Immersion Cooling Market

Global Immersion Cooling Market Size (2024 to 2029 )

The Global Immersion Cooling Market size is expected to grow at a CAGR of 23.8% during the forecast period 2024-2029. The market value was at USD 301 million in 2023, and the value is expected to reach USD 1083 million by the end of 2029.

MARKET DRIVERS

The growing prevalence of increased server density is prompting the rapid adoption of immersion cooling solutions across the globe. Increasing cryptocurrency mining and a growing number of blockchain applications are prompting the growth rate of the immersion cooling market to an extent.

According to a recent survey report, it was estimated that more than 10,000 types of cryptocurrencies will be traded worldwide in 2022. In contrast, around 1 million BTC miners will be operating in 2023. Cryptocurrency algorithm needs a lot of electricity where heat generation arises among users. Bitcoin mining is a significant source of energy globally. In August 2022, according to the white house report, 50 billion Kilowatt-hours were consumed by Bitcoin mining. The number exceeded the total consumption of electricity usage of all operational computers in the United States. Therefore, immersion cooling solutions are great for users to cool the servers as quickly as possible. 

Along with this, the increasing number of IT industries and the growing prevalence of the adoption of cloud computing are ascribed to fuel the market growth rate. Rising support from public and private organizations through investments positively impacts the demand for immersion cooling solutions. Rising disposable income, especially in urban areas, the trend towards the adoption of smartphones, and the increasing need for the Internet of Things worldwide are anticipated to propel the market share. According to the International Energy Agency report, the need for the usage of the internet is increasing year on year. The report stated that there was an increase in internet traffic about 20 times in the last ten years. The rising internet traffic tends to increase the installation of high-density servers for processing and computing big data. 

MARKET RESTRAINTS

However, installing immersion cooling systems is expensive, which is a major barrier to market growth. The availability of alternate cooling solutions for data centres, such as air-cooling technology, is hugely hindering the growth rate of the immersion cooling market. Air-cooling technology is very efficient in finding new applications for data centre cooling. This technology is easy to install and less complex when compared with immersion cooling solutions. 

MARKET OPPORTUNITIES

Fluctuations in climatic conditions are imposing a potential growth rate on the immersion cooling market in the coming years. Immersion cooling solutions are needed to maintain high-density servers in high-temperature regions, as traditional cooling techniques cannot maintain low ambient temperatures. The emergence of advanced technology and the launch of innovative products, which will favor the customer’s choice, will likely showcase huge growth opportunities for the immersion cooling market shortly. 

MARKET CHALLENGES

Immersion cooling solutions require experienced personnel to maintain them, which is a major challenge for key players. Less interest in adopting new technologies in remote areas and a lack of standardization are other factors negatively influencing the growth rate of the immersion cooling market.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Immersion Cooling Market Analysis By Type

The single-phase segment is leading with the market's largest share due to its PUE efficiency. A single-phase immersion cooling system can be installed at a lower cost when compared with the two-phase segment, bolsters this segment's growth rate. Also, the two-phase segment will have the fastest growth opportunities in the coming days. A two-phase immersion cooling system has significant features in maintaining overall operational systems.

Global Immersion Cooling Market Analysis By Cooling Fluid

The fluorocarbon-based fluids segment is attributed to having a dominant market share. The growing demand for these fluids is due to the increasing focus on adopting new technologies, especially in the immersion cooling market. The synthetic fluid source market is anticipated to have the fastest growth rate during the forecast period. 

Global Immersion Cooling Market Analysis By Application

The cryptocurrency mining segment is set to have a significant market share. The rising prominence of digital currency in developed and developing countries is majorly promoting the demand for immersion cooling solutions. The artificial intelligence segment is deemed to have a prominent growth rate in the coming years with the rising prominence of adopting the latest technologies in the IT sector. 

REGIONAL ANALYSIS

North America's immersion cooling market value is leading, with a prominent share of rising investments in the IT industry. Increasing focus on developing new applications in social networks, gaming, streaming, and others is ascribed to boost the demand for immersion cooling technologies. All these applications rely on high-speed internet connectivity, which accelerates the need to enhance the performance level of data centers. The better the maintenance of the data centers, the better the outcome will be. Acceptance of the latest techniques in data centres will leverage performance, which is why many IT industries are focusing on adopting immersion cooling technology. The US is a major country that contributes the highest share of the immersion cooling market. The US is the hub for Bitcoin mining as almost 38% of the world’s Bitcoin network is mining only in this country. Therefore, the US immersion cooling market will also have an immense growth rate in the coming years. Penetration of new technologies such as artificial intelligence, cloud computing, and wireless networking is fueling the market's growth rate in the US. 

Europe is positioned second in gaining traction over the market share. Rising per capita income is one of the primary factors for the market to grow in this region. The 5G network was launched quickly in the past few years in developed countries like the UK, Germany, Italy, Spain, and France. These technologies need high numbers of data centres with increasing carbon emissions using traditional cooling techniques. Government authorities imposed several rules and regulations to curb carbon emissions, which is ascribed to propel the demand to adopt immersion cooling techniques. The Climate Neutral Data Centre Pact was formed in 2021 in Europe. It reported that around 70% of Europe’s data centre industries agreed to adopt renewable energy sources to follow climate neutrality by 2030. 

Asia Pacific immersion cooling market growth rate has the potential to hit the highest CAGR by the end of 2028. The increasing population in major countries like India and China is the major factor influencing the market growth rate positively during the forecast period. Increasing awareness over bitcoin mining with the rising support from the government authorities is gearing up the market value in the Asia Pacific region. China is the country with the highest number of internet connections. According to a report, 939.8 million users will be connected to the internet in 2021, as India will be second with 624 million users. 

Latin America, and Middle East & Africa are likely to have slow growth of the immersion cooling market. 

KEY MARKET PLAYERS

Companies playing a promising role in the global immersion cooling market include Submer, GRC (Green Revolution Cooling), 3M, Asperitas, LiquidStack, Midwest Cooling Towers, Iceotope, Submergence, SINKUP, ExaScaler, and Others.

RECENT HAPPENINGS IN THE MARKET

• In October 2023, Submer announced a collaboration with Intel to develop a breakthrough in single-phase immersion cooling. The two companies strongly believe that the upcoming device will be capable of cooling 1000W CPUs. Maintaining a low ambient temperature is a major challenge for companies as the load on data centres is increasing daily. Therefore, the upcoming single-phase immersion cooling technique will certainly end these challenges in the near future. 

• On 07 November 2023, LiquidStack, a leading company in liquid cooling for data centres, unveiled single-phase immersion cooling. The company has not announced the price and name of the product yet. Still, they believe this product will ensure the shift from air cooling technology and become an economical and powerful option for data centres.

• In 2023, Submer partnered with the BP-owned lubricant brand Castrol. This partnership will enhance the usage of cooling fluids in immersion cooling systems for data centre environments. These companies focus on developing new immersion cooling fluids to enhance the benefits of the IT equipment.

DETAILED SEGMENTATION OF THE GLOBAL IMMERSION COOLING MARKET IS INCLUDED IN THIS REPORT

This research report on the global immersion cooling market has been segmented and sub-segmented based on type, cooling fluid application and region.

By Type

• Single-phase    
• Two-phase

By Cooling Fluid

• Mineral Oil
• Deionized Water    
• Fluorocarbon-based Fluids
• Synthetic Fluids Source

By Application

• High-performance Computing    
• Edge Computing   
• Artificial Intelligence
• Cryptocurrency Mining 

By Region

• North America 
• Europe 
• Asia Pacific
• Latin America 
• Middle East & Africa