Data Center Liquid Cooling Market Outlook 2031
The global data center liquid cooling market size was valued at around USD 2.50 Billion in 2022 and is anticipated to reach USD 18.63 Billion by 2031, expanding at a CAGR of 25% during the forecast period, 2023–2031. The growth of the market is attributed to the increasing energy consumption in data center facilities.
Data center refers to a dedicated space, which houses computer systems and their associated components such as switches, routers, storage systems, firewalls, servers, and application delivery controllers. Data centers aid business operations by performing tasks such as transferring data, performing search queries, and other computing services.
Data centers perform such tasks continuously to improve the user experience for several users at any given time. Such tasks generate considerable power and heat. For data centers, where several rows and aisles are stacked with computing machines, overheating proves to be a significant problem.
Keeping the temperature inside data centers under control is necessary for data centers to function seamlessly. Cooling systems in data centers regulate the flow of heat and achieve cooling to maximum efficiency. A liquid cooling system refers to a processor inside a computing machine, which circulates a liquid through a heatsink that is attached to the processor of the computing machine.
When the liquid passes through the heatsink, heat from the heated processor gets transferred to the cool liquid. The liquid, then, moves out of the heatsink, and the heat from the liquid is transferred to the ambient air outside the processor. The cool liquid moves back through the processor to repeat the cooling process.
Noise-free operations, good overclocking potential, cooling-specific mechanisms, and less clutter are some of the benefits that liquid cooling solutions provide to data centers.
Data Center Liquid Cooling Market Trends, Drivers, Restraints, and Opportunities
- Rising demand for compact and energy-efficient cooling solutions across the globe is expected to drive the market during the forecast period.
- Increasing number of data centers and server density boost the market.
- Growing adoption of Artificial Intelligence (AI), Machine Learning (ML), and big data is estimated to spur the market in the coming years.
- Increasing number of data-oriented companies such as Meta Platforms, Inc.; Amazon.com, Inc.; Google LLC; and others globally drive the market.
- High capital investment and maintenance expenditure are anticipated to restrain the growth of the market in the coming years.
- Lack of standardization in data center liquid cooling solutions hampers the growth of the market.
- Growing adoption of immersion liquid cooling solutions offer growth opportunities to the market players.
Scope of Data Center Liquid Cooling Market Report
The report on the global data center liquid cooling market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Data Center Liquid Cooling Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Types (Direct Liquid Cooling, Indirect Liquid Cooling, Cold Plates, Rack Liquid Cooling, and Others), Types of Data Center (Wholesale Data Center, Enterprise Data Canter, Hyperscale Data Center, Colocation Data Center, and Others), Components (Services and Solutions), and End-users (IT & Telecommunication, BFSI, Media & Entertainment, Retail, Government & Defense, Healthcare, Energy, and Others)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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Hitachi, Ltd.; Midas Immersion; International Business Machines Corporation; Mitsubishi Electric Corporation; Asetek, Inc.; Airedale International Air Conditioning, Ltd.; Schneider Electric SE; Nortek Air Solutions, LLC; Rittal GmbH & Co. KG; Submer; Alfa Laval AB; Iceotope Technologies Limited; LiquidCool Solutions; Chilldyne, Inc.; CoolIT Systems; Asperitas; Stulz GmbH; and Others
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Data Center Liquid Cooling Market Segment Insights
Type Segment Analysis
On the basis of types, the market is divided into direct liquid cooling, indirect liquid cooling, cold plates, rack liquid cooling, and others.
The cold plates segment registered 33% of the market share in 2021, and it is expected to drive the market during the forecast period, due to benefits such as improving data center performance, maximizing space usage of the data center, and improving the energy efficiency of data centers. Growing adoption of liquid cooling solutions across the globe aids in the expansion of the segment.
Data Center Segment Analysis
In terms of types of data center, the market is segregated into wholesale data center, enterprise data canter, hyperscale data center, colocation data center, and others. The hyperscale data center segment is projected to hold a significant market share during the forecast period, as an increasing number of large companies depend on the hyperscale data centers for storage and distribution of data.
Hyperscale data centers facilitate meeting the high demand for liquid cooling solutions, computational power, and data storage requirements. This factor aids in the expansion of the segment in the coming years.
Components Segment Analysis
Based on components, the market is bifurcated into services and solutions. The solutions segment is estimated to hold a key market share during the forecast period, due to the increasing number of energy-efficient liquid cooling solutions.
The growing number of data centers aid in the expansion of the segment by increasing the demand for efficient cooling solutions. The services segment is anticipated to expand during the forecast period, owing to the rising number of service providers for data center liquid cooling that install, deploy, support, maintain, and consult regarding cooling solutions.
End-users Segment Analysis
In terms of end-users, the market is divided into IT & telecommunication, BFSI, media & entertainment, retail, government & defense, healthcare, energy, and others. The IT & telecommunication segment is estimated to hold a significant market share during the forecast period, due to the increasing adoption of advanced and innovative technologies such as towers and blade servers by the IT and telecommunication industry.
Other technological developments in the IT & telecommunication industry such as Augmented Reality (AR)AR, Virtual Reality (VR), Internet of Things (IoT), AI, ML, and 5G networks aid in the expansion of the segment.
Regional Outlook
On the basis of regions, the market is segmented into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market in North America held 35% of the global revenue share in 2021, and it is expected to expand at a significant CAGR during the forecast period.
The presence of major cloud service providers such as Microsoft Corporation, Google LLC, and Meta Platforms, Inc. in the region, who are constantly developing data center with high quality servers, racks, and other equipment, aid the expansion of the market in North America.
The market in Asia Pacific is anticipated to expand in the coming years, as several countries in the region such as India, Japan, Singapore, Japan, and Australia are increasingly investing in data center development and management. Rising social media, gaming, and entertainment industries increase to high demand for cloud applications, which leads to the expansion of the market in the region.
Segments
The global data center liquid cooling market has been segmented on the basis of
Types
- Direct Liquid Cooling
- Indirect Liquid Cooling
- Cold Plates
- Rack Liquid Cooling
- Others
Types of Data Center
- Wholesale Data Center
- Enterprise Data Canter
- Hyperscale Data Center
- Colocation Data Center
- Others
Components
End-users
- IT & Telecommunication
- BFSI
- Media & Entertainment
- Retail
- Government & Defense
- Healthcare
- Energy
- Others
Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Hitachi, Ltd.
- International Business Machines Corporation
- Mitsubishi Electric Corporation
- Asetek, Inc.
- Midas Immersion
- Airedale International Air Conditioning, Ltd.
- Schneider Electric SE
- Nortek Air Solutions, LLC
- Rittal GmbH & Co. KG
- Submer
- Alfa Laval AB
- Iceotope Technologies Limited
- LiquidCool Solutions
- Chilldyne, Inc.
- CoolIT Systems
- Asperitas
- Stulz GmbH
- Others
Competitive Landscape
The global data center liquid cooling market is highly competitive with the presence of key players such as Hitachi, Ltd.; Midas Immersion; International Business Machines Corporation; Mitsubishi Electric Corporation; Asetek, Inc.; Airedale International Air Conditioning, Ltd.; Schneider Electric SE; Nortek Air Solutions, LLC; Rittal GmbH & Co. KG; Submer; Alfa Laval AB; Iceotope Technologies Limited; LiquidCool Solutions; Chilldyne, Inc.; CoolIT Systems; Asperitas; Stulz GmbH; and others.
These key players use business strategies such as collaborations, mergers, acquisitions, partnerships, and product launches to dominate the market. For example,
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In June 2021, Iceotope Technologies Limited launched a liquid-cooled modular data center, which facilitates high-performance computing edge applications to be reliably employed in remote or harsh environments.
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In August 2021, Submer collaborated with Intel to place and standardize the adoption of liquid cooling solutions for all servers and platforms of Intel.
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