consuming a substantial portion of national electricity and traditional cooling methods proving costly and environmentally taxing, the need for energy-efficient solutions is critical. The push for improved energy efficiency, as highlighted by the International Energy Agency, offers a path to potentially reduce global electricity demand significantly. This presents an imperative for CRAC unit manufacturers to innovate and develop sustainable, efficient cooling technologies to support the growing and evolving data center industry.
Most of the existing data centers have old infrastructure that provides retrofitting and upgrading opportunities. Enterprises increasingly want to replace legacy cooling systems with new, efficient CRAC units as a means of decreasing operational costs and enhancing performance. It is in these regards that firms offering all-inclusive retrofit solutions, inclusive of assessment, installation, and maintenance services, stand to benefit from this growing market.
A significant opportunity, again, is created by the advancement of technologies in CRAC with inventions around precision cooling, modular designs, and energy efficiency. Businesses focused on the development of cutting-edge, smart, innovative CRAC equipment for such types of modern smart or intelligent buildings—with building management systems and IoT digital platforms—shall be in a position to fuel that demand. Moreover, using green refrigerants and technologies communicates directly with current global sustainability goals, strongly appealing to current environmentally sensitive consumers and businesses.
The global computer room air conditioning (CRAC) units market is witnessing some significant trends, further shaping its growth and evolution. Expansions in data centers are on the rise due to surging demand from cloud computing, big data, and IoT applications, boosting demand for efficient cooling solutions at an increasing rate. From the perspective of reducing operational expenditure and meeting targets set for sustainability by any business, technological advancements such as energy-efficient and environment-friendly cooling systems are actually becoming very important. Smart technologies and IoT enable better performance monitoring and predictive maintenance in CRAC units for improved operational efficiency. Another factor is that edge computing demands localized and flexible cooling solutions tailored for the decentralized, small data center. Moreover, rapid digitalization and the high subsequent spending on IT infrastructure in new markets like Asia-Pacific and Latin America are giving manufacturers of CRAC units extensive scope. This can be further elaborated as increasing the pace of retrofitting and upgradation of already existing data centers with modern and energy-efficient CRAC units; this has been prompted by the need to enhance energy efficiency while remaining compliant with environmental regulations. Taken together, these trends indicate that the market for CRAC units is dynamic, full of change, and offers great opportunities in innovation and growth.
The global computer room air conditioning (CRAC) units market is highly competitive and driven by a few major players, such as Schneider Electric, Emerson Electric Co., and Mitsubishi Electric Corporation, through their wide product portfolios and continuable technology development. Such big companies never stop investing in R&D to make products more energy-efficient and 'smart,' sustainable. Some new niche companies, such as Stulz GmbH, Data Aire, Inc., and Airedale International Air Conditioning Ltd., are gaining ground through high-performance solutions customized to the needs of narrower customer segments. As regional players bring in regional competitiveness with changes in local market dynamics and customer preference–based solutions, regional competition increases. Strategic alliances, mergers, and acquisitions are the usual way out for firms seeking an expanded marketplace and enhanced technological capability. This, in turn, is leading to customization in very flexible service offerings, such as tailor-made solutions, backed by all-important comprehensive maintenance services. Furthermore, strong sustainability and regulatory compliance, along with price competitiveness, add more complexity to the market. In this respect, strategic cooperation combined with fast technological development becomes a driver for high competitiveness in the market for CRAC units.
In terms of revenue, the U.S. is dominating the market, and it is worth of US$ 1,766.3 million in 2023 and it is expected to reach by US$ 3,443.2 million in 2030.
The North America CRAC (Computer Room Air Conditioning) market has experienced significant growth in recent years, driven by the increasing demand for data centers and the need to maintain optimal operating conditions for sensitive electronic equipment.
The North America market for Computer Room Air Conditioning (CRAC) systems is experiencing a surge in demand, driven by the rapid growth of data center infrastructure across multiple industries. This expansion is notably pronounced in sectors such as IT, telecommunications, healthcare, and finance. With the proliferation of cloud computing, big data analytics, and the Internet of Things (IoT), data centers are under increasing pressure to accommodate the surge in data processing demands.
According to recent reports, United State accounts for a significant portion of global data center investments, with the United States leading the region in data center construction and expansion. This trend is fuelled by the need for scalable and reliable data processing capabilities to support the digital transformation initiatives of businesses across various sectors. The United States remains a dominant force in the global data center sector, representing 22% of global investments in 2021. Key states like Virginia, Texas, and California lead the way, with Canada emerging as a promising market due to renewable energy accessibility and low power costs, averaging US$0.05 per kWh. Ontario and Montreal stand out as significant data center hubs in Canada.
In recent developments, on 8th May, STULZ Oceania, a prominent provider of cooling and UPS technology solutions in Australia, made a strategic move by acquiring Fusion Energy Group's UPS and CRAC service division. This acquisition led to the establishment of STULZ Oceania (Power), a new subsidiary focused on distributing and servicing uninterrupted power supply (UPS) solutions across various industries. By acquiring Fusion's Melbourne-based division, STULZ Oceania not only gained access to an extensive customer base but also acquired valuable assets and expertise, bolstering its presence in the UPS market.
Moreover, government initiatives aimed at enhancing digital infrastructure and promoting data-driven innovation are contributing to the growth of the CRAC market in United State. For example, the US government's investments in broadband expansion and initiatives to bolster cybersecurity infrastructure are expected to stimulate further demand for data center facilities and associated cooling systems.
In summary, the proliferation of data centers across various industries, coupled with the increasing adoption of cloud computing, big data analytics, and IoT devices, is fueling the rapid growth of the CRAC market in United State. This trend is expected to continue as businesses seek to harness the power of data to drive innovation and gain a competitive edge in the digital economy.
The North America CRAC (Computer Room Air Conditioning) market is experiencing a significant surge, propelled by the imperative for energy-efficient cooling solutions within data centers. With data centers in the region accounting for a substantial 1.8% of the nation's total electricity consumption, as highlighted by a comprehensive study by the U.S. Department of Energy, the demand for advanced cooling technologies has reached unprecedented levels. This statistic, translating to approximately 70 billion kilowatt-hours annually, underscores the pivotal role data centers play in the broader energy landscape and the urgent need to address their environmental footprint.
In response, there's a palpable momentum towards integrating cutting-edge technologies such as economizers, variable speed drives, and intelligent controls into CRAC systems. These innovations not only promise to curb energy consumption but also hold the key to substantial reductions in carbon emissions. Consequently, data center operators across United State are increasingly compelled to invest in these transformative technologies to meet sustainability goals and comply with stringent environmental regulations.
Moreover, the adoption of energy-efficient cooling solutions presents a compelling business case, offering significant cost savings and enhancing operational resilience in the face of volatile energy prices. As the reliance on data centers continues to escalate in United State, driven by the digital transformation across industries, the demand for sustainable cooling solutions is expected to remain a primary driver for the CRAC market, shaping its trajectory for years to come.
Brandessence Market Research analyst estimates that in 2023 the Europe CRAC market reached revenues of US$ 914.8 million. In terms of revenue, the Germany is dominating the market, and it is worth of US$ 170.6 million in 2023 and it is expected to reach by US$ 402.5 million in 2030.
The increasing data center investments and the adoption of emerging technologies are the driving factors for the growth of CRAC market in Europe. These factors collectively contribute to the continuous growth and innovation in the CRAC market, ensuring data centers can operate effectively and sustainably.
There is a significant increase in the construction and expansion of data centers across Europe with the surge in digital transformation, cloud computing, and big data analytics. This drives the demand for advanced CRAC units to maintain optimal operating conditions. The digital transformation wave across various industries has led to a significant increase in the number and scale of data centers. Companies are increasingly relying on data centers for cloud services, big data analytics, and storage solutions. European cities like Dublin, Amsterdam, Frankfurt, and London are major hubs for data center construction, driving demand for efficient cooling solutions. Major tech companies and cloud service providers are building hyperscale data centers, requiring robust and efficient cooling systems to manage the high-density computing environments.
For instance, in February 2024, Daikin Applied Europe S.p.A. expanded its data center cooling solutions in response to increased demand and predicted growth in the sector. This growth is driven by advancements in AI and cloud computing. Daikin's offerings include advanced chillers, air handling units, and free cooling solutions that minimize energy and water usage. As well as on May 7, 2024, Modine announced the acquisition of a 14.6-acre manufacturing site in Bradford, UK. This purchase aims to support increased production of Airedale by Modine™ precision cooling equipment for the data center industry. The rapid expansion of data centers across Europe and other regions is driving demand for advanced cooling systems.
Advancements in cooling technologies, such as free cooling, liquid cooling, and indirect/direct evaporative cooling, enhance the efficiency and effectiveness of CRAC units. These innovations drive market growth by offering superior performance and energy savings. Integration of advanced control systems and IoT technologies in CRAC units allows for precise monitoring and management of temperature and humidity, leading to optimized cooling and reduced energy consumption. Modern CRAC units are equipped with sophisticated control systems that allow for precise monitoring and management of temperature and humidity levels within the data center. These systems use sensors and algorithms to adjust cooling output in real-time, ensuring optimal conditions. The incorporation of Internet of Things (IoT) technologies enables remote monitoring and management of CRAC units. IoT devices collect and transmit data on various parameters, which can be analyzed to optimize cooling performance and predict maintenance needs, reducing downtime and energy consumption.
For example, in November 2022, Vertiv launched the Liebert XDU liquid cooling distribution unit (XDU) in Europe, available in capacities of 450 KW and up to 1368 KW. This system is designed to support high-density data centers running applications like analytics and machine learning. The XDU is water-efficient and features controls for adjusting pump speed to optimize water flow and temperature. Additionally, it provides alerts for overflow situations, ensuring reliable and efficient cooling for demanding data center environments.
Moreover, Growth in IT Infrastructure is also fueling CRAC market in Europe. The proliferation of IT services, digital businesses, and telecom services necessitates robust data center infrastructure, driving the demand for reliable and efficient CRAC units to ensure continuous and optimal performance of IT equipment fueling market of CRAC market in Europe.
In summary, the CRAC market in Europe is driven by multiple factors including the expansion of data centers, advancements in cooling technologies, growth in the IT and telecom sectors. These drivers collectively ensure that the CRAC market continues to innovate and evolve, meeting the demands of modern data center operations while aligning with regulatory and sustainability goals in Europe.
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