Liquid Cooling Systems Global Market Opportunities and Strategies to 2032

This report describes and explains the liquid cooling systems market and covers 2017-2022, termed the historic period, and 2022-2027 termed the forecast period, along with further forecasts for the period 2027-2032. The report evaluates the market across each region and for the major economies within each region.

The global liquid cooling systems market reached a value of nearly $4.2 billion in 2022, having grown at a compound annual growth rate (CAGR) of 18.9% since 2017. The market is expected to grow from $4.2 billion in 2022 to $10.6 billion in 2027 at a rate of 20.3%. The market is then expected to grow at a CAGR of 21.1% from 2027 and reach $27.6 billion in 2032.

Growth in the historic period resulted from strong economic growth in emerging markets, growth in the manufacturing industry, increased demand for electric vehicles and the rise in demand for high-performance computing (HPC) systems. Factors that negatively affected growth in the historic period were the lack of awareness about liquid cooling technology and the risk of coolant leakage in liquid cooling systems.

Going forward, the emergence of new data centers, the rise in demand among smartphone manufacturers, government initiatives and the rising urbanization will drive the market. Factors that could hinder the growth of the liquid cooling systems market in the future include the high maintenance costs associated with liquid cooling systems.

The liquid cooling systems market is segmented by type into liquid heat exchanger systems and compressor-based systems. The liquid heat exchanger systems market was the largest segment of the liquid cooling systems market segmented by type, accounting for 70.2% of the total in 2022. Going forward, the compressor-based systems segment is expected to be the fastest growing segment in the liquid cooling systems market segmented by type, at a CAGR of 20.6% during 2022-2027.

The liquid cooling systems market is segmented by component into solution and services. The solution market was the largest segment of the liquid cooling systems market segmented by component, accounting for 71.6% of the total in 2022. Going forward, the services segment is expected to be the fastest growing segment in the liquid cooling systems market segmented by component, at a CAGR of 21.1% during 2022-2027.

The liquid cooling systems market is segmented by end-user into BFSI (banking, financial services, and insurance), manufacturing, IT and telecom, automotive, retail, government and defense, healthcare, energy, and other end-users. The IT and telecom market was the largest segment of the liquid cooling systems market segmented by end-user, accounting for 25.4% of the total in 2022. Going forward, the IT and telecom segment is expected to be the fastest growing segment in the liquid cooling systems market segmented by end-user, at a CAGR of 21.3% during 2022-2027.

North America was the largest region in the liquid cooling systems market, accounting for 36.7% of the total in 2022. It was followed by Asia-Pacific, and then the other regions. Going forward, the fastest-growing regions in the liquid cooling systems market will be Asia-Pacific and South America where growth will be at CAGRs of 22.1% and 20.3% respectively. These will be followed by North America and Western Europe where the markets are expected to grow at CAGRs of 19.7% and 19.6% respectively.

The liquid cooling systems market is highly concentrated, with a few large players operating in the market. The top ten competitors in the market made up to 71.13% of the total market in 2021. Schneider Electric SE was the largest competitor with 35.46% share of the market, followed by Vertiv Holdings Co. with 16.88%, Rittal GmbH & Co KG with 10.06%, Emerson Electric Co. with 5.67%, Boyd Corporation with 0.99%, Asetek Inc with 0.96%, CoolIT Systems with 0.65%, Green Revolution Cooling Inc. with 0.19%, Iceotope Technologies Limited with 0.15%, and LiquidCool Solutions, Inc. with 0.12%.

The top opportunities in the liquid cooling systems market segmented by type will arise in the liquid heat exchanger systems segment, which will gain $4.5 billion of global annual sales by 2027. The top opportunities in the liquid cooling systems market segmented by component will arise in the solution segment, which will gain $4.5 billion of global annual sales by 2027. The top opportunities in the liquid cooling systems market segmented by end-user will arise in the IT and telecom segment, which will gain $1.7 billion of global annual sales by 2027. The liquid cooling systems market size will gain the most in the USA at $1.8 billion.

Market-trend-based strategies for the liquid cooling systems market include focus on direct water-cooling technology, the use of 3D technology, focus on self-contained liquid cooling systems, focus on product launches and strategic partnerships and collaborations.

Player-adopted strategies in the liquid cooling systems market include focus on expanding business portfolio by launching new modules, enhancing products portfolio by launching new products, launching new products for the expansion of smart cooling unit solutions, and mergers and acquisitions to improve financial strength, product portfolio and geographical presence.

To take advantage of the opportunities, the recommends the liquid cooling systems companies to focus on direct water-cooling technology, focus on use of 3D technology, focus on self-contained liquid cooling systems, focus on new product launches, expanding in emerging markets, focus on strategic partnerships and collaborations, provide competitively priced offerings, focus on B2B promotions, participate in trade shows and events and focus on fast-growing end-use industries.