The global immersion cooling market is expected to reach $1,855.1 million by 2030, growing at a CAGR of 24.5% during 2021–2030. The surging number of data centers, the generation of massive amounts of data, and the expanding usage of cloud services are driving the market growth. Furthermore, increased expenditures from colocation, telecommunications, and cloud service providers in data center development and expansion are assisting the industry growth.
The market is categorized into single-phase and two-phase, based on product. Of these, the single-phase category is expected to grow at a higher CAGR, around 26%, during the forecast period. This can be because single-phase immersion cooling systems offer an energy-efficient and inexpensive method of cooling electrical components and devices. These also provide sustainability, as the single-phase coolants do not require a complex cooling infrastructure, save energy, and are biodegradable.
In addition, based on liquid type, the market is categorized into mineral oil, fluorocarbon-based fluid, deionized water, and others. Among these, the mineral oil category is projected to account for a significant market share in the coming years. This can be ascribed to its ability to absorb large amounts of heat without changing its state, thus it requires less energy for cooling.
Furthermore, based on application, the data center category dominates the market, and this trend is projected to continue during the forecast period as well. The rising number of data centers globally necessitates the surging need for cooling infrastructure, which, in turn, data center operators are shifting toward immersion cooling solutions.
Geographically, North America accounted for the largest share of the immersion cooling market in 2021. This is mainly credited to the rising data storage needs and the increasing adoption of advanced technologies, such as AI, IoT, and cloud, in the region. Whereas, during the projection period, the APAC market is predicted to grow at the highest rate. In India, China, and Japan, advanced digital technologies, such as machine learning and IoT, are widely adopted. Additionally, the highly used technologies, such as blockchain, high-performance computing, and AI, in the region will further support the market growth, as these technologies required effective storage of data, and thus required cooling solutions.
Players operating in the immersion cooling industry have been extensively involved in partnerships and collaborations to stay ahead of their competitors. For instance:
In April 2022, LiquidStack B.V. announced its partnership with Standard Power, a colocation data center provider, to build the first large-scale colocation data center in the U.S. to use 2-phase immersion cooling.
In January 2022, Green Revolution Cooling Inc. (GRC) announced a multi-year collaboration with Intel Corporation. As part of this partnership, Intel and GRC are collaborating with customers who operate data centers to create and implement cutting-edge immersion cooling techniques in upcoming data centers.
Major players operating 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., and Iceotope Technologies Limited.