Industry Report

CDU market size to grow at a CAGR of 19 percent until 2030

CDU

Coolant Distribution Units (CDU) are essential for controlling and distributing coolant to maintain ideal temperatures and guarantee the effective operation of servers, equipment, and electronic components.

Effective cooling systems are critical as data centres grow internationally to accommodate the growing demand for cloud computing, artificial intelligence, and big data analytics. Furthermore, advances in CDU technology are being driven by the increased emphasis on sustainability and energy efficiency, which is fuelling market expansion.

The growing usage of cutting-edge cooling systems in data centres, industrial applications, and high-performance computing settings is driving a substantial development in the market for Coolant Distribution Units. To maintain ideal temperatures and guarantee the effective operation of servers, equipment, and electronic components, CDUs are essential for controlling and distributing coolant.

Trends and growth of the CDU market

Because rack-based CDUs can effectively control the thermal load of high-density data centres, they play a key role in propelling the growth of the Coolant Distribution Units market. These units are intended to maximize cooling right at the rack level, guaranteeing efficient server heat dissipation. Rack-based CDUs are essential as data centres adapt to meet growing computing needs because they provide accurate and localised cooling solutions. By lowering total energy consumption and improving cooling efficiency, their adoption also lowers operating expenses. There is a notable increase in demand for CDUs in the market due to the increasing dependence on rack-based units.

The market for Coolant Distribution Units is expanding due to rack-based CDUs, which provide a scalable and effective way to control heat in contemporary data centres. The requirement for targeted cooling at the rack level grows as data centres get smaller and consume more electricity. Rack-based CDUs improve performance and energy efficiency by enabling targeted cooling, which addresses the heat load exactly where it is created. This focused strategy accelerates the adoption of CDUs by extending the life and dependability of servers while also supporting the industry’s drive for more environmentally friendly and sustainably run data centers.

The global Coolant Distribution Units market was valued at USD 1131 million in 2023 and is anticipated to reach USD 4162 million by 2030, witnessing a CAGR of 19 percent during the forecast period 2024-2030, reports Valuates. One major driver propelling the Coolant Distribution Units (CDU) industry is the Internet’s exponential expansion. Data centres are facing growing strain to manage enormous volumes of data traffic as the Internet keeps growing due to the growth of data-intensive services like streaming, cloud computing, and online gaming.

Digitisation and liquid cooling

Data centres are producing more heat as a result of the increase in data processing and storage requirements, which calls for the need of cooling systems like CDUs. The continuous expansion of the Internet drives the CDU market ahead by creating a demand for dependable and effective cooling systems to ensure ideal operating conditions in these facilities.

The market for Coolant Distribution Units is primarily driven by the increase in data centre building around the world. Globally, new data centers are being built as a result of the rising digitisation of sectors and the resulting exponential growth in demand for data processing and storage capacities. These buildings, which can house hundreds of servers, produce a lot of heat and hence require effective cooling systems. To maintain data centres operating within ideal temperature ranges, they are essential for controlling the thermal load in these high-density settings. The need for CDUs is being driven up by the continuous construction of data center infrastructure, especially in North America, Asia-Pacific, and Europe.

The CDU industry is mostly being driven by the growing usage of liquid cooling systems in data centers. Conventional air-cooling techniques are frequently inadequate to efficiently control the heat load in data centers as they grow more power-dense. Using coolant distribution units in conjunction with liquid cooling offers a more effective and efficient way to remove heat from high-performance servers. This approach is very useful in settings where computing demands are quite high, like AI and machine learning applications. The need for improved thermal management is driving data centers to switch to liquid cooling, which is driving up demand for CDUs.

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