Industry: IT and Telecommunication
Published Date: July-2024
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 180
Report ID: PMRREP13330
The global market size is expected to increase from US$4.15 Bn in 2024 to US$24.1 Bn by the end of 2032. The market is anticipated to secure a CAGR of 24.6% during the forecast period from 2024 to 2032.
Key Highlights of the Market
|
Attributes |
Key Insights |
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Data Center Liquid Cooling Market Size (2024E) |
US$4.15 Bn |
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Projected Market Value (2032F) |
US$24.1 Bn |
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Forecast Growth Rate (CAGR 2024 to 2032) |
24.6% |
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Historical Growth Rate (CAGR 2019 to 2023) |
20.5% |
The data center liquid cooling market is mainly fueled by the growing demand for efficient cooling solutions to manage the increasing heat loads generated by high-performance computing equipment.
The notable growth of machine learning, artificial intelligence, and big data analytics applications is driving the demand for higher computing power and denser server configurations. These applications require robust cooling solutions to ensure uninterrupted operation and optimal performance.
As a result, the market for data center liquid cooling is poised for continued growth as technology advances and data center operators prioritize efficiency, sustainability, and performance in their operations
Traditional air-cooling methods are becoming inadequate as data centers consolidate and expand, resulting in densely packed server racks that generate significant heat.
Liquid cooling addresses this challenge by providing more efficient heat dissipation and temperature control, thereby enhancing the overall operational efficiency and reliability of data centers.
Data center immersion cooling is considered for high-performance computing applications such as AI and edge computing. It enables great density of processing capabilities by removing active cooling components such as fans and heat sinks.
Increasing adoption of single-phase immersion cooling and two-phase liquid immersion cooling (2PLIC) within data centers for high-performance and data reliability is expected drive market growth in the years to come.
Demand for Data Center Liquid Cooling Market has surged owing to growing demand for reducing energy and water consumption. The market witnessed a steady increase in demand for liquid cooling solutions driven by factors like growing data center density and the need for more efficient cooling.
The market for data center liquid cooling expanded at the rate of 20.5% during the historical period from 2019 to 2023.
The ever-increasing demand for data storage, processing, and analytics, fueled by major market trends like AI, cloud computing, and IoT, will necessitate more efficient cooling solutions for high-density computing environments.
As per detailed industry analysis, the global market for data center liquid cooling is anticipated to forge ahead at 24.6% CAGR over the forecast period.
Growing Demand for High-density Computing
The increasing demand for high-density computing is a key driver behind the growth of the market. High-density computing refers to the trend of packing more computational power into smaller spaces, often achieved through technologies like virtualization, AI, machine learning, and big data analytics
High-density computing environments can consume significant amounts of energy, particularly for cooling purposes. Liquid cooling technologies are generally more energy-efficient than air-cooling methods, as they reduce the need for mechanical fans and air handlers. This not only lowers operational costs but also contributes to sustainability goals by reducing overall energy consumption and carbon footprint.
High Demand for Density Racks in Telecom Sector
IT infrastructure has become diversified in recent years. Telecom data center operators and service providers have the opportunity to develop new technology.
Telecom data centers use extensive amounts of fiber networks to ensure that all services are delivered at high speed and properly. This requires high connectivity for driving mobile services, content delivery, and cloud services. As such, to facilitate this, there is high usage of density racks, which, in turn, drives high need for data center liquid cooling solutions.
Lack of Standardization
The standardized products are very compatible and favoured by users in the computing settings.
One of the major problem in the adoption of any computational technology is using the proprietary systems which is incompatible for consumers. Thus, the absence of standards for liquid cooling solutions is a major challenge for the data center liquid cooling market.
High Capital and Maintenance Expenditure
Installation of liquid cooling systems is expensive than installing air cooling systems, and the parts as well as the accessories required for liquid cooling must be of some calibre.
Along with this the special equipment composed of various expensive materials such as bronze, cupronickel, or titanium are also needed for the installation of liquid cooling systems which increases the overall capital expenditure. The high costs obstruct the growth of market.
Conversion of Old Buildings to Data Centers
The demand for data centers is increasing significantly. Investors are converting old office buildings, house buildings and old warehouses into data centers as a quick, cost-efficient alternative to new buildings.
In Hong Kong, the logistics real estate manager ESR gained a cold storage facility and is reconstructing the brownfield site into a 40-megawatt data center after receiving the permission from town planning authority.
Increasing Use of Advanced Technologies and Innovations
The rise in the use of advanced technologies, such as cryptocurrency, artificial intelligence and machine learning (ML) is evaluated to generate number of opportunities for the market. It is also likely to increase the growth of the market further.
Additionally, the product launches and other experiments by market players offer number of growth opportunities in the market.
Cold Plates to Demonstrate a CAGR of 23.7% in the Market
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Attributes |
CAGR through 2031 |
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Cold Plates - Cooling Type |
23.7% |
Cold plates are expected to secure a CAGR of 23.7% through 2031. Based on cooling type, cold plates dominated the market and constituted the highest market share of 33% in 2021.
These plates provide benefits such as maximizing data center space usage, thereby improving the performance, reliability, and energy efficiency of liquid cooling in data centers. As such, rising adoption of liquid cooling techniques is driving demand growth of direct liquid cooling solutions across regions.
Cold plates enable data centers to achieve higher power densities without compromising reliability or performance.
As data centers continue to densify and adopt technologies like AI and high-performance computing, which generate substantial heat loads, cold plates offer a scalable solution to manage these thermal challenges effectively.
Cloud Providers Segment to Expand at a High CAGR of 28.1%
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Attributes |
CAGR through 2031 |
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Cloud Providers - End User |
28.1% |
Cloud providers operate massive data centers that house a vast number of servers and storage systems. These facilities are designed for high-density computing to maximize space utilization and operational efficiency.
The cloud providers segment is projected to secure a CAGR of 28.1% during the forecast period from 2024 to 2031.
Cloud providers are at the forefront of adopting and driving innovation in data center technologies. They often pilot and deploy cutting-edge cooling solutions to optimize their infrastructure and enhance service delivery.
By investing in liquid cooling technologies, cloud providers stimulate market growth and encourage further innovation and refinement in cooling solutions.
East Asia Takes Charge in the Market
East Asia, particularly countries like China, Japan, and South Korea, has been experiencing rapid growth in data center infrastructure.
The expansion of cloud services, increasing adoption of AI and big data analytics, and the proliferation of digital services are driving the demand for high-performance computing. East Asia to dominate the market for data center liquid with a CAGR of 32.9%.
As data center operators in East Asia strive to maximize efficiency and reduce operational costs, there is a growing preference for liquid cooling solutions that offer superior thermal management and energy efficiency.
Europe Sets to Register a 22.3% CAGR in the Market
Europe has been at the forefront of implementing stringent regulations aimed at improving energy efficiency and reducing carbon emissions. Data centers in Europe are under pressure to comply with these regulations, which often necessitate the adoption of more efficient cooling technologies like liquid cooling.
With this, there is a growing market trend towards replacing traditional air-cooling methods with liquid cooling solutions to achieve better energy efficiency and environmental sustainability.
Germany market is expected to record the highest growth in data center liquid cooling demand in Europe and expand at 7.7X by 2032. Germany has smart infrastructure for advanced technology such as AI, ML, big data, and much more. For instance,
Due to such developments in the country, demand for data center liquid cooling platforms is increasing rapidly.
Many key data center liquid cooling service providers are inclined at investing heavily in product innovation to uncover increased applications of data center liquid cooling products.
Vendors are also entering into strategic partnerships and acquisitions to sustain the competition and increase their customer base.
2024
STULZ announced the launch of CyberCool CMU – an innovative new coolant management and distribution unit (CDU) that is designed to maximize heat exchange efficiency in liquid cooling solutions.
2024
SK Telecom, Iceotope Technologies and SK Enmove, entered into a memorandum of understanding (MOU). The agreement aims to jointly develop liquid cooling technologies and solutions that enhance the energy efficiency of AI data centers.
2023
Vertiv announced the signing of a definitive agreement. Under this agreement, Vertiv subsidiaries will acquire CoolTera Ltd. The acquisition will include specific assets such as contracts, patents, trademarks, and intellectual property from a CoolTera affiliate. ?
2023
Infosys a prominent player in next-generation digital services and consulting, unveiled a new collaboration with Shell New Energies UK Ltd ("Shell"), a global energy company. The partnership aims to expedite the adoption of immersion cooling services in data centers.?
2023
Alfa Laval launched Cooling Pod – a plug-and-play cooling solution for edge data centers. The Cooling Pod comes in 500kW and 1MW versions for single or dual loop as well as for direct-to-chip or immersion cooling.
2023
Emerson Electric completed its acquisition of Open Systems International (OSI). With this acquisition, the company is able to provide a comprehensive portfolio of solutions, help customers in the global power industry, digitize operations more seamlessly, and complement its strong position in power generation systems.
2021
Green Revolution cooling announced a multiyear collaboration with Intel. The collaboration aims at attaining data center sustainability. GRC and Intel will also work in educating the market on the advantages of the data center technology via webinars, podcasts, and white papers.
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Attributes |
Details |
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Forecast Period |
2024 to 2032 |
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Historical Data Available for |
2019 to 2023 |
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Market Analysis |
US$ Billion for Value |
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Key Regions Covered |
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Key Countries Covered |
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Key Market Segments Covered |
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Key Companies Profiled |
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Report Coverage |
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Customization & Pricing |
Available upon request |
By Cooling Type
By Industry
By Data Center Size
By End User
By Service
By Region
To know more about delivery timeline for this report Contact Sales
A few of the leading companies in the market are Rittal GmbH & Co. Kg, Schneider Electric SE, and Green Revolution Cooling.
Growing demand for high-density computing is a key driver for market growth.
The global data center liquid cooling market size is expected to increase from US$4.15 Bn in 2024 to US$24.1 Bn by the end of 2032.
Increasing use of advanced technologies and innovations presents opportunities for the market players.
East Asia dominates the market and is likely to display a notable CAGR through the end of forecast period.
