Critical Power and Cooling Market to Experience Rapid Growth by 2031 | ABB, Eaton, Schneider Electric, Vertiv

Critical Power and Cooling Market Overview and Growth Insights

The critical power and cooling market is on a steady upward trajectory as global industries increasingly depend on uninterrupted power and temperature control for operations. According to Persistence Market Research, the market is expected to grow from US$27.6 billion in 2024 to US$45.4 billion by 2031, reflecting a CAGR of 7.4% over the forecast period. This growth is being propelled by the exponential rise in data generation, the expansion of hyperscale data centers, and the growing reliance on digital infrastructure across multiple sectors.

Among the various end-use industries, the IT and telecom sector dominates the market due to its critical reliance on consistent power and climate regulation. Massive power loads and thermal output from servers make this segment highly dependent on advanced cooling systems and backup power infrastructure. Geographically, North America leads the market, driven by widespread cloud computing adoption, a dense data center footprint, and government initiatives focused on infrastructure resilience. Meanwhile, Asia Pacific is catching up rapidly with increasing industrialization and investments in smart manufacturing and telecom expansions, especially in countries like India, China, and Japan.

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✅Key Highlights from the Report

➤ The market is projected to grow at a CAGR of 7.4% between 2024 and 2031.
➤ North America is currently the leading region due to strong digital infrastructure and demand for critical systems.
➤ IT & telecom remains the highest revenue-generating end-use segment.
➤ Rising cloud and edge computing demands are driving the market forward.
➤ Advanced cooling technologies like liquid cooling are gaining rapid traction.
➤ Critical cooling solutions are increasingly being integrated with AI-powered monitoring systems.

✅Market Segmentation

The critical power and cooling market is broadly segmented into type and end-use categories. Under the type segmentation, the market is divided into critical power systems and critical cooling systems. Critical power systems include generators, UPS systems, and power transfer switches, designed to ensure uninterrupted operations during grid failures. On the other hand, critical cooling systems such as precision air conditioning, liquid cooling, and chillers are employed to manage heat loads and maintain operational integrity across various infrastructure setups.

By end-use, the market includes industrial, commercial, IT & telecom, and transportation sectors. The IT & telecom sector leads due to an ongoing surge in data traffic, 5G deployment, and rising investments in edge and hyperscale data centers. Meanwhile, the commercial segment is gaining attention, particularly in banking, retail, and healthcare, where uptime and environment control are crucial. Industrial facilities, especially those in manufacturing and pharmaceuticals, also represent a significant share, necessitating both energy continuity and stringent temperature regulation to ensure operational safety and compliance.

✅Regional Insights

North America dominates the global critical power and cooling market, thanks to its mature data center landscape, consistent innovation in cooling technologies, and early adoption of digital transformation strategies. The U.S., in particular, has seen rapid growth in colocation and enterprise data centers, which require continuous and efficient cooling and power backup systems. Federal regulations also mandate energy-efficient infrastructure in sensitive sectors such as healthcare and defense, further boosting demand.

Asia Pacific, especially South Asia and East Asia, is experiencing accelerated growth in this market. Emerging economies like India, China, and Indonesia are investing heavily in industrial automation, 5G rollout, and smart city projects, all of which demand reliable critical infrastructure. Increasing foreign direct investment in IT parks and digital infrastructure has made the region a hotspot for critical power and cooling vendors seeking expansion opportunities.

✅Market Drivers

Several powerful factors are driving the critical power and cooling market forward. One of the most significant is the proliferation of data centers, fueled by the digital economy and the rising use of streaming services, cloud computing, and IoT. Power stability and thermal management are non-negotiable in these facilities, creating strong demand for reliable systems. Moreover, the deployment of 5G networks and smart grids requires robust infrastructure, increasing reliance on energy-efficient and scalable critical systems. The growing emphasis on sustainability is also promoting the use of advanced cooling solutions that reduce carbon footprints and improve energy efficiency.

✅Market Restraints

Despite strong market potential, there are several challenges facing the critical power and cooling industry. One of the primary restraints is the high initial cost associated with installing advanced systems, which can deter small- and medium-sized enterprises. Additionally, the complexity of integrating critical systems into existing legacy infrastructures can result in delays and compatibility issues. The market also faces skilled labor shortages for maintaining sophisticated systems, especially in emerging economies. Regulatory hurdles and the need for compliance with stringent energy and emissions standards can further complicate deployment in certain regions.

✅Market Opportunities

Amid challenges, the critical power and cooling market is rich with opportunity. The growing trend toward edge computing and distributed data centers requires tailored power and cooling solutions designed for compact, remote installations. Likewise, integration with smart monitoring and AI technologies offers a path to predictive maintenance, reducing downtime and optimizing energy use. Vendors focusing on green cooling solutions-such as evaporative cooling and free cooling systems-are likely to find favor among sustainability-conscious enterprises. Furthermore, developing markets in Africa and Southeast Asia present untapped potential as digital adoption continues to accelerate across industries.

✅Frequently Asked Questions (FAQs)

➤ How Big is the Critical Power and Cooling Market in 2024?
➤ Who are the Key Players in the Global Market for Critical Power and Cooling?
➤ What is the Projected Growth Rate of the Market from 2024 to 2031?
➤ What is the Market Forecast for the Critical Power and Cooling Industry for 2031?
➤ Which Region is estimated to dominate the Industry through the Forecast Period?

✅Company Insights

✦ ABB
✦ Asetek A/S
✦ Cyber Power Systems
✦ Daikin Industries, Ltd.
✦ Delta Electronics, Inc.
✦ Eaton Corporation
✦ General Electric
✦ Johnson Controls, Inc.
✦ Rittal GmbH & Co. Kg
✦ Schneider Electric
✦ Siemens
✦ Socomec
✦ Stulz GmbH
✦ Vertiv Co.

✅Recent Developments

■ In February 2024, Vertiv announced a new line of liquid cooling solutions optimized for AI-driven workloads and modular data centers.
■ In December 2023, Schneider Electric launched EcoStruxure Power and Cooling, an integrated platform leveraging AI to improve efficiency and uptime in critical facilities.

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This release was published on openPR.