Data Center Refrigerant Market Analysis

Refrigerant (HFCs, HFOs)

HFCs segment is set to hold more than 59.8% data center refrigerant market share by 2037. Despite being scrutinized for their impact on global warming, the continuation of legacy systems has driven steady growth in this segment. Rapid adoption to an extent and high cooling efficiency have made HFCs the first choice for data centers. However, the high GWP is forcing suppliers to upgrade the formulation and cooling systems to make them less harmful. New energy and cost-efficient reagents are being utilized to deliver similar performance as conventional HFCs. The transition is expected to change the shape of the market significantly in upcoming years.

Data Center (Enterprise, Colocation, Cloud, Hyperscale)

In terms of data centers, the enterprise segment in the data center refrigerant market is expected to show remarkable growth by the end of 2037. The increasing need for optimized and cost-effective management of large-scale data is fostering greater investment opportunities in this segment. Enterprises are flexible to participate in the transition towards low-GWP cooling technologies. This further inspires the industry to invest in research and development of eco-friendly solutions. Enterprises are now partnering with tech companies to install cooling systems for their data center. For instance, in June 2024, Hewlett Packard Enterprise partnered with Danfoss to develop modular data centers.

Our in-depth analysis of the data center refrigerant market includes the following segments:

Refrigerant	HFCs R-134A R-404A HFOs Others
Data Center	Enterprise Colocation Cloud Hyperscale
Cooling	Air cooling Liquid cooling Free cooling
Application	IT cooling system Facility cooling system
End use	BFSI IT and Telecom Government and Defence Healthcare Energy Manufacturing Retail Others

Frequently Asked Questions (FAQ)

In the year 2024, the industry size of the data center refrigerant market was over USD 656.4 million.

The market size for the data center refrigerant market is projected to reach USD 1.88 billion by the end of 2037 expanding at a CAGR of 9.2% during the forecast period i.e., between 2025-2037.

The major players in the market are 3M, Arkema, Asetek, Climalife, Daikin Industries, Dow, Honeywell International, M&I Materials, Orbia, The Chemours Company, and others.

In terms of Refrigerant, the medical disposables segment is anticipated to garner the largest market share of 59.8% by 2037 and display lucrative growth opportunities during 2025-2037.

The market in North America is projected to hold the largest market share of 37.1% by the end of 2037 and provide more business opportunities in the future.

Data Center Refrigerant Market Analysis