Computer Room Air Conditioning Market is expected to expand at a 12.49% CAGR, reaching USD 9.847 billion in 2031 from USD 4.859 billion in 2025.
Computer Room Air Conditioning (CRAC) units are equipment that track and regulate the temperature, air distribution, and humidity levels in a data center, network room, or server room. They are required due to the tremendous amounts of heat generated by computer equipment, which can damage electronics and result in system failures. Such air conditions are designed to offer better air filtration, controlling humidity systems, and higher airflow than standard AC systems. The ongoing establishment of data centers and technology advancements in CRAC systems emerged as a significant driving force behind the substantial growth of the computer room air condition industry.
Growing data center establishments bolsters the computer room air conditioning market growth.
Organizations expand their data center facilities to meet increasing data volume storage and managing requirements which has bolstered the need for efficient cooling solutions such as computer room air conditioning (CRAC) systems. These specific air conditioning systems are intended to regulate the humidity and temperature within data center environments, ensuring the reliability and performance of vital IT infrastructure. Due to increasing data center establishments, the computer room air conditioning market is growing rapidly. For instance, in April 2023, Colt Data Centre Services announced the opening of its fourth data center in Inzai, Japan. Colt DCS' Inzai 4 Data Centre is designed to fulfil the demands of large-scale cloud service providers as well as large enterprises that require expandable infrastructure.
Technological advancements in CRAC drive the computer room air conditioning market growth.
Ongoing developments in CRAC technology, such as the development of additional energy-efficient units, smart cooling management systems, and adaptive control mechanisms. These advanced technologies make an attractive option for data center operators to adopt computer room air conditioning systems which led to the significant growth of the CRAC industry. For instance, in December 2020, Kaltra introduced precision air conditioners with dual circuit systems that provide the highest thermal management reliability by connecting to independent cooling sources while also improving the system's reliability and flexibility.
Increasing heat density drives the computer room air conditioning market expansion.
Technological advancements have resulted in the installation of more powerful and extremely crowded servers in data centers. Increased heat density results in higher heat loads, which require advanced precision cooling to preserve optimal operating conditions and prevent machinery overheating. These factors are anticipated to increase the adoption of computer room air conditioning systems as they provide advanced cooling facilities in data centers thereby driving the overall computer room air conditioning market growth.
North America is expected to hold a significant market share.
North America is projected to account for a considerable share of the computer room air conditioning market owing to the regionβs robust growth in advanced cooling systems in data centers and technological advancements in CRAC systems. As CRAC systems provide advanced cooling facilities in data centers numerous governments are investing in these solutions to prevent machinery overheating which increases the adoption of computer room air conditioning systems. For instance, the U.S. Department of Energy announced a $42 million approval to develop high-performance cooling systems for data centers to overcome technological barriers related to the development of high-performance energy-effective cooling solutions for data centers.
High Maintenance costs and initial investments will restrain the market growth.
Installing computer room air conditioner units requires a significant initial investment, which presents a significant challenge for small and medium-sized businesses. Also, CRAC unit maintenance costs can be high, and regular maintenance is required to ensure optimal performance. These factors may restrain the adoption of computer room air conditioning systems which may hinder the CRAC industry growth.
Computer Room Air Conditioners (CRAC) Direct Expansion Systems- DX systems are extremely efficient and dependable low-noise scroll compressors. These systems are intended with the flexibility of a single or multi-stage compressor structure, including conjunction configurations for enhanced performance. Its incorporation of Micro Plate Heat Exchangers represents a significant advancement in heat transfer capabilities, contributing to increased overall efficiency.
iTeaQ CoolRow Precision Air Conditioner- The iTeaQ CoolRow Precision Air Conditioner offers high accuracy and outstanding energy efficiency performance, providing refrigeration as required. To collect important temperature data from equipment cabinets, iTeaQ CoolRow can be configured with up to 16 temperature sensors. CoolRow is capable of accurately determining the cooling capacity requirement based on the data collected. To correspond with the heating capacity of loads, the cooling capacity output can be adjusted from 20% to 100%.
Liebert DSE Free Cooling System- The Liebert DSE is a revolutionary pumped refrigerant economization system designed specifically for data centers, allowing for free cooling for a significant portion.
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 β 2031 |
| Companies |
|
Report Metric | Details |
Computer Room Air Conditioning Market Size in 2025 | USD 4.859 billion |
Computer Room Air Conditioning Market Size in 2030 | USD 8.905 billion |
Growth Rate | CAGR of 12.88% |
Study Period | 2020 to 2030 |
Historical Data | 2020 to 2023 |
Base Year | 2024 |
Forecast Period | 2025 β 2030 |
Forecast Unit (Value) | USD Billion |
Segmentation |
|
Geographical Segmentation | North America, South America, Europe, Middle East and Africa, Asia Pacific |
List of Major Companies in the Computer Room Air Conditioning Market |
|
Customization Scope | Free report customization with purchase |
Computer Room Air Conditioning Market Segmentation
By Cooling Type
Air-Cooling
Water Cooling
Glycol Mixture Cooling
By Power Output
Up to 50 kW
50 to 100 kW
Greater than 100 kW
By Enterprise Size
Small & Medium Enterprise (SMEs)
Large Enterprise
By Application
Data Centers
Server & Network Room
By Geography
North America
USA
Canada
Mexico
South America
Brazil
Argentina
Others
Europe
Germany
France
United Kingdom
Spain
Others
Middle East and Africa
Saudi Arabia
UAE
Others
Asia Pacific
China
India
Japan
South Korea
Indonesia
Thailand
Others
Page last updated on: September 12, 2025