Global Cooling System Market Size, Share, and COVID-19 Impact Analysis, By Type (Air Cooling Systems, Liquid Cooling Systems, and Hybrid Cooling Systems), By Component (Compressors, Coolers, Evaporators, and Condensers), By Application (Consumer Electronics, Automotive, and Industrial), and By Region (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa), Analysis and Forecast 2025 - 2035.

Global Cooling System Market Insights Forecasts to 2035

• The Global Cooling System Market Size Was Estimated at USD 151.4 Billion in 2024
• The Market Size is Expected to Grow at a CAGR of around 3.05% from 2025 to 2035
• The Worldwide Cooling System Market Size is Expected to Reach USD 210.6 Billion by 2035
• North America is expected to grow the fastest during the forecast period.

According to a research report published by Spherical Insights and Consulting, the global cooling system market size was worth around USD 151.4 billion in 2024 and is predicted to grow to around USD 210.6 billion by 2035 with a compound annual growth rate (CAGR) of 3.05% from 2025 to 2035. The cooling system market is growing due to rising global temperatures, increasing industrialization, data center expansion, demand for energy-efficient HVAC solutions, technological advancements, and growth in automotive and electronics sectors requiring efficient thermal management for performance, safety, and sustainability.

Market Overview

The global cooling system market refers to technologies and equipment aimed at maintaining optimum temperatures for a wide array of industries, including industrial machinery, automotive engines, power generation units, data centers, and residential or commercial buildings. Such systems prevent overheating, improve energy efficiency, and assure operational reliability. Key drivers in the market include rapid industrialization, urbanization, increasing global temperatures, and the rising need for energy-efficient and environmentally friendly cooling systems. Other factors stimulating market growth include the expansion of data centers, an increase in demand for electric and hybrid vehicles, and increasing energy efficiency standards. Innovation is reshaping the industry through the integration of smart and IoT-enabled cooling systems that enable real-time monitoring, predictive maintenance, and optimization of energy consumption.

The adoption of eco-friendly refrigerants and systems powered by renewables to achieve global sustainability goals. Other areas of emerging opportunity include green building initiatives, district cooling systems, and developments in liquid and evaporative cooling technologies for high-performance applications. Leading market participants such as Daikin Industries, Carrier Global Corporation, Johnson Controls, Honeywell International, and Mitsubishi Electric are investing intensively in research and development to develop advanced, efficient, and environmentally responsible cooling solutions. Their strategic partnerships and technological innovations are expanding the scope of the market across developed and emerging regions. On 19 November 2024, ministers and leaders from over 30 countries, in conjunction with the UNEP Cool Coalition and the UAE COP28 Presidency, came together during COP29 in Baku, Azerbaijan, to advance the Global Cooling Pledge. The Ministerial Roundtable reaffirmed commitment from around the globe to sustainable cooling and collective action to ensure that the demand for cooling worldwide can be met without increasing emissions.

Report Coverage

This research report categorizes the cooling system market based on various segments and regions, forecasts revenue growth, and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the cooling system market. Recent market developments and competitive strategies, such as expansion, type launch, development, partnership, merger, and acquisition, have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the cooling system market. 

Driving Factors

Rapid urbanization, elevating global temperatures, and industrial and commercial infrastructure drive the growth of the cooling system market globally. Increasing demand for energy-efficient and eco-friendly cooling solutions, supported by government regulations on emissions and energy consumption, further accelerates the growth. Other significant contributors to growth include expanding data centers, electric vehicle adoption, and technological advancements in HVAC and refrigeration systems. Increased disposable incomes and improved living standards spur residential demand for air conditioning systems. A strong urge for sustainable and smart cooling technologies is continuously opening opportunities for new prospects in IoT-enabled systems and renewable-powered cooling in varied industries worldwide.

District Cooling Systems (DCS) centralize the production and distribution of cooling, improving energy efficiency by up to 50% and reducing peak power demand by as much as 40%. Integrated with renewable energy, waste-to-energy, and water systems, DCS supports circular economy goals and offers lifecycle cost savings of up to 25%. It also ensures equitable access to cooling, strengthens urban resilience, and reduces environmental impact.

Restraining Factors

The cooling system market is restrained by factors such as high installation and maintenance costs, environmental concerns regarding refrigerant emissions, and strict regulatory standards. Lack of awareness in developing regions, energy consumption-related problems, and disruptions to the supply chain for key components are other growth inhibitors in the market, as are challenges with the retrofitting of modern systems into old infrastructure.

Market Segmentation

The cooling system market share is classified into type, component, and application.  

• The air cooling systems segment dominated the market in 2024, approximately 50% and is projected to grow at a substantial CAGR during the forecast period.

Based on the type, the cooling system market is divided into air cooling systems, liquid cooling systems, and hybrid cooling systems. Among these, the air cooling systems segment dominated the market in 2024 and is projected to grow at a substantial CAGR during the forecast period. The segment of air cooling systems dominated the growth in the global cooling system market on account of its wide usage across residential, commercial, and industrial sectors, cost-effectiveness, and ease of installation and maintenance. Growing global temperatures, increasing urbanization, and the rising need for energy-efficient and sustainable solutions to cooling drive strong demand for air cooling systems worldwide.

• The compressors segment accounted for the largest share in 2024, approximately 53% and is anticipated to grow at a significant CAGR during the forecast period.

Based on the component, the cooling system market is divided into compressors, coolers, evaporators, and condensers. Among these, the compressors segment accounted for the largest share in 2024 and is anticipated to grow at a significant CAGR during the forecast period. Growth in the compressors segment is driven by factors such as the critical role played by compressors in cooling efficiency, growing demand for air conditioning and refrigeration systems, increasing industrial and commercial cooling needs, and technological innovation in energy-efficient and eco-friendly compressor designs in various residential, automotive, and industrial applications.

• The consumer electronics segment accounted for the highest market revenue in 2024, approximately 40% and is anticipated to grow at a significant CAGR during the forecast period.

Based on the application, the cooling system market is divided into consumer electronics, automotive, and industrial. Among these, the consumer electronics segment accounted for the highest market revenue in 2024 and is anticipated to grow at a significant CAGR during the forecast period. The growth in the consumer electronics segment is influenced by the increasing usage of smartphones, laptops, gaming consoles, and other electronic devices, all of which need effective thermal management. Growing disposable incomes, rapid technological innovations, and the increasing need to avoid overheating to prolong the life of the device further drive this segment.

Regional Segment Analysis of the Cooling System Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

Asia Pacific is anticipated to hold the largest share of the cooling system market over the predicted timeframe.

Asia Pacific is anticipated to hold the largest share of the cooling system market over the predicted timeframe. The Asia Pacific is expected to account for approximately 34% share in the market throughout the forecast period due to growth factors, including China and India. Rapid urbanization, industrialization, and increasing temperature further elevate the demand for residential, commercial, and industrial cooling. The expanding data center industry, cold chain infrastructure, and manufacturing facilities spur the market adoption rate. Government initiatives toward energy-efficient technologies, integrating renewable energy, and promoting sustainable cooling systems accelerate market growth. Besides, increasing disposable incomes and technological advancements in smart and eco-friendly cooling solutions contribute to the leading position of the region.

North America is expected to grow at a rapid CAGR in the cooling system market during the forecast period. The North American region is rapidly growing in the cooling system market during the forecast period, with approximately 26% of market share, driven by key countries such as the United States and Canada. The growth is attributed to increasing demand related to energy efficiency and smart cooling in commercial, residential, and industrial sectors. Other factors contributing to this growth include rising investments in data centers, new energy efficiency regulations, and the adoption of low-GWP refrigerants. Additionally, technological advancements in IoT-enabled and AI-integrated cooling systems accelerate market expansion in the region.

The cooling system market in Europe is growing at a steady pace, driven by countries such as Germany, France, and the UK. This growth has been catalyzed by the increased adoption of energy-efficient and eco-friendly cooling technologies, government regulations on refrigerants and emissions, and surging demands from commercial and industrial segments. Furthermore, modernization of data centers, upgrading of infrastructure, and awareness toward sustainable cooling will continue to drive the market, making Europe a prime factor in the global scenario for cooling systems.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the cooling system market, along with a comparative evaluation primarily based on their type of offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes type development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Johnson Controls
• Vertiv
• Carrier Global
• Schneider Electric
• Daikin Industries
• STULZ GMBH
• Trane Technologies PLC
• Danfoss
• Asetek A/S
• SPX Cooling Technologies
• Rittal
• Green Revolution Cooling Inc.
• CoolIT Systems, Inc.
• Mitsubishi Electric Corporation
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs) 

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the cooling system market based on the below-mentioned segments:

Global Cooling System Market, By Type

• Air Cooling Systems
• Liquid Cooling Systems
• Hybrid Cooling Systems

Global Cooling System Market, By Component

• Compressors
• Coolers
• Evaporators
• Condensers

Global Cooling System Market, By Application

• Consumer Electronics
• Automotive
• Industrial

Global Cooling System Market, By Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa