Immersion Cooling Market Size & Share, by Type (Single Phase Immersion Cooling, Two-Phase Immersion Cooling, Direct-to-Chip Cooling); Application (High-Performance Computing, Edge Computing, Cryptocurrency Mining, Artificial Intelligence); Components (Solutions, Services); Cooling Fluid (Mineral Oil, Synthetic Fluids, Fluorocarbon-Based Fluids); – Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2023-2035
Buy Now Report ID: 4896 | Published Date: May 31, 2023
Immersion Cooling Market size is slated to cross USD 22.04 Billion by 2035, witnessing around 26.6% CAGR from 2023 to 2035. In the year 2022, the industry size of immersion cooling was USD 1.3 Billion.
The market growth is attributed to the rising adoption of digital technology by people across the world owing to the growing number of network connections. The increasing demand for the internet around the world for various activities with enhancing online shopping and online payments is expected to propel the market expansion. The global internet traffic as of 2021 was over 20% and the amount of energy consumed by data transmission centers in 2021 was over 250-330 TWh.
Further, the increasing usage of electronics everywhere by people which include smartphones, laptops, television, computers, and other electronic devices is anticipated to influence the immersion cooling market growth in a positive way. The growing installation of transformers with the rise in high-performance data centers is propelling the market size. Also, the research and development in telecommunication to reduce energy consumption and loss of batteries constantly owing to constant heat generation are estimated to drive the market growth.
|
Base Year |
2022 |
|
Forecast Year |
2023-2035 |
|
CAGR |
26.6% |
|
Base Year Market Size (2022) |
USD 1.3 Billion |
|
Forecast Year Market Size (2035) |
USD 22.04 Billion |
|
Regional Scope |
|
Growth Drivers
Challenges
Air coolers are the traditional method of cooling systems with the exchange of hot air with cool air. The removal cost of HVAC ducts and air cooler systems from the organizations is expensive which hinders the immersion cooling market growth. Also, the air-cooling systems do not require any special skills to use as immersion cooling fluids which makes it complicated to adopt in old organizations. The presence of air coolers in the industry is from decades that gained traction and it requires time for immersion cooling to gain trust which is limiting its growth.
Type (Single Phase Immersion Cooling, Two-Phase Immersion Cooling, Direct-to-Chip Cooling)
The two-phase immersion cooling system is predicted to have significant market revenue in the coming years. The two-phase immersion cooling also called evaporative cooling or flow boiling is more energy efficient with two times more heat rejection capacity is driving the market segment. The increasing use of immersion cooling systems with two-phase for the IT components such as CPUs (central processing units), TPUs (tensor processing units), GPUs (graphic processing units), DC converts, power supplies, and ASICs are estimated to fuel the immersion cooling market growth. The two-phase dielectric transfer fluid is eco-friendly and bio-degradable which interests organizations looking for low carbon emissions to reduce negative effects to meet government regulations thus influencing the market segment growth. Data centers from across the world contribute to more than 2% of carbon emissions generating about 3 quintillion bytes of data every day. The use of dielectric fluids makes the two-phase systems easy to clean and builds faster than air-cooled data centers decreasing water usage.
Cooling Fluid (Mineral Oil, Synthetic Fluids, Fluorocarbon-Based Fluids)
The immersion cooling market from synthetic fluids segment is estimated to have substantial revenue among all the subsegments through 2035. The increasing use of synthetic fluids for immersion cooling in two-phase cooling systems, as they are non-flammable, non-oil-base, non-corrosive, and less toxic compared to oil-based fluids, is predicted to hike the market segment growth. The compatibility with the IT hardware and fiber optics and thermal stability with zero ozone depletion potential and no global warming effects are fuelling the market segment growth. Synthetic fluids have a very high life span and the heat extracted is used for another purpose with no refilling requirements which is boosting the growth of the market segment.
Our in-depth analysis of the market includes the following segments:
|
Type |
|
|
Application |
|
|
Components |
|
|
Cooling Fluid |
|
North American Market Statistics
The North American immersion cooling market is set to reach a significant market revenue between 2023-2035 with many lucrative growth opportunities such as the presence of many data centers with growing digital technology in the region. The rising internet users and adoption of cryptocurrency banking in the region are poised to have a positive impact on market growth. The requirement for cooling systems in the end-user sector such as aviation, IT sector, and telecom industries as the data transferring to reduce heat production and energy consumption rate is estimated to hike the market growth.
APAC Market Analysis
The Asian Pacific immersion cooling market is estimated to achieve a noteworthy expansion during the forecast period. The progression of the market is ascribed to the initiation of smart cities in the region with government investment. Also, the growing number of data centers in the region with increasing technology service providers such as Software-as-a-Service (SaaS), and Platform-as-a-Service (PaaS) for contract owing to the availability of employees and infrastructure at less cost is set to market enlargement. The rising private investments in virtual assistants and deployment of regional servers across the region are likely to expand the market in the coming years.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Smruti Ranjan, Rajrani Baghel
Ans: Increasing need for immersion cooling in data centers and rising IT sector industries are the major factors driving the market growth.
Ans: The market size of immersion cooling is anticipated to attain a CAGR of 26.6% over the forecast period, i.e., 2023 – 2035.
Ans: The major players in the market are Submer, The Dow Chemical Company, Liquid Stack, Midas Green Technologies, DCX- The Liquid Cooling Company, Liquid Cool Solutions, ExaScaler Inc., Green Revolution Cooling Inc., Asperitas, SixtyOneC Technology Corporation, and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by type, application, components, cooling fluid, and by region.
Ans: The two-phase segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
Ans: Lack of knowledge on immersion cooling and fluid leakage issues are estimated to be the growth hindering factors for the market expansion.
Ans: The market in the North American region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Submit Your Request For Proposal (RFP)
