PUBLISHER: MarketsandMarkets | PRODUCT CODE: 1830051
PUBLISHER: MarketsandMarkets | PRODUCT CODE: 1830051
The global data center coolant distribution units market is projected to grow from USD 1.05 billion in 2025 to USD 7.74 billion by 2032, at a CAGR of 33.0% during the forecast period.
Scope of the Report | |
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Years Considered for the Study | 2021-2032 |
Base Year | 2024 |
Forecast Period | 2025-2032 |
Units Considered | Value (USD Million) |
Segments | Type, Cooling Type, Process, Capacity, Data Center Type, End User, and Region |
Regions covered | Asia Pacific, Europe, North America, the Middle East & Africa, and South America |
Coolant distribution units act as an important component in liquid cooling systems, connecting the facility-level cooling infrastructure with the IT equipment to efficiently remove heat at the source. They support the delivery of precision cooling, higher rack densities, and optimized energy use. This makes them a preferred solution in next-generation data centers. Consequently, this fuels the rapid growth of the global coolant distribution units market in hyperscale, colocation, enterprise, and edge facilities.
"FDU segment to register highest CAGR during forecast period"
The Floor-Mounted Distribution Unit (FDU) segment is expected to grow at the fastest CAGR during the forecast period due to increasing deployments of high-density racks in hyperscale and enterprise data centers. FDUs offer high cooling capacity, scalability, and the ability to support large IT loads, making them ideal for facilities that perform AI, HPC, and cloud-intensive workloads. They are designed to connect closely with facility-level chilled water systems, which makes them well-suited for precise and reliable heat removal. Large investments in data centers across North America, Europe, and Asia-Pacific, combined with a shift toward energy-efficient and sustainable cooling solutions, have driven the adoption of FDUs.
"Direct to Chip Cooling segment to record highest CAGR during forecast period"
The Direct to Chip Cooling segment is projected to grow at the highest CAGR during the forecast period, driven by its ability to remove heat directly from high-performance processors and GPUs used in AI workloads, HPC, and advanced cloud computing setups. The efficiency of direct to chip cooling solutions surpasses traditional air cooling for thermal management at the source, supporting higher-density racks and overall system performance. The growth of this segment is largely due to the rise of AI-powered data centers, large-scale HPC deployments, and digital transformation initiatives by enterprises. Regions such as North America, Europe, and Asia-Pacific are further boosting adoption, with hyperscale and colocation providers investing heavily in liquid-cooling infrastructure. Direct to chip cooling technologies align with global sustainability and energy-efficiency goals. Besides reducing power consumption, DTC cooling improves operational reliability, making it one of the most in-demand cooling technologies in next-generation data centers.
Hyperscale data centers to record highest CAGR during forecast period"
The Hyperscale Data Center segment is expected to grow at the highest CAGR during the forecast period, driven by rapid expansion in AI, HPC, big data applications, and significant investments from global cloud providers. Traditional air-cooling methods are proving inadequate as hyperscale data centers operate with high rack densities and power demands. Therefore, hyperscale operators are adopting more coolant distribution units to enable efficient liquid cooling, optimize energy use, and ensure reliable heat management for thousands of servers. Regions such as North America, Europe, and Asia-Pacific are leading the way in adoption, as operators aim to scale up while meeting sustainability goals. Coolant distribution units are becoming a crucial technology for next-generation hyperscale data centers, effectively supporting improved thermal efficiency and lowering operating costs.
"North America to account for maximum market share during forecast period"
North America is expected to hold the largest share of the data center coolant distribution units market during the forecast period, primarily due to the well-established ecosystem of hyperscale, colocation, and enterprise data centers. The US is one of the top countries for cloud adoption and AI-driven infrastructure and hosts some of the major liquid-cooling companies, such as Google, Microsoft, Amazon, and Meta, which heavily invest in developing and adopting liquid-cooling technologies for applications requiring higher rack densities and energy efficiency. Additionally, the strong regulatory focus on sustainability and carbon reduction, along with the availability of advanced cooling technologies and robust infrastructure, further strengthen North America's position in this market. Favorable investment trends, rapid digitalization of sectors, and early adoption of next-generation liquid-cooling technology ensure that North America will continue to dominate the data center coolant distribution units market throughout the forecast period.
Schneider Electric (France), Vertiv Group Corp. (US), Delta Electronics, Inc. (Taiwan), nVent (US), and DCX Liquid Cooling Systems (Poland) are some of the major players in the data center coolant distribution units market. These companies have adopted strategies such as product launches, acquisitions, collaborations, and expansion to grow their market share and revenue.
Research Coverage
The report defines, segments, and estimates the size of the data center coolant distribution units market based on type, cooling type, end user, and region. It strategically profiles key players and thoroughly analyzes their market share and core competencies. It also monitors and examines competitive developments, such as new product development, collaborations, partnerships, acquisitions, and expansions that they undertake in the market.
Reasons to Buy the Report
The report is intended to help both market leaders and new entrants by providing close estimates of revenue figures for the data center coolant distribution units and their segments. It aims to assist stakeholders in understanding the market's competitive landscape, gaining insights to strengthen their business positions, and developing effective go-to-market strategies. Additionally, it enables stakeholders to understand market trends and provides information on key drivers, restraints, challenges, and opportunities.