Immersion Cooling Market

The immersion cooling market is projected to grow from USD 0.4 billion in 2023 to USD 2.1 billion by 2031, at a CAGR of 24.1% from 2023 to 2031. The major reason for the growth of the immersion cooling market is the demand for energy-efficient solutions. Immersion cooling solutions offer cost advantages, such as reduced operational expenditures and lower energy consumption, which make them an attractive option for data centers and other applications.

Attractive Opportunities in the Immersion Cooling Market

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Immersion Cooling Market Dynamics

Driver: Adoption of cryptocurrency mining & blockchain

The adoption of cryptocurrency mining and blockchain technologies is expected to drive the immersion cooling market's growth. Cryptocurrency mining, which involves solving complex algorithms and generating significant heat, can benefit from immersion cooling's ability to maintain optimal temperatures and reduce energy costs.. This has led to a renewed interest and investments in crypto mining, with immersion cooling offering advantages such as increased efficiency, hardware longevity, and improved mining power.

Restraint: Susceptible to leakage

Susceptibility to leakage is indeed a restraint of the immersion cooling market. While immersion cooling systems offer advantages such as reduced water usage and improved heat dissipation, they are not immune to leakage issues, which can affect their performance and reliability. This challenge is particularly notable in the case of fluorocarbon immersion coolants, which, despite being nonflammable and thermally stable, are still susceptible to leakage. The lack of knowledge on immersion cooling and fluid leakage issues is also estimated to hinder the market's growth.

Opportunity: Adoption of low-density data servers

The adoption of low-density data servers presents an opportunity for the immersion cooling market. As data center operators seek more compact and efficient cooling solutions, the use of low-density servers can complement the benefits of immersion cooling. By allowing for higher hardware density and reduced physical footprint in data centers, low-density servers align with the scalability and space-saving advantages offered by immersion cooling. This combination can lead to significant energy savings, reduced maintenance costs, and improved overall cost-effectiveness, making it an attractive proposition for data center operators looking to optimize their infrastructure. As the demand for data processing capabilities continues to rise, driven by technologies like IoT, AI, and blockchain, the synergy between low-density servers and immersion cooling is poised to play a key role in meeting the evolving needs of the data center industry.

Challenge: High investment in existing infrastructure

One of the challenges associated with immersion cooling technology is the high investment required for infrastructure and equipment. Immersion cooling systems require specialized equipment, such as tanks, pumps, and heat exchangers, which can be expensive to install and maintain. Additionally, installing immersion cooling systems may require significant modifications to existing data center infrastructure, which can further increase costs.

Immersion Cooling: Ecosystem

Based on the type, the Single phase is projected to grow at the highest CAGR during the forecast period.

Single-phase is anticipated to grow at the highest CAGR based on the type. The growth of the single-phase immersion cooling market can be attributed to its simplicity, efficiency in heat dissipation, energy-saving capabilities, and scalability. As the demand for high-performance computing continues to rise across various sectors, the advantages of single-phase immersion cooling make it a compelling choice for organizations seeking effective and sustainable cooling solutions for their increasingly powerful and densely packed computing systems.

Based on Application, the Artificial Intelligence segment is projected to grow at the highest CAGR during the forecast period.

The increasing demand for high-performance computing (HPC) in AI applications is a key driver. AI models, such as intense learning models, are becoming more complex and computationally intensive, leading to higher power densities and increased heat generation. Immersion cooling provides an efficient solution for managing the heat produced by powerful GPUs and TPUs used in AI model training, allowing optimal performance without the risk of thermal throttling.

Based on cooling fluids, the synthetic fuels segment is projected to grow at the highest CAGR during the forecast period.

The versatility of synthetic fluids in immersion cooling systems is another factor fueling market expansion. These fluids can be customized to suit different cooling requirements and hardware configurations, providing a flexible and adaptable solution for various industries. As technology advances, developing synthetic fluids with improved properties, such as higher thermal conductivity and excellent stability, further enhances their applicability in diverse immersion cooling settings.

Asia Pacific is projected to grow at the highest CAGR during the forecast period.

The rapid expansion of data center infrastructure in APAC is a significant driver for the growth of immersion cooling. As businesses and governments in the region invest heavily in digital transformation, cloud services, and AI-driven applications, the demand for efficient cooling solutions that can handle the heat generated by advanced computing systems is on the rise. Immersion cooling, with its ability to provide adequate heat dissipation and energy efficiency, is well-suited to meet the evolving needs of data centers in APAC.

Source: Expert Interviews, Secondary Research, Whitepapers, Journals, Magazines, and MarketsandMarkets Analysis

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Key Market Players

Some of the key players in the market include LiquidStack (Netherlands), Fujitsu (Japan), Green Revolution Cooling Inc (US), Submer (Spain), Asperitas (Netherlands), Midas Green Technologies (US), Iceotope Technologies Ltd (US), LiquidCool Solutions (US), and DUG Technology (Australia).

Read More: Immersion Cooling Companies

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Scope of the Report

This research report categorizes the immersion cooling market based on type, cooling fluid, application, and region.

Based on application, the immersion cooling market has been segmented into:

• High-performance Computing
• Artificial Intelligence
• Edge Computing
• Cryptocurrency Mining
• Others (Cloud Computing, Enterprise Computing)

Based on type, the immersion cooling market has been segmented into:

• Single-Phase Immersion Cooling
• Two-Phase Immersion Cooling

Based on the cooling fluid, the immersion cooling market has been segmented into:

• Mineral Oil
• Synthetic Fluids
• Fluorocarbon-based Fluids
• Other (Vegetable Oil, Bio-Oil, Silicone Oil, Deionized Water)

Based on the components, the immersion cooling market has been segmented into:

• Solutions
• Services

Based on the region, the immersion cooling market has been segmented into:

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

Recent 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.
• In May 2020, Asperitas partnered with European data center owner/operator, Maincubes. The two companies planned to offer immersion cooling solutions in dedicated immersion cooling colocation suites in the Maincubes Amsterdam AMS01 data center. AMS01 is also home to the European Open Compute Project (OCP) Experience Center, while Asperitas is a leading OCP standards contributor in immersion cooling.

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