The Global Immersion Cooling Market was valued at USD 0.81 Billion in 2022 and is projected to reach USD 1.69 Billion by 2030, registering a CAGR of 18.41% for the forecast period 2023-2030.
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Market Definition
Immersion cooling, which tries to lower data center cooling energy consumption, is expected to be driven by a higher density of server racks and processors. Computer parts are altered by liquid submersion cooling, which uses a thermally conductive liquid rather than an electrical one. Submersion in liquid is a common method of cooling large power distribution components like transformers. The most forward-thinking data centers in the world are beginning to use this method more often. It is still infrequently used, though, to cool IT hardware. For heat disposal, the Cray-2 and Cray T90 supercomputers, which are incredibly dense, use sizable liquid-to-chilled heat exchangers. The electrical conductivity of the liquid must be low enough to prevent interference with the computer's normal functioning. It might be necessary to insulate CPUs and other components that are vulnerable to electromagnetic interference, depending on the electrical conductivity of the liquid. For these reasons, it is preferred that the liquid be dielectric. There are numerous local and international competitors in the market.
Market Size:
- 2022: USD 0.81 Billion
- 2030: USD 1.69 Billion
- CAGR (2023-2030): 18.41%
Immersion Cooling Market Dynamics
Drivers Propelling the Demand for Immersion Cooling include:
Growing Number of Hyper-Scale Data Centers:
Due to the high-density server configurations and processing power needed for large-scale computing operations, hyper-scale data centers produce significant amounts of heat. An effective way to dissipate this heat is through immersion cooling, which involves immersing servers or parts directly in a dielectric fluid. When compared to conventional air-cooling techniques, this direct contact allows for faster and more efficient heat transfer. Higher power densities are frequently needed in hyper-scale data centers to meet the rising demand for processing power. Higher power density configurations are possible with immersion cooling since it does not have the same restrictions as air cooling. Hyper-scale data centers can now achieve optimal performance and scalability thanks to this. Immersion cooling is acknowledged for its cost-effectiveness and energy efficiency. Heat is dissipated more when IT components are submerged directly in a dielectric liquid. Reduced energy use and operating expenses can result from this efficiency, which is especially alluring for hyper-scale data centers that run on a large scale. Immersion cooling aids in keeping servers' operating temperatures more constant and ideal. This stability helps the IT infrastructure function better and be more reliable in hyper-scale environments, where performance variations and outages can have a big financial impact. Large air-cooling systems, which can eat up valuable floor space in data centers, are superseded by immersion cooling. Immersion cooling offers a critical space efficiency that hyper-scale data centers need to optimize the amount of square footage that is available for more server racks and computing infrastructure, this factor fueling the growth of the Immersion Cooling market.
For instance, in May 2022, according to BDx, Big Data Exchange (BDx), a leading data center solutions provider in Asia Pacific, announced today it has inked a conditional sale and purchase agreement of shares (CSPA) and joint venture agreement, together with a series of commercial and operational agreements, with PT Indosat Tbk (Indosat Ooredoo Hutchison or IOH), PT Aplikanusa Lintasarta, and PT Starone Mitra Telekomunikasi (SMT). This would be one of the largest foreign investments in the data center sector in Indonesia, carrying an estimated enterprise value of US $300M effective upon completion of the CSPA, and marking BDx’s entry into the Indonesian data center market.
Adoption of cryptocurrency mining and blockchain:
Mining cryptocurrencies requires high-performance computing (HPC) resources due to the complicated mathematical calculations involved, particularly for proof-of-work cryptocurrencies like Bitcoin. Because it provides better thermal management and cooling efficiency, immersion cooling is a good fit for HPC environments. The mining of cryptocurrency frequently entails the placement of numerous hardware components, like servers or mining rigs, in a small area. In comparison to conventional air-cooling techniques, immersion cooling permits a higher hardware density. As a result, mining facilities can make the best use of their available space and processing power. Immersion cooling has a reputation for being an energy-efficient method of removing heat from hardware. Immersion cooling aids in maintaining ideal operating temperatures without the need for substantial air conditioning because cryptocurrency mining operations can produce a lot of heat, particularly in large-scale mining farms. As a result, operating costs are decreased and energy efficiency is increased. To demonstrate the computational capacity of their mining hardware, cryptocurrency miners strive for higher hash rates. Immersion cooling offers a more efficient cooling method that enables mining hardware to continuously run at ideal temperatures. Consequently, this leads to improved efficiency and elevated hash rates. In cryptocurrency mining operations, heat is a significant factor that can lead to hardware component wear and tear. Mining equipment may last longer when operating temperatures are kept steady and lower thanks to immersion cooling, this factor driving the growth of the Immersion Cooling market.
For instance, in July 2022, according to First Abu Dhabi Bank, JPMorgan's Onyx Coin Systems achieved a major milestone with the completion of a blockchain-based cross-border payments pilot project in collaboration with First Abu Dhabi Bank (FAB), the United Arab Emirates' largest bank and one of the strongest financial institutions in the world.
Recent Developments
In April 2022, Fujitsu Limited and Fujitsu Australia and New Zealand have moved to strengthen their security services capabilities with the acquisition of New Zealand cyber security company InPhySec. This move marks the latest milestone in Fujitsu’s global M&A strategy and builds upon services offered by recently acquired firms Versor, oobe, and Enable Professional Services, to empower customers on their digital transformation journeys.
In September 2022, Dow introduced DOWSIL Immersion Cooling Technology, a next-generation solution for cooling hyper-scale cloud and enterprise data centers with optimized efficiency and sustainability. Award-winning DOWSIL Immersion Cooling Technology offers a revolutionary approach to thermal management and sustainability for fast-growing data centers in a new era of high-speed, high-volume data communications.
Restraint
Toxicity of fluorocarbon-based fluids Impedes Market Growth:
Perfluorinated compounds, among other fluorocarbons, are recognized for their ability to persist in the environment and cause long-term environmental contamination. Environmentally conscious consumers and regulatory bodies may oppose these fluids due to concerns about their effects on aquatic life and ecosystems. Because fluorocarbon-based fluids pose a risk to human health and the environment, regulatory agencies may implement stringent guidelines and restrictions on their use. Businesses that use hazardous fluids in their immersion cooling solutions may find it difficult to comply with environmental laws, which could hinder market expansion. Human health can be endangered by fluids containing fluorocarbons when ingested or come into contact with the skin, particularly in the event of spills or leaks, The use of toxic fluids may be restricted or subject to strict safety measures under workplace safety regulations, which could hinder adoption in commercial and industrial settings. Market acceptance of technologies involving toxic substances may be impacted by negative public perception. Businesses and consumers may be dissuaded from adopting immersion cooling solutions that use fluids based on fluorocarbons due to worries about safety and environmental effects. The industry may look for less toxic dielectric fluids for immersion cooling in response to worries about the toxicity of fluids based on fluorocarbons. The widespread adoption of immersion cooling solutions based on fluorocarbons may be slowed down by this search for alternatives. Environmentally friendly technologies and sustainable practices are becoming more and more important to industries and organizations. This factor hinders the growth of the Immersion Cooling market.
For instance, in November 2023, Chlorofluorocarbons (CFCs) were once widely used in aerosol propellants and refrigerants. However, they have gained notoriety for their role in ozone depletion. This discovery has raised questions about the potential of certain fluorocarbons to harm the environment. Research has revealed that man-made fluorocarbons don’t break down, accumulating in the environment and persisting in the atmosphere for extended periods. Fluorocarbons also accumulate in the bodies of humans and animals. As a result, long-term exposure may result in severe health risks, including chronic respiratory failure and acute respiratory distress syndrome.
Challenges
Repurposing data centers with immersion cooling systems
There are disadvantages to retrofitting immersion cooling systems in data centers in addition to their many benefits. Within an existing infrastructure, a new cooling solution needs to be carefully planned, assessed, and implemented. It's possible that the servers and hardware in use weren't designed with immersion cooling in mind. It can be a challenging process to ensure compatibility by making changes or replacing components. It's crucial to choose the right dielectric fluid. Due to material incompatibilities, it might be necessary to replace or alter servers or the data center infrastructure.
Opportunities
Significant Growth in Innovation Activities between Data Center Providers and Immersion Liquid Providers
Between immersion liquid suppliers and data center providers, innovation activities have grown significantly. As part of its summertime digital platform strategy, Digital Reality is testing a single-phase immersion cooling system. Future collaborations of this kind may be evident as the pandemic drives up demand for data centers. The ability to pack servers closely together in the tank allows for a redesigned server architecture optimized for high-performance, low-latency, and low-maintenance operations. A 5G cellular communications tower in the middle of a city could have a tank like this one underneath it for use in applications like self-driving cars. Adoption of data centers in regions where immersion cooling, as an initial investment, offers advantages on recurring costs by improving efficiency, reducing the needed building space, reducing maintenance frequency, lowering energy bills, and reducing the number of mechanical parts in operation, is expected to and be driven by policies such as keeping data in the geographic area where the law of the land controls data privacy.
Snapshot:
| Attributes | Details |
| Market Size in 2022 | USD 0.81 Billion |
| Market Forecast in 2030 | USD 1.69 Billion |
| Compound Annual Growth Rate (CAGR) | 18.41 % |
| Unit | Revenue (USD Million) and Volume (Kilo Tons) |
| Segmentation | By Type, By Technology, By End-Use & By Region |
| By Type |
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| By Technology |
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| By End-Use |
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| By Region |
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| Base Year | 2022 |
| Historical Year | 2018 - 2022 |
| Forecast Year | 2023 - 2030 |
Segment Analysis of the Immersion Cooling Market
The Immersion Cooling Market is segmented by type, technology, end-use and region.
By Type
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The Mineral Oil segment held the largest market share in 2022:
By Type is sub-segmented into mineral oil, fluorocarbon-based fluids, synthetic fluids, and others. The Mineral Oil segment accounted for the highest market share in the global Immersion Cooling market for 2022. Mineral oil air conditioning systems are more efficient than traditional air conditioning systems, which reduces costs and simplifies facility design. Because mineral oil has a high boiling point and is transparent and oily, it is used as a single-phase dielectric. More flexibility in deployment and operations is made possible by mineral oil's capacity to blend different batches and sources. Mineral oil has been used in the past for immersion cooling as a dielectric cooling liquid. However, issues like inconsistent quality, low flash point, and incompatibility of materials have restricted its application in the IT sector.
On the other hand, the fluorocarbon-based fluid segment has a significant market share over the forecast period, due to the most often used fluorocarbon molecules in immersion cooling liquids (FKs) are hydrofluoroethers (HFEs), perfluorocarbons (PFCs), perfluoropolyethers (PFPEs), and fluorketones. High dielectric strength, high vapor pressure, and high chemical and thermal stability facilitate the easy implementation of such cooling solutions for maintaining IT equipment temperatures.
By Technology
The Single-Phase Immersion Cooling segment was the leading segment in 2022:
By Technology, which is divided into single-phase immersion cooling, and two-phase immersion cooling. The single-phase Immersion Cooling segment accounted for the largest share 70% of the global Immersion Cooling market in 2022. This is explained by a two-phase system's high dielectric strength, low environmental impact, high coolant heat capacity, low costs for the tank and coolant, and high biodegradability. A single-phase system, in which all electrical parts, subsystems, and devices are completely submerged in the single-phase dielectric heat transfer fluid, is a low-cost, effective, and straightforward cooling method. During the whole cooling process, the single-phase system remains liquid. The market for single-phase immersion cooling has grown because of its energy-saving qualities, scalability, ease of use, and efficiency in heat dissipation. The benefits of single-phase immersion cooling make it an appealing option for businesses looking for efficient and long-lasting cooling solutions for their increasingly potent and closely spaced computing systems, especially as the need for high-performance computing keeps growing across multiple industries.
The two-phase immersion cooling segment is anticipated to register rapid growth in the forecast period, because of increased dependability, high energy efficiency, adaptability in deployment, and minimal maintenance needs. Two-phase systems are a good choice for cooling hyperscale data centers because of their 1.01 power use effectiveness, which is 5% less than that of single-phase systems. There is a significant pressure requirement as the coolants in the two-phase system transition to the gaseous phase. This increases the total maintenance and operating costs of the cooling system by requiring intricate systems with substantial safety features.
Regional Analysis
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North America occupied the largest market share in 2022:
North America has the largest revenue market share 41% in 2022, because of the region's high density of data centers and the growing need for these kinds of cooling systems, especially in the US. To keep up with the growing demands of their operations, businesses make significant investments in data centers. For example, Microsoft announced in April 2021 that they would install a new liquid immersion cooling system in a data center in Washington, which would save water and energy. The switch to two-phase liquid immersion cooling improves the flexibility of cloud resource management. For example, cloud resource management software can assign abrupt spikes in data center computing demand to the servers housed in the liquid-cooled tanks, allowing them to operate at high power without overheating. The 3M Company, situated in the United States, is a prominent supplier of fluids associated with immersion cooling technology. The 3M Fluorinert liquids are far better than air and have the highest dielectric strength and electrical resistance of any organic fluid. The governments are requesting that private sector companies install intelligent solutions in cities that are under construction, and they are also taking significant steps to support smart cities.
On the other hand, Asia Pacific accounted for a significant share over the forecast period, The data center sector is expanding significantly and is now more concerned with uptime and efficiency. With larger businesses looking to scale up their data centers to ensure stability and reliability of data services, such as the application of 5G, wearable devices, the internet of things, and artificial intelligence spurs a burgeoning demand for computing power, China is highly focused on taking the lead over its global peers in the construction of data centers. Accelerator processors are finding their way into enterprise data centers as artificial intelligence and related loads become commonplace across multiple industry verticals in China. With the aid of accelerating systems, zero-latency technologies process information at astronomical speeds, exceeding the needs of all latency-sensitive services. These accelerators are hardware.
List of the prominent players in the Immersion Cooling Market:
- Green Revolution Cooling Inc.
- Submer,
- Fujitsu Limited
- Midas Green Technologies
- Dug Technology
- Asperitas
- TAS
- AMAX Engineering Corporation
- Liquid Stack
- DCX
By Type
- Mineral Oil
- Fluorocarbon-Based Fluids
- Synthetic Fluids
- Others
- Single-Phase Immersion Cooling
- Two-Phase Immersion Cooling
- Transformers
- Data Centers
- EV Batteries
- Solar Photovoltaic
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
Impact of the COVID-19 Pandemic on the Immersion Cooling Market:
Global supply chains experienced disruptions as a result of the pandemic's lockdowns, travel restrictions, and manufacturing facility closures. The availability of parts and supplies required for immersion cooling systems may have been impacted by these disruptions, which could have impacted production and delivery schedules. Due to the economic uncertainty brought on by the pandemic, many industries and businesses decided to postpone or delay capital expenditures and projects. Delays in the deployment of immersion cooling systems or investments in new data centers may have hampered market expansion. The pandemic's spike in remote work led to a rise in the need for cloud services and data center capacity. The general state of the economy may have had an impact on the timing and scope of data center expansions, even though this trend may increase the demand for effective cooling solutions. Organizations were forced by the pandemic to reevaluate their IT priorities and concentrate on pressing issues like cybersecurity and remote collaboration tools. Investments in cutting-edge cooling technologies might have been neglected in favor of more pressing needs. The pandemic's effects on the economy and financial constraints may have caused businesses to reduce discretionary spending, including expenditures on cutting-edge technologies like immersion cooling. It's possible that businesses gave cost-cutting measures priority over implementing innovative cooling techniques.
