Immersion Cooling Market Forecasts to 2030 - Global Analysis By Type (Two-Phase and Single-Phase), Cooling Fluid, Component, Application, End User and By Geography

According to Stratistics MRC, the Global Immersion Cooling Market is accounted for $0.5 billion in 2024 and is expected to reach $2.0 billion by 2030 growing at a CAGR of 26.1% during the forecast period. Immersion cooling is a method of cooling computer components, such as CPUs or GPUs, by submerging them in a dielectric fluid or coolant instead of using traditional air or water cooling methods. This coolant is typically non-conductive and serves to dissipate heat away from the components more efficiently due to its higher heat capacity compared to air or water. In immersion cooling, the computer components are fully submerged in the coolant, allowing for more direct contact and heat transfer.

According to Intel, the projected global autonomous vehicle registration share in 2024 is 0.49%; by 2030, the registration share is expected to reach 12%.

Market Dynamics:

Driver:

Increasing demand for high-performance computing (HPC)

The market is witnessing a significant surge in demand for high-performance computing (HPC) solutions. This trend is fueled by the need for efficient cooling technologies that can handle the increasing power densities of modern data centers and supercomputers. Immersion cooling offers enhanced thermal management, reduced energy consumption, and improved performance, making it a preferred choice for organizations seeking to optimize their HPC infrastructure while lowering operational costs.

Restraint:

Lack of awareness

Many businesses and organizations are unfamiliar with the benefits and feasibility of immersion cooling solutions, leading to slower adoption rates. This lack of awareness hampers the market's growth potential and inhibits innovation in the field. Educating key stakeholders about the advantages, energy efficiency, and cost-effectiveness of immersion cooling technologies is crucial to overcoming this challenge and driving widespread adoption. Thus, the market faces a significant challenge due to a lack of awareness among potential adopters.

Opportunity:

Growing data center densities

The market is witnessing a rapid increase in data center densities due to its efficient heat dissipation capabilities. By fully submerging IT hardware like servers in dielectric fluid, it minimizes energy consumption for cooling while enabling higher computing densities. This technology optimizes server performance and reduces operational costs, making it increasingly popular for large-scale data centers aiming for enhanced efficiency and sustainability in their operations.

Threat:

High initial cost

The infrastructure required for immersion cooling, including specialized tanks, coolants, and monitoring systems, demands a substantial upfront investment. These costs can deter some businesses from adopting immersion cooling despite its long-term benefits in terms of energy efficiency and reduced operating expenses. Overcoming this barrier may require innovative financing models or a clearer demonstration of the long-term return on investment to attract more widespread adoption in the market.

Covid-19 Impact:

The COVID-19 pandemic significantly impacted the Immersion Cooling market. The market witnessed a slowdown due to disruptions in supply chains, delayed projects, and reduced investments in data centers. However, the increased demand for data processing and storage solutions during the pandemic led to a gradual recovery. Companies adapted by focusing on efficiency, sustainability, and remote management capabilities, driving innovation in Immersion Cooling technologies.

The synthetic fluids segment is expected to be the largest during the forecast period

The synthetic fluids is expected to be the largest during the forecast. These innovative fluids, often based on engineered hydrocarbons or fluorinated compounds, offer efficient heat dissipation, prolonging the lifespan of electronic components. Their non-conductive nature also enhances safety. As industries increasingly prioritize energy efficiency and sustainability, synthetic fluids are poised to play a pivotal role in revolutionizing immersion cooling technologies, driving further growth and adoption in the market.

The edge computing segment is expected to have the highest CAGR during the forecast period

The edge computing segment is expected to have the highest CAGR during the forecast period. By placing computing resources closer to where data is generated, edge computing optimizes latency, bandwidth usage, and overall system efficiency. Immersion cooling complements this by efficiently dissipating heat from these edge devices, ensuring optimal performance and longevity. Together, these technologies enhance the capabilities of edge infrastructure, making them more reliable and responsive to the demands of modern applications.

Region with largest share:

North America is projected to hold the largest market share during the forecast period driven by increasing demand for efficient and cost-effective cooling solutions in data centers. The region's strong presence of key market players and technological advancements in cooling technologies further contribute to market expansion. Immersion cooling systems are gaining popularity due to their ability to enhance energy efficiency and reduce operating costs, making them a preferred choice for industries requiring high-performance computing and data processing capabilities.

Region with highest CAGR:

Asia Pacific is projected to hold the highest CAGR over the forecast period. The region has seen significant growth in the data center industry due to the increasing demand for cloud services, big data analytics, and digital transformation across various sectors like finance, healthcare, and e-commerce. With a growing focus on sustainability and energy efficiency, immersion cooling offers a greener alternative to traditional cooling methods.

Key players in the market

Some of the key players in Immersion Cooling market include Dug Technology, ,Asperitas, Fujitsu Limited, Liquid Stack, 3M , Green Revolution Cooling (GRC), Submer Technologies, Asperitas, LiquidCool Solutions, Asetek , Green Datacenter AG, Quanta Cloud Technology (QCT), ZutaCore , Allied Control Ltd. and S&S Consulting GmbH.

Key Developments:

In October 2023, GRC (Green Revolution Cooling) Inc., the leader in single-phase immersion cooling for data centers, announced the launch of a new data center solution, Next-Gen Immersion Cooled Data Centers in Middle East & Africa, with the collaboration of Dell Technologies, and DCV Industries.

In October 2023, Submer and Intel collaborated to enhance single-phase immersion technology through a Forced Convection Heat Sink (FCHS) package. It reduces the quantity and cost of components required for comprehensive heat capture and the dissipation of chips with Thermal Design Power (TDP) exceeding 1000W.

Types Covered:

• Two-Phase
• Single-Phase

Cooling Fluids Covered:

• Fluorocarbon-Based Fluids
• Hydrocarbon-Based Fluids
• Synthetic Fluids
• Mineral Oil

Components Covered:

• Heat Exchangers
• Pumps and Pipes
• Monitoring and Control Systems
• Tanks and Enclosures
• Cooling Fluids
• Other Components

Applications Covered:

• Cryptocurrency Mining
• Artificial Intelligence
• Edge Computing
• High-Performance Computing
• Other Applications

End Users Covered:

• Data Centers
• Gaming and Cryptocurrency Mining
• Electric Vehicles (EVs)
• Other End Users

Regions Covered:

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

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances