Analysis of the current market situation of China's liquid cooled server industry from 2023 to 2024
The liquid cooled server industry refers to the server industry that assembles and produces servers using liquid as a cooling source for heat exchange to achieve cooling effects. With the rapid increase in demand for computing power in industries such as digitalization and artificial intelligence, traditional air-cooled servers have low cooling efficiency and high energy consumption in data centers. The power cost of large data processing centers can account for 50% to 60% of daily operating costs, and over 80% of the power consumption needs to be used for cooling the processors. To solve the problem of high load operation of computers, more efficient liquid cooled servers have been widely used instead of traditional air-cooled servers. In recent years, the rapid development of large-scale information processing, signal operators, cloud computing, and artificial intelligence fields is expected to continue to maintain high-speed development in the coming years.
The upstream of the liquid cooled server industry includes manufacturers of components such as coolant, connectors, and coolant distribution units, which are mostly chemical and metal products. The midstream is the supply chain of liquid cooled servers, and the three types of liquid cooled servers, cold plate, spray, and immersion, involve chips, modules, and cabinet machines. Downstream applications involve Internet, finance, government and other users.
Internet, telecommunications, government and education are the largest procurement industries of liquid cooled servers, accounting for more than 80% of the overall liquid cooled server market; Leading enterprises in traditional industries such as finance, healthcare, manufacturing, and public utilities have also begun to actively deploy liquid cooled servers and plan for green and sustainable data center construction. It is estimated that in 2025, the proportion of liquid cooling data centers in the Internet industry will reach 24.0%, the proportion of the financial industry will reach 25.0%, the proportion of the telecommunications industry will reach 23.0%, and the proportion of the energy industry will reach 10.5%. The demand of biology, medical care, government affairs and other industries will accelerate to integrate into the new business form of general data centers.
Data shows that the Chinese liquid cooled server market will continue to grow rapidly in 2023. The market size of liquid cooled servers in China reached 660 million US dollars in the first half of 2023, a year-on-year increase of 283.3%. It is expected to reach 1.51 billion US dollars for the entire year of 2023. IDC predicts that from 2022 to 2027, the compound annual growth rate of China's liquid cooled server market will reach 54.7%, and the market size will reach 8.9 billion US dollars in 2027.
At present, China's liquid cooling server market is still in its early stage of development, and the competition pattern of the liquid cooling server complete machine market is relatively concentrated, mostly in several large-scale Internet companies and national education and scientific research projects. With the rapid growth of business volume in the Internet, finance and telecommunications industries, the demand for data center liquid cooling in various industries will continue to increase
