Solid State Cooling: A Sustainable Solution for Cooling in High-Tech Industries

 

The global solid state cooling market, valued at US$ 780.0 Mn in 2023, is projected to expand steadily at a CAGR of 7.3% from 2024 to 2034, reaching an estimated US$ 1.7 Bn by 2034. This growth underscores the rising adoption of thermoelectric and other solid state cooling technologies as industries push for energy-efficient, reliable, and sustainable refrigeration solutions.

 

Market Introduction

Solid state cooling, often referred to as thermoelectric cooling (TEC), is transforming the refrigeration landscape. Unlike conventional systems that rely on compressors and liquid refrigerants, solid state cooling uses semiconductor materials to transfer heat based on the Peltier effect. This means no moving parts, no environmentally harmful gases, and significantly lower noise levels.

With advantages such as high reliability, low maintenance, and precise temperature control, solid state cooling is being rapidly adopted across medical facilities, laboratories, consumer electronics, automotive, aerospace, and industrial applications.

 

Key Market Drivers

1. Rise in Demand for Energy-efficient Semiconductor Refrigeration

Energy efficiency is one of the most pressing needs in the cooling industry. Solid state systems outperform traditional refrigeration by consuming less energy while offering exact temperature management. These systems help businesses reduce operational costs and contribute to sustainability goals.

2. Growing Adoption of Thermoelectric Cooling Technology

Thermoelectric cooling works by passing direct current through two conductors, creating a temperature difference that enables both heating and cooling effects. Compact, scalable, and reliable, these systems are being increasingly deployed in electronics, telecommunication equipment, and portable refrigeration units.

The ability to cool confined and sensitive electronic components such as CPUs, GPUs, and laser diodes makes this technology indispensable in the semiconductor and electronics industries.

3. Expanding Applications Across Industries

From battery thermal management systems in electric vehicles to temperature-sensitive drug storage in healthcare, the applications of solid state cooling are multiplying. With industries such as automotive, aerospace, and medical devices experiencing rapid growth, the demand for compact and efficient cooling systems is also accelerating.

 

Market Trends

• Miniaturization and Compact Design: Leading companies are developing smaller cooling systems for electronics, medical devices, and aerospace equipment, where traditional methods are impractical.
• Integration with Next-gen Devices: Solid state cooling is being embedded into optoelectronic packages, telecom devices, and thermal therapy systems to provide precise temperature control.
• Sustainability Focus: Growing environmental concerns are encouraging industries to shift toward solid state systems that eliminate harmful refrigerants.

For instance, in March 2024, Solid State Cooling Systems launched its ThermoCube II product line, a next-gen thermoelectric chiller designed for precision control without harmful refrigerants.

 

Regional Outlook

Asia Pacific – The Growth Leader

Asia Pacific held the largest share of the market in 2023, thanks to:

• Rapid industrialization and electronics manufacturing in China, Japan, and South Korea
• Growing data center expansion and semiconductor demand
• Rising adoption of energy-efficient cooling in automotive and consumer electronics

The region’s commitment to sustainability and energy conservation is further propelling adoption.

North America & Europe

North America remains a key market due to strong R&D infrastructure and early adoption in industries such as healthcare and aerospace. Europe, with its strict sustainability regulations, is also a promising growth region for magnetocaloric and electrocaloric cooling technologies.

 

Competitive Landscape

The solid state cooling market is moderately consolidated, with global players focusing on innovation and advanced material development. Companies are actively investing in improving thermoelectric efficiency, reducing costs, and expanding product portfolios.

Key Players:

• Ferrotec Holdings Corporation
• Laird Thermal Systems, Inc.
• Solid State Cooling Systems
• Phononic
• Delta Electronics, Inc.
• Coherent Corp.
• Thermonamic Electronics (Jiangxi) Corp., Ltd.

Key Developments

• June 2023: Laird Thermal Systems introduced the OptoTEC MSX Series of micro multistage thermoelectric coolers for advanced optical packages.
• April 2023: Laird expanded its micro thermoelectric coolers portfolio, designed for compact, high-temperature applications with footprint sizes as small as 1.6 mm.

 

Future Outlook

The next decade is poised to see solid state cooling emerge as a mainstream technology across industries. Key growth opportunities lie in:

• EV battery thermal management to enhance performance and safety
• Telecom infrastructure requiring compact cooling systems for 5G and beyond
• Medical refrigeration for drug storage and therapeutic applications
• Consumer electronics demanding noise-free, reliable cooling in confined spaces

With continued technological advancements, regulatory support, and sustainability goals, the solid state cooling market is on track to double in size by 2034, making it one of the most promising areas in the global refrigeration and thermal management industry.

 

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