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

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.