USD 197 million
Immersion Cooling Market Size, Share, Growth Analysis, By Type (Single-Phase Immersion Cooling, Two-Phase Immersion Cooling), By Cooling Fluid (Mineral Oil, Synthetic Fluids), By Application, By End User, By Region - Industry Forecast 2024-2031
Report ID:
SQMIG10B2107 |
Region:
Global |
Published Date: December, 2024
Pages:
162
|Tables:
0
|Figures:
0
Immersion Cooling Market Insights
Global Immersion Cooling Market size was valued at USD 197 million in 2022 and is poised to grow from USD 241.52 million in 2023 to USD 1232.77 million by 2031, growing at a CAGR of 22.6% during the forecast period (2024-2031).
The increasing use of artificial intelligence (AI) and machine learning (ML) applications to accelerate processes and reduce the risk of burnout significantly boosts market growth. Furthermore, increasing technological applications of edge computing to allow better cooling of the edge devices and higher processing power in a smaller footprint fuel the growth of the immersion cooling industry including next generation (5G) communication technologies. Furthermore, the technology used increased availability for cooling sensitive equipment and devices, such as medical imaging systems, laboratory equipment and diagnostic devices, in the healthcare industry contributes to the growth of the immersion cooling market growth. Other factors, such as increase are expected to demand for efficient cooling systems, increased investment in developing advanced processes and increasing emphasis on sustainable energy will drive the market growth.
The immersion cooling industry has shown the presence of many global and regional players. There are several proprietary water-cooling solutions in the industry and manufacturers retrofit off-the-shelf information technology equipment (ITE) to match their technology in addition as manufacturers offer customized solutions to their customers as needed. The growing demand for IoT applications and cloud computing infrastructure is expected to drive the demand for data center, especially hyper-scale data centers. Hyper-scale data centers enable digital platforms to store and transfer data efficiently. Compared to today’s data center, high-end machines can also handle more traffic and heavier computing workloads. While the systems are very effective at removing heat from IT equipment, the capital costs associated with additional infrastructure and hardware modifications are substantial and can act as a challenge to overall business growth.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
Single phase
Fastest Growth
Two-phase
Growth Rate
22.6% CAGR
Global Immersion Cooling Market ($ Bn)
Country Share for North America Region (%)
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Immersion Cooling Market Segmental Analysis
Global Immersion Cooling Market is segmented by type, cooling fluid, application, end user and region. Based on type, the market is segmented into single-phase immersion cooling and two-phase immersion cooling. Based on cooling fluid, the market is segmented into mineral oil, synthetic fluids, fluorocarbon-based fluids and others. Based on application, the market is segmented into data centers, high-performance computing (HPC), cryptocurrency mining, artificial intelligence (AI) and others. Based on end user, the market is segmented into IT and telecom, BFSI (banking, financial services, and insurance), healthcare, manufacturing, government and others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Analysis by Product
Single phase led the immersion cooling market share and accounted for 70.7% of the global revenue share in 2022. This can be attributed to lower tank & refrigeration costs, higher power generation, environmental impact floor, high cooling temperature, and high biodegradability-stage system. A single-phase system is an inexpensive, efficient, and simple cooling method, in which electrical components, subsystems, and equipment will be housed entirely in a single-point airtight liquid heater. Single phase system remains in the liquid state throughout the cooling. The single phase segment plays an important role in the immersion cooling market, providing practical and efficient solutions for heat management in high-density computing environments Single-phase immersion cooling works by immersing hardware conducting heat, insulating water absorbing heat but not changing phase (i.e. evaporate) more complex two-phase systems. Compared to the convenience, reliability and cost of this sector the reason gained more traction, where the water goes through hot and cold cycles.
The demand for two-phase systems is expected to grow at a CAGR of 23.0% during the immersion cooling market forecast owing to reliability, high energy efficiency, ease of use and low demand a regarding maintenance The two-stage system has an energy efficiency of 1.01, 5% lower than single-stage systems. As the refrigerant moves to the air side in a two-stage system, high pressure is required. This requires complex systems with basic safety features, increasing the cost of maintenance and operation of the entire cooling system. In addition, the fluorinated water used in a two-stage system is more expensive compared to a single-stage refrigerant system, and it is also more expensive to replace due to material losses.
Analysis by Cooling Liquid
Mineral oil led the immersion cooling market share and accounted for 42.7% of global revenue in 2022. Compared to traditional wind turbines, mineral oil is more efficient, simplifies plant design, and cost a is reduced Mineral oil is used as a one-layer protective coating due to its high boiling point, transparent, oil-based. The ability to combine mineral oil from different sources and batches allows greater flexibility during application and operation. Historically, mineral oil has been used as a dielectric coolant for immersion cooling. However, problems such as low flash point, inconsistent quality, and incompatibility of features have limited its use in the IT industry.
Fluorocarbon-based fluids are the fastest growing segment in the market. The demand for fluorocarbon-based fluids is expected to grow at a CAGR of 24.4% during the forecast period. Hydrofluorocarbon molecules (HFEs), perfluorocarbons (PFCs), perfluoropolyethers (PFPEs), and fluoroketones are the most common fluorocarbon molecules used in immersion refrigerants (FKs) High chemical temperatures, high electrical conductivity, and water as it is a relatively high temperature for IT equipment temperature storage solutions Helps to easily validate names. Deionized-water cooling systems are used in a wide range of applications such as electrical, metallurgical, electronic, research, nonelectrical, and medical applications.
Global Immersion Cooling Market By Product (%)
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Immersion Cooling Market Regional Insights
In the immersion cooling market, North America stands as the dominant force due to its established infrastructure, advanced technological ecosystem, and an intense focus on sustainability and energy efficiency. North America’s immersion cooling adoption is largely driven by the United States, which houses many global leaders in technology and high-performance computing. Companies in sectors like cloud computing, AI, blockchain, and data analytics are increasingly reliant on large-scale data centers that require efficient and effective cooling systems to manage high-density computing power. Immersion cooling, which submerges hardware in thermally conductive liquids to dissipate heat, is being widely adopted to achieve greater energy efficiency and reduce carbon emissions, key priorities for both corporate sustainability and governmental regulations. Additionally, North American data center operators are addressing rising electricity costs by transitioning from traditional air-cooling systems to immersion cooling, which not only reduces power consumption but also extends the lifespan of computing equipment.
Asia-Pacific is emerging as the fastest growing region in the immersion cooling market, driven by increasing demand for high-performance data management solutions and rapid digital transformation. Rapidly expanding technologies and building IoT applications has provided a reliable data center demand if this data has grown into high-volume processing centers to support the rapidly growing online economy, making water cooling a desirable solution for efficient and sustainable management of waste heat. Actively support technologies, increasing adoption of energy-efficient cooling solutions like immersion cooling. Moreover, as data centers expand in Southeast Asia, emerging markets also mean that immersion cooling can be adopted, creating opportunities for regional and global players to expand their influence in Asia Pacific.
Global Immersion Cooling Market By Geography
- Largest
- Fastest
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Immersion Cooling Market Dynamics
Immersion Cooling Market Drivers
Growing Demand for High-density Data Center
- One of the major drivers of the immersion cooling market trend is the growing demand for high-density data center in the immersion cooling market outlook. As digital transformation accelerates across the globe, businesses and governments need massive computing power to manage large amounts of data for AI, machine learning, IoT, blockchain and other applications that can handle the incremental advances in artificial computing well (HPC) and data generation to handle heavy workloads. Requires infrastructure, which in turn generates large amounts of heat. Traditional cooling often struggles to maintain adequate temperatures in harsh environments this, making immersion cooling an ideal solution to manage immersion cooling system heat more efficiently by submerging hardware and data centers without overheating.
Focus on Sustainability and Reducing Energy Consumption
- With increasing emphasis on sustainability, governments and businesses are actively seeking ways to reduce their environmental impact. Data centers, known for their energy consumption, use technology that is now being used to reduce carbon emissions and meet stringent energy regulations. Energy consumption is greatly reduced. This system reduces the need for fans and air conditioners, saving energy to home code 40%. Cooling in water also extends the life of electronic components by reducing thermal stress, reducing the cost of hardware replacement.
Immersion Cooling Market Restraints
High Initial Cost and Complexity of Implementation
- While cooling systems offer significant cost benefits over the long term, the required initial investment can be a major deterrent. Immersion cooling systems involve specialized infrastructure, such as tanks, cooling fluids, and modified server setups, which can be expensive to acquire and install. Additionally, the transition from traditional cooling methods to immersion cooling up may disrupt existing performance. The high upfront cost and complexity of implementing does not outweigh the benefits. As a result, high entry costs and product requirements can have restricted market growth, especially in areas where resources are scarce or where organizations may be slow to adopt advanced technologies.
Minimal Knowledge and Basic Maintenance Requirements
- Implementation of hydraulic cooling technology requires specialized knowledge, which can be scarce in many areas. Data center operators need trained personnel to maintain and maintain immersion cooling systems, from ensuring coolant quality to monitoring water penetration, optimizing temperature levels plus dielectric fluid compatibility with various electronic components to data centers because the unique nature of immersion cooling Factors need to be considered. Lack of knowledge in these areas can cause operational difficulties, affecting reliability and efficiency.
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Immersion Cooling Market Competitive Landscape
The competitive landscape of the immersion cooling market forces a growing number of new entrants focused on innovative products, processes, and sustainable cooling solutions for operating data centers especially in this market. The companies are investing Constantly in R&D to increase cooling efficiency, develop environmentally friendly liquid cooling systems, and develop scalable, modular solutions suitable for a variety of industries including IT, telecom and finance cost services. Strategic discussions apart from established players have become the hallmark of the market, with technology companies teaming up with data center operators to drive adoption of immersion cooling. For example, Submer analyzed large scale immersion cooling projects and data center providers, while GRC partnered with Intel Ensured cooling hardware compatibility and performance.
Top Player’s Company Profiles
- Green Revolution Cooling Inc.
- Submer Technologies
- Fujitsu Limited
- Midas Green Technologies
- LiquidStack
- Allied Control Ltd.
- Asperitas
- Iceotope Technologies Ltd.
- DCX The Liquid Cooling Company
- ExaScaler Inc.
- Siemens AG
- Schneider Electric SE
- Vertiv Group Corp.
- Horizon Computing Solutions
- Wiwynn Corporation
- CoolIT Systems Inc.
- Rittal GmbH & Co. KG
- Asetek A/S
- LiquidCool Solutions
- Mitsubishi Electric Corporation
Recent Developments
- November 2023 - Liquid Stack announces new universal cooling distribution units (CDUs), which can be configured to support wholesale direct-chip (DTC) solutions. Suitable for AI, HPC, advanced cloud computing applications, the LiquidStack universal CDU various from 800 kW Provides heat rejection up to 1.5 MW and is designed specifically for DTC.
- October 2023 - Intel and Submer partner to lay the groundwork for a breakthrough one-piece immersion technology, set to revolutionize data center cooling with unprecedented advances in forced convection heatsink (FCHS) packages in 2010. FCHS reduced the number and cost of components required for massive heat capture with more than 1000 W. thermal system power and chips dissipation (TDP).
- March 2024 - Liquid Stack Inc. of its U.S. counterparts. announced a new manufacturing facility and headquarters in Carrollton, Texas. The new milestone is central to LiquidStack’s mission to provide high-performance, cost-effective, reliable liquid cooling solutions for high-performance data center and edge computing applications.
Immersion Cooling Key Market Trends
- Increased Investment in Green Data Centers: A key trend in the immersion cooling market trend is increasing investment in green data centers, designed with energy efficiency and environmental responsibility as key objectives. Large technology companies and data center providers are committed to ambitious sustainability goals, typically carbon zero or significant reductions in greenhouse gas emissions. Cooling water is well aligned with these green objectives, as it reduces energy consumption, reduces dependence on water, an important consideration in areas of water scarcity. While the environment meeting regulations are becoming increasingly stringent and solutions that do not increase environmental requirements, many organizations reduce operating costs. This trend is expected to drive market growth, with immersion cooling becoming an increasingly desirable solution for sustainable data center operations.
- Strategic Cooperation and Technological Development: The immersion cooling market is witnessing an increase in strategic and technological advancements, especially as large, established manufacturers collaborate with cooling technology specialists to advance immersion cooling solutions. These collaborations typically focus on developing advanced coolants, improving tank design, building modular, scalable systems that can be easily integrated into existing data center systems Moreover, companies collaborate to perfect the immersion cooling methods to facilitate widespread adoption in different markets.
Immersion Cooling Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to SkyQuest analysis, the immersion cooling market is rapidly expanding due to the need for efficient cooling solutions in high-density data centers and high-performance computing (HPC) environments. Immersive cooling, which places hardware in a liquid heater for thermal management provides better energy efficiency compared to traditional air coolers. The current U.S. leads the market due to advanced data infrastructure and focus on sustainability, while Asia Pacific is the fastest growing region due to increased digital and data center demand. Key drivers of data increased management needs and carbon reduction also affect strong energy. However, challenges such as high initial installation costs and special maintenance requirements present barriers. Trends and technological innovations in green data centers are driving the market.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 197 million |
| Market size value in 2031 | USD 1232.77 million |
| Growth Rate | 22.6% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Million |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Immersion Cooling Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Immersion Cooling Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Immersion Cooling Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Immersion Cooling Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Immersion Cooling Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Immersion Cooling Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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