South Korea Data Center Cooling Market Size (2024 - 2029)

The South Korea data center cooling market is experiencing growth driven by the increasing demand for cloud computing among small and medium-sized enterprises, government regulations for local data security, and rising investments by domestic players. The market's capacity is expected to expand significantly, with a notable increase in the construction of raised floor areas and the installation of racks, particularly in Greater Seoul. Additionally, the development of submarine cable systems is enhancing connectivity, further supporting the market's expansion.

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Market Size of South Korea Data Center Cooling Industry

South Korea Data Center Cooling Market Summary
Study Period 2019 - 2030
Base Year For Estimation 2023
Forecast Data Period 2024 - 2030
Historical Data Period 2019 - 2022
CAGR (2024 - 2030) 8.40 %
Market Concentration Medium

Major Players

South Korea Data Center Cooling Market Major Players

*Disclaimer: Major Players sorted in no particular order

South Korea Data Center Cooling Market Analysis

The South Korea Data Center Cooling Market is expected to register a CAGR of 8.40% during the forecast period.

The South Korean data center rack market reached a value of USD 350.4 million in the previous year, and it is further projected to register a CAGR of 8.4% during the forecast period. '

  • The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in the country/region.
  •  The upcoming IT load capacity of the South Korea data center market is expected to reach 2K MW by 2029. The country's construction of raised floor area is expected to increase to 5 million sq. ft by 2029. The country's total number of racks to be installed is expected to reach 270K units by 2029. Greater Seoul is expected to house the maximum number of racks by 2029. Throughout the year, temperatures typically fluctuate between 21°F and 85°F, rarely dropping below 11°F or above 91°F. Depending upon climatic conditions, the DC cooling is processed in the DC facilities.
  •  There are close to 10 submarine cable systems connecting South Korea, and many are under construction. One such submarine cable that is estimated to start service in 2023 is Southeast Asia-Japan Cable 2 (SJC2), which stretches over 10,500 Kilometers with landing points from Geoje, South Korea

South Korea Data Center Cooling Industry Segmentation

Data center cooling is a set of techniques and technologies to maintain optimal operating temperatures in data center environments. Data center cooling is critical as data center facilities house many computer servers and network equipments that generate heat during operation. Efficient cooling systems are used to dissipate this heat and prevent equipment from overheating, ensuring continued reliable operation of the data center. Various methods, such as air conditioning, liquid cooling, and hot/cold aisle containment, are commonly used to control temperature and humidity in data centers.

The South Korea data center cooling market is segmented by cooling technology type (air-based cooling, liquid-based cooling, and evaporative cooling) and by end-user (IT & telecommunication, BFSI, government, media & entertainment, and other end-users).

The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

Cooling Technology
Air-based Cooling
Liquid-based Cooling
Evaporative Cooling
End-User
IT & Telecommunication
BFSI
Government
Media & Entertainment
Other End-Users
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South Korea Data Center Cooling Market Size Summary

The South Korean data center cooling market is experiencing significant growth, driven by the increasing demand for cloud computing, government regulations on data security, and substantial investments by domestic players. The market is characterized by the adoption of advanced cooling technologies, such as liquid cooling, which offers superior heat transfer properties and energy efficiency compared to traditional air cooling systems. This shift is supported by the country's robust ICT industry, which contributes significantly to the national GDP and is bolstered by initiatives like the 5G Plus strategy and the Digital New Deal. These developments are expected to enhance the digital economy and increase the demand for data center infrastructure, including cooling solutions.

The competitive landscape of the South Korean data center cooling market is dominated by major players like Stulz GmbH, Schneider Electric SE, and Vertiv Group Corp., among others. These companies are at the forefront of integrating sustainable practices into their products, such as using environmentally friendly refrigerants. Recent advancements include KT Cloud's adoption of immersion cooling technology and Intel's investment in research for liquid and immersion cooling technologies, highlighting the industry's focus on sustainability and efficiency. As the e-commerce sector continues to expand and online shopping trends grow, the demand for data centers and associated cooling equipment is expected to rise, further driving market growth.

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South Korea Data Center Cooling Market Size - Table of Contents

  1. 1. Market Dynamics

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Increasing Volume of Digital Data

      2. 1.2.2 Emergence of Green Data Centers

    3. 1.3 Market Restraints

      1. 1.3.1 Costs, Adaptability Requirements, and Power Outages

    4. 1.4 Value Chain / Supply Chain Analysis

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Threat of New Entrants

      2. 1.5.2 Bargaining Power of Buyers/Consumers

      3. 1.5.3 Bargaining Power of Suppliers

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Assessment of COVID-19 Impact

  2. 2. MARKET SEGMENTATION

    1. 2.1 Cooling Technology

      1. 2.1.1 Air-based Cooling

      2. 2.1.2 Liquid-based Cooling

      3. 2.1.3 Evaporative Cooling

    2. 2.2 End-User

      1. 2.2.1 IT & Telecommunication

      2. 2.2.2 BFSI

      3. 2.2.3 Government

      4. 2.2.4 Media & Entertainment

      5. 2.2.5 Other End-Users

South Korea Data Center Cooling Market Size FAQs

The South Korea Data Center Cooling Market is projected to register a CAGR of 8.40% during the forecast period (2024-2030)

Stulz GmbH, Schneider Electric SE, Vertiv Group Corp., Rittal GmbH & Co. KG and Iceotope Technologies Limited are the major companies operating in the South Korea Data Center Cooling Market.

South Korea Data Center Cooling Market Report Snapshots

South Korea Data Center Cooling Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2030)