Global Solid State Cooling Market Outlook to 2028

Global Solid State Cooling Market Overview

The Global Solid State Cooling Market was valued at USD 748.5 million in 2023. The market is primarily driven by the increasing demand for energy-efficient cooling solutions across various industries such as electronics, automotive, and healthcare. As environmental regulations tighten and the need for sustainable cooling technologies rises, solid-state cooling systems, which utilize thermoelectric technology, are becoming more prevalent due to their ability to provide precise temperature control without using harmful refrigerants.

Key players in the global solid state cooling market include Phononic Inc., TE Technology, Inc., Laird Thermal Systems, Kryotherm, and Ferrotec Corporation. These companies are leading the development of advanced cooling technologies, focusing on enhancing cooling efficiency and expanding applications in sectors like consumer electronics and electric vehicles.

In 2023, Phononic Inc. introduced a new series of solid-state cooling systems designed for data centers, which reduce energy consumption by up to 30%. This innovation addresses the growing need for efficient thermal management in high-performance computing environments, reflecting the industry's shift towards more sustainable and reliable cooling solutions.

North America dominated the global solid state cooling market in 2023 due to the high adoption rate of advanced cooling technologies, significant investments in research and development, and the presence of leading manufacturers. The region's focus on reducing carbon emissions and enhancing energy efficiency in data centers and other sectors further solidifies its leading position in this market.

Global Solid State Cooling Market Segmentation

The global solid state cooling market is segmented by region, product type, and application.

By Region: The global solid state cooling market is segmented into North America, Europe, Asia-Pacific (APAC), Middle East & Africa (MEA), and Latin America. In 2023, North America held the largest market share, supported by technological advancements, substantial investments in research and development, and a strong focus on energy efficiency.

By Product Type: The market is segmented into thermoelectric modules, solid-state refrigerators, and others. In 2023, thermoelectric modules held the highest market share, driven by their widespread use in electronics and automotive applications due to their ability to provide precise temperature control and high reliability.

By Application: The solid-state cooling market is also segmented by application into electronics, automotive, healthcare, and others. In 2023, the electronics segment dominated the market, driven by the increasing demand for energy-efficient cooling solutions in consumer electronics and semiconductor devices.

Global Solid State Cooling Market Competitive Landscape

Company

Establishment Year

Headquarters

Phononic Inc.

2009

Durham, North Carolina, USA

TE Technology, Inc.

1989

Traverse City, Michigan, USA

Laird Thermal Systems

1948

London, UK

Kryotherm

1992

St. Petersburg, Russia

Ferrotec Corporation

1980

Tokyo, Japan

Kryotherm: In 2023, Kryotherm established itself as a key competitor in the solid state cooling market, alongside notable companies such as Ferrotec Holdings Corporation and Laird Thermal Systems. This positioning highlights Kryotherm's significant role in shaping market trends and driving growth within the industry.

Laird Thermal Systems: In June 2023, Laird Thermal Systems released the Opto TEC MSX Series of micro multistage thermoelectric coolers designed for miniature optical packages used in high-performance image sensing applications.These micro thermoelectric coolers have a cold side footprint as small as 2.0 x 4.0 mm and can deliver up to 5 watts of cooling capacity.

Global Solid State Cooling Market Analysis

Global Solid State Cooling Market Growth Drivers

Increasing Demand for Energy-Efficient Cooling Solutions: As environmental regulations become stricter and the need for sustainable technologies grows, there is a significant push towards energy-efficient cooling solutions. Solid-state cooling systems, which do not use harmful refrigerants, are increasingly being adopted in various industries, including electronics and automotive, to reduce carbon footprints and enhance energy efficiency.

Expansion of the Electric Vehicle (EV) Market: The growth of the electric vehicle market is a significant driver for the solid-state cooling market. In 2024, the expectation for global electric vehicle sales is projected to reacharound 17 million units. This figure represents a significant increase from nearly14 million units in 2023, marking an approximate20% growthyear-over-year.

Advancements in Thermoelectric Materials: In 2024, research institutions and private companies invested over USD 500 million in the development of high-performance thermoelectric materials that can enhance the efficiency of solid-state cooling devices. These advancements are expected to improve the thermal management capabilities of solid-state cooling systems.

Global Solid State Cooling Market Challenges

High Initial Costs: One of the major challenges in the solid state cooling market is the high initial cost of these systems compared to traditional cooling solutions. This cost barrier limits the adoption of solid-state cooling technologies, especially among small and medium-sized enterprises (SMEs).

Limited Cooling Capacity for High-Power Applications: Solid-state cooling systems currently have limitations in terms of cooling capacity, particularly for high-power applications. This limitation restricts their use in industries such as manufacturing and power generation, where higher cooling capacities are essential.

Global Solid State Cooling Market Government Initiatives

U.S. Department of Energy's Advanced Cooling Technologies Program: This program, launched in 2023, allocates funding to support the development and commercialization of advanced cooling technologies, including solid-state cooling systems, to reduce energy consumption and carbon emissions in critical sectors. In September 2023, Advanced Cooling Technologies, Inc. was awarded over $5.5 million through five Phase II Small Business Innovation Research (SBIR) projects.

China's Energy Efficiency Improvement Plan: As part of its broader energy strategy, China launched the Energy Efficiency Improvement Plan in 2023, which includes incentives for the adoption of energy-efficient cooling technologies, including solid-state cooling, in industrial and commercial applications. The Made in China 2025 strategy, which aims to upgrade China's manufacturing capabilities, including in energy-efficient technologies.

Global Solid State Cooling Market Future Market Outlook

The Global Solid State Cooling Market is expected to grow substantially over the coming years, driven by increasing demand for energy-efficient cooling solutions, advancements in thermoelectric materials, and expanding applications in various industries.

Global Solid State Cooling Market Future Market Trends

Integration with Renewable Energy Systems: By 2028, solid-state cooling systems are expected to be increasingly integrated with renewable energy systems, such as solar power plants, to enhance energy efficiency and reduce reliance on traditional cooling methods. This trend reflects the growing emphasis on sustainable energy solutions and the need for reliable thermal management technologies.

Expansion in the Electric Aviation Market: By 2028, the adoption of solid-state cooling technologies in electric aviation is expected to rise, driven by the growing demand for efficient thermal management solutions in electric aircraft. As the aviation industry shifts towards greener transportation solutions, solid-state cooling systems will play a crucial role in maintaining optimal operating temperatures and ensuring the safety of electric aircraft.
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