Liquid Cooling Systems Market Report and Forecast 2025-2034

The global liquid cooling systems market is expected to grow by USD 6.73 Billion at a CAGR of 10.00% during the forecast period of 2025-2034. The market is further to reach a value of USD 17.46 Billion in 2034.

Liquid Cooling Systems Market Growth

With the rapid technological advancements, smartphone manufacturers are transforming the products into pocket-fitting mini-computers. The increased penetration of the Internet of Things (IoT) and the rapid development of artificial intelligence (AI) technology are driving the growth of the liquid cooling systems market. Numerous industrial verticals such as food and drinks, healthcare, data centres, and telecommunications require control over liquid media for industrial activities within a specified temperature range, which is aiding the market growth.

Liquid Cooling Systems Market Trends

With the increasing penetration of smartphones, especially in emerging economies, the demand for thermal management has increased, leading to increased incorporation of liquid cooling alternatives in smartphones, which is driving the market growth. Also, the increasing worries about thermal management in engineering applications such as nuclear reactors, industrial heat exchangers, micro equipment, and others, is a key trend in liquid cooling systems market where liquid cooling systems can play a crucial role. Further, a strategic collaboration by major players with technological giants, healthcare industries, and data centres to provide customisable solutions to the consumers is further aiding the market for liquid cooling systems globally.

Recent Developments

As per the liquid cooling system market dynamics and trends, Microsoft announced that it is adopting direct-to-chip liquid cooling technology in July 2024. The company is also developing a new generation of data center designs for direct-to-chip cooling.

Industry Outlook

According to United States International Trade Commission, the United States leads the number of data centre, globally, with 33%, driven by its tech giants and robust infrastructure. As per the liquid cooling systems industry analysis, the UK follows with 6%, reflecting its status as a European tech hub with advanced digital infrastructure.

China and Germany each hold 5%, with China's rapid technological growth and Germany's strong industrial base contributing to their shares. Canada, Australia, France, Japan, and the Netherlands each have 3%, while Russia, Mexico, Brazil, and Italy each hold 2%, supported by their growing digital economies. The remaining 26% is distributed among other countries, indicating the global nature of data storage needs. This distribution highlights the economic and technological capabilities of these nations, with the US leading due to its infrastructure and demand for digital services and boosts the growth of the liquid cooling systems industry.

Meta Platforms (Facebook) owns the largest data center in the U.S., covering 4.6 million square feet in Prineville, Oregon, a city about 150 miles southeast of Portland. Northern Virginia is the largest data center market in the United States. This region includes Loudoun County (Ashburn, Sterling, Leesburg, Arcola), Prince William County (Manassas, Gainesville, Haymarket), and Fairfax County (Reston, Herndon, Chantilly, Vienna, McLean, Tysons), among others. The data centers in Northern Virginia are primarily powered by Dominion Energy, the largest electric utility in the area, with NOVEC (Northern Virginia Electric Cooperative) also being a significant power provider, which can further boost the liquid cooling systems industry revenue. Major cloud computing services operating in this region include Amazon Web Services (AWS), Microsoft Azure, Google Cloud, and Meta Platforms (Facebook).

Factors Contributing to the Growth of the Market Globally

• Increasing demand for efficient cooling solutions in expanding data centers.
• Growing adoption of HPC systems that generate substantial heat can aid liquid cooling systems demand growth.
• Rising concerns over energy efficiency and carbon emissions.
• Continuous improvements in liquid cooling technologies.
• Expansion of cryptocurrency mining operations requiring advanced cooling solutions.

Challenges Faced by Manufacturers in the Global Liquid Cooling Systems Market Share

• Significant upfront investment required for liquid cooling systems compared to traditional air cooling methods can affect liquid cooling systems demand forecast.
• Ensuring compatibility with existing IT infrastructure and equipment can be challenging.
• Managing the potential risks associated with liquid coolants, including leaks and spills.
• Intense competition from established air-cooling solutions and emerging alternative technologies.
• Meeting specific and diverse customer requirements for customized cooling solutions.

Key Growth Opportunities in the Global Liquid Cooling Systems Market

• Increasing construction of new data centers and upgrading existing facilities can boost liquid cooling systems market opportunities.
• Growing emphasis on energy efficiency and environmental sustainability.
• Growth of edge computing infrastructure needing advanced cooling solutions.
• Adoption of liquid cooling in electric vehicle manufacturing and battery cooling.
• Continuous innovation and development of more efficient and cost-effective liquid cooling solutions.

Liquid Cooling Systems Industry Segmentations

The liquid cooling systems industry is segmented on the basis of its product type, and end-use. Based on its product, the market can be divided into:

Market Breakup by Product Type

• Liquid Heat Exchanger Systems
• Compressor-based Systems (Recirculating Chillers)

Market Breakup by End Use

• Healthcare
• Analytical Equipment
• Industrial
• Data Centre
• Telecommunication
• Automotive
• Military

Market Breakup by Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa

Liquid Cooling Systems Market Regional Analysis

North America accounts for a major market share owing to the rapid electrification and urbanisation in the region which necessitates the demand for effective liquid cooling solutions. Growing research and developmental efforts in developing high-end liquid cooling system is also expected to contribute to the market growth.

Competitive Landscape

The report presents a detailed analysis of the following key players in the global liquid cooling systems industry, looking into their capacity, market shares, and latest developments like capacity expansions, plant turnarounds, and mergers and acquisitions:

• Laird Thermal Systems
• Boyd Corporation
• Rittal GmbH and Co. Kg.
• Asetek A/S (FRA: A31)
• Schneider Electric SE (EPA: SU)
• Green Revolution Cooling Inc.
• Midas Green Technologies LLC
• Others

The report gives an in-depth insight into the industry by providing a SWOT analysis as well as an analysis of Porter’s five forces.