Global Direct-to-chip Liquid Cooling Market Size study, by Cooling Solution Type, Component Cooling, Liquid Coolant Type, Application, End Use, and Regional Forecasts 2022-2032

Description

Global Direct-to-chip Liquid Cooling Market is valued at approximately USD 1.5 billion in 2023 and is anticipated to grow with an impressive compound annual growth rate of more than 20.5% over the forecast period 2024-2032. As data centers evolve to meet the escalating demands of high-performance computing, artificial intelligence, and cloud infrastructure, thermal management has emerged as a defining priority. Direct-to-chip liquid cooling, a disruptive approach that transfers heat directly from critical components to a circulating liquid medium, is gaining rapid traction due to its unmatched efficiency and energy-saving potential. By channeling coolants directly to heat-generating CPUs, GPUs, and memory modules, this method drastically reduces the need for air-cooling infrastructure and enhances system density-ushering in a new era of thermal innovation for next-generation computing environments.

A growing sense of urgency among hyperscale data centers, colocation providers, and enterprise IT environments to minimize power usage effectiveness (PUE) and carbon emissions is catalyzing adoption. Traditional air-based cooling systems are no longer sufficient to handle the heat generated by AI-intensive workloads and densely packed servers. Direct-to-chip solutions fill this gap by facilitating precise, localized cooling, while simultaneously enabling greater compute per rack. As global environmental regulations tighten and ESG pressures rise, enterprises are shifting their strategies toward sustainable infrastructure-thereby elevating liquid cooling technologies from experimental to essential.

The market is being further propelled by technological advancements in dielectric fluids and thermal interface materials, which are broadening the application scope of direct-to-chip cooling. In particular, integration of smart sensors and closed-loop control systems allows real-time temperature optimization and predictive maintenance, reducing operational risk and prolonging hardware lifecycle. However, the transition from air to liquid requires overcoming legacy infrastructure barriers and necessitates upfront capital investment, system redesign, and technician retraining-factors that may impede early adoption in cost-sensitive segments. Nevertheless, growing R&D funding and strategic alliances among key players continue to bridge these gaps.

Strategic investments by semiconductor leaders, system integrators, and OEMs have significantly intensified competition, spurring rapid innovations in both single-phase and two-phase liquid cooling systems. As organizations race to optimize performance per watt and footprint utilization, modular and retrofit-friendly cooling systems are being aggressively deployed across new builds and legacy data centers alike. Additionally, the rise of edge computing and micro data centers in remote and space-constrained environments is creating untapped opportunities for compact and high-efficiency cooling technologies that ensure thermal stability without expanding energy budgets.

From a regional standpoint, North America currently leads the global direct-to-chip liquid cooling market, driven by early adoption among hyperscale data centers, favorable energy regulations, and advanced IT infrastructure. Europe follows closely, with strong policy support for green data center initiatives and increasing investments in digital transformation. Meanwhile, the Asia Pacific region is expected to exhibit the fastest growth throughout the forecast period. Rapid digitization in countries such as China, India, and Japan-coupled with the proliferation of cloud service providers and AI startups-has generated a surging demand for thermally efficient and scalable cooling systems tailored for high-density workloads.

Major market player included in this report are:

Vertiv Group Corp.
Schneider Electric SE
Asetek A/S
CoolIT Systems Inc.
Fujitsu Limited
Midas Green Technologies
Submer Technologies
Rittal GmbH & Co. KG
Chilldyne Inc.
Lenovo Group Limited
IBM Corporation
Advanced Cooling Technologies Inc.
Hewlett Packard Enterprise
Alibaba Group (via Alibaba Cloud)
LiquidStack

The detailed segments and sub-segment of the market are explained below:

By Cooling Solution Type

Single-Phase Cooling
Two-Phase Cooling

By Component Cooling

Processor Cooling (CPU, GPU)
Memory & Storage Cooling
Power Supply Unit (PSU)
Others

By Liquid Coolant Type

Water-Based Coolants
Dielectric Fluids
Others

By Application

High-Performance Computing (HPC)
Artificial Intelligence & Machine Learning
Edge Computing
Cloud Computing
Others

By End Use

Data Centers
Enterprises
Government & Defense
Research & Academia
Others

By Region:

North America
U.S.
Canada
Europe
UK
Germany
France
Spain
Italy
Rest of Europe
Asia Pacific
China
India
Japan
Australia
South Korea
Rest of Asia Pacific
Latin America
Brazil
Mexico
Middle East & Africa
Saudi Arabia
South Africa
Rest of Middle East & Africa

Years considered for the study are as follows:

Historical year - 2022
Base year - 2023
Forecast period - 2024 to 2032

Key Takeaways:

Market Estimates & Forecast for 10 years from 2022 to 2032.
Annualized revenues and regional level analysis for each market segment.
Detailed analysis of geographical landscape with Country level analysis of major regions.
Competitive landscape with information on major players in the market.
Analysis of key business strategies and recommendations on future market approach.
Analysis of competitive structure of the market.
Demand side and supply side analysis of the market.

Chapter 1. Global Direct-to-chip Liquid Cooling Market Executive Summary

1.1. Global Direct-to-chip Liquid Cooling Market Size & Forecast (2022-2032)
1.2. Regional Summary
1.3. Segmental Summary
- 1.3.1. By Cooling Solution Type
- 1.3.2. By Component Cooling
- 1.3.3. By Liquid Coolant Type
- 1.3.4. By Application
- 1.3.5. By End Use
1.4. Key Trends
1.5. Recession Impact
1.6. Analyst Recommendation & Conclusion

Chapter 2. Global Direct-to-chip Liquid Cooling Market Definition and Research Assumptions

2.1. Research Objective
2.2. Market Definition
2.3. Research Assumptions
- 2.3.1. Inclusion & Exclusion
- 2.3.2. Limitations
- 2.3.3. Supply Side Analysis
  - 2.3.3.1. Availability
  - 2.3.3.2. Infrastructure
  - 2.3.3.3. Regulatory Environment
  - 2.3.3.4. Market Competition
  - 2.3.3.5. Economic Viability (Provider's Perspective)
- 2.3.4. Demand Side Analysis
  - 2.3.4.1. Energy Efficiency Mandates
  - 2.3.4.2. Technological Advancements in Coolants
  - 2.3.4.3. Sustainability & ESG Considerations
  - 2.3.4.4. Customer Awareness & Adoption
2.4. Estimation Methodology
2.5. Years Considered for the Study
2.6. Currency Conversion Rates

Chapter 3. Global Direct-to-chip Liquid Cooling Market Dynamics

3.1. Market Drivers
- 3.1.1. Escalating Heat Dissipation Requirements in Hyperscale Data Centers
- 3.1.2. Stringent Energy Efficiency and Carbon Reduction Targets
- 3.1.3. Proliferation of AI/ML Workloads Demanding High Compute Density
3.2. Market Challenges
- 3.2.1. High Initial CapEx and Retrofit Complexity
- 3.2.2. Integration Barriers with Legacy Air-cooled Infrastructure
- 3.2.3. Limited Skilled Workforce for Liquid Cooling Deployment
3.3. Market Opportunities
- 3.3.1. Emerging Edge Data Centers and Micro-server Deployments
- 3.3.2. Advances in Dielectric Fluids and Two-phase Cooling Technologies
- 3.3.3. Strategic Partnerships between OEMs and Coolant Suppliers

Chapter 4. Global Direct-to-chip Liquid Cooling Market Industry Analysis

4.1. Porter's 5 Force Model
- 4.1.1. Bargaining Power of Suppliers
- 4.1.2. Bargaining Power of Buyers
- 4.1.3. Threat of New Entrants
- 4.1.4. Threat of Substitutes
- 4.1.5. Competitive Rivalry
- 4.1.6. Futuristic Approach to Porter's Model
- 4.1.7. Porter's 5 Force Impact Analysis
4.2. PESTEL Analysis
- 4.2.1. Political
- 4.2.2. Economic
- 4.2.3. Social
- 4.2.4. Technological
- 4.2.5. Environmental
- 4.2.6. Legal
4.3. Top Investment Opportunities
4.4. Top Winning Strategies
4.5. Disruptive Trends
4.6. Industry Expert Perspective
4.7. Analyst Recommendation & Conclusion

Chapter 5. Global Direct-to-chip Liquid Cooling Market Size & Forecasts by Cooling Solution Type (2022-2032)

5.1. Segment Dashboard
5.2. Global Market: Cooling Solution Type Revenue Trend Analysis, 2022 & 2032 (USD Billion)
- 5.2.1. Single-Phase Cooling
- 5.2.2. Two-Phase Cooling

Chapter 6. Global Direct-to-chip Liquid Cooling Market Size & Forecasts by Component Cooling (2022-2032)

6.1. Segment Dashboard
6.2. Global Market: Component Cooling Revenue Trend Analysis, 2022 & 2032 (USD Billion)
- 6.2.1. Processor Cooling (CPU, GPU)
- 6.2.2. Memory & Storage Cooling
- 6.2.3. Power Supply Unit (PSU) Cooling
- 6.2.4. Others

Chapter 7. Global Direct-to-chip Liquid Cooling Market Size & Forecasts by Liquid Coolant Type (2022-2032)

7.1. Segment Dashboard
7.2. Global Market: Liquid Coolant Type Revenue Trend Analysis, 2022 & 2032 (USD Billion)
- 7.2.1. Water-Based Coolants
- 7.2.2. Dielectric Fluids
- 7.2.3. Others

Chapter 8. Global Direct-to-chip Liquid Cooling Market Size & Forecasts by Application (2022-2032)

8.1. Segment Dashboard
8.2. Global Market: Application Revenue Trend Analysis, 2022 & 2032 (USD Billion)
- 8.2.1. High-Performance Computing (HPC)
- 8.2.2. Artificial Intelligence & Machine Learning
- 8.2.3. Edge Computing
- 8.2.4. Cloud Computing
- 8.2.5. Others

Chapter 9. Global Direct-to-chip Liquid Cooling Market Size & Forecasts by End Use (2022-2032)

9.1. Segment Dashboard
9.2. Global Market: End Use Revenue Trend Analysis, 2022 & 2032 (USD Billion)
- 9.2.1. Data Centers
- 9.2.2. Enterprises
- 9.2.3. Government & Defense
- 9.2.4. Research & Academia
- 9.2.5. Others

Chapter 10. Global Direct-to-chip Liquid Cooling Market Size & Forecasts by Region (2022-2032)

10.1. North America Market
- 10.1.1. U.S. Market
  - 10.1.1.1. Cooling Solution Type breakdown, 2022-2032
  - 10.1.1.2. Component Cooling breakdown, 2022-2032
- 10.1.2. Canada Market
10.2. Europe Market
- 10.2.1. UK Market
- 10.2.2. Germany Market
- 10.2.3. France Market
- 10.2.4. Spain Market
- 10.2.5. Italy Market
- 10.2.6. Rest of Europe Market
10.3. Asia Pacific Market
- 10.3.1. China Market
- 10.3.2. India Market
- 10.3.3. Japan Market
- 10.3.4. Australia Market
- 10.3.5. South Korea Market
- 10.3.6. Rest of Asia Pacific Market
10.4. Latin America Market
- 10.4.1. Brazil Market
- 10.4.2. Mexico Market
- 10.4.3. Rest of Latin America Market
10.5. Middle East & Africa Market
- 10.5.1. Saudi Arabia Market
- 10.5.2. South Africa Market
- 10.5.3. Rest of Middle East & Africa Market

Chapter 11. Competitive Intelligence

11.1. Key Company SWOT Analysis
- 11.1.1. Vertiv Group Corp.
- 11.1.2. Schneider Electric SE
- 11.1.3. Asetek A/S
11.2. Top Market Strategies
11.3. Company Profiles
- 11.3.1. Vertiv Group Corp.
  - 11.3.1.1. Key Information
  - 11.3.1.2. Overview
  - 11.3.1.3. Financial (Subject to Data Availability)
  - 11.3.1.4. Product Summary
  - 11.3.1.5. Market Strategies
- 11.3.2. Schneider Electric SE
- 11.3.3. Asetek A/S
- 11.3.4. CoolIT Systems Inc.
- 11.3.5. Fujitsu Limited
- 11.3.6. Midas Green Technologies
- 11.3.7. Submer Technologies
- 11.3.8. Rittal GmbH & Co. KG

Chapter 12. Research Process

12.1. Research Process
- 12.1.1. Data Mining
- 12.1.2. Analysis
- 12.1.3. Market Estimation
- 12.1.4. Validation
- 12.1.5. Publishing
12.2. Research Attributes