Semiconductor Coolers Market Analysis APAC, North America, Europe, South America, Middle East and Africa - US, China, Taiwan, Germany, South Korea - Size and Forecast 2024-2028

Semiconductor Coolers Market Size 2024-2028 

The semiconductor coolers market size is estimated to grow by USD 108.4 million at a CAGR of 3.27% between 2023 and 2028. Semiconductor coolers have become an essential component in the electronics industry due to the growing demand for advanced consumer electronics and the miniaturization of electronic devices. These coolers effectively dissipate heat generated by semiconductors, ensuring optimal performance and longevity of the devices. Semiconductor coolers offer several advantages, including minimal maintenance requirements, high thermal efficiency, and compatibility with various types of electronic components. Their compact size makes them suitable for use in small form factor devices, such as laptops, smartphones, and wearable technology. With the continuous evolution of technology and the increasing complexity of electronic systems, the demand for efficient and reliable cooling solutions like semiconductor coolers is expected to grow significantly in the coming years.

What will be the Size of the Market During the Forecast Period?

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Market Dynamic and Customer Landscape

Semiconductor coolers, also known as thermoelectric coolers, utilize the Peltier effect to generate a voltage difference between two semiconductor junctions, creating heat transfer from one side to another. These coolers are essential components in various applications, including consumer electronic products, temperature-controlled storage, and industrial processes. Consumer electronics such as smartphones, laptops, coffee makers, grillers, toasters, speakers, microwaves, computers, and medical devices rely on semiconductor coolers to maintain optimal operating temperatures. In addition, semiconductor coolers are used in refrigerated truck trailers, storage containers, and military sector equipment, such as engines, ADAS, and lasers. Cryogenic cooling and renewable energy sources, like solar panels, are also driving the market. The device miniaturization trend and the increasing demand for temperature-controlled medical devices and diagnostic equipment are further boosting market growth. The semiconductor coolers market is expected to expand significantly due to these factors and the growing demand for efficient cooling solutions. Applications in the military sector, renewable energy sources, and temperature-controlled storage systems are expected to provide significant growth opportunities for semiconductor cooler manufacturers. The market is expected to witness steady growth due to the increasing demand for cooling solutions in various industries and the ongoing trend of device miniaturization. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

Growing demand for consumer electronics is notably driving market growth. The semiconductor coolers market has witnessed significant growth since 2013, driven by the increasing demand for silent operation and precision temperature control in various industries. The electronics industry, particularly in high-performance computing applications such as artificial intelligence and high-frequency processing, requires advanced cooling technology to ensure optimal heat dissipation efficiency.

Furthermore, cooling technology advancements have become crucial in sectors like wind turbines, automotive, and electric vehicles, where silent operation is essential for efficient performance and environmental sustainability. The integration of cooling systems in advanced materials and components is a key trend in the semiconductor industry, enabling the development of more powerful and energy-efficient devices. The Internet of Things (IoT) and the rise of smart homes have further expanded the market potential for semiconductor coolers, as these technologies demand high-performance and low-noise cooling solutions to ensure seamless operation. Thus, such factors are driving the growth of the market during the forecast period.

Significant Market Trends

Growing number of strategic alliances in the market is the key trend in the market. The semiconductor coolers market is witnessing significant growth due to the increasing demand for silent operation and precision temperature control in various industries, including electronics, high-performance computing, artificial intelligence, Internet of Things, and the automotive sector, particularly in electric vehicles and wind turbines. Cooling technology advancements and the use of advanced materials are key factors driving market expansion.

Furthermore, companies in this market are focusing on enhancing heat dissipation efficiency and environmental sustainability to cater to evolving customer needs. Mergers and acquisitions (M&A) have emerged as a popular business strategy to expand product portfolios and strengthen market positions. For instance, in October 2020, Ferrotec Corp. acquired RMT Ltd., and in March 2021, II-VI Inc. acquired Coherent. These deals enabled the acquiring companies to broaden their product offerings and strengthen their presence in the global semiconductor coolers market. Thus, such trends will shape the growth of the market during the forecast period.

Major Market Challenge

The availability of liquid cooling technology is the major challenge that affects the growth of the market. The electronics industry's relentless pursuit of high-performance computing and technological advancements in artificial intelligence, the Internet of Things, and high-power wind turbines necessitates efficient heat dissipation solutions. Traditional cooling methods, such as compressor-based systems, are no longer sufficient for managing the heat generated by densely packed semiconductor devices. The risk of overheating, resulting in slowed functionality or system failure, is a significant concern. In response, semiconductor coolers have emerged as a preferred solution for maintaining precision temperature control in high-power-intensive applications.

Furthermore, these coolers, which employ microchannel cold plates that circulate coolant fluids over the semiconductor chip's surface, offer several advantages. They ensure silent operation, making them ideal for data centers and other applications where noise reduction is essential. Furthermore, the use of advanced materials in semiconductor coolers enhances heat dissipation efficiency, contributing to environmental sustainability. The automotive sector and electric vehicles also benefit from this technology, as it ensures the reliable operation of power electronics and battery management systems. Hence, the above factors will impede the growth of the market during the forecast period

Exclusive Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Advanced Thermal Solutions Inc. - The company offers semiconductor coolers in a wide range of air to air, air to the plate, and air to liquid thermoelectric assemblies and thermoelectric modules. 

The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Advanced Thermal Solutions Inc.
• CUI Devices
• Custom Thermoelectric LLC
• EH4 GmbH
• Ferrotec Holdings Corp.
• Hi Z Technology
• II VI Inc.
• Komatsu Ltd.
• KYOCERA Corp.
• Laird Thermal Systems Inc.
• Merit Technology Group
• MikroElektronika d.o.o.
• Nippon India
• T Global Technology Europe and N. America Ltd.
• TE Technology Inc.
• Thermion Co.
• Thermonamic Electronics Jiangxi Corp. Ltd.
• Wakefield Thermal Inc.
• Wellen Technology Co. Ltd.
• Xiamen Hicool Electronics Co. Ltd.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Segmentation

By Application 

The market share growth by the automotive segment will be significant during the forecast period. Semiconductor coolers, specifically Thermoelectric coolers that utilize the Peltier effect, have gained significant traction in various industries due to their ability to efficiently dissipate heat from semiconductor components. These coolers, made from semiconductor materials, operate based on the principle of a voltage difference creating a temperature gradient between two junctions. In consumer electronic products, such as smartphones, laptops, coffee makers, grillers, toasters, speakers, microwaves, computers, temperature-controlled storage, refrigerated truck trailers, and storage containers, semiconductor coolers ensure optimal performance and energy efficiency. 

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The automotive segment showed a gradual increase in the market share of USD 306 million in 2018. Moreover, they are increasingly used in medical devices, lasers, diagnostic equipment, military sector components, engines, ADAS, renewable energy sources like solar panels, and device miniaturization trends such as 3D printing. In the automotive sector, semiconductor coolers accounted for the largest market share in 2023, powering digital light processors in automotive displays and automotive electronics like signal lights and vehicle dashboard electronics. The increasing demand for larger vehicles, such as SUVs and crossovers, necessitates the use of automotive lighting for improved visibility in the dark, further driving the growth of this market segment. Additionally, semiconductor coolers are essential for cooling electronic components like CPUs, GPUs, and semiconductor devices in data centers, aerospace, and other high-performance applications.

By Region

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APAC is estimated to contribute 58% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

Semiconductor coolers, also known as thermoelectric coolers, utilize the Peltier effect to convert electrical energy into heat or cold. This process occurs when a voltage difference is applied to a semiconductor material, causing a temperature difference between its junctions. Thermoelectric coolers find extensive applications in various sectors, including consumer electronic products such as smartphones, laptops, coffee makers, grillers, toasters, speakers, microwaves, computers, and temperature-controlled storage. In addition, they are used in refrigerated truck trailers, storage containers, medical devices, lasers, diagnostic equipment, military sector, engines, ADAS, renewable energy sources like solar panels, and device miniaturization trend applications such as 3D printing and data centers. Semiconductor coolers play a crucial role in enhancing energy efficiency and compact design for electronic components, including CPUs, GPUs, and other semiconductor devices, in aerospace, spectrophotometers, chromatographs, and other high-performance applications.

Segment Overview

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million " for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Application Outlook
  • Automotive
  • Consumer electronics
  • Healthcare
  • Defense
  • Others
• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Argentina
    • Brazil
    • Chile

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Market Analyst Overview

Semiconductor coolers are essential components used to dissipate heat generated by various electronic devices. These coolers operate based on the Peltier effect, which utilizes a voltage difference between two semiconductor materials to create a temperature difference. Thermoelectric coolers, a type of semiconductor cooler, are widely used in consumer electronic products like smartphones, laptops, coffee makers, grillers, toasters, speakers, microwaves, computers, and temperature-controlled storage systems.

In industries, semiconductor coolers find applications in refrigerated truck trailers, storage containers, medical devices, lasers, diagnostic equipment, military sector, engines, ADAS, renewable energy sources, and data centers. Semiconductor coolers are increasingly being used in aerospace and high-performance computing applications due to their compact design and energy efficiency. Semiconductor devices such as CPUs, GPUs, and spectrophotometers require efficient cooling to ensure optimal performance. The miniaturization trend and 3D printing technology have led to the development of compact semiconductor coolers for various applications. The market for semiconductor coolers is expected to grow significantly due to the increasing demand for energy-efficient cooling solutions and the need for device miniaturization.

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What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2024 and 2028
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies