Data Center Liquid Cooling Market Overview
As per MRFR analysis, the Data Center Liquid Cooling Market Size was estimated at 3.32 (USD Billion) in 2022.The Data Center Liquid Cooling Market Industry is expected to grow from 3.87(USD Billion) in 2023 to 15.3 (USD Billion) by 2032. The Data Center Liquid Cooling Market CAGR (growth rate) is expected to be around 16.5% during the forecast period (2024 - 2032).
Key Data Center Liquid Cooling Market Trends Highlighted
The increasing adoption of high-performance computing, artificial intelligence, and cloud computing is driving demand for efficient data center cooling solutions. As a result, the market for data center liquid cooling is experiencing significant growth. Liquid cooling offers higher cooling efficiency, lower energy consumption, and increased server density compared to traditional air cooling methods.
Key market drivers include the rising number of data centers, the growing adoption of high-power computing applications, and the need for energy-efficient cooling solutions. Opportunities in the market include the development of new liquid cooling technologies, the expansion of data centers into emerging markets, and the increasing demand for sustainable cooling solutions. Recent trends include the adoption of immersion cooling, the use of artificial intelligence for cooling optimization, and the development of hybrid cooling systems.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Data Center Liquid Cooling Market Drivers
Growing Demand for High-Performance Computing (HPC)
The high performance of HPC systems required for processing huge data volumes in a real-time mode, which is in demand everywhere, including healthcare, finance, and research spheres, is possible just because of liquid cooling. In other words, it is impossible to exploit HPC technologies without efficient liquid cooling solutions since their high performance is connected with significant heat generation. As a result, the development of AI, ML, and big data analytics increases the demand for high-performance systems and, in turn, boosts the growth of the Liquid Cooling Market Industry.
Rapid Expansion of Cloud and Edge Data Centers
Cloud data centers are becoming a necessity in a world where data is king. These centers house an incredible amount of work, and ensuring they keep running 24/7 is not an easy task. The process and workload in these centers are both vast and complex, seeming that the amount of heat they generate is immense. Proper cooling systems have to be put in place to ensure the data center can operate at optimal temperatures. Liquid cooling systems provide the best way to manage this amount of heat while keeping the energy consumption of the data center low.
Edge data centers have also been established and put closer to the clients. They require such cooling systems to power real-time applications and maximize network performance to make sure that data is always available.
Government Regulations and Environmental Concerns
Liquid cooling is becoming more and more popular in data centers. One of the reasons for its rising popularity is the standards created by the government. Operations of data centers are affected by numerous regulations that dictate the level of energy efficiency and carbon emissions. Since liquid cooling can successfully help companies sustain these standards, there is a need to develop and install such systems. Cooling solutions tend to improve the energy efficiency of the company because they consume significantly less electricity than standard air cooling systems.
Moreover, liquid cooling solutions are much less noisy than the air ones. This is a great advantage for some companies as they face various restrictions in terms of noise levels. This is particularly the case for companies based in industrial parks or other places where the population density is high. From this perspective, liquid cooling may help the company reduce the risks of unpredictable sanctions.
Data Center Liquid Cooling Market Segment Insights
Data Center Liquid Cooling Market Cooling Medium Insights
The cooling medium segment is divided into water, refrigerants, and dielectric fluid in the data center liquid cooling market. Among these, the water segment was the largest in the data center liquid cooling market, which accounted for over 60% of the revenue in 2023. The water-based cooling medium is economical, easily available, and offers high heat transfer rates used by various data center facilities. The segment will continue its dominance during the prediction period. The diffluent cooling medium will grow by a notable amount as it is non-conductive by nature and offers a very high heat transfer rate, which is suitable for cooling high-power density servers and other mission-critical IT equipment.
On the other hand, the refrigerant-based segment will witness moderate growth during the forecast. The refrigerant is used for precision cooling, and it offers a very high cooling capacity. However, this segment has many growth constraints as there are strict environmental rules against using refrigerants nowadays. The major factor in the data center liquid cooling market is the need for efficient and reliable cooling solutions in high-performance computing environments. Cloud computing, artificial intelligence and machine learning, etc., are rapidly emerging facilities utilizing high computing performance.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Data Center Liquid Cooling Market Cooling Method Insights
The Data Center Liquid Cooling Market is expected to be dominated by the Immersion Cooling method in 2024, which will account for more than 35% of the total market revenue. Improved cooling performance compared to traditional air-cooling systems allows for increased power densities and enhanced overall energy efficiency. The Rear Door Heat Exchanger Cooling method is expected to witness rather stable growth due to the relatively simple implementation and cost-efficiency. The Spray Cooling method is gaining popularity because it allows for energy-efficient local cooling of high-performance computing systems.
The Data Center Liquid Cooling Market is going to demonstrate significant growth in the next several years because of the increasing popularity of energy-efficient and high-density data centers.
Data Center Liquid Cooling Market Application Insights
The application segment of the Data Center Liquid Cooling Market holds significant potential for market growth. This growth can be attributed to the increasing adoption of liquid cooling solutions in data centers to address the rising heat densities and energy consumption. High-performance computing (HPC) applications are a key driver for the adoption of liquid cooling. HPC systems generate immense heat, and liquid cooling provides an effective means to dissipate this heat and maintain optimal system performance. The demand for HPC liquid cooling is expected to rise as organizations increasingly rely on data-intensive applications and artificial intelligence (AI) workloads.
Enterprise computing is another major application segment for liquid cooling. Enterprise data centers face challenges with managing heat dissipation and energy efficiency, and liquid cooling offers a solution to these concerns. By adopting liquid cooling, enterprises can improve the reliability and performance of their IT infrastructure while reducing operating costs. Cloud computing is also driving the growth of the liquid cooling market. Cloud service providers are adopting liquid cooling to enhance the efficiency and reliability of their data centers.
Liquid cooling enables cloud providers to pack more servers into a smaller space, reducing their energy consumption and carbon footprint. The increasing adoption of cloud computing services is expected to fuel the demand for liquid cooling solutions in this segment.
Data Center Liquid Cooling Market Power Capacity Insights
The power capacity segment is a crucial aspect of the Data Center Liquid Cooling Market. It helps categorize the market based on the cooling capacity of liquid cooling solutions. The 'Up to 500 kW' segment held a significant market share in 2023 and is projected to continue its dominance throughout the forecast period. This is primarily due to the widespread adoption of liquid cooling in small and medium-sized data centers, which typically require lower cooling capacities. The '500kW - 1 MW' segment is expected to witness substantial growth over the forecast period.
The increasing adoption of high-density computing and the growing demand for efficient cooling solutions in large data centers are driving the growth of this segment. The 'Over 1 MW' segment is anticipated to gain traction in the coming years. The proliferation of hyperscale data centers and the need for ultra-efficient cooling technologies are contributing to the growth of this segment. Overall, the power capacity segment provides valuable insights into the diverse cooling requirements of data centers, enabling vendors to tailor their solutions accordingly.
Data Center Liquid Cooling Market Data Center Type Insights
The Data Center Liquid Cooling Market is segmented by Data Center Type into Hyperscale Data Centers, Enterprise Data Centers, and Colocation Data Centers. Hyperscale Data Centers are expected to dominate the market, accounting for over 40% of the Data Center Liquid Cooling Market revenue in 2024. The growing demand for cloud and big data services is driving the growth of hyperscale data centers, which require high-density cooling solutions to maintain optimal operating temperatures. Enterprise Data Centers are expected to witness a steady growth rate, driven by the increasing adoption of liquid cooling technologies in enterprise IT environments.
Colocation Data Centers are expected to experience significant growth as they provide cost-effective and scalable cooling solutions for businesses of all sizes.
Data Center Liquid Cooling Market Regional Insights
The North American region is expected to hold the largest market share in the Data Center Liquid Cooling Market in 2023 and is projected to continue its dominance throughout the forecast period. This can be attributed to the growing demand for data centers in the region, driven by the increasing adoption of cloud computing and the proliferation of data-intensive applications. Europe is another significant market for data center liquid cooling, with a number of key players based in the region. The market in APAC is expected to grow rapidly in the coming years, driven by the increasing investment in data center infrastructure in the region.
South America and MEA are expected to witness moderate growth in the data center liquid cooling market, as the regions are still in the early stages of data center adoption.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Data Center Liquid Cooling Market Key Players And Competitive Insights
The leading players in the Data Center Liquid Cooling Market regularly update and modify their products to meet the changing requirements of data center operators. In order to retain a strong competitive edge, companies resort to strategic alliances and partnerships, acquisitions, and research and development projects and initiatives. The top players in the Data Center Liquid Cooling Market acquire their supremacy due to the expanding customer base, sizeable product portfolio, and well-established distribution networks.
The companies producing data center liquid cooling systems take part in a large number of industry-specific events, including conferences and expositions. In addition to that, in the Data Center Liquid Cooling Market, the competition is severe because there are victims and potential victims with all kinds of backgrounds. For the same reason, these companies consistently invest their efforts and financial resources in R&D to facilitate and ensure the creation of new and more efficient and cost-effective products.
The first prominent name on the Data Center Liquid Cooling Market competitive list is a company with a lasting presence in the market. The company has a long history of developing liquid cooling solutions chosen and recommended by data center operators. The company has an extensive product portfolio that is constantly modified and updated. The product portfolio is supported by the engineers who develop it and is, by all means, the core competence of the company.
Continuously updating the company product portfolio is possible because excellent liquid cooling systems engineers are employed to work on the design and implementation of new products. The company has several key alliances and partnerships with major data center hardware providers, which further boosts the company's status on the market. The strong reputation of the company product results from its dedication to the development of superior liquid cooling systems that meet and exceed the requirements of data center operators.
The second company on the Data Center Liquid Cooling Market competitive list develops the most innovative and efficient liquid cooling systems. The company relies on cutting-edge technologies to release more efficient products with every new product generation. Primarily, the company is known for its focus on environmentally sustainable solutions. The message resonates well on the market because companies are increasingly interested in green products. On top of that, this company has the biggest number of patents and industry awards. The company has the most reliable distribution network, and its customers are most satisfied with the quality of the offered products.
Key Companies in the Data Center Liquid Cooling Market Include:
Data Center Liquid Cooling Market Industry Developments
The data center liquid cooling market size was valued at USD 3.87 billion in 2023 and is projected to expand at a CAGR of 16.5% from 2024 to 2032. The growing adoption of liquid cooling solutions in data centers to address increasing heat generation and energy efficiency concerns is driving market growth. Additionally, the rising demand for high-performance computing and cloud services, coupled with government initiatives to promote energy efficiency, are contributing to market expansion. Recent developments include the introduction of innovative liquid cooling technologies, such as immersion cooling and evaporative cooling, which offer enhanced cooling efficiency and reduced operating costs. Key players in the market include Schneider Electric, Rittal, Huawei, Vertiv, and Asetek.
Data Center Liquid Cooling Market Segmentation Insights
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Data Center Liquid Cooling Market Cooling Medium Outlook
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Water
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Dielectric Fluid
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Refrigerants
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Data Center Liquid Cooling Market Cooling Method Outlook
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Immersion Cooling
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Rear Door Heat Exchanger Cooling
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Spray Cooling
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Data Center Liquid Cooling Market Application Outlook
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High-Performance Computing
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Enterprise Computing
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Cloud Computing
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Data Center Liquid Cooling Market Power Capacity Outlook
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Up to 500 kW
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500kW - 1 MW
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Over 1 MW
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Data Center Liquid Cooling Market Data Center Type Outlook
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Hyperscale Data Centers
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Enterprise Data Centers
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Colocation Data Centers
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Data Center Liquid Cooling Market Regional Outlook
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North America
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Europe
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South America
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Asia Pacific
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Middle East and Africa
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Report Attribute/Metric
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Details
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Market Size 2022
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3.32(USD Billion)
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Market Size 2023
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3.87(USD Billion)
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Market Size 2032
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15.3(USD Billion)
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Compound Annual Growth Rate (CAGR)
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16.5% (2024 - 2032)
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Report Coverage
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Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
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Base Year
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2023
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Market Forecast Period
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2024 - 2032
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Historical Data
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2019 - 2023
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Market Forecast Units
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USD Billion
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Key Companies Profiled
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Liebert (Emerson Electric), Green Revolution Cooling, CoolIT Systems, Schneider Electric, Huawei Technologies, Fujitsuneutral, Asetek, Allied Control, Systemair, IBM, Vertiv, GEA, Rittal, Danfoss, Dell Technologies
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Segments Covered
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Cooling Medium, Cooling Method, Application, Power Capacity, Data Center Type, Regional
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Key Market Opportunities
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Growing demand for energy-efficient data centersIncreasing need for high-performance computing HPC and artificial intelligence AI applicationsGrowing adoption of cloud computing and hyperscale data centersGovernment initiatives to promote energy efficiency and reduce carbon emissionsTechnological advancements in liquid cooling technologies
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Key Market Dynamics
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Growing demand for high-performance computingIncreasing data center energy consumptionGovernment regulations on energy efficiencyNeed for improved cooling efficiency.Rising adoption of immersion cooling
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Countries Covered
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North America, Europe, APAC, South America, MEA
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Frequently Asked Questions (FAQ) :
The data center liquid cooling market is expected to reach USD 15.3 billion by 2032, witnessing a CAGR of 16.5% from 2024 to 2032.
North America is expected to dominate the data center liquid cooling market, owing to the high demand for energy-efficient solutions and the presence of major data center operators in the region.
The major growth drivers for the data center liquid cooling market include the increasing demand for energy-efficient data centers, the growing adoption of high-performance computing, and the need for reliable cooling solutions for high-density data centers.
The major applications that are expected to drive demand for data center liquid cooling include high-performance computing, enterprice computing, artificial intelligence, and cloud computing.
The key competitors in the data center liquid cooling market include Schneider Electric, Rittal, Asetek, and CoolIT Systems.
The challenges faced by the data center liquid cooling market include the high cost of liquid cooling systems, the need for skilled personnel to maintain and operate these systems, and the potential for leaks and other safety concerns.
The trends expected to shape the future of the data center liquid cooling market include the adoption of two-phase immersion cooling, the use of artificial intelligence for predictive maintenance, and the development of more sustainable and energy-efficient cooling solutions.
The COVID-19 pandemic has accelerated the adoption of data center liquid cooling as businesses seek to improve the energy efficiency and reliability of their data centers.
The regulatory factors affecting the data center liquid cooling market include environmental regulations and safety standards.
The key opportunities for growth in the data center liquid cooling market include the growing demand for energy-efficient data centers, the adoption of high-performance computing, and the need for reliable cooling solutions for high-density data centers.
