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Boom in Datacentre Market to Fuel Expansion of Power and Cooling Systems, States Frost & Sullivan

Manufacturers focusing on innovative, energy-efficient solutions to gain the competitive edge

LONDON - 12 June, 2012 - There exists immense opportunity for both power and cooling systems in rapidly proliferating large datacentres across Europe. Already, uninterruptible power supply (UPS) and cooling markets are registering steady revenue growth. Ongoing challenges like price pressures are poised to be offset by the continuous demand for power and the increase in heat loads.

New analysis from Frost & Sullivan (http://www.powersupplies.frost.com), Analysis of Power and Cooling in the European Datacentre Market, finds that the total UPS segment in the datacentre market in Europe is estimated to rise from €730.0 million in 2010 to reach €1328.1 million by 2017. Over the same period, the total precision air conditioning system (PACS) market in Europe is set to expand from €313.6 million to €452.4 million.

"The escalating demand for power and intensifying heat loads in servers will drive the power and cooling market in datacentres," notes Frost & Sullivan Industry Analyst Gautham Gnanajothi. "The need for continuous power availability is becoming crucial even as the increase in high density servers in datacentres will result in tremendous heat loads, triggering the need for effective power and cooling systems."

Spiralling heat loads are becoming a major area of concern in the datacentre market. Heat build-up in electronic equipment causes a significant slowdown in performance and productivity. This is highlighting the importance of advanced, innovative and energy-efficient cooling mechanisms.

While such trends augur well for UPS and PACS suppliers, the growing price consciousness of datacentre customers is becoming a cause for concern. Greater price sensitivity is affecting the margins of PACS and UPS manufacturers. Intensifying competition and the lack of product differentiation also threaten market prospects.

Customers are wary of adopting PACs due to their high capital costs. Moreover, low customer awareness about the energy efficiencies offered by cooling solutions is impacting uptake.

"Tremendous effort is being expended to educate customers about how the usage of energy efficient cooling solutions can lower operational costs as well as the total cost of ownership," concludes Gnanajothi. "As demand surges, price, technical and supply support as well as product development will all emerge as key competitive differentiators."

If you are interested in more information on this study, please send an e-mail with your contact details to Chiara Carella, Corporate Communications, at chiara.carella@frost.com.

Analysis of Power and Cooling in the European Datacentre Market is part of the Power Supplies & Batteries Growth Partnership Service programme, which also includes research in the following markets: European UPS Market, Global Rotary UPS Market and European Modular UPS Market. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

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Analysis of Power and Cooling in the European Datacentre Market
M758-27

Contact:

Chiara Carella
Corporate Communications – Europe
P: +44 (0) 20 7343 8314
M: +44 (0) 753 3017689
E: chiara.carella@frost.com

http://www.frost.com

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