Rack-level cooling grows faster than room-cooling: report

IMS Research's recent study indicates rack-level cooling will grow more than 20% in the next five years, though room-cooling will remain the largest part of the market by 2016.


IMS Research LogoAccording to IMS Research’s recent study, “The World Market for Data Center Cooling – 2012 Edition,” revenues from rack-level cooling solutions will grow at a CAGR of 12% from 2011 to 2016 accounting for over half a billion USD in 2016. The fastest growing national markets for rack-level cooling equipment are forecast to grow at CAGR of over 20% over this five-year period.

Data centers require specialized cooling to handle the heating load from IT equipment. The increasing computing capacity of new servers of greater power density has created the need to cool “hot-spots” in the data center more efficiently. Rack and row level cooling is the most suitable solution.

Graph showing estimated revenues for the rack-level cooling solutions versus room cooling revenues from 2012 to 2016. Courtesy: IMS Research


According to IMS Research analyst Andrés Gallardo, “Unlike in the early years of data centers, when the only objective was to maintain general room temperature inside the data center, efficiency has become a major concern for data center operators because of the increasing cost of operating the cooling equipment. Further, this equipment has also become more crucial to a company’s operation; and technology has enabled facilities with increasing densities. For these reasons, the growth of rack-level solutions continues to outpace that of room-cooling products as these products offer efficient cooling for high-density loads.”

While the room-cooling market is dominated by Emerson, the rack-level market has three companies closely competing for market leadership. The Asian market is the most competitive with six companies each holding double-digit share; in the American market, the top three companies account for 90% of revenues.

“The strongest companies in the rack-level market are not necessarily ones specializing in cooling, but are rather ones specializing in data-center infrastructure. They can offer a complete data-center package including rack-level cooling. This creates a new level of competition for traditional cooling-only companies,” said Gallardo.

Despite the high growth of rack based cooling, room cooling will remain the largest part of the market over the next five years as most data center designs still call for room cooling. Moreover, new builds in emerging markets are often lower density and do not require supplemental cooling.

No comments
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2013 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
Sister act: Building on their father's legacy, a new generation moves Bales Metal Surface Solutions forward; Meet the 2015 Engineering Leaders Under 40
2015 Mid-Year Report: Manufacturing's newest tool: In a digital age, digits will play a key role in the plant of the future; Ethernet certification; Mitigate harmonics; World class maintenance
2015 Lubrication Guide: Green and gold in lubrication: Environmentally friendly fluids and sealing systems offer a new perspective
Drilling for Big Data: Managing the flow of information; Big data drilldown series: Challenge and opportunity; OT to IT: Creating a circle of improvement; Industry loses best workers, again
Pipeline vulnerabilities? Securing hydrocarbon transit; Predictive analytics hit the mainstream; Dirty pipelines decrease flow, production—pig your line; Ensuring pipeline physical and cyber security
Cyber security attack: The threat is real; Hacking O&G control systems: Understanding the cyber risk; The active cyber defense cycle
Designing positive-energy buildings; Ensuring power quality; Complying with NFPA 110; Minimizing arc flash hazards
Building high availability into industrial computers; Of key metrics and myth busting; The truth about five common VFD myths
New industrial buildings: Greener, cleaner, leaner; New building designs for industry; Take a new look at absorption cooling; Offshored jobs start to come back

Annual Salary Survey

After almost a decade of uncertainty, the confidence of plant floor managers is soaring. Even with a number of challenges and while implementing new technologies, there is a renewed sense of optimism among plant managers about their business and their future.

The respondents to the 2014 Plant Engineering Salary Survey come from throughout the U.S. and serve a variety of industries, but they are uniform in their optimism about manufacturing. This year’s survey found 79% consider manufacturing a secure career. That’s up from 75% in 2013 and significantly higher than the 63% figure when Plant Engineering first started asking that question a decade ago.

Read more: 2014 Salary Survey: Confidence rises amid the challenges

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.