Global Critical Power and Cooling Solutions Market Size, Share, Development, Growth and Demand Forecast to 2023 - Industry Insights by Type (Critical Power, Cooling Solution), by End-Use (Industrial, Commercial, IT and Telecommunication, Transportation and Others)

Market Overview

Critical power and cooling solutions include uninterrupted power supply (UPS), generators, converters, inverters, transfer switches, power transfer switching, breaker transfer pairs, generator paralleling breakers, switch transfer pairs, air conditioning, chilling units, cooling towers, liquid cooling solutions, economizer systems, control systems, pumping units, humidifiers, and air coolers. Critical power and cooling solutions provide protection against data loss, hardware damage and downtime. Additionally, critical power and cooling solutions ensure improved manageability, improves the cooling efficiency and performance of equipment. Critical power and cooling solutions find application in residential, commercial and industrial sectors. The global critical power and cooling solutions market has witnessed significant growth over the past years on account of growing demand from commercial sector including data centers, banking and financial institutions (BFSI), hotels and restaurants.

Market Dynamics

The global market for critical power and cooling solutions is expected to witness a CAGR of 10.8% during the forecast period (2017-2023) due to the increasing electricity demand and rising applications in residential, commercial and industrial sectors. Based on type, critical power is expected to be the largest segment in the global critical power and cooling solutions market during the forecast period. Uninterruptable Power Supply (UPS) was the largest segment in the critical power market, by type. The segment is expected to continue its dominance during the forecast period. Air conditioning was the largest revenue generator in the cooling solutions market, by type. The segment is expected to exhibit similar trend during the forecast period. Commercial sector emanated the largest demand in the global critical power and cooling solutions market.

Trends

The key trend observed in the global critical power and cooling solutions market is the growing R&D investments by major players such as General Electric and Unified Power and focus on strategic partnerships and other expansion plans to strengthen their market presence worldwide.

Growth Drivers

The factors driving the growth of global critical power and cooling solutions market are increasing power shortage globally, rapidly increasing urbanization and industrialization, and the rising need for backup power to protect equipment from the adverse effects of grid power fluctuations. Critical power and cooling solutions are reliable and helps in expanding the useful life of the equipment. This unique characteristic of critical power and cooling solutions are expected to further boost the growth of global critical power and cooling solutions market during the forecast period.

The growing popularity for digitalization and cloud computing and rising need to improve cooling efficiency in data centers is expected to propel the growth of global critical power and cooling solutions market during the forecast period. The increasing adoption of digitalization and cloud computing has resulted in an increase in the data center infrastructure during 2013-2016 period. Such trend is expected to continue during the forecast period and would further bolster the demand for critical power and cooling solutions during the forecast period.

The increasing need for power generation and data storage in Asia-Pacific is expected to further drive the market for critical power and cooling solutions during the forecast period on account of high industrial growth rate and increasing awareness towards the need for backup power and cooling solutions to ensure protection against hardware damage, data loss and downtime. Additionally, rising need for power in various end-use segments such as power plants, facilities, hospitals, banking, financial services and institutions is expected to further spike the demand for critical power and cooling solutions during the forecast period.

The implementation of stringent government policies, widespread adoption of cloud-based technologies and mobility solutions and the increasing growth of various end-use segments such as IT and telecommunication, retail and healthcare, and data centers in Asia-Pacific and North America is expected to further drive the demand for critical power and cooling solutions during the forecast period.

Growth Restraints

Some of the major factors hindering the growth of the global market for critical power and cooling solutions include high investment costs and environmental and health issues associated with the installation of critical power and cooling solutions. Diesel is used as a fuel in generators that emits greenhouse gases that may cause severe health issues; however, most of the countries such as China, India and the U.S. are increasingly focusing on reducing the carbon emission levels by encouraging the use of alternative sources such as gas generators and hybrid generators. Additionally, major companies are investing heavily on R&D activities to develop innovative solutions in the market that would improve the efficiency and performance of such systems thereby reducing the emission levels. This is expected to reduce their impact on the global market for critical power and cooling solutions during the forecast period.

Additionally, the high levels of energy and water consumption by the cooling equipment is expected to hinder the growth of global critical power and cooling solutions market during the forecast period.

Competitive Landscape

Some of the key players in the global market for critical power and cooling solutions include ABB Ltd, Schneider Electric, Daikin Industries, Ltd., Eaton Corporation plc, General Electric Company, Socomec group, Johnson Controls International Plc, Riello Elettronica Group, Nortek, Inc., STULZ Gmbh and Xiamen Kehua Hengsheng Co., Ltd.

Scope for Customization

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• Period of Analysis – Increase in the study period, including historic and forecast years
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