Liquid Cooling Systems Global Market Report 2026

Liquid cooling systems are a method employed to reduce the temperature of computer processor units (CPUs), and occasionally graphics processor units (GPUs), aiming to keep the overall system temperature low by utilizing water as a cooling medium.

The primary types of liquid cooling systems include liquid heat exchanger systems and compressor-based systems. A liquid heat exchanger serves as a device that transfers heat from one source to another using a working fluid. The main components of these systems are solutions and services, catering to various industries such as BFSI, manufacturing, IT and telecom, automotive, retail, government and defense, healthcare, energy, and others.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs are impacting the liquid cooling systems market by increasing the import costs of heat exchangers, pumps, compressors, coolant chemicals, and control electronics, resulting in higher production costs and extended delivery timelines. Regions such as North America, Europe, and parts of Asia face disruptions due to dependency on globally sourced cooling components. Segments including data center cooling systems, industrial liquid cooling units, and compressor based cooling setups are most affected. However, tariffs are encouraging localized component manufacturing, strategic supplier diversification, and innovation in cost effective and energy efficient cooling technologies.

The liquid cooling systems market research report is one of a series of new reports from The Business Research Company that provides liquid cooling systems market statistics, including liquid cooling systems industry global market size, regional shares, competitors with a liquid cooling systems market share, detailed liquid cooling systems market segments, market trends and opportunities, and any further data you may need to thrive in the liquid cooling systems industry. This liquid cooling systems market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The liquid cooling systems market size has grown exponentially in recent years. It will grow from $7.04 billion in 2025 to $8.46 billion in 2026 at a compound annual growth rate (CAGR) of 20.2%. The growth in the historic period can be attributed to rise in cpu and gpu thermal loads, increasing adoption of data centers, growing need for high efficiency cooling systems, early use of liquid cooling in high performance computing, expansion of telecom and it infrastructure.

The liquid cooling systems market size is expected to see exponential growth in the next few years. It will grow to $17.73 billion in 2030 at a compound annual growth rate (CAGR) of 20.3%. The growth in the forecast period can be attributed to rising demand for AI accelerated computing, increasing deployment of hyperscale data centers, growth in energy efficient cooling technologies, rising use of liquid cooling in industrial automation, increasing heat generation from compact electronic systems. Major trends in the forecast period include increasing adoption of high performance cooling for AI and data processing, growing integration of smart sensors and iot enabled monitoring in cooling systems, advancement in automated and intelligent thermal management solutions, rising demand for liquid cooling in high density industrial and cloud environments, shift toward sustainable and energy efficient cooling technologies.

The rise of new data centers is a key factor expected to drive the growth of the liquid cooling systems market during the forecast period. As digital transformation accelerates and demand for cloud computing services grows, data centers play a crucial role in storing, managing, and processing large volumes of data. These facilities generate significant heat from high-performance servers and networking equipment, creating a need for efficient cooling solutions. Liquid cooling systems enable data centers to manage high-power densities and deliver superior heat dissipation. For example, in September 2024, the National Telecommunications and Information Administration, a US-based government agency, reported that the United States has approximately 5,000 data centers, with demand for these facilities projected to grow by around 9% annually until 2030. Therefore, the proliferation of new data centers is expected to support the expansion of the liquid cooling systems market.

Major companies in the liquid cooling system market are concentrating on developing advanced technologies, including high-efficiency liquid cooling modules, compact microchannel cold plates, immersion cooling solutions, AI-integrated thermal management systems, and environmentally friendly coolants, to improve heat dissipation, reduce energy consumption, and maintain their market position. High-efficiency liquid cooling modules are sophisticated thermal management units designed to quickly transfer and dissipate heat from high-performance electronic components using optimized fluid flow and heat exchange mechanisms. For example, in February 2025, Vertiv, a US-based provider of critical digital-infrastructure and continuity solutions, launched "Vertiv Liquid Cooling Services," an innovative service portfolio for the liquid cooling market offering end-to-end support, including design, installation, commissioning, fluid management, maintenance, and digital services for high-density, AI-driven compute environments. This solution integrates liquid cooling systems with IT racks and adjacent infrastructure, ensures cleanliness and optimized fluid loops, and enables operators to deploy racks of 30 kW+ (and beyond) with enhanced availability, efficiency, and sustainability.

In July 2023, Kohlberg Kravis Roberts & Co. L.P. (KKR), a US-based investment firm, acquired CoolIT Systems for an undisclosed sum. This acquisition aligns with KKR's strategy to invest in innovative technology companies that develop advanced cooling solutions, particularly in the areas of data centers and high-performance computing. CoolIT Systems is a Canada-based company that specializes in providing liquid cooling solutions tailored for high-performance computing environments and data centers.

Major companies operating in the liquid cooling systems market are Schneider Electric SE, Vertiv Holdings Co, Rittal GmbH & Co KG, Emerson Electric Co., Boyd Corporation,Asetek Inc, CoolIT Systems, Green Revolution Cooling Inc., Iceotope Technologies Limited, LiquidCool Solutions, Inc., Fujitsu, Antec Inc., Prime ABGB, Vedant Computers, EK Water Blocks, Thermaltake Technology Co., Ltd., FormulaMod, Bykski, ID-Cooling, Barrowch, Stulz GmbH, XSPC, Phobya, Alphacool International GmbH, Laird Thermal Systems, DCX Liquid Cooling Systems, Kelvion, Baltimore Aircoil Company, RSC Group, Silent-Aire, AAON Inc, BasX, Corsair, NZXT, Swiftech, EVGA, Ascenty, ODATA, Terabyte, ChipArt, ACECO TI, UOL Diveo S.A., Daxtech IT Solutions, Emitac Data Systems, Prologix Distribution, Arabian Thermal Aire Industries Co. Ltd, Gulf Data Hub, Liquidstack

North America was the largest region in the liquid cooling systems market in 2025. The regions covered in the liquid cooling systems market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the liquid cooling systems market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The liquid cooling systems market consists of revenues earned by entities by providing services such as temperature control, variable flow control, bypass control. The market value includes the value of related goods sold by the service provider or included within the service offering. The liquid cooling system market also includes sales of Water, deionized water, glycol/water solutions, and dielectric fluids which are used in providing liquid cooling systems services. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Liquid Cooling Systems Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses liquid cooling systems market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for liquid cooling systems ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The liquid cooling systems market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market. This section also examines key products and services offered in the market, evaluates brand-level differentiation, compares product features, and highlights major innovation and product development trends.
• The supply chain analysis section provides an overview of the entire value chain, including key raw materials, resources, and supplier analysis. It also provides a list competitor at each level of the supply chain.
• The updated trends and strategies section analyses the shape of the market as it evolves and highlights emerging technology trends such as digital transformation, automation, sustainability initiatives, and AI-driven innovation. It suggests how companies can leverage these advancements to strengthen their market position and achieve competitive differentiation.
• The regulatory and investment landscape section provides an overview of the key regulatory frameworks, regularity bodies, associations, and government policies influencing the market. It also examines major investment flows, incentives, and funding trends shaping industry growth and innovation.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.
• The total addressable market (TAM) analysis section defines and estimates the market potential compares it with the current market size, and provides strategic insights and growth opportunities based on this evaluation.
• The market attractiveness scoring section evaluates the market based on a quantitative scoring framework that considers growth potential, competitive dynamics, strategic fit, and risk profile. It also provides interpretive insights and strategic implications for decision-makers.
• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• Expanded geographical coverage includes Taiwan and Southeast Asia, reflecting recent supply chain realignments and manufacturing shifts in the region. This section analyzes how these markets are becoming increasingly important hubs in the global value chain.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The company scoring matrix section evaluates and ranks leading companies based on a multi-parameter framework that includes market share or revenues, product innovation, and brand recognition.

Scope

• Markets Covered:1) By Type: Liquid Heat Exchanger Systems; Compressor-Based Systems
• 2) By Component: Solution; Service
• 3) By End-Users: BFSI (Banking; Financial Services; And Insurance); Manufacturing; IT And Telecom; Automotive; Retail; Government And Defense; Healthcare; Energy; Other End-Users
• Subsegments:
• 1) By Liquid Heat Exchanger Systems: Plate Heat Exchangers; Shell and Tube Heat Exchangers; Fin Fan Coolers
• 2) By Compressor-Based Systems: Chiller Systems; Refrigerant-Based Liquid Cooling Systems; Heat Pump Systems
• Companies Mentioned: Schneider Electric SE; Vertiv Holdings Co; Rittal GmbH & Co KG; Emerson Electric Co.; Boyd Corporation;Asetek Inc; CoolIT Systems; Green Revolution Cooling Inc.; Iceotope Technologies Limited; LiquidCool Solutions, Inc.; Fujitsu; Antec Inc.; Prime ABGB; Vedant Computers; EK Water Blocks; Thermaltake Technology Co., Ltd.; FormulaMod; Bykski; ID-Cooling; Barrowch; Stulz GmbH; XSPC; Phobya; Alphacool International GmbH; Laird Thermal Systems; DCX Liquid Cooling Systems; Kelvion; Baltimore Aircoil Company; RSC Group; Silent-Aire; AAON Inc; BasX; Corsair; NZXT; Swiftech; EVGA; Ascenty; ODATA; Terabyte; ChipArt; ACECO TI; UOL Diveo S.A.; Daxtech IT Solutions; Emitac Data Systems; Prologix Distribution; Arabian Thermal Aire Industries Co. Ltd; Gulf Data Hub; Liquidstack
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain.
• Regions: Asia-Pacific; South East Asia; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
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