Data Center Liquid Cooling Market Growth Accelerates: Strategic Forecast Predicts $13.22 Billion by 2029

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What Will the Data Center Liquid Cooling Industry Market Size Be by 2025?
The market size for data center liquid cooling has seen a tremendous surge in growth over the recent years. It is anticipated to progress from a value of $4.18 billion in 2024 to a whopping $5.17 billion in 2025, with a robust compound annual growth rate (CAGR) of 23.7%. The factors that have contributed to the growth during the historic period encompass an increase in data collection, expansion of data centers, rising demands for energy efficiency, growth in cloud computing, and proliferation of hyperscale data centers.

What's the Long-Term Growth Forecast for the Data Center Liquid Cooling Market Size Through 2029?
The market size for data center liquid cooling is predicted to experience significant expansion in the coming years. By 2029, it's expected to reach a value of $13.22 billion, with a compound annual growth rate (CAGR) of 26.5%. The anticipated growth in this period can be linked to the escalating demand for data storage, the rise of edge computing and micro data centers, emphasis on environmental sustainability, increasing data security and privacy issues, and regulatory compliance. Key trends expected to shape this period include the emergence of edge computing and micro data centers, AI and machine learning workloads, the expansion of 5G networks, technological advancements, novel solutions, and strategic collaborations.

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What Are the Key Growth Drivers Fueling the Data Center Liquid Cooling Market Expansion?
The rise in data center numbers and server density, triggered by their indispensable role in business operations, is predicted to boost the growth of the data center liquid cooling market. Data centers furnish businesses with several benefits such as computation, data storage, networking, business applications, and other functional support, which streamlines business processes. Higher data center numbers and server density, a result of these benefits, in turn heighten the demand for liquid cooling systems. Hence, the hike in data centers and server density is steering the expansion of the data center liquid cooling market. For example, an article by stellarix, an Africa-based data center and cloud computing provider, in March 2024 reported that in 2023, the number of global IoT-connected devices hit 15.14 billion, showing a 75% rise since 2019, and are predicted to double by 2030. This steep ascent in IoT and data-based technologies has compelled data centers to turn towards liquid cooling systems. Consequently, some facilities have started to support rack densities as high as 200 kW, a notable departure from traditional air-cooled systems.

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What Are the Key Trends Driving Data Center Liquid Cooling Market Growth?
Trend 1: The increasing focus on technological innovations is a major emerging trend in the data center liquid cooling market, with Huawei leading the pack. The ongoing need for power within data centers, which demands a significant amount of energy for both operation and temperature regulation, is inspiring unparalleled developments in cooling technologies. These progresses are perfectly represented by Huawei's launch of the FusionModule2000 6.0 - a solution that incorporates superior liquid cooling methodologies and a modular approach, designed to efficiently maximize space and energy. To illustrate, in November 2022, Huawei - a multinational technology enterprise based in China, introduced the FusionModule2000 6.0 with state-of-the-art modular designs and an all-inclusive liquid cooling solutions. It aims to optimize energy efficiency and space management in contemporary data centers. This revolutionary solution signifies Huawei's dedication to delivering pioneering technologies, key to addressing the escalating power and cooling requirements in high-density computerized environments.

How Is the Data Center Liquid Cooling Market Segmented?
The data center liquid cooling market covered in this report is segmented -

1) By Type: Single Phase Cooling, Two Phase Cooling
2) By Component: Solutions, Services
3) By Data Center Type: Hyperscale Centers, Enterprise type, Colocation Data Centers, Other Data Center Types
4) By Industry Type: Telecom and IT, BFSI, Research, Energy, Government and Academia, Healthcare, Other Industry Types

Subsegments:
1) By Single Phase Cooling: Direct-to-Chip Cooling, Rack-Based Cooling Solutions, Immersion Cooling Systems
2) By Two-Phase Cooling: Vapor Chamber Cooling, Heat Pipes, Immersion Cooling

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Which Companies Are Leading the Charge in Data Center Liquid Cooling Market Innovation?
Major companies operating in the data center liquid cooling market include Asetek Inc., Rittal GmbH & Co. KG, Fujitsu Limited, Vertiv Group Corp, Green Revolution Cooling Inc, Submer Technologies SL, Midas Green Technologies LLC, Schneider Electric SE, Alfa Laval AB, Chilldyne Inc, Iceotope Technologies Limited, CoolIT Systems Inc, 3M Company, Aspen Systems Inc, Mitsubishi Group, IBM Corporation, ExaScaler Inc, Stulz GmbH, Ebullient Inc, LiquidStack Inc, KyotoCooling BV, Asperitas B.V., Airedale International Air Conditioning Ltd, Motivair Corporation, Munters Group AB, Delta Electronics Inc.

Which Regions Are Leading the Global Data Center Liquid Cooling Market in Revenue?
North America was the largest region in the data center liquid cooling market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the data center liquid cooling market report include Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

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