Data Center Liquid Cooling Market by Component (Solution and Services), End User (Cloud Providers, Colocation Providers, Enterprises, and Hyperscale Data Centers), Data Center Type, Type of Cooling, Enterprise, and Region - Global Forecast to 2028
The global data center liquid cooling market is projected to grow from USD 2.6 billion in 2023 to USD 7.8 billion by 2028, at a CAGR of 24.4% during the forecast period. Compact and effective cooling solutions are needed due to the development of edge computing and Internet of Things (IoT) devices. Liquid cooling has the benefit of being able to efficiently handle data in remote areas and challenging situations by cooling small form factor devices and edge servers. Overall, to support the changing demands of modern data centers, the data center liquid cooling market is primarily driven by the requirement for increased cooling efficiency, energy savings, scalability, sustainability, and higher performance.
Attractive Opportunities in the Data Center Liquid Cooling Market
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Market Dynamics:
Driver: Increasing number of data centers and server density
Data center liquid cooling requirement is closely related to the expansion of data centers, server density, and the number of data centers. The expansion of hyperscale data centers and cloud computing have helped to increase the number of data centers and server density. To supply their services, cloud service companies need a highly scalable and effective data center infrastructure. Large-scale data centers with dense server architectures have been created as a result.
Restraint: High capital expenditure and maintenance
To retain its effectiveness, the coolant or fluid used in liquid cooling systems needs to be appropriately managed and replaced regularly. Expenses related to fluid replacement include labor expenses, coolant acquisition and disposal costs, and disposal fees. The frequency of fluid change is influenced by things including system design, operating environment, and coolant type. Operators of data centers frequently choose to enter into service agreements with suppliers of liquid cooling solutions or third-party maintenance companies, which entails additional expenditures.
Opportunity: Emergence of AI, blockchain, and other advanced technologies
The development of artificial intelligence (AI), blockchain technology, and the rising demand for liquid cooling in data centers. AI applications need a lot of processing power to perform operations like data analysis, machine learning, and deep learning. These workloads produce much heat, so effective cooling solutions are required. Liquid cooling in data centers makes it possible to efficiently remove heat from AI servers and accelerators, ensuring peak performance and dependability.
Challenges: Lack of standardization
The data center liquid cooling technology environment is rapidly changing. It is challenging to establish standardized practices and guidelines for cooling because new cooling technologies, methods, and breakthroughs continue to appear. It isn’t easy to develop and maintain comprehensive, broadly acknowledged standards because of the industry’s dynamism. A data center’s unique operational requirements and infrastructure frequently necessitate specialized cooling systems. The need for technical solutions adds to the need for more standardization.
Data Center Liquid Cooling Market: Ecosystem
Rittal (Germany), Fujitsu (Japan), Vertiv Holdings Co. (US), Green Revolution Cooling Inc. (US), Submer (Spain), and Midas Green Technologies (Austin) are some of the prominent companies in the data center liquid cooling market. These companies are well-established, financially stable, and have a global presence in the market.
Based on components, the services segment is projected to grow at a significant CAGR during the forecast period.
The efficient operation of liquid cooling systems in data centers depends on routine maintenance and support services. To maintain optimum operation and spot any possible problems, service providers conduct routine inspections, cleanings, and monitoring of the liquid cooling infrastructure. To keep the cooling system up to date, maintenance services may also involve fluid replacement, leak detection, and system upgrades. The complexity and specialized knowledge needed for implementing, maintaining, and optimizing liquid cooling solutions drives the demand for service segment data center liquid cooling.
Based on data center types, the small and mid-sized data centers segment is expected to grow significantly during the forecast period.
Through the maintenance of lower operating temperatures and the reduction of thermal stress, liquid cooling can aid in extending the lifespan of server equipment. For small and mid-sized data centers, where resources for equipment maintenance and replacement may be scarce, this increased reliability might be particularly significant. Energy efficiency is critical for small and mid-sized data centers looking to cut costs, and liquid cooling can help. These facilities can cut their operational costs and increase overall energy efficiency by reducing the amount of power used for cooling, which will save money in the long run.
Based on end users, the hyperscale data centers segment is projected to grow significantly during the forecast period.
The desire for seamless communication between areas is rising, fueling the expansion of hyper scale data centers. In order to guarantee low-latency connections and dependable services to consumers worldwide, these facilities are strategically positioned in various geographic areas. The rise in demand for data processing, storage, and computing resources from cloud computing, big data analytics, IoT, and other developing technologies is causing hyper-scale data centers to expand. Hyperscale data centers are anticipated to play a crucial role in supporting digital transformation and creating novel applications and services as data generation continues to surge.
Based on enterprises, the IT & Telecom segment is projected to grow at a significant CAGR during the forecast period.
Big data analytics are a key component of the decision-making processes in the IT and telecom industries. The IT and telecom industries may efficiently regulate heat, optimize energy usage, boost performance, and support the demanding computing needs of numerous applications and services by implementing data center liquid cooling technologies. Liquid cooling is essential for assuring the dependability, effectiveness, and sustainability of these industries’ data center infrastructure as they develop.
Based on the type of cooling, the cold plate liquid cooling segment is projected to grow at a significant CAGR during the forecast period.
When electronic components and power electronics systems need effective cooling, cold plate liquid cooling has become popular in sectors like automotive and aerospace. Even in challenging working conditions, these systems may preserve their dependability and longevity by immediately transferring heat from crucial components utilizing cold plates. It is an appealing option for applications that demand high-performance and dependable cooling capabilities because of its capacity to deliver focused and effective cooling directly at heat sources.
Asia Pacific region is projected to grow at a significant CAGR during the forecast period.
In recent years, there has been immense investment in the Asia Pacific region for data center development and management. The Asia Pacific region includes developing economies, such as China, India, and Singapore, and advanced countries, such as Japan and Australia, with high technological use cases. The adoption of data center liquid cooling solutions in Asia has been driven by increased data center investments, increasing power density, climate issues, energy efficiency targets, government initiatives, and the expansion of cloud service providers.
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Key Market Players
Rittal (Germany), Fujitsu (Japan), Vertiv Holdings Co. (US), Green Revolution Cooling Inc. (US), Submer (Spain), Midas Green Technologies (Austin), Schneider Electric (France), LiquidStack (Netherlands), Chilldyne (US), Iceotope Technologies Limited (UK), CoolIT Systems (Canada), Asperitas (Netherlands), DUG Technology (Australia), LiquidCool Solutions, Inc. (US), DCX Liquid Cooling Solutions (Poland), and STULZ GMBH (Germany) are among the key players leading the market through their innovative offerings, enhanced production capacities, and efficient distribution channels.
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Report Metric |
Details |
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Market Size Available for Years |
2017 to 2028 |
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Base Year Considered |
2022 |
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Forecast Period |
2023–2028 |
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Forecast Units |
Value (USD Billion and USD Thousand) |
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Segments Covered |
Component, Data center type, Type of cooling, End-user, Enterprise, and Region. |
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Geographies Covered |
Asia Pacific, North America, Europe, Middle East & Africa, and South America |
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Companies Covered |
The major market players include Rittal GmbH Co. KG (Germany), Fujitsu (Japan), Vertiv Group Corp. (US), Green Revolution Cooling Inc. (US), Submer (Spain), Midas Green Technologies (Austin), Schneider Electric (France), Alfa Laval (Sweden), LiquidStack (US), Chilldyne, Inc. (US), Iceotope Precision Immersion Cooling (UK), CoolIT Systems (Canada), Asperitas (Netherlands), DUG Technology (Australia), LiquidCool Solutions, Inc. (US), DCX Liquid Cooling Systems (Poland), and STULZ GMBH (Germany). |
This research report categorizes the data center liquid cooling market based on component, data center type, type of cooling, end user, enterprise, and region.
Based on components, the data center liquid cooling market has been segmented as follows:
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Solution
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Indirect Liquid Cooling
- Single Phase
- Two Phase
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Direct Liquid Cooling
- Single Phase
- Two Phase
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Indirect Liquid Cooling
-
Services
- Design and Consulting
- Installation and Deployment
- Support and Maintenance
Based on end users, the data center liquid cooling market has been segmented as follows:
- Cloud Providers
- Colocation Providers
- Enterprises
- Hyperscale Data Centers
Based on the type of cooling, the data center liquid cooling market has been segmented as follows:
- Cold Plate Liquid Cooling
- Immersion Liquid Cooling
- Spray Liquid Cooling
Based on data center types, the data center liquid cooling market has been segmented as follows :
- Small and Mid-Sized Data Centers
- Large Data Centers
Based on enterprises, the data center liquid cooling market has been segmented as follows:
- BFSI
- IT and Telecom
- Media and Entertainment
- Healthcare
- Government and Defense
- Retail
- Research and Academic
- Others (Energy and Manufacturing)
Based on regions, the data center liquid cooling market has been segmented as follows:
- Asia Pacific
- North America
- Europe
- Middle East & Africa
- South America
Recent Developments
- In January 2022, Submer announced an investment from Planet First Partners. This fund will be used for R&D initiatives for next-generation liquid coolants and data center automation.
- In November 2021, Vertiv Group Corp. acquired E&I Engineering Group. This acquisition will also enable Vertiv Group Corp. to provide a more comprehensive solution to its customers and expand its geographic reach.
- In August 2021, Submer announced its collaboration with Intel to set and standardize the adoption of immersion liquid cooling solutions. In this collaboration, Submer will provide immersion cooling solutions for all platforms and servers of Intel.
Frequently Asked Questions (FAQ):
What is data center liquid cooling?
Data center liquid cooling uses a liquid, such as water, or a refrigerant, rather than air to cool the data center. This allows the cooling solution to be brought closer to the heat source, thus requiring less, if any, fan power.
What are the different types of liquid cooling solutions for data centers?
Different liquid cooling solutions include cold plate liquid cooling, immersion liquid cooling, and spray liquid cooling.
Which key companies operate in the global data center liquid cooling market?
Rittal (Germany), Fujitsu (Japan), Vertiv Holdings Co. (US), Green Revolution Cooling Inc. (US), Submer (Spain), Midas Green Technologies (Austin), Schneider Electric (France), LiquidStack (Netherlands), Chilldyne (US), Iceotope Technologies Limited (UK), CoolIT Systems (Canada), Asperitas (Netherlands), DUG Technology (Australia), LiquidCool Solutions, Inc. (US), DCX Liquid Cooling Solutions (Poland), and STULZ GMBH (Germany).
What are critical strategies adopted by the market players?
One of the most essential differentiating factors providing a competitive edge to companies in the market is the extensive adoption of strategies such as new product launches, collaborations, acquisitions, and partnerships, which gives them a head start in enhancing their presence in the evolving data center liquid cooling market.
What is the key driver of the data center liquid cooling market?
Increasing number of data centers and server density is the critical driver for the data center liquid cooling market .
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The study involved four major activities in estimating the current size of the data center liquid cooling market. Exhaustive secondary research was done to collect information on the market, peer markets, and parent market. The next step was to validate these findings, assumptions, and sizing with the industry experts across the data center liquid cooling value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. After that, market breakdown and data triangulation were used to estimate the market size of segments and subsegments.
Secondary Research
Secondary sources for this study include Hoovers, Bloomberg, BusinessWeek, and Dun & Bradstreet, which were referred to for identifying and collecting information. These secondary sources included annual reports, press releases & investor presentations of companies, white papers, certified publications, articles by recognized authors, authenticated directories, and databases. Secondary data has been collected and analyzed to determine the overall market size, further validated by primary research.
Primary Research
The data center liquid cooling market comprises stakeholders, such as raw material suppliers, manufacturers, raw material manufacturers, distributors, traders, suppliers, data center institutions, contract manufacturing organizations, and regulatory organizations in the supply chain.
As part of the primary research process, various primary sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information for this report on the data center liquid cooling market. Primary sources from the supply side included industry experts such as Chief Executive Officers (CEOs), vice presidents, marketing directors, and related key executives from various companies and organizations operating in the data center liquid cooling market. Primary sources from the demand side included directors, marketing heads, and purchase managers from multiple end-use industries.
Breakdown of the Primary Interviews
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Market Size Estimation
Both the top-down and bottom-up approaches were used to estimate and validate the total size of the data center liquid cooling market. These methods were also used extensively to estimate the size of various subsegments in the market. The research methodology used to estimate the market size included the following:
- The key players were identified through extensive primary and secondary research.
- The value chain and market size of the data center liquid cooling market, in terms of value, were determined through primary and secondary research.
- All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources.
- All possible parameters that affect the market covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data.
- The research included the study of reports, reviews, and newsletters of top market players, along with extensive interviews for opinions from key leaders, such as CEOs, directors, and marketing executives.
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Data Triangulation
After arriving at the overall market size—using the market size estimation processes as explained above—the market was split into several segments and subsegments. To complete the overall market engineering process and arrive at the exact statistics of each market segment and subsegment, data triangulation and market breakdown procedures were employed, wherever applicable. The data was triangulated by studying various factors and trends from both the demand and supply sides. In addition to this, the market size was validated using both top-down and bottom-up approaches.
Market Definition
Data Center liquid cooling uses a liquid, such as water or refrigerant rather than air, to cool the data center. This allows the cooling solution to be brought closer to the heat source, thus requiring less fan power. Liquid cooling can solve the high-density server cooling problem because it connects more than 3,000 times as much heat as air does and requires less energy, increasing data center’s densities. Liquid cooling in data centers is implemented with a broad range of technologies. These technologies range from heat transfer from the source using inductive methods, such as cold plates to immersion cooling, where the heat transfer takes place on the surface of the electronic component.
Key stakeholders
- Data center liquid cooling solution providers
- Government and research organizations
- Associations and industry bodies such as Swedish Data Center Industry Association, China Communications Standards Association, Dutch Data Center Association, European Data Center Association, and Africa Data Centers Association
- Research and consulting firms
- R&D institutions
- National and regional agencies
- Investment banks and private equity firms
Report Objectives
- To define, describe, and forecast the data center liquid cooling market size based on component, data center type, type of cooling, end user, enterprise, and region.
- To provide detailed information regarding the major factors (drivers, restraints, opportunities, and challenges) influencing market growth.
- To forecast the size of the various segments of the data center liquid cooling market based on five regions—North America, Asia Pacific, Europe, South America, and the Middle East & Africa—along with key countries in each of these regions.
- To analyze the opportunities in the market for stakeholders and present a competitive landscape for the market leaders.
- To examine recent developments, such as expansions, agreements, new product developments, partnerships, acquisitions, and collaboration in the data center liquid cooling market.
- To strategically profile the key players in the market and comprehensively analyze their core competencies.
Available Customizations
MarketsandMarkets offers the following customizations for this market report:
- A further breakdown of the product portfolio of each company in the data center liquid cooling market
- A further breakdown of a region of the data center liquid cooling market concerning a particular country
- Details and profiling of additional market players (up to five)
Growth opportunities and latent adjacency in Data Center Liquid Cooling Market