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Omdia research predicts data center cooling market to reach $ 16.87 billion in 2028
Integration of AI-optimized cooling systems , strategic vendor partnerships and a continued push for energy-efficient and environmentally friendly solutions seen as shaping the industry ’ s evolution .
The data center thermal management market has surged to a staggering $ 7.67bn , outpacing previous forecasts according to new research from Omdia .
This research pitches such ‘ unprecedented ’ growth is poised to continue with a robust CAGR of 18.4 % until 2028 . Such growth , the research says , will largely be fuelled by AI-driven demands and innovations in high-density infrastructure marking a pivotal moment for the industry .
As AI computing becomes ubiquitous , the demand for liquid cooling has surged dramatically . Key trends include the rapid adoption of Rear Door Heat Exchangers ( RDHx ) combined with 1-P direct-to-chip cooling , achieving an impressive 65 % year-over-year growth , frequently integrating heat reuse applications . This period also sees a strategic blend of air and liquid cooling technologies , creating a balanced and efficient thermal management .
Omdia ’ s Principal Analyst , Shen Wang : “ In 2023 , the global data center cooling market experienced increased consolidation , Top5 and Top10 concentration ratios rising by 5 % from the previous year . Omdia expanded vendor coverage in its report to include 49 companies , up from 40 , adding Chinese OEMs and direct liquid cooling component suppliers .
Vertiv , Johnson Controls and Stulz retained their top three positions – Vertiv notably gained 6 % market share due to strong North American demand and cloud partnerships .”
The research revealed market growth for data center cooling was primarily constrained by production capacity , particularly for components like Cooling Distribution Units ( CDUs ), rather than a lack of demand . Numerous supply chain players struggled to satisfy the soaring market needs , causing component shortages . However , the research suggests improvements forecasted for 2024 are expected to alleviate this issue , unlocking orders delayed from the previous year due to supply chain bottlenecks .
During the research period , liquid cooling adoption witnessed robust growth , particularly in North America and China , with new vendors entering the scene and tracked companies exhibiting significant expansion .
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