CRAC Market Size, Share & Industry Analysis, By Type (Air Cooled, Water Cooled, and Others), By Cooling Technology (Packaged DX, DX with Free Cooling, Water Loop DX, Close-Coupled DX, and Others), By End User (Colocation Data Centers, Hyperscale Cloud Data Centers, Edge Data Centers, AI/HPC Data Centers, and Others), and Regional Forecast, 2025-2032

The global CRAC market size was valued at USD 4.52 billion in 2024. The market is projected to grow from USD 5.03 billion in 2025 to USD 11.38 billion by 2032, exhibiting a CAGR of 12.4% during the forecast period. North America dominated the global market with a share of 35.39% in 2024.

The CRAC (Computer Room Air Conditioning) market pertains to specialized cooling systems developed to regulate the temperature and humidity in data centers and facilities containing sensitive electric equipment. CRAC units provide consistent environmental management, ensuring reliability while controlling overheating, while providing stability that is essential for IT hardware life and performance efficiency.

The market for CRAC is anticipated to grow due to several factors including the rapid development of data centers driven by cloud computing, IoT, and data analytics, increasing adoption of energy-efficient and advanced cooling technologies, growing demand for thermal management to achieve lower operational costs, and government initiatives to promote sustainability. The development of digitization and edge computing will contribute to the need for the further cooling solutions and assist the overall growth of the market.

The top firms in the industry are Airedale, Carrier, Daikin Applied, Delta Electronics, Fujitsu General, and Hitachi Cooling & Heating.

MARKET DYNAMICS

Market Drivers

Growing Data Center and IT Infrastructure Demand Drives Market Growth

The growth of the computer room air conditioning market is being driven by the increasing reliance on the digital infrastructure. The rise of IT enterprise systems, cloud computing, and artificial intelligence are few of the elements increasing the need for high-density data centers. Since data centers run 24/7 and generate a considerable amount of heat, maintaining proper levels of temperature and humidity is not only vital for short term platform reliability but is also a key driver for data center efficiency. Therefore, organizations are more likely investing in efficient energy CRAC units that support reliability, reduced potential hardware failures, as well as address rising computational loads.

Market Restraints

High Initial Investment and Maintenance Costs Hinder Growth

The CRAC market growth is significantly restrained by large initial investments and continual maintenance costs of these systems. The up-front capital expenditure for computer room air conditioner units includes the cost of equipment, installation, and infrastructure improvements. These cots often deter smaller or mid-sized data centers from deploying CRAC systems. Furthermore, the energy efficient operation and ongoing servicing and replacement of components will increase ongoing operating costs. The financial burden limits the depth of market penetration for CRAC systems and usage in cost sensitive regions. For this reason, many organizations opt for alternative or hybrid cooling systems that require less initial capital or ongoing expenses.

Market Opportunities

Expansion in Emerging Economies Drive Growth, Creating Opportunities

Countries with emerging economies are playing a critical role in driving growth in the CRAC market. Increased digitalization, an increase in cloud computing and data-driven operations, and higher capital investments in IT infrastructure are leading to demand for properly engineered cooling solutions for data and server rooms. Manufacturers seek to expand their presence in these fast growing areas, spurred on by governmental initiatives that support digital transformation and the increasing number of hyper scale data centers. These advancements create attractive business opportunities for CRAC providers to introduce new, energy efficient systems that meet the environmental and operational needs of rapidly expanding IT networks in the emerging economy.

CRAC MARKET TRENDS

Shift toward Energy-Efficient CRAC Systems Emerges as a Major Market Trend

The computer room air conditioning market is undergoing a strong transition to energy-efficient systems to help meet the growing demand for sustainable and cost-effective cooling methods in data center environments. With the increased usage of digital infrastructure in organizations, adding to the demand for cooling, improving energy usage has rapidly become a priority. Newer models of CRAC are utilizing the most advanced technologies including variable-speed fans, smart temperature sensors, and high-precision airflow management to minimize wasted energy. This transition from older models to newer, highly advanced CRAC systems can reduce operational cost for data centers as well as support global sustainability benchmarks. Subsequently, manufacturers are also investing in the design of green data center cooling solutions that provide higher performance while reducing energy consumption.

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SEGMENTATION ANALYSIS

By Type

Lower Installation Costs Boosts Air Cooled Segment Growth

Based on the type, the market is segmented into air cooled, water cooled, and others.

The air cooled segment held the largest revenue share of USD 2.91 billion in the overall global market in the year 2024. The increase in revenue is driven by their simpler design, lower installation costs, and suitability for medium-sized data centers. They are widely preferred where water availability or infrastructure for water-cooled systems is limited.

Of all the segments, water cooled CRAC systems holds the highest CAGR of 13.5% in the global market. The growth is mainly because they offer higher energy efficiency and superior cooling performance for large-scale and high-density data centers. Rising adoption is driven by sustainability initiatives and stricter energy efficiency standards.

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By Cooling Technology

Packaged DX Segment Dominates Market Owing to Integrated Solution Suitable for Most Data Center Layouts

Based on cooling technology, the market is divided into packaged DX, DX with free cooling, water loop DX, close-coupled DX, and others.

The packaged DX segment dominates with a market share of USD 1.78 billion. The segment continues to generate the major revenue as it provides a compact, integrated solution suitable for most data center layouts, balancing cost and performance.

Close-coupled DX systems are experiencing rapid growth with the CAGR of 13.5% in the global market. The segment’s growth is mainly because they reduce airflow losses and improve cooling efficiency by placing the CRAC unit close to heat-generating equipment. This is critical for high-density IT environments.

By End User

High Operational Budgets Augments the Hyperscale Cloud Data Centers Segment Growth

Based on the end user, the market is divided into colocation data centers, hyperscale cloud data centers, edge data centers, AI/HPC data centers, and others.

The hyperscale cloud data centers segment accounted for the largest market share at USD 1.49 billion in 2024. The growth is due to their enormous cooling requirements, high operational budgets, and demand for continuous uptime, making efficient CRAC systems essential.

Edge data centers represent the largest CAGR at 14.1% in the global market. This growth is because of the necessity for edge data center cooling technologies to support increasing IoT, 5G, and latency-sensitive applications that rely on localized and efficient cooling in smaller, distributed facilities.

CRAC MARKET REGIONAL OUTLOOK

Geographically the market is segmented into North America, Europe, Asia Pacific, South America and Middle East & Africa.

North America

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North America leads with the highest CRAC market share globally. The region’s market size was valued at USD 1.44 billion and USD 1.60 billion in 2023 and 2024 respectively. The region is growing due to well-established IT infrastructure, high adoption of hyperscale data centers, and strong focus on energy-efficient cooling solutions.

The U.S. is at the forefront of the North American market, with expected revenue of USD 1.46 billion in 2025. The growth of the country is attributable to exponential growth of data centers, AI, and cloud computing.

Europe

The European market is substantially growing and is likely to contribute to a revenue share of USD 1.32 billion in 2025. The region’s growth is attributable to the shift from traditional CRAC units to more advanced liquid cooling solutions, driven by the high heat output from AI and hyperscale data centers. The U.K., Germany and Italy are some of the leading contributors to the growth in the market, with the required revenue stake of USD 0.23 billion, USD 0.32 billion and USD 0.13 billion respectively by 2025.

Asia Pacific

Asia Pacific is expected to have the highest CAGR of 14.8%, solidifying the market as the fastest growing. The Asia Pacific market share was valued at USD 1.11 billion in 2024. The growth of these regions is attributable to rapid digitalization, expansion of cloud services, and government initiatives supporting IT infrastructure growth in emerging economies.

India and China are major contributors to the market growth with an expected revenue share of USD 0.21 billion, and USD 0.45 billion respectively by 2025.

South America and Middle East & Africa

The markets of South America and Middle East & Africa are growing with an expected share of USD 0.34 billion and USD 0.49 billion respectively in 2025 due to significant investments in data centers and rise in digital transformation initiatives. GCC countries are predicted to have a market share of USD 0.29 billion by 2025.

COMPETITIVE LANDSCAPE

Key Industry Players

Key Players Focus on Expanding Product Portfolios to Remain Competitive

The key players in CRAC market include Airedale, Carrier, Daikin Applied, Delta Electronics, Fujitsu General, and Hitachi Cooling & Heating. These companies focus on strategies centered on energy efficiency, advanced technologies, and sustainability to meet the increasing demands from hyperscale data centers, AI, and cloud computing. Other strategies include expanding product portfolios, offering integrated solutions, and strengthening customer support to remain competitive.

LIST OF KEY CRAC COMPANIES PROFILED

• Airedale (U.S.)
• Carrier (U.S.)
• Daikin Applied (U.S.)
• Delta Electronics (Taiwan)
• Fujitsu General (U.S.)
• Hitachi Cooling & Heating (Japan)
• Huawei Technologies (China)
• Johnson Controls (U.S.)
• Mitsubishi Electric (Japan)
• Rittal (Germany)
• Schneider Electric (France)
• STULZ (Germany)
• Trane Technologies (Ireland)
• Vertiv (U.S.)

KEY INDUSTRY DEVELOPMENTS

• September 2025- Modine, a diversified global leader in thermal management technology and solutions, announced the launch of its updated range of Computer Room Air Conditioners (CRAC) and Air Handlers (CRAH) for North American edge data centers, under its Airedale by Modine™ brand. This new offering addresses the growing demand for compact, flexible, and environmentally responsible cooling solutions tailored to the unique challenges of edge and small data facilities.
• September 2025- Flex, a global manufacturing leader and innovator in data center infrastructure solutions, announced the launch of its new Modular Rack-Level Cooling Distribution Unit (CDU), as the latest addition to its expanding cooling portfolio. Developed by JetCool, a Flex company specializing in advanced liquid cooling technologies, this launch of a modular cooling system marks the first step in Flex's broader market coverage strategy for cooling distribution units, with a dedicated in-row cooling technology scheduled for release in April 2026.
• August 2025- HVAC firm Trane Technologies launched a new data center air cooling unit. The company recently announced the expansion of its thermal management system portfolio for data centers with a new Computer Room Air Handler (CRAH) offering. The cooling unit helps maintain optimal air circulation and temperature levels for servers and other electronic equipment. It can support 50kW to 300kW to support varied density zones.
• August 2025- Trane Technologies, a USD 96 billion market cap leader in building products with over USD 20.7 billion in annual revenue, announced the launch of its BrainBox AI Lab, focused on advancing energy optimization technologies for heating, ventilation, and air conditioning (HVAC) systems in buildings and refrigerated transport.
• February 2025- Carrier Global Corporation, global leader in intelligent climate and energy solutions, announced that its venture group, Carrier Ventures, is leading an investment and technology partnership with ZutaCore®, a disruptive innovator of two-phase direct-to-chip liquid cooling technology for data centers. This investment aligns with Carrier's strategy of providing high-tech, integrated cooling solutions to meet the critical cooling needs of data center customers.
• November 2024- Vertiv and Compass have partnered on a system that can switch from air to liquid cooling. The companies announced a partnership to develop a “first-of-its-kind” cooling solution with the ability to flex between air and liquid cooling to support high-density computing.
• May 2024- The Australian unit of Stulz acquired the UPS and computer room air conditioning (CRAC) service division of Melbourne-based Fusion Energy Group, for the distribution and servicing of UPS systems.
• May 2023- Vertiv announced the launch of the Vertiv™ Liebert® PKDX, the largest single direct expansion thermal management unit designed for data centers. The units include intelligent controls, rack sensors, and central optimizing system control to enable data centre thermal management optimization. The Liebert® PKDX is available now throughout India.

REPORT COVERAGE

The global report provides a detailed analysis of the market and focuses on key aspects such as prominent companies, deployment modes, types, and end users of the product. Besides this, it offers insights into the CRAC market trends and highlights key industry developments and market share analysis for key companies. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market over recent years.

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Report Scope & Segmentation