Data Center Environment Sensor Market Size, Forecast [2031]

Report Description

Data Center Environment Sensor Market Outlook

The Global Data Center Environment Sensor Market was estimated at USD 1,862.7 Mn in 2023 and is anticipated to reach USD 4,493.3 Mn by 2032, expanding at a CAGR of  10.5% during the forecast period. Humidity levels are carefully regulated in data centers.

High humidity can cause condensation, leading to corrosion and short-circuiting of sensitive electronic components. On the other hand, low humidity can result in static electricity buildup, which can damage the equipment. Environmental monitoring sensors monitor humidity levels and provide alerts if they deviate from the required range. This allows data center operators to implement humidifiers or dehumidifiers to maintain the appropriate humidity levels.

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Air quality monitoring is crucial in data centers to prevent the accumulation of dust, smoke, or other contaminants that harm sensitive equipment. Environmental monitoring systems often include air particle counters that continuously measure the number and size of particles in the air. If the particle count exceeds the acceptable limit, alerts are triggered, prompting data center operators to take actions such as improving air filtration systems or cleaning the facility to maintain a clean and safe environment

Macro-economic Factors

International Trade

The demand for data center environmental sensors is highly influenced by international trade. The demand for the internal components for these sensors, such as transistors, resistors, and others, is mostly from sourced from China and the US. These countries are the major exporters of the semiconductor components that are required for the manufacturing of data center environmental sensors.

Additionally, the international trade conflicts between the US and China have affected the supply of the major components. The supply of the components required for manufacturing these sensor modules was disrupted during COVID-19, which hampered the growth of the market in that period.

Hence, during the pandemic, even though the demand for data center environmental sensors was high, the supply of the same, in terms of volume, was not met according to the market demand. This increased the price of these sensors across the globe.

Data Center Environment Sensor Market Dynamics

Market Driver- Increasing Number of Data Centers

There are approximately 8,000 physical data centres globally, as of 2022. Each year, the number of data centers is increasing rapidly across the globe, as an increasing number of users are being connected to the Internet. These users receive and transmit large amounts of data, thus increasing the need for fast communication lines and data transmission technologies. The lines of communication need to always be available to pass the maximum amount of data per unit of time.

Hence, data centers and related technologies are constantly being developed and improved. Moreover, in 2021, Microsoft unveiled its plan to build 50 to 100 new Azure data centers across the globe each year.

Hence, with the rising number of data centers, the demand for its environmental sensors is projected to grow in the coming years, as these data centers comply with all the precautionary and safety standards required to maintain the machine functioning smoothly.

Market Driver- Surge in IT Spending

IT spending refers to the allocation of financial resources toward various IT-related activities, such as hardware, software, services, and infrastructure. Technological advancements play a significant role in determining IT spending. Businesses require to stay up to date with the latest tools and systems to remain competitive, as technology continues to evolve rapidly. This involves investing in new hardware, software, or cloud-based solutions.

For instance, the adoption of smart sensor technologies for data centers has become increasingly common in recent years. Organizations are allocating funds for purchasing, implementing, and maintaining the necessary IT infrastructure to integrate these technologies into their operations.

Moreover, many businesses and organizations are looking to modernize their IT infrastructure in order to improve performance, security, and compliance. This is driving the demand for new IT hardware, including data center environment sensors.

Market Restraint- Accuracy Issues with Data Center Sensors

Accuracy is one of the major issues faced by data center sensors. These sensors are designed to measure and collect data on various parameters such as temperature, humidity, airflow, and power consumption. However, they sometimes fail to provide accurate readings, due to environmental factors, sensor placement, and calibration issues. Miscalibration of these sensors is the common reason for inaccurate readings.

Over time, sensors drift from their original calibration settings, resulting in inaccurate readings. Regular calibration and maintenance of sensors are necessary to minimize these accuracy issues. Additionally, data center operators are advised to consider the calibration requirements of different sensors and ensure that they are properly calibrated before deployment. Failure to address calibration issues leads to unreliable data, compromising decision-making processes, and potentially impacting the performance & efficiency of the data center.

Market Opportunity- Rising Investments in Data Centers

Data centers are crucial facilities that house computer systems and other related components. They are essential for the storage, management, and dissemination of data. The demand for data centers increases significantly, as technology continues to advance rapidly. This has led to an increase in investments in data center facilities that aim to meet the growing needs of businesses and individuals.

For instance, in 2021, around 209 data center deals were valued at USD 48 billion, which increased by 40% over 2020, whereas the acquisitions were worth USD 34 billion. In the first quarter of 2022, around 24 billion in investment was reached related to the data centers.

Further, in 2020, India attracted investment of around USD 396 million for the data center establishment from strategic & private equity firms. Rising investment in the data center has created a massive demand for the growth of the data center environmental sensor market for providing energy-efficient data centers.

Scope of Data Center Environment Sensor Market Report      

The report on the global Data Center Environment Sensor market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Data Center Environment Sensor Market Segmental Outlook

Based on type, the market is segmented into Humidity Sensors, Temperature Sensors, Pressure Sensors, Airflow Sensors, Smoke Detection, and Others. The temperature sensors segment is expected to hold a considerable share of the market during the forecast, owing to thermal management. Temperature monitoring is crucial for effective thermal management in data centers.

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On the basis of application, the market is fragmented into Atmospheric Detection, Water/Leak Detection, Dust Detection, Vibration Monitoring, and Others. The atmospheric detection segment holds a key share of the market, as an optimal atmosphere is required to operate data centers effectively.

In terms of end-user, the market is classified as IT & Telecom, Healthcare, Energy & Utilities, Manufacturing, Government, and Others. The IT & telecom segment is anticipated to expand at a significant CAGR during the forecast period. Demand for efficient temperature sensors in the IT & telecom sector has increased significantly, due to the rising operating expenses and severe environmental safety standards imposed by governments of various countries.

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Regional Outlook

Based on regions, the market is fragmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. North America accounted for a significant share of the market in 2022. Development and implementation of cutting-edge connected technologies in North America drive the market in the region.

The region has many technology giants such as Facebook, Amazon Inc., and Google Inc., who are leading the adoption of technology-based solutions. North America has a significant number of data centers, which are supported by several IT companies, creating opportunities in the data center environment sensor market in the region.

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Key Benefits for Industry Participants & Stakeholders

• In-depth Analysis of the Global Data Center Environment Sensor Market

• Historical, Current, and Projected Market Size in Terms of Value

• Potential & Niche Segments and Regions Exhibiting Promising Growth Covered

• Industry Drivers, Restraints, and Opportunities Covered in the Study

• Recent Industry Trends and Developments

• Competitive Landscape & Strategies of Key Players

• Neutral Perspective on Global Data Center Environment Sensor Market Performance