Immersion Cooling Market Growth Analysis | 2022-2028

Market Insights

"The immersion cooling market was estimated at USD 317.1 million in 2022 and is likely to grow at a CAGR of 24.37% during 2022-2028 to reach USD 1173.75 million in 2028."

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Market Dynamics

Introduction

Immersion cooling is a cooling practice in which IT components and other electronics are submerged in a coolant which is a thermally conductive dielectric liquid.

Market Drivers

Various factors driving the growth of immersion cooling market are rising no. of data centres globally, government fundings, and rising demand for disruptive technology.

• Rising no. of data centres: Globally industries and other sectors generates huge amount of data that requires data centres. Data centres produce a large amount of heat resulting in high demand for cooling solutions like immersion cooling. For instance, US data centres demand is set to grow from 17 Gigawatts (GW) in 2022 to 35 GW in 2030, which will ultimately lead to the growth of cooling solutions.
• Government fundings: Governments of some countries are announcing funds for cooling solutions for example, The U.S. Department of Energy (DOE) announced $40 million in funding for 15 projects that will develop high-performance, energy efficient cooling solutions for data centres. These efforts will primarily show the importance of cooling solutions and will benefit the environment.
• Rising demand for disruptive technologies: Rising demand for disruptive technologies, like AI and Gen AI, generates huge amount of data that requires large storage spaces which will directly relate to the increased power consumption. As of early 2024, data centres typically supported rack power requirements of 20 kW or higher, But the average power density is anticipated to increase from 36 kW per server rack in 2023 to 50 kW per rack by 2027.

Challenges:

Susceptible to fluid Leakage: Since this technology involves immersion of electronic components into a non-conductive fluid to absorb and transfer heat, Susceptibility to leakage has become a major problem for immersion cooling systems. Furthermore, even after offering advanced leak-proof solutions, water can still wear away equipment causing equipment failure.

High investment: The large upfront investment needed for immersion cooling is among the main problems that this industry is facing. Implementing immersion cooling systems is a costly venture due to several factors such as requirement of specialized cooling fluids, specialized equipment and maintenance & operational setup, limiting it to only large scale organizations.

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Segment Analysis

By Cooling System Type

"The single-phase immersion cooling system segment accounted for the largest market share."

Based on the cooling system type, the market is segmented as single–phase immersion cooling system and two-phase immersion cooling system. Single–phase immersion cooling system held the larger share of more than 70% of the market in 2021 and are expected to grow at a higher CAGR during the forecast period. Coolant in this type of immersion cooling system remains always in liquid form as it never boils or freezes.

By Application Type

"The high-performance computing segment accounted for the largest market share."

Based on the application type, the immersion cooling market is segmented as high-performance computing, edge computing, cryptocurrency mining, and others. The high-performance computing segment governed the market accounting more than 30% market share in 2021, whereas cryptocurrency mining is estimated to be the fastest-growing segment during the forecast period.

By Cooling Fluid Type

"The mineral oil segment accounted for the largest market share."

Based on the cooling fluid type, the market is segmented as mineral oil, synthetic oil, fluorocarbon-based, and others. Mineral oil held the largest share of more than 40% of the market in 2021, as it is less costly and is an energy-efficient cooling solution.

Regional Insights

"North America accounted for the largest market share."

In terms of regions, North America is the largest market, whereas Asia-Pacific is the fastest-growing market for immersion cooling systems. North America accounted for more than 35% market share in 2021. The high demand is because of its increasing use in high-performance computing, cryptocurrency mining, edge computing, artificial intelligence, and cloud computing.

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Key Players

Some of the major players in the market are:

• Allied Control Ltd
• Asperitas
• DCX The Liquid Cooling Company
• DownUnder GeoSolutions Pty Ltd
• Fujitsu Limited
• Green Revolution Cooling Inc
• Iceotope Technologies Limited
• LiquidCool Solutions
• Midas Green Technologies
• Submer Technologies.

Note: The above list does not necessarily include all the top players in the market.

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Research Methodology

This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s immersion cooling market realities and future market possibilities for the forecast period of 2022 to 2028. The report segments and analyzes the market in the most detailed manner to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for the market participants as well as investors in the identification of the low-hanging fruits available in the market as well as in formulating the growth strategies to expedite their growth process.

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

Market Segmentation

This report studies the market, covering a period of 12 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The immersion cooling market is segmented into the following categories:

By Cooling System Type

• Single-Phase
• Two-Phase

By Application Type

• High-Performance Computing
• Edge Computing
• Cryptocurrency Mining
• Others
  • (By Application Type: Cloud Computing and Enterprise Computing)

By Cooling Fluid Type

• Mineral Oils
• Synthetic Oils
• Fluorocarbon-based Fluids
• Others 
  • (Cooling Fluid Type: Vegetable Oil, Bio-oils, and Deionized Water)

By Region:

• North America (Country Analysis: the USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, the UK, Russia, Spain, and Rest of Europe)
• Asia-Pacific (Country Analysis: China, Japan, India, South Korea, and Rest of Asia-Pacific)
• Rest of the World (Sub-Region Analysis: Latin America, the Middle East, and Others)

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Report Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to 3 players)
• SWOT analysis of key players (up to 3 players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances.

Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@stratviewresearch.com.