Liquid Cooling Systems Global Market Report 2024

The liquid cooling systems market size has grown exponentially in recent years. It will grow from $5.06 billion in 2023 to $6.08 billion in 2024 at a compound annual growth rate (CAGR) of 20.1%. The expansion observed in the historical period can be attributed to robust economic growth in emerging markets, the burgeoning manufacturing industry, an increased demand for electric vehicles, and a rise in the need for high-performance computing (HPC) systems.

The liquid cooling systems market size is expected to see exponential growth in the next few years. It will grow to $12.86 billion in 2028 at a compound annual growth rate (CAGR) of 20.6%. The anticipated growth in the forecast period can be attributed to the emergence of new data centers, increased demand among smartphone manufacturers, government initiatives, and the ongoing trend of rising urbanization. Key trends expected in the forecast period involve a focus on direct water-cooling technology, the utilization of 3D technology, emphasis on self-contained liquid cooling systems, and a concentration on product launches, strategic partnerships, and collaborations.

The growth of the liquid cooling systems market is significantly bolstered by the emergence of new data centers, a key driver expected to fuel market expansion in the forecast period. With the continual rise in digital transformation and the demand for cloud computing services, data centers play a pivotal role in managing vast amounts of data. However, the substantial heat generated by high-performance servers and networking equipment necessitates efficient cooling solutions. Liquid cooling systems prove instrumental in handling high-power densities and providing superior heat dissipation. According to McKinsey, a global management consulting firm, data center power consumption in the USA is projected to grow by 10% annually until 2030, with an expected demand reaching 35 gigawatts by 2030, up from 17 GW in 2022. Thus, the ongoing establishment of new data centers is poised to be a driving force behind the growth of the liquid cooling systems market.

The increasing demand for liquid cooling systems among smartphone manufacturers for thermal management is anticipated to be a significant contributor to the market's growth in the forecast period. As smartphones become more powerful, they generate higher heat levels during resource-intensive tasks such as gaming and video streaming. Liquid cooling systems offer efficient heat dissipation and precise temperature control, crucial for managing the heat generated by advanced processors and GPUs in smartphones. With over 6.5 billion smartphones globally and an expected increase in the coming years, the demand for liquid cooling systems is on the rise. According to Uswitch, a UK-based comparison service, there were 71.8 million mobile connections in the UK at the beginning of 2022, a 3.8% increase from 2021. Predictions indicate that by 2025, approximately 95% of the UK population (around 65 million people) will use smartphones. Hence, the escalating demand for liquid cooling systems in smartphones is poised to propel the growth of the market.

Technological advancements represent a notable trend in the liquid cooling systems market, with major players continually developing innovative technologies to maintain their market positions. In February 2022, Honeywell, a US-based technology company, introduced Solstice E-Cooling, a groundbreaking platform of liquid heat transfer agents designed for efficient cooling of high-performance electronics. This technology employs a two-phase liquid cooling approach, offering more uniform and energy-efficient cooling, enhanced heat rejection, and reduced pumping power compared to conventional methods using air and water.

Innovative technologies such as 3D technology are becoming a focal point for companies in the liquid cooling systems market, aimed at strengthening their market presence. This technology enhances the production of more efficient cooling modules through contoured, graduated inlets, and innovative designs, resulting in improved heat dissipation and performance. In July 2022, Infinix, a China-based smartphone company, launched its 3D Vapor Cloud Chamber (3D VCC) Liquid Cooling Technology, utilizing innovative design for enhanced chamber volume and improved heat dissipation, addressing challenges caused by high temperatures in high-integration and high-power smartphones.

In October 2021, Bregal Unternehmerkapital, a Germany-based private equity firm, acquired Laird Thermal Systems, a US-based company specializing in temperature controllers and liquid cooling systems. This acquisition is expected to support Laird Thermal Systems in geographical expansion, entry into new market segments, and the introduction of product innovations.

Major companies operating in the liquid cooling systems market report are Schneider Electric SE, Vertiv Holdings Co, Rittal GmbH & Co KG, Emerson Electric Co., Boyd Corporation,Asetek Inc., CoolIT Systems, Green Revolution Cooling Inc., Iceotope Technologies Limited, LiquidCool Solutions, Inc., Fujitsu, Antec Inc., Prime ABGB, Vedant Computers, EK Water Blocks, Thermaltake Technology Co., Ltd., FormulaMod, Bykski, ID-Cooling, Barrowch,Colorful Technology Company Limited, Stulz GmbH, XSPC, Phobya, Alphacool International GmbH, Laird Thermal Systems, DCX Liquid Cooling Systems, Kelvion, Baltimore Aircoil Company, RSC Group, Silent-Aire, AAON Inc., BasX, Corsair, NZXT, Swiftech, EVGA, Ascenty, ODATA, Terabyte, ChipArt, ACECO TI, UOL Diveo S.A., Saudi Fan Industries, Daxtech IT Solutions, Emitac Data Systems, Prologix Distribution, Arabian Thermal Aire Industries Co. Ltd., Gulf Data Hub, Liquidstack, Submer.

North America was the largest region in the liquid cooling systems market in 2023. The regions covered in the liquid cooling systems market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the liquid cooling systems market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The primary types of liquid cooling systems include liquid heat exchanger systems and compressor-based systems. A liquid heat exchanger serves as a device that transfers heat from one source to another using a working fluid. The main components of these systems are solutions and services, catering to various industries such as BFSI, manufacturing, IT and telecom, automotive, retail, government and defense, healthcare, energy, and others.

The liquid cooling systems market research report is one of a series of new reports that provides liquid cooling systems market statistics, including liquid cooling systems industry global market size, regional shares, competitors with a liquid cooling systems market share, detailed liquid cooling systems market segments, market trends and opportunities, and any further data you may need to thrive in the liquid cooling systems industry. This liquid cooling systems market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The liquid cooling systems market consists of revenues earned by entities by providing services such as temperature control, variable flow control, bypass control. The market value includes the value of related goods sold by the service provider or included within the service offering. The liquid cooling system market also includes sales of Water, deionized water, glycol/water solutions, and dielectric fluids which are used in providing liquid cooling systems services. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.