Data Center Cooling Equipment Market to Reach USD 16.2 billion by 2033, Growing at 6.5% CAGR: By Key Players-Schneider Electric, Vertiv, Stulz GmbH

New Jersey, US State: "The global Data Center Cooling Equipment market in the Information Technology and Telecom category is projected to reach USD 16.2 billion by 2031, growing at a CAGR of 6.5% from 2025 to 2031. With rising industrial adoption and continuous innovation in Information Technology and Telecom applications, the market is estimated to hit USD 10.5 billion in 2024, highlighting strong growth potential throughout the forecast period."

Data Center Cooling Equipment Market Size & Forecast 2031
The data center cooling equipment market is expanding rapidly as increasing cloud adoption, big data analytics, and the growing volume of digital services drive demand for efficient infrastructure solutions. Effective cooling systems are critical to maintaining performance, energy efficiency, and operational reliability in modern data centers. Organizations are increasingly investing in advanced cooling technologies such as liquid cooling, in-row cooling, and modular systems to handle rising power densities. Additionally, sustainability goals and cost optimization strategies are encouraging innovations focused on reducing energy consumption and carbon emissions across large-scale facilities.

Looking ahead to 2031, the data center cooling equipment market is expected to witness substantial growth as enterprises continue to modernize IT infrastructure and hyperscale data centers proliferate globally. Rising investments in colocation and edge facilities, coupled with the expansion of artificial intelligence and IoT workloads, will further accelerate the adoption of advanced thermal management solutions. Energy-efficient cooling innovations are anticipated to be a key factor influencing competitive dynamics among manufacturers. With growing emphasis on reducing operational costs while achieving sustainability targets, the market is positioned for strong long-term growth and large-scale deployment by 2031.

Key Players in the Data Center Cooling Equipment Market
Schneider Electric
Vertiv
Stulz GmbH
Rittal GmbH
Asetek
Coolit Systems
Mitsubishi Electric
Daikin Industries
Johnson Controls
Emerson Electric
Liebert Corporation
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Factors Supporting Growth of Data Center Cooling Equipment Market in the Future:

1.Technological Advancements and Innovation:

The continuous evolution of technology is playing a vital role in driving the Data Center Cooling Equipment market forward. Cutting-edge innovations are improving product functionality, enhancing performance, and reducing costs, making these solutions more accessible to a broader range of industries. Emerging technologies such as AI, IoT, advanced analytics, and automation are also enabling smarter and more efficient use cases, further expanding the scope of the market. These advancements are not only upgrading existing systems but are also creating entirely new application opportunities that will support long-term market expansion.

2. Expanding Applications Across End-Use Sectors:

The increasing integration of Data Center Cooling Equipment solutions across diverse industries such as automotive, healthcare, consumer electronics, telecom, and industrial manufacturing is significantly boosting market demand. Each sector brings unique requirements, pushing companies to diversify their offerings and customize solutions. This cross-industry relevance ensures consistent demand growth, while rising digitalization and adoption of smart technologies amplify the market potential across both developed and developing regions.

3. Favorable Government Policies and Infrastructure Push:

Supportive initiatives by governments around the world, including funding programs, tax incentives, and policy frameworks, are providing a strong foundation for market development. Efforts to strengthen digital infrastructure, promote energy efficiency, and drive sustainable development are fueling demand for advanced Data Center Cooling Equipment technologies. Moreover, public-private partnerships and national transformation agendas such as smart cities and Industry 4.0 are creating favorable conditions for rapid market expansion, especially in emerging economies

4. Increased Investment and Focus on Research & Development:

The Data Center Cooling Equipment market is experiencing a surge in investment from both private and public entities, driven by the urgency to innovate and stay competitive. Companies are dedicating substantial resources to research and development to create next-generation products with higher efficiency, scalability, and environmental sustainability. Venture capital funding, mergers, acquisitions, and collaborations are also contributing to a dynamic ecosystem that fosters experimentation and accelerates commercialization of novel solutions, ensuring sustained market growth in the future.

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Key Segments Covered in Our Report: Data Center Cooling Equipment Industry

Data Center Cooling Equipment Market by Chilled Water Systems
Chilled Water Cooling Units
Chilled Water Distribution Systems
Chilled Water Plants
Chilled Beams
Cooling Towers
Data Center Cooling Equipment Market by Air-Based Cooling Systems
CRAC Units
In-Row Cooling
Overhead Cooling
Rack-Mounted Cooling
Portable Cooling Units
Data Center Cooling Equipment Market by Liquid Cooling Systems
Direct Liquid Cooling
Immersion Cooling
Liquid Cooling Distribution Systems
Cold Plates
Heat Exchangers
Data Center Cooling Equipment Market by Cooling Accessories
Fans
Piping and Insulation
Cooling Software
Sensors and Controls
Ducting Systems
Data Center Cooling Equipment Market by Evaporative Cooling Systems
Evaporative Coolers
Adiabatic Cooling Systems
Evaporative Condensers
Indirect Evaporative Coolers
Hybrid Cooling Solutions
The Application segment showcases the industries and sectors that use Data Center Cooling Equipment products for example Data Center Cooling Equipment targeting healthcare and automotive industries etc. It also provides a perspective of the market rate of acceptance, usage of the products, and new applications that are paving the way for the future of the market.

Global Data Center Cooling Equipment Market Regional Analysis

The Global Data Center Cooling Equipment Market is examined in dimensions of regions, wherein each region has its own market growth, trends as well as dynamics. This section highlights on the detailed market performance, major shifts, and trends and underlying factors explaining growth in different places around the world.

North America: North America accounts for a large share of the Data Center Cooling Equipment market which is a result of the developed technology, intense consumer market, and huge investments in the Data Center Cooling Equipment industry. To add, the U.S. market also plays a crucial role as this economy is more concerned with innovation and was also one of the first to implement Data Center Cooling Equipment products in its Data Center Cooling Equipment sectors. The region is expected to see a gradual rise till 2031 and this is because of its reinforced infrastructure and existing regulation mechanisms.

Europe: Global has the fastest growing Data Center Cooling Equipment market and is oriented around environmental protection, renewed efforts and environmental awareness. The market is dominated by countries like Germany, the UK, and France that have improved their technologies and have a strong industrial structure. Increased request for green solutions along with regulatory efforts are increasing demand in the market's key areas such as Data Center Cooling Equipment sectors.

Asia-Pacific: The growth potential in the Data Center Cooling Equipment market is expected to be maximum for Asia-Pacific region. Increased maturation, urban migration as well as expanding middle class in China, India, and Japan and other developing economies are great constituents of market growth. Further, there is an increasing contribution to investments in the Data Center Cooling Equipment sector which is increasing the demand for Data Center Cooling Equipment regions-supplying throughout the area.

Rest of the World: Countries and areas like Latin America, Middle East & Africa have also been showing moderate Data Center Cooling Equipment market growth. Although still developing, these markets are fueled by a fast increasing infrastructure, expending industrial activities and growing consumer demand for Data Center Cooling Equipment goods. These regions pose great opportunities for the market players to tap into other sources of growth.

Frequently Asked Questions (FAQ) - Data Center Cooling Equipment Market

Q1: What is the anticipated growth rate of the Global Data Center Cooling Equipment Market?

A1: With a growth rate of CAGR of 6.5%, the Global Data Center Cooling Equipment Market is anticipated to reach USD 16.2 billion by 2031. Industrial demand and innovation will lead it to reach USD 10.5 billion by 2024.

Q2: Which regions provide the highest growth opportunities for the Data Center Cooling Equipment Market?

A2: Asia-Pacific is likely to provide the highest growth prospects based on speedy industrialization and infrastructure growth, followed by robust markets in Europe and North America.

Q3: Which are the primary drivers of market growth?

A3: The primary drivers are technology innovation, growing industrial applications, heightened government initiatives, and expanding use of Data Center Cooling Equipment solutions in different industries.

Q4: What are the challenges faced by the Data Center Cooling Equipment Market?

A4: The challenges are tight regulatory systems, high upfront capital expenditures, fragmentation of the market in the emerging markets, and geopolitical risks in some regions.

Q5: Which are the major players in the Global Data Center Cooling Equipment Market?

A5: The market has a number of leading players with a focus on innovation, strategic alliances, and global expansion.

Q6: How does innovation influence the Data Center Cooling Equipment Market?

A6: Market growth is driven by innovation, which enhances product efficiency, lowers costs, and facilitates new applications, making the overall market potential broader.

Q7: Which industries utilize Data Center Cooling Equipment products mostly?

A7: Major industries include manufacturing, automotive, energy, electronics, and infrastructure, among others, where Data Center Cooling Equipment solutions deliver operational efficiency and sustainability.

Q8: How is the market anticipated to change after 2031?

A8: Although projections beyond 2031 are uncertain, continued technological advancement and increasing industrial demand are expected to continue supporting long-run growth patterns.

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