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Sustainability Initiatives to Drive Data Center Physical Infrastructure to $31 Billion in 2026, According to Dell’Oro Group

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Data Center Liquid Cooling to Exceed $1 Billion in Market Revenues by 2026

REDWOOD CITY, Calif., Aug. 4, 2022 /PRNewswire/ — According to a recently published report from Dell’Oro Group, the trusted source for market information about the telecommunications, networks, and data center industries, data center physical infrastructure (DCPI) revenues are forecast to grow at an 8 percent compound annual growth rate (CAGR) from 2021 to 2026, to above $31 billion. Growth is forecast to remain resilient, driven by sustainability-minded data center expansion from cloud and colocation service providers, despite near-term supply chain constraints persisting and macroeconomic headwinds forming.

“Demand for data center physical infrastructure remains resilient, despite the developing macroeconomic uncertainties,” said Lucas Beran, Principal Analyst at Dell’Oro Group. “Most importantly, data center sustainability has risen to the top of decision making criteria in the industry, opening the door for significant technology transitions during this forecast period. The most exciting is the acceleration of data center liquid cooling, as both direct liquid cooling (DLC) and immersion cooling (single-phase and two-phase) are forecast to grow significantly and surpass $1 billion in market revenue by 2026,” added Beran.

Additional highlights from the Data Center Physical Infrastructure 5-Year July 2022 Report:

  • DCPI revenue growth is forecast to slow to 6 percent in 2023, driven by continued cloud and colocation service provider growth and marginal enterprise growth.
  • China is forecast to grow at the fastest CAGR during the forecast period, followed by APAC (Excluding China) and EMEA.
  • Data Center Thermal Management is forecast to grow the fastest rate of any market segment during the forecast period, surpassing $6 B in vendor revenues in 2026.
  • The Service Providers (Top 10 Cloud, Rest-of-Cloud, Colocation, and Telco) customer segment is forecast to grow at a double-digit CAGR during the forecast period, while the Enterprise customer segment (Large Enterprise, Rest-of-Enterprise) is forecast to grow at a much lower rate.

About the Report

Dell’Oro Group’s Data Center Physical Infrastructure 5-Year Forecast Report offers complete, in-depth coverage of the data center physical infrastructure market. This covers market sizes and forecasts for uninterruptible power supplies (UPS), thermal management, cabinet power distribution and busway, rack power distribution, IT racks and containment, and software and services. Additional product level detail is provided for each market segment. Allocation of manufacturing revenues by cloud service providers, telco, colocation, and enterprise customer segments is also provided. For more information about the report, please contact us at [email protected].

Dell’Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications and enterprise networks, data center infrastructure, and network security markets. Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions. For more information, contact Dell’Oro Group at +1.650.622.9400 or visit www.delloro.com.

SOURCE Dell’Oro Group

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