Data Center Liquid Cooling Market Size:
The global data center liquid cooling market size reached US$ 2.9 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 15.3 Billion by 2032, exhibiting a growth rate (CAGR) of 19.54% during 2024-2032. The market is experiencing steady growth driven by rising data center density, increasing focus on energy efficiency to mitigate environmental pollution and maintain sustainability, and the growing need to maintain optimal operating temperatures to ensure enhanced performance and reliability.
Report Attribute
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Key Statistics
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Base Year
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2023
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Forecast Years
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2024-2032
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Historical Years
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2018-2023
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Market Size in 2023
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US$ 2.9 Billion |
Market Forecast in 2032
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US$ 15.3 Billion |
Market Growth Rate 2024-2032 |
19.54% |
Data Center Liquid Cooling Market Analysis:
- Market Growth and Size: The market is witnessing robust growth on account of the increasing demand for efficient cooling solutions, along with the rising focus on space constraints.
- Technological Advancements: Innovations, such as improved heat exchanger designs, more efficient cooling fluids, and advanced control systems, are making liquid cooling more accessible to a broader range of data center operators.
- Industry Applications: Data center liquid cooling solutions are widely employed in the BFSI, IT and telecom, media and entertainment, and healthcare sectors.
- Geographical Trends: North America leads the market, driven by the presence of cloud service providers and tech companies with well-established data center infrastructure. However, Asia Pacific is emerging as a fast-growing market due to the increasing volume of digital data and services.
- Competitive Landscape: Key players are investing in research and development (R&D) activities to develop innovative liquid cooling technologies, including advanced cooling fluids, heat exchanger designs, and control systems.
- Challenges and Opportunities: While the market faces challenges, such as concerns regarding infrastructure compatibility, it also encounters opportunities on account of technological advancements.
- Future Outlook: The future of the data center liquid cooling market looks promising, with the rising focus on sustainable practices. Moreover, the increasing need for enhanced reliability and efficiency is expected to propel the market growth.
Data Center Liquid Cooling Industry Trends:
Increasing data center density
The growing demand for data center liquid cooling due to the rising data center density is offering a positive market outlook. Data centers are handling higher workloads on account of the increasing utilization of cloud services, big data analytics, and artificial intelligence (AI) applications. Liquid cooling systems accommodate the higher density of servers and equipment in modern data centers by directly dissipating heat from hot spots. This capability is crucial for maintaining optimal operating conditions and preventing thermal issues that could compromise hardware performance and reliability. Apart from this, data center operators are focusing on maximizing the utilization of their infrastructure. Furthermore, the rising need for effective heat management solutions to ensure the continuous operation of critical services is propelling the market growth. Moreover, liquid cooling solutions free up valuable floor space that can be used to accommodate additional servers, storage, or networking equipment.
Growing focus on energy efficiency
Traditional air cooling methods in data centers are energy-intensive, as they require large amounts of electricity to power fans and air conditioning (AC) systems. In contrast, data center liquid cooling solutions offer a more energy-efficient alternative by directly transferring heat away from information technology (IT) equipment using liquid coolant. This targeted cooling approach can reduce the energy required for cooling, leading to lower overall energy consumption in data centers. Additionally, data center liquid cooling solutions can achieve more precise temperature control and better heat dissipation by utilizing liquid coolant to absorb and transport heat away from hot spots. This improved cooling efficiency allows data centers to maintain optimal operating temperatures while consuming less energy. Apart from this, data center liquid cooling solutions enable data centers to optimize their cooling infrastructure for energy efficiency. It can also lower the overall footprint of cooling infrastructure, minimizing energy consumption associated with fan operation and air circulation by eliminating the need for large air ducts, raised floors, and other components.
Rising need to maintain optimal temperature
Maintaining optimal operating temperatures is crucial for ensuring the performance and reliability of data center infrastructure. Liquid cooling systems provide a more consistent and uniform cooling as compared to air-based solutions. These systems help prevent thermal throttling, extend the lifespan of hardware, and reduce the risk of system failures and downtime by directly removing heat from critical components, such as central processing units (CPUs) and graphics processing units (GPUs). This enhanced performance and reliability make liquid cooling systems particularly well-suited for demanding workloads, such as high-performance computing (HPC) and artificial intelligence (AI), where consistent performance and uptime are essential. Apart from this, data center operators are focusing on meeting the growing demands of modern computing environments. Furthermore, IT equipment, such as servers, switches, and storage devices, are designed to operate within specific temperature ranges. Operating outside these ranges can lead to performance degradation, increased error rates, and even hardware failures. Therefore, maintaining optimal temperatures ensures that hardware operates efficiently and reliably.
Data Center Liquid Cooling Industry Segmentation:
IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on component, data center type, end use, and application.
Breakup by Component:
- Solution
- Direct Liquid Cooling
- Indirect Liquid Cooling
- Services
- Design and Consulting
- Installation and Deployment
- Support and Maintenance
Solution accounts for the majority of the market share
The report has provided a detailed breakup and analysis of the market based on the component. This includes solution (direct liquid cooling and indirect liquid cooling) and services (design and consulting, installation and deployment, and support and maintenance). According to the report, solution represented the largest segment.
Solution includes the selection and integration of cooling units, infrastructure, and control systems tailored to meet the specific requirements of the data center environment. It may vary based on factors, such as data center size, workload density, and environmental considerations, with customization options available to optimize performance and energy efficiency.
Data center liquid cooling services encompass a range of offerings aimed at supporting the deployment, operation, and maintenance of liquid cooling systems. Installation services involve the setup and configuration of cooling equipment, ensuring proper integration with existing infrastructure. Maintenance services include routine inspections, troubleshooting, and repairs to ensure the continued reliability and efficiency of cooling systems. Support services provide ongoing assistance and technical expertise to address any issues or concerns that may arise during the lifecycle of the cooling infrastructure.
Breakup by Data Center Type:
- Large Data Centers
- Small and Medium-sized Data Centers
- Enterprise Data Centers
Large data centers hold the largest market share
A detailed breakup and analysis of the market based on the data center type have also been provided in the report. This includes large data centers, small and medium-sized data centers, and enterprise data centers. According to the report, large data centers accounted for the largest market share.
Large data centers usually belong to hyperscale cloud providers, colocation facilities, or enterprises with extensive IT infrastructure requirements. These data centers often house thousands of servers and high-density equipment, generating heat that requires efficient cooling solutions. Liquid cooling systems in large data centers are characterized by their scalability, high capacity, and advanced control features to manage complex cooling demands effectively.
Small and medium-sized data centers are usually owned and operated by enterprises, educational institutions, or government agencies with more modest IT requirements. These data centers contain several servers and have lower power densities as compared to larger facilities. Liquid cooling solutions for small and medium-sized data centers are designed to be cost-effective, space-efficient, and easily deployable, catering to the specific needs and budget constraints of these organizations.
Enterprise data centers are facilities owned and operated by individual organizations to support their internal IT infrastructure needs. These data centers vary in size and complexity but are generally smaller in scale as compared to hyperscale facilities. Liquid cooling solutions for enterprise data centers prioritize reliability, ease of integration, and minimal disruption to existing operations, allowing organizations to enhance cooling efficiency without compromising on reliability or uptime.
Breakup by End Use:
- Cloud Providers
- Colocation Providers
- Enterprises
- Hyperscale Data Centers
Enterprises represent the leading market segment
The report has provided a detailed breakup and analysis of the market based on the end use. This includes cloud providers, colocation providers, enterprises, and hyperscale data centers. According to the report, enterprises represented the largest segment.
Enterprises use data centers to support their internal IT operations and services. These organizations include corporations, government agencies, educational institutions, and healthcare providers. Liquid cooling solutions for enterprises focus on providing efficient and reliable cooling for their IT infrastructure, ensuring optimal performance and uptime while minimizing operational costs and environmental impact.
Cloud providers are companies that offer cloud computing services, including infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS). These providers operate massive data centers to host and manage cloud-based applications and services for individuals. Liquid cooling solutions for cloud providers are designed to meet the high-density cooling requirements of data centers, supporting the rapid scalability and dynamic workload demands of cloud computing environments.
Colocation providers offer data center facilities where individuals can house their IT infrastructure in a shared environment. These facilities provide the physical infrastructure, power, and connectivity needed to support the servers and networking equipment of individuals. In addition, liquid cooling solutions for colocation providers aim to optimize space utilization, energy efficiency, and cooling capacity to accommodate the diverse needs of their users while ensuring reliability and security.
Hyperscale data centers are large-scale facilities operated by technology giants to support their vast infrastructure requirements. These data centers house thousands of servers and are designed for extreme scalability, performance, and efficiency. Moreover, liquid cooling solutions for hyperscale data centers focus on maximizing cooling efficiency, reducing energy consumption, and minimizing operational costs to support the massive scale and rapid growth of these facilities.
Breakup by Application:
- BFSI
- IT and Telecom
- Media and Entertainment
- Healthcare
- Government and Defense
- Retail
- Research and Academic
- Others
IT and telecom dominate the market share
The report has provided a detailed breakup and analysis of the market based on the application. This includes BFSI, IT and telecom, media and entertainment, healthcare, government and defense, retail, research and academic, and others. According to the report, IT and telecom represented the largest segment.
In the IT and telecom sector, data centers are essential for hosting and managing network infrastructure, telecommunications equipment, and digital services. Liquid cooling solutions in this sector focus on optimizing the performance and reliability of IT equipment, reducing downtime, and enhancing energy efficiency to support the high demands of network operations and communication services.
BFSI sector relies on data centers to store and process vast amounts of financial data, facilitate transactions, and ensure regulatory compliance. Liquid cooling solutions for BFSI applications prioritize data security, compliance with regulatory requirements, and uninterrupted operation to support critical financial services and transactions.
Media and entertainment companies utilize data centers for content storage, streaming, and distribution and for rendering complex graphics and visual effects. Liquid cooling solutions in this sector focus on supporting high-performance computing and rendering tasks, ensuring a smooth operation of content delivery networks (CDNs) and optimizing energy efficiency to handle the demands of media production and distribution.
In the healthcare industry, data centers are used for storing electronic health records (EHRs), medical imaging data, and running healthcare applications and systems. Liquid cooling solutions in healthcare prioritize data security, compliance with healthcare regulations and maintaining the integrity and availability of patient data and medical services.
Government and defense organizations rely on data centers for a wide range of applications, including national security, intelligence analysis, and public services. Liquid cooling solutions in this sector ensure the security, resilience, and availability of critical government and defense systems and supporting the processing and analysis of large volumes of sensitive data for strategic decision-making and mission-critical operations.
Breakup by Region:
- North America
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Australia
- Indonesia
- Others
- Europe
- Germany
- France
- United Kingdom
- Italy
- Spain
- Russia
- Others
- Latin America
- Middle East and Africa
North America leads the market, accounting for the largest data center liquid cooling market share
The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America accounted for the largest market share due to the presence of several cloud service providers and tech companies with well-established data center infrastructure. In addition, stringent regulations and standards for energy efficiency and sustainability in data center operations are propelling the market growth.
Asia Pacific stands as another key region in the market, driven by the rising volume of digital data and services. Besides this, the increasing need for scalable and efficient data center infrastructure, including advanced cooling solutions to support operations of cloud service providers, is impelling the market growth.
Europe maintains a strong presence in the market with the rising demand for energy-efficient data center designs and cooling solutions. Furthermore, the growing need for advanced cooling solutions to support the expanding data center infrastructure across the region is positively influencing the market.
Latin America exhibits the growing potential in the market on account of the increasing adoption of cloud services for storage, computing, and software applications. Additionally, rising concerns about energy consumption and environmental sustainability are bolstering the market growth.
The Middle East and Africa region is primarily driven by digital transformation initiatives. In addition, rising investments in cloud computing, big data analytics, and the Internet of Things (IoT) applications are contributing to the market growth.
Leading Key Players in the Data Center Liquid Cooling Industry:
Key players are investing in R&D activities to develop innovative liquid cooling technologies, including advanced cooling fluids, heat exchanger designs, and control systems. They are focusing on improving cooling efficiency, reducing energy consumption, and enhancing reliability to meet the demanding requirements of modern data center environments. Besides this, companies are continuously innovating and enhancing their liquid cooling products to offer more efficient, scalable, and cost-effective solutions. They are developing modular and customizable cooling systems, integrating intelligent monitoring and control features, and optimizing compatibility with diverse data center architectures and equipment. Moreover, companies are forming strategic partnerships and collaborations with technology providers, data center operators, and research institutions to accelerate innovation and market adoption. Collaborative efforts involve joint product development, technology integration, and knowledge sharing to address specific market demands.
The market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of top companies in data center liquid cooling market have also been provided. Some of the key players in the market include:
- Alfa Laval AB
- Asetek A/S
- Asperitas
- Chilldyne
- CoolIT Systems Inc.
- Fujitsu Limited
- Green Revolution Cooling Inc.
- Iceotope
- Lenovo Group Limited
- Rittal GmbH & Co. KG
- Schneider Electric SE
- Vertiv Group Corp.
(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)
Latest News:
- November, 2021: Schneider Electric SE entered into an alliance partnership with Chilldyne, a pioneer in liquid cooling solutions for data centers. Through the agreement, Schneider Electric will offer the Chilldyne negative pressure liquid cooling solution complementing its full portfolio of Uniflair cooling and chiller solutions, to enhance data center sustainability and efficiency.
- December 4, 2023: Vertiv Group Corp. entered into a definitive agreement to acquire all of the shares of CoolTera Ltd., a provider of coolant distribution infrastructure for data center liquid cooling technology and certain assets, including certain contracts, patents, trademarks, and intellectual property from an affiliate of CoolTera.
- April 27, 2023: Asetek A/S introduced its third generation of ROG RYUJIN all-in-one CPU coolers for high-end builds, leveraging the superior thermal and acoustic performance and reliability associated with the company most advanced technology to date.
Data Center Liquid Cooling Market Report Scope:
Report Features |
Details |
Base Year of the Analysis |
2023 |
Historical Period |
2018-2023 |
Forecast Period |
2024-2032 |
Units |
US$ Billion |
Scope of the Report |
Exploration of Historical Trends and Market Outlook, Industry Catalysts and Challenges, Segment-Wise Historical and Future Market Assessment:
- Component
- Data Center Type
- End Use
- Application
- Region
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Components Covered |
- Solution: Direct Liquid Cooling, Indirect Liquid Cooling
- Services: Design and Consulting, Installation and Deployment, Support and Maintenance
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Data Center Types Covered |
Large Data Centers, Small and Medium-sized Data Centers, Enterprise Data Centers |
End Uses Covered |
Cloud Providers, Colocation Providers, Enterprises, Hyperscale Data Centers |
Applications Covered |
BFSI, IT and Telecom, Media and Entertainment, Healthcare, Government and Defense, Retail, Research and Academic, Others |
Regions Covered |
Asia Pacific, Europe, North America, Latin America, Middle East and Africa |
Countries Covered |
United States, Canada, Germany, France, United Kingdom, Italy, Spain, Russia, China, Japan, India, South Korea, Australia, Indonesia, Brazil, Mexico |
Companies Covered |
Alfa Laval AB, Asetek A/S, Asperitas, Chilldyne, CoolIT Systems Inc., Fujitsu Limited, Green Revolution Cooling Inc., Iceotope, Lenovo Group Limited, Rittal GmbH & Co. KG, Schneider Electric SE, Vertiv Group Corp., etc.
(Please note that this is only a partial list of the key players, and the complete list is provided in the report.) |
Customization Scope |
10% Free Customization |
Report Price and Purchase Option |
Single User License: US$ 3899
Five User License: US$ 4899
Corporate License: US$ 5899 |
Post-Sale Analyst Support |
10-12 Weeks |
Delivery Format |
PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request) |
Key Questions Answered in This Report:
- How has the global data center liquid cooling market performed so far, and how will it perform in the coming years?
- What are the drivers, restraints, and opportunities in the global data center liquid cooling market?
- What is the impact of each driver, restraint, and opportunity on the global data center liquid cooling market?
- What are the key regional markets?
- Which countries represent the most attractive data center liquid cooling market?
- What is the breakup of the market based on the component?
- Which is the most attractive component in the data center liquid cooling market?
- What is the breakup of the market based on the data center type?
- Which is the most attractive data center type in the data center liquid cooling market?
- What is the breakup of the market based on the end use?
- Which is the most attractive end use in the data center liquid cooling market?
- What is the breakup of the market based on the application?
- Which is the most attractive application in the data center liquid cooling market?
- What is the competitive structure of the market?
- Who are the key players/companies in the global data center liquid cooling market?
Key Benefits for Stakeholders:
- IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the data center liquid cooling market from 2018-2032.
- The research report provides the latest information on the market drivers, challenges, and opportunities in the global data center liquid cooling market.
- The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
- Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the data center liquid cooling industry and its attractiveness.
- The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.