In-chassis cooling market is growing moderately due to increasing demand for advanced thermal management of compact electronic systems in various industries. The push to smaller form factors in electronics, server, and data center systems fuels the need for in-chassis cooling methods that are efficient.
The systems work by facilitating better heat dissipation in almost constrained environments, thereby maintaining the performance/parlance of the device and lowering the risk of software issues. Increasing investments in high-performance computing, edge computing infrastructure, and fifth-generation (5G) deployment are also boosting market growth. As devices become more powerful and compact, in-chassis cooling solutions are becoming critical for maintaining system reliability and avoiding thermal-related failures.
In 2025, the in-chassis cooling market size is estimated at approximately USD 209,920 million. By 2035, it is projected to reach USD 263,517.92 million, growing at a compound annual growth rate (CAGR) of 2.3%.
| Metric | Value |
|---|---|
| Market Size in 2025 | USD 209,920 million |
| Projected Market Size in 2035 | USD 263,517.92 million |
| CAGR (2025 to 2035) | 2.3% |
Although growth is steady, technological advancements such as liquid cooling, advanced heat pipes, and vapor chambers are enhancing system efficiency and compactness. Increasing concerns over energy efficiency, coupled with the need for space optimization in electronics and telecommunications, are prompting manufacturers to innovate and offer more sustainable and compact cooling solutions.
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North America is the highest growing region in terms of in-chassis cooling market due to the strong data center industry along with growing adaptation of AI and IoT devices. Regional demand is dominated by the United States, driven by significant technological advancements and innovations in cooling systems.
The demand is further underpinned by increasing investments in 5G infrastructure and high-density computing applications. Moreover, tech companies are also encouraging green infrastructure to help minimize carbon footprints due to sustainability initiatives across the industry.
Europe is the next largest market with high demand for effective in-chassis cooling solutions, particularly in Germany, France, and the UK. The driving forces for the growth of the market are the advent of Industry 4.0, green data center, and government regulations for energy saving.
Strict growing environmental regulations are forcing many firms to spend big bucks on sophisticated cooling technologies. In addition, the spike in smart city projects as well as digital transformation initiatives in the region further fuel the demand for robust in-chassi cooling systems.
Asia-Pacific in-chassis cooling market is expected to grow at the fastest rate, led by China, Japan and India. Key growth drivers for progressive data centers, electronics manufacturers and telecom infrastructure.
Also, the increasing use of 5G in combination with rising connected devices is creating strong demand for efficient thermal management systems. Moreover, technological innovation and digitalization have received government incentives, which have contributed to the growth of market opportunities in this region.
With technological advancement, miniaturization, and enhanced computing power driving demand across industries, the market for in-chassis cooling will continue to thrive. Advancements in liquid cooling, vapor chambers, and heat pipe technologies are improving the performance and efficiency of cooling solutions.
As energy conservation and system reliability are gaining attention, industries are looking for smarter and sustainable energy conservation solutions for thermal management. With increasing digital infrastructure across the globe, the advance in-chassis cooling systems will continue to be of utmost importance in powering the next generation of electronics and communications technology.
Challenges
Thermal Management Complexity in High-Performance Systems
The challenge of managing heat in ever more compact chassis environments becomes acutely problematic as computing systems become more powerful. High-performance servers, edge devices and advanced AI processors all produce substantial heat loads, requiring highly efficient and often bespoke cooling solutions. Maintaining optimal temperatures without any loss of performance continues to be one of the major obstacles due to the complexity of the designs and integration.
High Cost of Advanced Cooling Technologies
Each of these advanced cooling methods like liquid cooling, vapor chambers, and microchannel coolers adds significant cost in an in-chassis solution. End-users particularly in low-cost markets tend to avoid adopting premium cooling technologies until it becomes absolutely necessary. Manufacturers still face a recurring struggle between performance requirements and cost efficiency.
Opportunities
Expansion of Data Centers and Edge Computing
Hyper-growth of global hyper scale and edge data centers is creating huge demand for efficient in-chassis cooling solutions. As data processing continues to migrate closer to the edge, devices must remain small, while reaching new levels of performance, opening up significant opportunities for new approaches to cooling that can enable more performance in smaller packages.
Emergence of AI and High-Density Computing Workloads
AI, machine learning and high-density compute workloads require better thermal management. These applications all call for reliable, energy-efficient in-chassis cooling solutions that can provide continuous optimal operation. Over the next decade, vendors capable of providing scalable cooling technology for AI infrastructure will benefit greatly.
The need for compact electronics, 5G infrastructures, and data-intensive applications drives in-chassis cooling industry expansion in the years 2020 to 2024. While air-based cooling solutions were predominant, there was growing interest in liquid and hybrid systems for high-performance requirements. On the PCR side, manufacturers highlighted designs for efficient airflow, compact fans and improved heat exchangers.
Over the period of 2025 to 2035, systems will make a gradual transition towards advanced liquid and two-phase cooling technologies. As workloads increase and devices shrink even more, modular, customizable cooling solutions will be vital. Sustainability will play a more prominent role, with environmentally friendly cooling fluids and energy-efficient designs favored to align with corporate green initiatives.
Market Shifts: A Comparative Analysis 2020 to 2024 vs. 2025 to 2035
| Market Aspect | 2020 to 2024 Trends |
|---|---|
| Key Growth Driver | Expansion of compact electronic devices |
| Material Innovations | Enhanced air-cooling components |
| Technological Advancements | Compact airflow systems, heat pipes |
| Main Application Areas | Telecom equipment, small servers |
| Dominant Regions | North America and Europe |
| Regulatory Landscape | Energy efficiency guidelines |
| Investment Trends | Fan efficiency improvements |
| Customer Base | Electronics manufacturers, telecom providers |
| Competitive Strategy | Cost-effectiveness and reliability |
| Market Aspect | 2025 to 2035 Projections |
|---|---|
| Key Growth Driver | Growth of AI, high-density computing, edge AI |
| Material Innovations | Liquid cooling, phase-change materials |
| Technological Advancements | Immersion cooling, microchannel coolers |
| Main Application Areas | AI servers, quantum computing, high-end edge devices |
| Dominant Regions | Asia-Pacific and North America |
| Regulatory Landscape | Sustainability mandates, green tech compliance |
| Investment Trends | Liquid cooling R&D, hybrid system innovation |
| Customer Base | Hyper scale data centers, AI infrastructure firms |
| Competitive Strategy | Customization, eco-efficiency, AI integration |
With data centers and high-performance computing systems requiring sophisticated thermal management solutions, the United States in-chassis cooling market is observing steady growth. Higher levels of AI and cloud infrastructure investments are driving adoption of cost-effective in-chassis cooling solutions.
In addition, government programs encouraging energy efficient IT infrastructure is supporting the growth of the market. To cater the increasing demand of heat management solutions in their systems, leading manufacturers are focusing on innovations, such as Liquid Cooling systems and Hybrid solutions for improved reliability and longevity of the system performance.
| Country | CAGR (2025 to 2035) |
|---|---|
| USA | 2.5% |
In the UK, the in-chassis cooling market is growing slowly with the increasing number of data centers and the expansion of telecommunication. The growing concern about overheating and downtime costs will encourage enterprises to implement advanced in-chassis cooling solutions.
Demand is also being driven by government sustainability programs pushing greener and more energy-efficient data infrastructures. Moreover, collaborations between IT solution providers and cooling technology companies are encouraging the development of new products that meet local business needs.
| Country | CAGR (2025 to 2035) |
|---|---|
| UK | 2.2% |
The in-chassis cooling market in the European Union is evolving steadily, spurred by the growing digitization initiatives, IoT adoption, and smart city projects. The demand from countries such as Germany, France, and the Netherlands for sophisticated cooling systems that comply with strict energy efficiency regulations is driving this.
The European Green Deal is also driving organizations to invest in low carbon footprint cooling technologies. In addition, the increasing number of hyper scale data centers is also motivating continuous investments in advanced cooling methods.
| Region | CAGR (2025 to 2035) |
|---|---|
| European Union (EU) | 2.3% |
The in-chassis cooling market trends in Japan are fairly measured, fueled mainly by increasing demand for compact and high-performance cooling designs for modern computing workloads. At the core of these emerging trends from the country's strategy towards automation, robotics and AI technologies is the need for improved thermal management systems for delicate electronic devices.
In addition, government initiatives to build energy-efficient and disaster-resilient IT infrastructure are encouraging adoption. For this reason, companies are bringing ultra-thin and high-capacity in-chassis cooling systems suitable for everything from urban installations in sous-vide and both large and small high-density servers.
| Country | CAGR (2025 to 2035) |
|---|---|
| Japan | 2.1% |
Drivers for in-chassis cooling market in South Korea is based on the increasing investment in 5G infrastructure, smart factories, & next-gen data centers. As computing density increases in constrained areas, the demand for more compact and energy-efficient cooling systems is rising.
The government also provides green technologies, reduced power consumption," which fosters innovative cooling solutions. Now that foreign firms have a technological advantage, domestic firms are tackling research and development (R&D) to secure a scalable and eco-friendly in-chassis cooling system to maintain competitiveness.
| Country | CAGR (2025 to 2035) |
|---|---|
| South Korea | 2.4% |
| Technology | Market Share (2025) |
|---|---|
| Airflow Through (AFT) Cooling | 46% |
The influx of newer technologies that are simpler, more reliable, less expensive to manage moderate to high heat loads for a variety of applications (Airflow through (AFT) cooling remains the technology segment. This uses passive or forced airflow to remove heat from electronics, batteries, and machinery, keeping operating temps tolerable without elaborate liquid cooling chains.
AFT systems are relatively simple in design, providing a lower cost of installation and maintenance, making them the preferred option for manufacturers who seek to implement an effective thermal management solution without significantly increasing the overall cost of their product.
AFT technology is addressing an increasingly critical requirement for a variety of industries (e.g. telecommunications, automotive, industrial automation, and consumer electronics) where thermal control in space- and cost-constrained environments is key. Reliability is another important driver of AFT cooling adoption.
AFT systems have inherently fewer movable components than liquid-cooled systems, which makes them less prone to mechanical failure and therefore requires less maintenance as SYSTEMS are pump, hose or coolant fluid independent. This toughness comes in handy for challenging operating environments such as outdoor telecom stations, electric car battery packs and industrial enclosures.
Also, the combination of better fan technology and improved airflow design has led AFT solutions to become even better able to handle higher heat densities with only a slight increase in noise and energy consumption. Other developments, such as variable-speed fans, improved duct geometries and more intelligent airflow control, are extending the operating range of AFT cooling into other top-tier technologies with greater performance.
Thermal management continues to be a major hurdle across all industrial sectors, and therefore, the cost-performance advantages presently offered by Airflow Through cooling will guarantee its place as the solution for a broad spectrum of medium to high heat load applications well into the future.
| Application | Market Share (2025) |
|---|---|
| Electronics | 52% |
By application, the electronics segment accounted for the largest share of the market, which can be attributed to the rising demand for enhanced thermal performance in servers, data centers, telecommunication, and consumer electronics.
As electronics have continued to shrink while growing increasingly powerful, heat generation in sealed environments has only become a bigger problem, and effective in-chassis cooling systems have become a necessity. IT infrastructure is costly, servers and data centers need cooling to prevent hardware failure, maintain uptime, and extend the life of some costly IT hardware components.
With increasing server densities from cloud computing and edge computing and AI based applications server power and cooling are more critical than ever, requiring high availability cooling solutions that effectively manage a very high thermal load with low power consumption.
Heat management is not the exclusive domain of data centers either; generally, in data center infrastructure, like base stations, routers and switches, efficient operation matters for network performance and reliability, especially with a shift towards 5G and larger area, high-bandwidth IoT networks that need to run 24/7 regardless of the environment.
Within the consumer electronics space, there has been a push for highly integrated, feature-rich devices such as smartphones, laptops, gaming consoles, and wearables, elevating thermal management to become a priority in designing their end product.
Not being able to dissipate heat properly will not only reduce the experience for the user when a device gets hot and throttle performance, but will reduce the lifespan of a device by a ton. These electronics sectors have been calling for advanced in-chassis cooling technologies such as airflow optimization, vapor chambers, heat pipes, and creative fan designs.
To conform to constantly evolving performance and environmental specifications, manufacturers are spending millions on research and development of smaller, more efficient and quieter cooling appliances. At the same time, with the persistent innovation and expansion of the electronics industry, alongside consistent developments in core areas, such as AI, 5G and edge computing, strong demand for effective thermal management solutions is likely to sustain steady growth for electronics and solidify the dominance of the electronics segment of the cooling systems market.
Trends driving the in-chassis cooling market include a growing dependence on high-performance computing, telecommunications 5G infrastructure, and a need for compact cooling solutions in dense server environments. Liquid cooling, heat pipes, and vapor chamber technology are ushering in a new age.
The new offering is designed for data centers, telecom facilities and edge computing hubs; companies are developing modular, scalable and energy-efficient cooling systems. Moreover, the growing penetration of the AI and IoT ecosystems increases the demand for in-chassis thermal management, paving new growth opportunities.
The market is anticipated to maintain a steady Compound Annual Growth Rate (CAGR) of 2.3% between 2025 and 2035, propelled by increasing computing workloads, growing global data center footprints, and an increased emphasis on sustainability and energy optimization in IT infrastructures.
Market Share Analysis by Company
| Company Name | Estimated Market Share (%) |
|---|---|
| Asetek Inc. | 18-22% |
| CoolIT Systems | 14-18% |
| Delta Electronics, Inc. | 12-15% |
| Fujitsu Ltd. | 8-12% |
| Boyd Corporation | 5-8% |
| Other Companies (combined) | 30-40% |
| Company Name | Key Offerings/Activities |
|---|---|
| Asetek Inc. | In 2025 , expanded their patented liquid cooling technology portfolio for servers. Launched compact cooling units designed for edge computing systems and high-density computing applications. |
| CoolIT Systems | In 2024 , unveiled a new generation of Direct Liquid Cooling (DLC) solutions tailored for hyperscale data centers. Strengthened partnerships with major server OEMs to co-develop integrated cooling systems. |
| Delta Electronics, Inc. | In 2025 , introduced high-efficiency thermal modules with smart control capabilities, aimed at optimizing power usage and thermal performance in telecommunications and enterprise server markets. |
| Fujitsu Ltd. | In 2024 , enhanced their range of immersion cooling and in-chassis cooling systems for AI-intensive workloads. Focused on promoting green IT initiatives through energy-saving cooling solutions. |
| Boyd Corporation | In 2025 , developed advanced vapor chamber assemblies integrated into high-performance servers. Invested heavily in R&D to produce lightweight, ultra-compact cooling technologies. |
Key Company Insights
Asetek Inc. (18-22%)
Asetek is a number one due to its unwavering dedication to liquid cooling innovation. The company gains a competitive advantage by diversifying into high-performance server applications and edge computing. It supports modular design, user-friendly integration, and eco-friendly cooling technologies. Continued partnerships with technology giants also serve to increase market penetration and product availability internationally.
CoolIT Systems (14-18%)
CoolIT Systems is the market leader in Direct Liquid Cooling (DLC) for hyperscale and enterprise environments. Its OEM strategic partnerships allow quicker integration of advanced cooling solutions. Its focus on energy-efficient technologies makes it an ideal vendor for green data center projects around the world. Its global expansion strategy is backed by continuous product innovations.
Delta Electronics, Inc. (12-15%)
Combining space efficiency with active energy control systems, Delta Electronics has secured its place in the market for smart cooling modules for this application. With intelligent control features, it reduces energy consumption and provide optimal cooling. With a strong presence in telecom, enterprise IT, and industrial sectors, the company is well-positioned to leverage steady revenue streams even as it adapts to the changing demands of digital infrastructure.
Fujitsu Ltd. (8-12%)
Fujitsu is using its topical skills in immersion and in-chassis cooling to serve AI and high-compute environments their efforts in green IT and sustainable data centers are really unfolding. By tying into increasing market demand for energy efficient IT infrastructure, Fujitsu is likely to grow its market share in the coming years.
Boyd Corporation (5-8%)
Boyd Corporation specializes in advanced vapor chamber technologies and ultra-compact thermal management solutions. The focus on lightweight materials and efficient heat dissipation has led to it becoming the go-to supplier for many performance critical computing applications. Investments into strategy-backed research and development guarantee that products are ever-evolving and can withstand fluctuations within the market.
Other Key Players (30-40% Combined)
The overall market size for in-chassis cooling market was USD 209,920 million in 2025.
The in-chassis cooling market expected to reach USD 263,517.92 million in 2035.
Rising demand for high-performance computing, growth in data centers, and need for efficient thermal management will drive in-chassis cooling market growth during the forecast period.
The top 5 countries which drives the development of cargo bike tire market are USA, UK, Europe Union, Japan and South Korea.
Electronics segment driving market growth to command significant share over the assessment period.
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In-Chassis Cooling Market
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