Data Center Containment Market by Containment Type (Aisle Containment, In-row Cooling Containment, Arrangement (Rigid Containment, Modular Containment), Data Center Type (Hyperscale, Colocation, Enterprise) and Region - Global Forecast to 2029
Updated on : Sep 13, 2024
Data Center Containment Market Size & Share
[232 Pages Report] 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 grow at a CAGR of 11.8% from 2024 to 2029.
Market 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
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Report Metric |
Details |
| Estimated Market Size | USD 2.1 billion in 2024 |
| Projected Market Size | USD 3.6 billion by 2029 |
| Growth Rate | CAGR of 11.8% |
|
Market Size Availability for Years |
2020–2029 |
|
Base Year |
2023 |
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Forecast Period |
2024–2029 |
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Forecast Units |
Value (USD) |
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Segments Covered |
By Containment Type, By Arrangement, By Data Center Type |
|
Geographies Covered |
North America, Europe, Asia Pacific, and RoW |
|
Companies Covered |
Vertiv Group Corp (US), Rittal GmbH & Co. KG (Germany), Eaton (Ireland), nVent (UK), Legrand (France), Schneider Electric (France), Sealco (US), Maysteel (US), Tate (US), Polargy, Inc. (US), Chatsworth Products (CPI) (US), Siemon (US), 42U (US), Upsite Technologies (US), Subzero Engineering (US), Conteg (Czech Republic), Excool Ltd. (England), Panduit Corp. (US), STULZ GMBH (Germany), Cannon Technologies Ltd (England), Delta Power Solutions (Taiwan), RLE Technologies (US), DAXTEN (England), Conatech (US), and Critical Facilities Solutions (UK) |
Data Center Containment Market Highlights
This research report categorizes the data center containment market based on containment type, arrangement, data center type, and region.
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Segment |
Subsegment |
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By Containment Type |
|
|
By Arrangement |
|
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By Data Centre Type |
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By Region |
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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.
Frequently Asked Questions (FAQs):
What is the current size of the Global Data Center Containment Market?
The market is projected to reach from USD 2.1 billion in 2024 to USD 3.6 billion by 2029; it is expected to grow at a CAGR of 11.8% from 2024 to 2029.
Who are the winners in the Global Data Center Containment Market?
Companies such as Vertiv Group Corp (US), Rittal GmbH & Co. KG (Germany), Eaton (Ireland), nVent (UK), Legrand (France), Schneider Electric (France).
Which region is expected to hold the highest market share?
North America is expected to dominate the data center containment market during the forecast period. Market growth is driven by investments in digital infrastructure, the adoption of advanced technologies such as AI, machine learning, and IoT, and the growing reliance on cloud computing and data-intensive applications.
What are the major drivers and opportunities related to the data center containment market?
Shift towards modular and scalability solutions, Significant growth in number of data centers, and Requirement of advanced cooling technologies and the increasing focus on green data centers are some of the major drivers and opportunities related to the data center containment market.
What are the major strategies adopted by market players?
The key players have adopted product launches, acquisitions, and partnerships to strengthen their data center containment market position.
To speak to our analyst for a discussion on the above findings, click Speak to Analyst
The study involved four major activities in estimating the size of the data center containment market. Exhaustive secondary research has been conducted to collect information on the market, the peer markets, and the parent market. Both top-down and bottom-up approaches have been employed to estimate the total market size. Market breakdown and data triangulation methods have also been used to estimate the market for segments and subsegments.
Secondary Research
Revenues of companies offering data center containment solutions have been obtained from the secondary data available through paid and unpaid sources. The revenues have also been derived by analyzing the product portfolio of key companies, and these companies have been rated according to the performance and quality of their products.
Various secondary sources have been referred to in the secondary research process for identifying and collecting information important for this study. Secondary sources include corporate filings (such as annual reports, investor presentations, and financial statements); trade, business, and professional associations; white papers; IoT technologies journals and certified publications; articles by recognized authors; gold-standard and silver-standard websites; directories; and databases.
Secondary research has been conducted mainly to obtain critical information about the market’s value chain, the total pool of key players, market classification and segmentation according to the industry trends to the bottom-most level, geographic markets, and key developments from both demand- and technology-oriented perspectives. Secondary data has been collected and analyzed to determine the overall market size, further validated by primary research.
Primary Research
Extensive primary research has been conducted after understanding and analyzing the current scenario of the data center containment market through secondary research. Several primary interviews have been conducted with key opinion leaders from both demand and supply sides across 4 major regions: North America, Europe, Asia Pacific, and RoW. Approximately 25% of the primary interviews have been conducted with the demand side, while 75% have been conducted with the supply side. Primary data has been collected mainly through telephonic interviews, which consist of 80% of the total primary interviews. questionnaires and e-mails have also been used to collect data.
After interacting with industry experts, brief sessions were conducted with highly experienced independent consultants to reinforce the findings from our primary. This along with the in-house subject matter experts’ opinions, has led us to the findings as described in the remainder of this report. The breakdown of primary respondents is as follows:
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
The bottom-up procedure has been employed to arrive at the overall size of the data center containment market.
- Analyzing the size of the global data center containment market by identifying data centers in terms of size/type, i.e., hyperscale, enterprise, colocation, and other data centers (sqft)
- The total data center area across different types of data centers was tracked.
- The setup cost per sqft for data center containment solutions was estimated through primary and secondary sources.
- Setup cost multiplied with the total data center area to arrive at the global data center containment market.
- The global data center containment market value was calculated by data center type.
- Identifying the upcoming projects related to data center containment by various companies in different regions and forecasting the market size based on these developments and other important parameters.
The top-down approach has been used to estimate and validate the total size of the data center containment market.
- Initially, MarketsandMarkets focused on the top-line investment and expenditure in the ecosystems of data center technology, which also includes data center containment. The data center containment market was further split by new installations, upgrades, and major developments in the key market area.
- Further information was derived from the market revenue generated by the key data center containment solution providers.
- Multiple on-field discussions were carried out with key opinion leaders across each major company involved in the development of data center containment
- The geographic splits were estimated using secondary sources based on various factors, such as the number of players in a specific country and region, the level of solutions offered, and the type of solution implemented.
Data Triangulation
After arriving at the overall size of the data center containment market through the process explained, the total market has been split into several segments and subsegments. Market breakdown and data triangulation procedures have been employed, wherever applicable, to complete the overall market engineering process and arrive at the exact statistics for all segments and subsegments. The data has been triangulated by studying various factors and trends from the demand and supply sides. The market has also been validated using the top-down and bottom-up approaches.
Market Definition
Data center containment involves managing airflow within a data center to enhance cooling efficiency and decrease energy usage. This is achieved through the implementation of physical barriers like partitions, doors, and ceilings, which separate hot and cold airflows. By containing the hot air emitted by servers and diverting it away from the cool air intake, containment systems ensure a uniform temperature across the data center. This practice is especially crucial in large-scale data centers, where effective heat management is essential for sustained performance and minimal downtime.
Key Stakeholders
- NGOs, Governments, Investment Banks, Venture Capitalists, and Private Equity Firms
- Telecom Services Providers
- Original Equipment Manufacturers
- Value-added Service Providers
- Data Center Containment Solution Vendors
- Data Center Operators
- Data Center Colocation Service Providers
- System Integrators
- Cloud Service Providers
- Colocation Service Providers
Report Objectives
- To define, describe, segment, and forecast the size of the data center containment market, by containment type, arrangement, data center type in terms of value
- To forecast the market size for various segments with respect to four main regions, namely, the North America, Europe, Asia Pacific, and Rest of the World (RoW), in terms of value
- To forecast the size of the data center containment market by containment type, in terms of volume
- To provide detailed information regarding the drivers, restraints, opportunities, and challenges influencing the growth of the data center containment market
- To study the complete supply chain and allied industry segments and perform a supply chain analysis of the data center containment market landscape
- To strategically analyze macro and micromarkets1 with respect to growth trends, prospects, and their contributions to the overall market
- To analyze industry trends, average selling price, patents and innovations, and trade data (export and import data) in the data center containment market
- To analyze opportunities in the market for stakeholders and provide a detailed competitive landscape of the market
- To strategically profile key players in the market and comprehensively analyze their market share/ranking and core competencies2
- To analyze competitive developments such as contracts, product launches/developments, expansions, and research & development (R&D) activities carried out by players in the data center containment market
Available customizations:
With the given market data, MarketsandMarkets offers customizations according to the specific requirements of companies. The following customization options are available for the report:
- Detailed analysis and profiling of additional market players based on various blocks of the supply chain
Growth opportunities and latent adjacency in Data Center Containment Market