Liquid Cooling System Market by Type (Compressor-Based System, Liquid Heat Exchanger System), Services (Design & Consulting, Installation & Deployment, Support & Maintenance), Type of Cooling Solution, End-Use - Global Forecast 2024-2030

Liquid Cooling System Market by Type (Compressor-Based System, Liquid Heat Exchanger System), Services (Design & Consulting, Installation & Deployment, Support & Maintenance), Type of Cooling Solution, End-Use - Global Forecast 2024-2030

The Liquid Cooling System Market size was estimated at USD 4.27 billion in 2023 and expected to reach USD 4.87 billion in 2024, at a CAGR 13.70% to reach USD 10.51 billion by 2030.

A liquid cooling system is a technique used to keep a computer processor’s temperature low using water as the cooling medium. This cooling mechanism provides efficient cooling and minimizes the noise generated by higher processor speeds. The primary end-use applications for these cooling systems include data centers, high-performance computing (HPC), automotive, industrial machinery, medical equipment, and telecommunications. Rapid growth in data center construction driven by increasing internet usage, cloud computing adoption, e-commerce activities, AI, and big data analytics have increased the demand for liquid cooling systems that offer energy-efficient means for maintaining optimal operating temperatures within data centers. However, a high initial investment is required for installing liquid-cooled infrastructure compared to traditional air-cooled alternatives, and the need for regular maintenance and monitoring of the liquid-cooling components to ensure system integrity and optimal performance hamper the market growth. The emergence of edge computing and technological innovations across the IT sectors is expected to create a lucrative market landscape.

Regional Insights

The Americas has a significant landscape in the liquid cooling system market owing to the high demand for energy-efficient cooling solutions, which has significantly grown in recent years due to stringent environmental regulations and growing awareness about green technologies. Additionally, a considerable number of data centers are adopting advanced liquid cooling systems to meet their power consumption targets in the region. European Union has also demonstrated a strong interest in sustainable cooling technologies, given their commitment to reduce greenhouse gas emissions initiatives. Additionally, several EU-based companies are investing heavily in R&D projects aimed at developing next-generation liquid cooling solutions. Middle Eastern countries are increasingly recognizing the importance of efficient cooling systems due to soaring temperatures and rapid urbanization that place high demands on existing infrastructures. The APAC has led in terms of research activities on liquid-cooling technology investment in liquid cooling systems to reduce energy consumption and increase operational efficiency. Growing adoption of liquid cooling systems due to rising demands from industries such as Information Technology (IT), telecommunications, and automotive sectors, and government support in the adoption of energy-efficient technologies through various initiatives has further fueled the market demand in the region.

Market Insights

Market Dynamics

The market dynamics represent an ever-changing landscape of the Liquid Cooling System Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.

Market Drivers

Growing investments for energy-efficient management of data centers
Increasing demand from smartphone manufacturers to manage massive heat generated by the high-end processors
Robust growth in data centers & gaming computers

Market Restraints

High cost and need for maintenance

Market Opportunities

Emerging advancements in liquid cooling systems
Rapid adoption of liquid cooling systems in complex medical technologies

Market Challenges

Risk associated with potential leakage of coolant fluids

Market Segmentation Analysis

Type: Compressor-based liquid cooling systems offer higher cooling capacities and precise temperature control
Services: High utilization of design & consulting services among organizations looking to implement new or upgraded liquid cooling systems
Type of Cooling Solution: High adoption of direct liquid cooling providing maximum cooling performance for highly demanding applications
End-Use: Penetration of liquid cooling systems in data centers to manage heat generated by servers

Market Disruption Analysis

Porter’s Five Forces Analysis
Value Chain & Critical Path Analysis
Pricing Analysis
Technology Analysis
Patent Analysis
Trade Analysis
Regulatory Framework Analysis

FPNV Positioning Matrix

The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Liquid Cooling System Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Liquid Cooling System Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Recent Developments

MHI and ZutaCore Join Forces in a Strategic Alliance, Paving the Way for a Zero-emission Data Industry

Mitsubishi Heavy Industries, Ltd. (MHI) and ZutaCore, Inc., a provider of direct-on-chip waterless liquid cooling solutions, have formed a strategic partnership to bring zero-emissions technology to the data industry. This collaboration aims to develop sustainable liquid cooling solutions that are crucial for enhancing energy efficiency in our data-driven world. The comprehensive solution offers various benefits, including server densification and data center sustainability. This partnership provides One Stop Solutions that encompass low-carbon power generation facilities and high-efficiency cooling systems tailored for high-performance servers.

KKR to Acquire CoolIT Systems

KKR, a renowned global investment firm, announced its acquisition of CoolIT Systems, a innovator in liquid cooling solutions for data centers. This strategic acquisition underlines KKR's ongoing commitment to investing in cutting-edge technologies that contribute to a more sustainable future. By joining the KKR portfolio, CoolIT Systems is poised for further growth and expansion in the industry.

New Funding Obtained by LiquidStack to Expand Liquid Immersion Cooling

LiquidStack secured additional funding to further expand its cutting-edge Liquid Immersion Cooling system. This innovative technology offers businesses the ability to significantly lower energy costs while simultaneously enhancing computer performance. The liquid immersion cooling system operates by submerging hardware in a specially formulated, electrically non-conductive liquid coolant, which provides superior cooling performance.

Strategy Analysis & Recommendation

The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Liquid Cooling System Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.

Key Company Profiles

The report delves into recent significant developments in the Liquid Cooling System Market, highlighting leading vendors and their innovative profiles. These include ALFA LAVAL AB, AMETEK.Inc., Aquila, Inc., Asetek, Inc., Asetek, Inc. A/S, Aspen Systems Inc., Boyd Corporation, CoolIT Systems, Inc., Dober, Fujitsu Limited, GIGA-BYTE Technology Co., Ltd., Green Revolution Cooling Inc., Hitachi Group, Koolance, Inc., Laird Thermal Systems, Inc., LiquidStack Holding B.V., Midas Green Technologies LLC, Mikros Technologies, Motivair Corporation, Parker Hannifin Corp., Rittal GmbH & Co. KG, and Schneider Electric SE.

Market Segmentation & Coverage

This research report categorizes the Liquid Cooling System Market to forecast the revenues and analyze trends in each of the following sub-markets:

Type
Compressor-Based System
Liquid Heat Exchanger System
Liquid-to-Air Systems
Liquid-to-Liquid Systems
Services
Design & Consulting
Installation & Deployment
Support & Maintenance
Type of Cooling Solution
Direct
Indirect
End-Use
Analytical Equipment
Automotive
Data Centers
Energy
Healthcare
Industrial
Military
Research & Development
Telecommunication
Region
Americas
Argentina
Brazil
Canada
Mexico
United States
California
Florida
Illinois
New York
Ohio
Pennsylvania
Texas
Asia-Pacific
Australia
China
India
Indonesia
Japan
Malaysia
Philippines
Singapore
South Korea
Taiwan
Thailand
Vietnam
Europe, Middle East & Africa
Denmark
Egypt
Finland
France
Germany
Israel
Italy
Netherlands
Nigeria
Norway
Poland
Qatar
Russia
Saudi Arabia
South Africa
Spain
Sweden
Switzerland
Turkey
United Arab Emirates
United Kingdom

Please Note: PDF & Excel + Online Access - 1 Year