Two-Phase Cooling Device Industry Report 2026: Market Size of 187 Million USD and Future Outlook
What is a two-phase cooling system? A two-phase cooling system involves immersing servers, storage, and network equipment in an insulating cooling liquid with a low boiling point, using the heat generated to evaporate the liquid. The resulting vapor is cooled in a condenser and returned to liquid form, circulating back into the tank through a phase change cycle, efficiently removing heat from the entire equipment. It is characterized by its ability to maintain a uniform temperature distribution while reducing reliance on fans, supporting high-density computing environments. Global Market Size of Two-Phase Cooling Systems According to the latest research report published by Global Reports titled "Global Market Size, Share, Company Rankings, Revenue, and Demand Trend Forecast for Two-Phase Cooling Systems (2026-2032)," the global market for two-phase cooling systems is expected to expand from \$156 million in 2025 to \$187 million in 2026, with a projected compound annual growth rate (CAGR) of 19.8% from 2026 to 2032, reaching \$553 million by 2032. With the rise of generative AI, GPU clusters, and high-performance computing (HPC), demand is expected to grow as a cooling technology that addresses the high heat density of servers.
Inquire About This Product
basic information
Expansion of Demand and Introduction Challenges for Two-Phase Cooling Systems The main demand sources include AI learning and inference infrastructure, HPC, hyperscale cloud, colocation data centers, cryptocurrency mining, edge computing, and computational facilities of government and research institutions. As the performance of GPUs increases, the power consumption per rack is expected to rise, making it difficult for traditional air cooling systems to cope with high-heat environments, leading to an anticipated increase in the adoption of two-phase cooling systems. On the other hand, the introduction of two-phase cooling systems faces several technical challenges, including the procurement of cooling fluids, containment of vapor, pressure control, material compatibility, leak prevention, long-term reliability of electronic components, and alignment with server warranties. The toxicity and environmental assessment study on cooling fluids published in August 2026 also addresses the environmental and safety evaluation of fluids for two-phase cooling. Considering 3M's cessation of PFAS production and regulatory pressures on fluorinated cooling fluids, the development of alternative fluids and long-term performance verification will be crucial conditions for market expansion.
Price range
Delivery Time
Applications/Examples of results
Cooling technologies utilizing phase change and the hurdles to their implementation Two-phase cooling systems immerse servers, storage, and network equipment in a low-boiling-point insulating coolant, evaporating the liquid due to the heat generated by the equipment. The resulting vapor releases heat in a condenser, returning to liquid form and circulating back to the cooling tank. This mechanism allows for the removal of heat from the entire equipment, promoting uniform temperature distribution, reducing reliance on cooling fans, and accommodating high-density packaging. However, the competition among two-phase cooling systems is not determined solely by cooling capacity. Conditions for practical use include vapor containment, pressure control, leak prevention, compatibility with sealing materials, and long-term reliability of electronic components. Furthermore, against the backdrop of 3M's cessation of PFAS production and increased regulations on fluorinated substances, the verification of alternative technologies for coolants and their environmental compatibility is becoming increasingly important. The ability to maintain cooling performance while managing material compatibility, maintainability, and risks throughout the entire lifecycle will influence future technological competition.
Company information
Global Reports integrates industrial information from around the world and provides highly accurate market intelligence to support corporate decision-making. We deliver in-depth analyses based on numerical data and facts, including market size, share, industry structure, price trends, growth forecasts, rankings of major companies, and competitive trends, with clear information categorized by country, region, and application. Leveraging a rich database that has supported the business growth of over 65,000 companies and an international research network, we accompany our clients in their global expansion and continuous growth.
