Immersion Cooling Fluids Market

 The Immersion cooling fluids market is estimated to be USD 1.8 billion in 2023 and is projected to reach USD 3.2 billion by 2030, at a CAGR of 8.2% from 2023 to 2030. Immersion cooling fluids such as mineral oil, fluorocarbon-based fluids and synthetic fluids are used in various end-use such as transformers, data centers and EV batteries.  The choice of immersion cooling fluid is influenced by a number of factors, such as cost, thermal characteristics, safety regulations, and environmental concerns.

Attractive Opportunities in the Immersion Cooling Fluids Market

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Immersion Cooling Fluids Market Dynamics

Driver: Increasing density of server

Driven by the demand for more effective and efficient ways of heat dissipation, the data center sector is witnessing a convergence of trends that includes the usage of immersion cooling fluids and an increase in server density. Immersion cooling is becoming a viable option for effectively dispersing the heat produced by servers with high densities. Heat is absorbed more efficiently by immersing servers in a dielectric fluid, which reduces hotspot formation and maintains more consistent temperatures.

Restraints: Toxicity of fluorocarbon-based fluids

Because of their special qualities, fluorocarbon-based fluids—a family of synthetic compounds made up of carbon and fluorine atoms—have proven essential in a wide range of industrial applications. Nonetheless, worries have been raised about the possible effects particular fluorocarbon compounds may have on the environment and human health. Global regulatory agencies are taking action to monitor and regulate the use of some fluorocarbon-based fluids due to their known health and environmental concerns.

Opportunity: Rising demand for bio-based oils for immersion cooling

A wide variety of bio-based oils that are appropriate for immersion cooling have been developed and made available in response to the growing demand for environmentally friendly cooling options. Manufacturers are devoting resources to R&D in order to develop formulas that satisfy environmental regulations in addition to the demanding cooling specifications. Sustainable business practices in the technology sector are becoming more and more important, according to governments and regulatory agencies. Businesses are being encouraged to adopt eco-friendly solutions by supportive legislation and incentives for the use of green technologies, such as immersion cooling using bio-based oils.

Challenge: Retrofitting of immersion cooling solutions in data centers

Although retrofitting immersion cooling systems in data centers has many advantages, there are drawbacks as well. A new cooling solution must be carefully planned, evaluated, and implemented within an existing infrastructure. Hardware and servers that are already in use might not be built for immersion cooling. Making adjustments or swapping out parts to guarantee compatibility can be a difficult procedure. Selecting the appropriate dielectric fluid is essential. It may become necessary to replace or modify servers or the data center infrastructure due to incompatibilities with specific materials.

Immersion cooling fluids market: ecosystem

Nynas AB (Sweden), Ergon, Inc. (US), PetroChina Company Limited (China), APAR Industries (India), and Sinopec Lubricant Company (China) are prominent immersion cooling fluid companies. These companies are well-established, financially stable, and have a global presence in the market.

Based on type, the synthetic fluids segment is the fastest growing market during the forecast period.

Synthetic fluids have overcome the disadvantages of mineral oil, such as corrosiveness and flammability. Synthetic fluids are used as immersion cooling fluids in data centers and EV batteries. For synthetic fluids used in immersion cooling to effectively insulate electronic components, they must have exceptional dielectric qualities. In addition to ensuring the safety of the submerged equipment, this prevents electrical conduction. Synthetic fluids are made to require little maintenance over an extended period of use. This includes the ability to withstand deterioration over time, which lessens the requirement for regular fluid replacement.

Based on technology, the single-phase immersion cooling segment accounted for the largest market during the forecast period.

The energy efficiency of immersion cooling in one phase is well-known. This technique helps to reduce the overall energy consumption in data centers by doing away with the requirement for air circulation and lowering the energy used by fans and air conditioning. Single-phase immersion offers effective cooling, which enables data centers to have higher processing densities. This implies that a smaller physical area can accommodate a higher computer capacity.

Based on end use, the transformer segment is expected to have the largest market during the forecast period.

The market has been driven by increasing demand for electric grid infrastructure such as transformers. In Transformer immersion, cooling fluids are essential for dispersing heat produced while the transformer is operating. Transformers are key parts of electrical power systems, and maintaining enough cooling is necessary to guarantee their dependable and effective operation. The transformer's core and coils are soaked in a dielectric fluid that effectively absorbs and transmits heat away from the parts as part of immersion cooling.

Asia Pacific region is projected to grow at a significant CAGR during the forecast period.

Businesses are eager to implement cutting-edge technologies, and the Asia-Pacific region is a center for technical development. Immersion cooling is a very new and creative method that might become more popular as businesses look to streamline their data center operations. The Asia-Pacific region's governments are becoming more and more interested in advancing environmentally friendly and energy-saving initiatives. Immersion cooling uptake may be influenced by sustainability-focused incentives and legislation.

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Key Market Players

Major companies in the immersion cooling fluids market include Nynas AB (Sweden), Ergon, Inc. (US), PetroChina Company Limited (China), APAR Industries (India), and Sinopec Lubricant Company (China), among others. A total of 26 major players have been covered. These players have adopted new product launches, collaboration, investment, partnership, and expansion as the major strategies to consolidate their position in the market.

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Scope of the Report

This research report categorizes the immersion cooling fluids market based on Type, Technology, End-User, and Region.

Based on Type, the immersion cooling fluids market has been segmented as follows:

• Mineral Oil
• Fluorocarbon-Based Fluids
• Synthetic Fluids
• Others

Based on Technology, the immersion cooling fluids market has been segmented as follows:

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

Based on End-Use, the immersion cooling fluids market has been segmented as follows:

• Transformers
• Data Centers
• EV Batteries
• Solar Photovoltaic

Based on Region, the immersion cooling fluids market has been segmented as follows:

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

Recent Developments

• In July 2023 Chemours announced the development and production of its new product Opteon 2P50, a novel heat-transfer fluid for two-phase immersion cooling.
• In March 2020 Nynas AB launched a new product NYTRO BIO 300X, a 100% renewable transformer oil. NYTRO BIO 300X has properties such as ultra-low viscosity and superior oxidation stability, which helps to provide better cooling.
• In June 2020, Ergon Inc. launched a new product HyVolt C50A, a transformer oil designed to withstand extreme cold weather conditions.

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