Immersion Cooling Market Size and Share Analysis Report by Product (Single-Phase, Two-Phase), Application (Blockchain, High-Performance Computing, Data Center), Liquid Type (Mineral Oils, Fluorocarbon-Based Fluids, Deionized Water) - Global Industry Growth Forecast to 2030

Market Overview

The immersion cooling market revenue was $258.6 million in 2021, and it is projected to grow at a CAGR of 24.5% during 2021–2030, to reach $1,855.1 million by 2030. The rise in the number of data centers, production of massive amounts of data, and rapid usage of cloud services are the primary factors driving the market growth. Furthermore, the increasing number of internet users, rising smartphone penetration, growing use of social media, and surging focus of organizations to shift to data centers from server room environments are other important market drivers.

Single-Phase Immersion Cooling Generates a Larger Revenue

The single-phase category held a larger share, of around 70%, in the immersion cooling market revenue in 2021. This is ascribed to several benefits offered by this technique to users. For instance, single-phase immersion cooling systems are more energy efficient, simpler to operate, cost-effective, have low-maintenance costs, and 15-year coolant life. As a result of these factors, the demand for these systems in data centers is substantially higher, which is why, this category dominates the market.

Furthermore, factors such as low environmental impact and higher biodegradability, as well as a surge in the need for data center sustainability, are expected to boost the market growth in this category during the forecast period.

Enormous Growth in Data Generation Necessitates Efficient Storage

The key reason driving the growth of the industry is the rapid expansion in data generation. For instance, about 64.2 zettabytes of data were generated in 2020, a 314% increase as compared to 2015. In addition, around 2.5 quintillion bytes of data are generated across the world every day. With the widespread adoption of social media platforms and the introduction of IoT solutions, about 90% of the global data was created in the last 4–5 years.

Other than these, the widespread use of embedded, machine-to-machine, and IoT devices is also the main factor driving the increase in data generation. Other sources include pictures and videos, information for amusement and practical uses like advertising and security, as well as productivity-driven data like log files on servers and computer systems. Businesses utilize this information to enhance their products and services, maintain good customer relations, and boost profitability. Immersion cooling will become more and more popular as a result of the rising data generation and the surging need for its effective storage, which will fuel the market expansion.

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Immersion Cooling Is a Major Application Area in Data Centers

The increasing adoption of advanced technologies has resulted in a significant rise in temperature within data center infrastructure and IT equipment. Data centers are increasingly looking for strategies to effectively cool their equipment while decreasing their environmental impact and improving their computing capacity. Furthermore, the expanding number of data centers to meet the growing data demand and the surging number of end users are driving the need for effective cooling solutions, which, in turn, boost the immersion cooling market growth.

Furthermore, high-performance computing contributed the second-largest revenue to the industry, in 2021. This is attributed to the rising use of HPC in the aerospace, manufacturing, genomics, finance, media and entertainment, and healthcare sectors. HPC can be used to create simulations, eliminating the need for physical tests and saving money and time. Therefore, the growing infrastructure for various HPC applications is driving the market growth.

Deployment of 5G Networks Is a Major Market Trend

Hyperscale data centers and cloud facilities are in high demand, as 5G networks are developing rapidly. High-performance computing and artificial intelligence applications are viable with this network since 5G enables higher computing capability. As network and data needs rise, the data center will need to maximize efficiency, dependability, robustness, and security. Moreover, the upgradation of infrastructure to handle upcoming 5G breakthroughs and the surge in the adoption of cloud solutions are boosting the demand for data centers. These factors working together will increase the need for reliable and energy-efficient immersion cooling solutions.

Mineral Oil Is Significantly Preferred for Immersion Cooling

The mineral oil category held a significant share in the immersion cooling market in 2021. This is because mineral oil has relatively low cost, superior dielectric properties, and the ability to absorb large amounts of heat without changing its state.

North America Is the Largest Contributor to the Market

In 2021, the North American market accounted for the largest revenue share, of around 40%, globally. This is attributed to the substantial investment in R&D in the region, which is leading to the development of next-generation facilities that are more efficient and technologically advanced in terms of power administration. The region is also home to a large number of developers of data centers, which is expected to have a positive impact on the growth of the market.

Whereas, the APAC market is expected to experience the fastest growth, advancing at a CAGR of more than 25%, in the upcoming years, as a result of the wide adoption of edge-computing technologies across various countries, including China, Japan, and India. Moreover, the expanding manufacturing and finance sectors in the region will further drive the demand for data centers, necessitating more cooling. In addition to these, advancing blockchain and crypto mining are also supporting the regional immersion cooling market demand.

Similarly, the European market is projected to grow significantly during the forecast period. This can be ascribed to the growing manufacturing and data science industries, which propel the demand for data centers in the region. In Europe, the U.K. is a key market for data centers, as the country has the second-largest share of data centers, and is one of the world’s largest financial hubs.

Technology Providers Are Involved in Fundings and Collaborations to Expand Their Presence

Technology providers have been involved in receiving funds and strategic collaborations to strengthen their presence in the market. For instance:

In March 2022, Green Revolution Cooling Inc. announced that it secured an amount of $28 million in a Series C investment led by SK Lubricants Co. Ltd. of South Korea.

In April 2022, LiquidCool Solutions Inc. announced its collaboration agreement with DataQube (Global) Ltd. Through this, DataQube has obtained exclusive rights to market products of LiquidCool, globally.

Key Players in the Immersion Cooling Market Are:

• Fujitsu Limited
• DUG Technology (Australia) Pty Ltd.
• Green Revolution Cooling Inc.
• Submer Technologies SL
• LiquidStack B.V.
• LiquidCool Solutions
• Asperitas
• ExaScaler Inc.
• Iceotope Technologies Limited

Immersion Cooling Market Size Breakdown by Segment

The study offers a comprehensive market segmentation analysis along with market estimation for the period 2017-2030.

Based on Product

• Single-Phase
• Two-Phase

Based on Application

• Blockchain
• High-Performance Computing
• Data Center

Based on Liquid Type

• Mineral Oils
• Fluorocarbon-Based Fluids
• Deionized Water

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • France
  • Germany
  • Italy
  • Spain
  • U.K.
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • Saudi Arabia
  • South Africa