Data Center Liquid Cooling Market Size By Component (Solution [Direct-to-Chip Liquid Cooling, Immersive Liquid Cooling], Services [Managed Services, Professional Services]), By End-use (Enterprise [BFSI, Government, Healthcare, Manufacturing, IT-enabled Services (ITeS)], Telecom Service Providers, Cloud Service Providers), COVID-19 Impact Analysis, Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2021 – 2027

Industry Trends

Data Center Liquid Cooling Market size exceeded USD 1.5 billion in 2020 and is predicted to grow at 21% CAGR from 2021 to 2027. The market growth can be attributed to the high demand for noise-free and compact liquid cooling solutions in data centers.
 

The growing adoption of live streaming videos & OTT content globally is driving the construction of edge data centers, thereby boosting the market expansion. Edge data center operators are highly investing in innovative data center cooling technologies to maintain ideal and efficient operating conditions. Liquid cooling systems deliver effective cooling performance with a much smaller footprint compared to air-based systems. The compact size of these systems makes them highly suitable for edge data centers that are smaller in size and require the implementation of high-density hardware.
 

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Technological advancements and demanding enterprise workloads will propel the market progression. Market players are introducing innovative cooling solutions to help data center managers in improving their computing performance and reducing energy usage. For instance, in May 2021, Green Revolution Cooling (GRC) released the ICEraQ Series 10, a redesign of its immersion cooling solutions. The solution increases sustainability by delivering a PUE of <1.03 and reduces operating costs. It decreases the total data center energy usage by up to 50% and reduces server power by around 20%.
 

The ongoing coronavirus (COVID-19) pandemic has negatively impacted the data center liquid cooling market in FY2020. The temporary closure of manufacturing facilities resulted in a significant delay of new product launches and a decline in the financial revenue of market leaders. For instance, in February 2021, Schneider Electric SE reported a revenue of USD 29,842 in 2020, representing a 7.4% decline compared to the previous year. The imposed lockdown resulted in increased usage of digital services, fueling the need for efficient cooling solutions in data centers.
 

Need for energy-efficient data centers to stimulate the demand for immersive liquid cooling solutions

The U.S. data center liquid cooling market is projected to expand at 17% growth rate through 2027 led by the stringent government regulations on reducing carbon footprints from high-density data centers. For instance, the Federal Energy Management Program (FEMP) by the U.S. government encourages organizations & agencies to improve energy efficiency in data centers through its Center of Expertise (CoE). As cooling systems account for 30% to 60% of the energy consumption in data centers, operators are focusing on implementing advanced cooling technologies to maintain efficiency.
 

Increasing investments in data centers by cloud service providers will foster the market value

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In China, demand for data center liquid cooling solutions from cloud service providers is expected to grow at a CAGR of 27% by 2027 on account of the rising establishment of data centers within the country, which is due to increasing government concerns regarding the safety of customer data. For instance, China's Cybersecurity Law mandates data localization requirements from critical data center operators to process, store, and analyze the data within China’s borders. This has encouraged cloud service providers to establish data centers in the country for securely processing a massive amount of data. In June 2021, Microsoft Corporation announced its plan to open four new data centers in China by early 2022. This will accelerate the industry demand for energy-efficient data center liquid cooling systems.
 

Favorable environmental conditions for the establishment of data centers across European region will impel the industry growth

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Europe data center liquid cooling market accounted for over 30% of the revenue share in 2020, which is credited to the increasing expansion of data centers across the region. The favorable environmental conditions, such as easy availability of land, cheaper electricity, accessible renewable energy, and tax incentives, are encouraging data center service providers to invest in this region. For instance, in December 2020, NTT Limited opened its London 1 Data Center to expand its data center footprint in the UK. These companies are shifting toward liquid cooling solutions to meet the expectations of high-density racks. Compared with traditional air cooling, liquid cooling systems offer a smaller footprint, higher energy efficiency, enhanced server reliability, low noise, and lower total cost of ownership.
 

Focus on partnerships & collaborations remains a key trend among the market players

Key companies operating in the market include Alfa Laval AB, Allied Control Ltd. (Bitfury Group Limited), Asetek AS, Black Box Corporation, Chilldyne Inc., CoolIT Systems Inc., Ebullient, Inc., Green Revolution Cooling, Inc., IBM Corporation, Iceotope Technologies Limited, Liquid Cool Solutions, Inc., Midas Green Technologies LLC., Mitsubishi Electric Corporation, Rittal GmbH & Co., KG, Schneider Electric SE, Silverback Migration Solutions, Inc., STULZ GmbH, Submer Technologies, The 3M Company, and Vertiv Group Co. Industry participants are focusing on strategic partnerships and collaborations to remain competitive in the market.
 

The data center liquid cooling market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2017 to 2027 for the following segments:

Market, By Component

• Solution
  • Direct-to-chip liquid cooling
  • Immersive liquid cooling
  • IT chassis
  • Tub/open bath
• Services
  • Managed services
  • Professional services

Market, By Application

• Cloud service providers
• Enterprise
  • BFSI
  • Government
  • Healthcare
  • Manufacturing
  • IT-enabled Services (ITeS)
  • Others
• Telecom service providers

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Poland
  • Spain
  • Benelux
• Asia Pacific
  • China
  • India
  • Japan
  • Singapore
  • Australia
• South America
  • Brazil
  • Colombia
  • Chile
  • Argentina
• MEA
  • GCC
  • South Africa