Data Center Containment Market Size & Share

Updated on : Oct 22, 2024

Data Center Containment Market Size & Share

The global data center containment market size is projected to reach from USD 2.1 billion in 2024 to USD 3.6 billion by 2029; it is expected to growing at a CAGR of 11.8% during the forecast period from 2024 to 2029.

Data Center Containment industry growth is driven by significant growth in containment solutions due to increasing data centers and modular containment solutions for scalable data centers. These trends increase the need for efficient data center containment solutions to optimize cooling, reduce energy consumption, and ensure IT equipment functions properly.

Data Center Containment Market Forecast to 2029

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Data Center Containment Market Dynamics

Driver: Adopting modular containment solutions for scalable data centers

The shift towards modular and scalable data center solutions is a significant trend in the industry, driven by the need for increased efficiency, flexibility, and sustainability. Modular data centers offer several advantages over traditional data centers, including quick deployment, hassle-free expansion, and optimized operational costs.

These modular solutions consist of standardized modules for power, cooling, and IT systems, allowing for easy assembly, modification, and reconfiguration as needed. The key advantage of modular data centers is their efficiency, achieved through the use of standardized components that can be optimized for specific power, cooling, and space requirements.

This efficiency not only reduces operational costs but also minimizes waste. Additionally, modular data centers are easier to work with as they can be built off-site in a controlled environment, reducing delays and weather-related concerns.

The adoption of modular and scalable data center solutions is essential for businesses looking to remain competitive, reduce costs, and minimize their environmental impact in a rapidly evolving digital landscape. By embracing the efficiency, scalability, flexibility, and sustainability offered by modular data centers, companies can ensure they are well-equipped to meet the growing demands of the industry while contributing to a more sustainable future.

Restraint: Complexities in retrofitting existing data centers

Data centers are intricate ecosystems where components are highly interconnected. Alterations to one aspect of the infrastructure can have cascading effects on others, potentially disrupting system integrity and functionality. Moreover, retrofitting activities frequently entail downtime, as systems may need to be taken offline for modifications and upgrades. This downtime can disrupt operations, potentially affecting service availability for customers or users.

Opportunity: Government policies and incentives for green transformation with containment strategies

The ever-increasing demand for data storage and processing has led to a surge in energy consumption by data centers. This reliance on fossil fuels has a significant impact on the environment, contributing to greenhouse gas emissions.

Green data centers, by using renewable energy sources and employing energy-efficient technologies, address this concern and promote sustainability. Technological advancements have made energy-efficient infrastructure and equipment more affordable and readily available. Innovations in cooling systems, server virtualization, and the integration of renewable energy sources have facilitated the transition to green data centers without compromising performance or reliability.

Challenge: Accessing equipment for maintenance and repairs can be difficult due to physical barriers

Maintaining data center containment systems involves overseeing intricate components like airflow panels, baffles, curtains, and seals to uphold optimal airflow management and cooling efficiency. Due to their complexity, upkeep can be time-consuming and requires specialized skills. Technicians must possess expertise in HVAC systems, airflow dynamics, and data center infrastructure to ensure reliability. Additionally, cleanliness protocols are vital during maintenance to safeguard sensitive IT equipment from dust and contaminants.

Data Center Containment Market Ecosystem

The prominent players in the market are Vertiv Group Corp (US), Rittal GmbH & Co. KG (Germany), Eaton (Ireland), nVent (UK), Legrand (France), Schneider Electric (France). These companies have been operating in the market for several years and possess a diversified product portfolio, state-of-the-art technologies, and strong global sales and marketing networks.

Data Center Containment Market Segmentation

Aisle Containment type to account for the largest share of the data center containment market in 2023.

Aisle containment solutions are gaining traction in the market due to their cost-effectiveness, efficiency, and the growing preference among customers for greater control over supply air to match server airflow. Large enterprises, which are major consumers of data center containment solutions, are fueling demand for aisle containment systems as they invest significantly in data centers to support the increasing shift of data and information online. Corporations like Facebook, Microsoft, and Alphabet Inc. are among those making substantial investments in data center infrastructure. This trend is anticipated to persist, reinforcing the market dominance of aisle containment solutions.

Modular containment segment to dominate market during the forecast period.

The increasing need for energy-efficient and portable IT infrastructure is driving market growth. Prefabricated modular data centers, in particular, are in high demand due to their capacity to boost performance and streamline IT operations. These facilities excel in energy management, particularly in power and cooling, owing to their integrated aisle containment systems, which effectively separate hot and cold air streams.

Colocation data center type to register the highest share data center containment market during the forecast period.

Colocation data centers are seeing a surge in demand driven by the growth of hyperscale workloads and the need for efficient data storage solutions. As these facilities expand and host numerous racks, the need for data center containment solutions, such as aisle containment systems and airflow management techniques, rises. These solutions are crucial for optimizing cooling efficiency and reducing energy consumption.

Data Center Containment Market Regional Analysis

The North America region is projected to grow at the highest CAGR during the forecast period.

Increasing investments in digital infrastructure, coupled with the widespread adoption of cloud computing and resource-intensive content applications, along with market dominance and technological advancements, are primary drivers fueling the rising demand for data center containment solutions in North America. With the continuous growth of data and a heightened emphasis on sustainability, containment solutions are poised to become increasingly crucial in ensuring efficient and cost-effective data center operations. Innovations in data center monitoring tools enable real-time optimization of airflow and cooling within containment zones, thereby amplifying efficiency improvements.

Data Center Containment Market by Region

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Top Data Center Containment Companies - Key Market Players

The major players in the data center containment companies include

• Vertiv Group Corp (US),
• Rittal GmbH & Co. KG (Germany),
• Eaton (Ireland), nVent (UK),
• Legrand (France),
• Schneider Electric (France),
• Sealco (US), Maysteel (US),
• Tate (US) and
• Polargy, Inc. (US)

These companies have used organic and inorganic growth strategies, such as product launches, acquisitions, and partnerships to strengthen their position in the market.

Data Center Containment Industry Report Scope

Data Center Containment Market Highlights

This research report categorizes the data center containment market based on containment type, arrangement, data center type, and region.

Recent Developments in Data Center Containment Industry

• In December 2023, Vertiv Group Corp. has acquired CoolTera Ltd., along with all its shares. CoolTera specializes in coolant distribution infrastructure for data center liquid cooling technology. This acquisition enhances Vertiv's thermal management portfolio by adding advanced cooling technology, specialized expertise, control systems, and manufacturing capabilities tailored for high-density compute cooling needs. Additionally, it strengthens Vertiv's existing partnerships within the industry ecosystem for such applications.
• In March 2024, Eaton announced its latest modular data center solution tailored for organizations aiming to swiftly address the escalating demands of edge computing, machine learning, and AI. Known as SmartRack, Eaton's modular data centers are designed to be swiftly deployed within days, catering to various facilities including enterprise or colocation data centers, manufacturing sites, and warehouses. These SmartRack modular data centers integrate IT racks, cooling systems, and service enclosures, delivering a performance-optimized solution tailored for critical IT equipment handling loads of up to 150 kW.
• In July 2023, nVent has acquired TEXA Industries, a prominent European company specializing in industrial cooling solutions such as air conditioners and chillers. TEXA Industries will be integrated into nVent's Enclosures business segment. This strategic acquisition enhances nVent's global standing as a comprehensive systems provider. With TEXA Industries' advanced cooling technologies and innovative products, including industrial air conditioners and chillers, nVent is better equipped to assist customers in addressing the growing challenges of managing heat loads in system design.
• In April 2024, Schneider Electric has partnered with Digital Realty, the world's leading provider of cloud and carrier-neutral data center solutions. Together, they're spearheading an inventive circular economy initiative. This project is geared towards extending and preserving the lifespan of mission-critical systems at PAR5, encompassing Schneider Electric's Low Voltage (LV) and Medium-Voltage (MV) electrical equipment, switchgear, and three-phase uninterruptible power supplies (UPS).
• In May 2023, Legrand launched the Server Technology PRO4X and Raritan PX4 intelligent rack PDUs, which integrate top-tier software and hardware advancements inherited from prior Raritan and Server Technology generations. These pioneering PDUs stand out as the first to gauge total harmonic distortion at both cabinet and device levels. They excel in data collection, optimization, infrastructure adaptability, and white space security, providing unparalleled innovation paired with proven performance for data center operators seeking optimal efficiency and reliability.

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