Immersion Cooling Market Size, Share & Trends Analysis Report By Product (Single-phase, Two-phase), By Application (Edge Computing), By Cooling Liquid, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global immersion cooling market size was estimated at USD 197.0 million in 2022 and is anticipated to grow at a compounded annual growth rate (CAGR) of 22.6% from 2023 to 2030. The increasing demand for cost-efficient and energy-efficient cooling solutions from data centers is expected to drive growth.Strict lockdowns enforced by global governments in the wake of the COVID-19 pandemic in 2020 hampered industry expansion. The lockdowns also impacted data centers, wherein data center consolidation was put on hold. Moving servers, closing buildings, and constructing a new location were all more difficult in the COVID-19 universe. Data centers showed growth in demand, owing mostly to the global workforce working from home and an increase in e-commerce.

The immersion cooling market in the U.S. is undergoing a shift owing to the COVID-19 pandemic as players in this space undertook capacity expansion to meet the increasing demand for the product from data centers. The COVID-19 crisis spurred the spread of e-commerce to new enterprises, customers, and product categories. Furthermore, the rising need for IoT capabilities and cloud computing infrastructure in the U.S. is likely to fuel demand for data centers, particularly hyper-scale data centers.

The market exhibits the presence of several global as well as regional players. Several proprietary immersion cooling solutions are available in the industry and various manufacturers retrofit off-the-shelf Information Technology Equipment (ITE) to make it compatible with their technology. In addition, manufacturers offer customized solutions to their clients as per requirements.

The increasing demand for IoT functionality and cloud computing infrastructure is expected to drive the demand for data centers, especially hyper-scale data centers. Hyperscale data centers enable digital platforms to store and transfer data efficiently. As compared to modern data centers, hyper-scale facilities have high-volume traffic as well as the capability to handle heavy computing workloads.

Although systems are very efficient in removing heat from IT equipment, the capital costs associated with additional components and hardware modification are high, which can act as a challenge to the overall industry growth. In addition, servicing of systems is expected to present new challenges for Managed Service Providers (MSPs) and data center service partners.

Product Insights

Single-phase led the industry and accounted for 70.7% of the global revenue share in 2022. This can be attributed to the low tank & coolant costs, high dielectric strength, low environmental impact, high coolant heat capacity, and high biodegradability of a two-phase system.

Single-phase system is an inexpensive, efficient, and simple cooling technique, wherein electrical components, sub-systems, and devices are fully immersed in the single-phase dielectric heat transfer fluid. The single-phase system stays in the liquid state during the entire cooling process.

The demand for two-phase systems is expected to witness growth at a CAGR of 23.0% over the forecast period due to improved reliability, high energy efficiency, deployment flexibility and low maintenance requirements. Two-phase systems have a power use effectiveness of 1.01, which is 5% lower than single-phase systems, making them a suitable cooling solution for hyperscale data centers.

As the coolants in the two-phase system move to the gaseous phase, significant pressure is required. This necessitates complicated systems with significant safety features, which raises the overall maintenance and operation costs of the cooling system. Furthermore, when compared to single-phase cooling systems, fluorinated fluids used in two-phase systems are expensive, as is their replacement due to loss.

Cooling Liquid Insights

Mineral oil led the industry and accounted for 42.7% of the global revenue share in 2022. When compared to traditional air conditioning systems, mineral oil is more efficient, which simplifies facility design and results in cost savings. Mineral oil is used as a single-phase dielectric because of its high boiling point and because it is transparent and oily.

The ability of mineral oil to be combined from various sources and batches allows for greater flexibility during deployment and operations. Historically, mineral oil has been utilized as a dielectric cooling liquid for immersion cooling. However, problems such as low flash point inconsistent quality and material incompatibility have limited its use in the IT industry.

The demand for fluorocarbon-based fluids is expected to witness growth at a CAGR of 24.4% over the forecast period. Hydrofluoroethers (HFEs), Perfluorocarbons (PFCs), perfluoropolyethers (PFPEs), and fluorketones are the most often utilized fluorocarbon molecules in immersion cooling liquids (FKs). High chemical and thermal stability, high dielectric strength, and relatively high vapor pressure aid in the simple adoption of such cooling solutions for preserving IT equipment temperatures.

Deionized-water cooling systems are employed in many different applications, including electrical, metallurgy, electronics, research, nonelectric, and medical. The capacity of deionized water to prevent the risk of electrical arcing induced by static charge in the cooling circuit and deposit of minerals that restrict coolant flow is projected to increase its demand of deionized water in systems.

Application Insights

High-performance computing led the industry and accounted for 34.6% of the global revenue share in 2022. There are several operational advantages to using an immersion-cooling in computing, including lower latency, the potential for heat reuse programs in industrial and urban areas, fast deployment with edge-ready solutions, the ability to cool chip densities required for zero water waste.

The demand for cryptocurrency is witnessing a significant rise owing to its ability to offer advantages like quick international transfers, a decentralized system, protection from fraud, and enhanced transactional security. This system is used in cryptocurrency mining to cool the systems/components which are typically overclocked to boost the hash rates. Immersion cooling systems help reduce operational and capital expenses of cryptocurrency operations.

The Artificial Intelligence (AI) segment is expected to grow at a CAGR of 26.3% over the forecast period. Factors such as the resurgence of a strong research focus on artificial intelligence (AI) in the U.S.; development and mass deployment of deep learning by Facebook, Google, Microsoft, and Amazon; rising demand for AI applications; and Israel’s thriving AI ecosystem are contributing toward augmenting the load on AI servers is expected to drive industry growth.

These systems are utilized to support large workloads in small and constrained places when a traditional cooling system is either unavailable or impractical. These methods contribute to lower energy consumption in edge deployments. Immersion liquid cooling facilitates deployment at the edge, where high-capacity power sources may not be accessible.

Regional Insights

North America led the industry and accounted for 35.8% of the global revenue share in 2022, owing to the widespread presence of large-scale data centers. To keep up with the digital economy's rapid expansion, data centers in North America are investing in new high-performance computing servers that operate at high speeds. The excess heat generated compels the data center cooling system to work harder, raising cooling costs and reducing revenues.

The breakout of the COVID-19 pandemic in Europe highlighted data centers in 2020, while investor interest in this area has increased over the last five years. According to a Real Estate Europe poll released at the end of 2020, data centers were among the top ten industries to invest in, trailing only residential assets and logistical facilities.

The Asia Pacific is expected to witness a growth at a CAGR of 24.5% over the forecast period. Businesses across all industries are increasing their focus on IT scalability and resilience in anticipation of potential pandemic-like systemic crises by using hybrid and possibly colocation solutions. Furthermore, in Asia Pacific, technological service providers such as Software-as-a-Service (SaaS) and Platform-as-a-Service (PaaS) organizations consider public cloud providers for their service offerings.

Major countries in Central and South America want to begin the construction of smart cities and IT infrastructure over the projected period. These countries' governments are taking substantial initiatives to fund smart cities and are asking private sector enterprises to install smart solutions in under-construction smart cities. These factors are likely to increase the deployment of IoT servers, data centers, gear, and devices in the region, resulting in rapid expansion of the industry over the forecast period.

Key Companies & Market Share Insights

The immersion cooling market is highly competitive with major companies striving for industry leadership. Key players emphasize integration across the value chain to strengthen their market positions. Strategies employed by companies include collaborations, partnerships, and new product development to enhance their industry positions. Companies such as Green Revolution Cooling and Asperitas have partnered to create awareness about systems in the industry space.

Strategies help the companies in enhancing their industry share and providing to the changing technological demand of various end-use industries such as data centers and IT companies. For instance, in March 2021, Liquid Stack collaborated with Wiwyn to advance the IT infrastructure designed for 2-phase immersion cooling. Some prominent players in the global immersion cooling market include:

• Fujitsu Limited

• Dug Technology

• Green Revolution Cooling Inc.

• Submer

• Liquid Stack

• Midas Green Technologies

• Asperitas

• DCX- The Liquid Cooling Company

• LiquidCool Solutions

• ExaScaler Inc.

Immersion Cooling Market Report Scope

Global Immersion Cooling Market Report Segmentation

This report forecasts revenue growth at global, regional & country levels and provides an analysis on the industry trends in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global immersion cooling market report on the basis of product, application, cooling liquid, and region:

• Product Outlook (Revenue, USD Million; 2018 - 2030)

  • Single-Phase

  • Two-Phase

• Application Outlook (Revenue, USD Million; 2018 - 2030)

  • High-performance Computing

  • Edge Computing

  • Cryptocurrency Mining

  • Artificial Intelligence

  • Others

• Cooling Liquid Outlook (Revenue, USD Million; 2018 - 2030)

  • Mineral Oil

  • Fluorocarbon-based Fluids

  • Deionized Water

  • Others

• Regional Outlook (Revenue, USD Million; 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • Italy

    • France

    • UK

    • Netherlands

    • Russia

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Saudi Arabia

    • South Africa