Immersion Cooling Market to Grow at a 28.9% CAGR Over the Forecast Period to Reach USD 1,846.8 Million by 2028

The Immersion Cooling Market valued at USD 201.8 million in 2019 and is estimated to reach a valuation of USD 1,846.8 million by 2028, at a CAGR of 28.9% over the forecast period. The practice of submerging device components (or whole servers) in a thermally, but not electrically conductive liquid is known as immersion cooling. Cooling large power delivery components like transformers with liquid submersion is a common practice.

Although this method is still uncommonly used to cool IT hardware, it is steadily gaining popularity among data centers around the world. IT hardware or servers that are cooled this way don't need fans, and the heat exchange between the warm coolant and the cool water circuit is normally achieved through a heat exchanger (heater core or radiator). The Cray-2 and Cray T90 are two extreme density supercomputers that use this technology.

Over 7,500 data centers are located around the world, with over 2600 in the top 20 cities alone. According to the Top 500's semi-annual ranking, data center development is expected to grow over the next few years. In the coming years, growing investments in data center infrastructure, and rising power consumption, are expected to drive demand for immersion cooling systems.

Immersion cooling market is also expected to be driven by increasing server rack density and chip density, new use cases such as harsh edge computing environments, and pressure to reduce energy consumption during data center cooling.

Immersion Cooling Market, by Type

Based on type, the market is segmented into single-phase and two-phase immersion cooling systems. Single-phase immersion cooling systems are expected to retain their dominance over the forecast period due to coolant costs, low system, tank, high coolant heat capacity, high biodegradability, high dielectric strength, and low environmental impact (GWP).

Due to higher energy efficiency and energy savings, increased reliability, lower maintenance requirements, and implementation flexibility, two-phase systems are expected to witness high demand in the coming years.

Immersion Cooling Market, by Fluid Type

Based on fluid type, the global immersion cooling market has been divided into fluorocarbon-based fluids, mineral oil, and synthetic oil. Due to its wide usage in various end-use consumer applications, the synthetic oils segment is expected to grow at a high CAGR during the forecast period. In addition, the fluorocarbon-based fluids segment is expected to grow at a healthy pace in the coming years, followed by the mineral oil segment.

Immersion Cooling Market, by Application

Based on application, the market is segmented into edge computing, high-performance computing, cryptocurrency mining, and artificial intelligence. Cryptocurrency is a revolutionary idea that serves as an alternative to the current monetary system. Entrepreneurs, start-ups, large and small businesses, and SMEs are all interested in cryptocurrencies, which they see as a revolutionary concept for avoiding transactional enforcement. Due to these reasons, the ecosystem has attracted a lot of venture capital, alliances, and partnerships from cryptocurrency solution providers that want to have end-to-end solutions. This will give a major boost to the growth of the cryptocurrency mining segment.

Immersion Cooling Market, by Region

The global market for immersion cooling has been segmented as North America, Western Europe, Eastern Europe, Asia Pacific, Middle East, and rest of the world. Due to the widespread use of immersion cooling to improve data center efficiency, the North American region is expected to dominate the immersion cooling market. The presence of a large number of data centers and the growing popularity of immersion cooling technologies are expected to drive the immersion cooling market growth in Europe and North America. Immersion cooling is being used by leading technology companies in the United States and Canada for several applications in this field. Furthermore, during the forecast period, the Asia Pacific region is projected to have a healthy growth rate in the global market.

Recent Developments in the Immersion Cooling Market

  • In March 2019, GRC collaborated with TechData to provide support and guarantees to customers using GRC's immersion cooling systems all over the world
  • In October 2018, Asperitas and 2CRSI, two major manufacturers of high-performance servers, collaborated to create new cutting-edge server technologies for immersed computing to be sold to customers with high-performance requirements

Key Elements of the Immersion Cooling Analysis Include:

  • Market forecasting that necessitates a thorough examination of market constraints, threats, potential hazards, prospects, recent policies, and trends, future forecasts, and growth factors
  • The research provides a global market summary, a regional market analysis, and a market participant assessment
  • An overview of budgets, savings, and existing industry dynamics for decision-makers to forecast market development
  • The report also provides a summary with market segments and forecasted results. Some of the major players in the global immersion cooling market include Green Revolution Cooling Inc., Fujitsu Limited, Submer Technologies, Asperitas, Allied Control Ltd, Iceotope Technologies Limited, Midas Green Technologies, LiquidCool Solutions, DCX – The Liquid Cooling Company, ExaScaler Inc, and DownUnderGeoSolutions Pty Ltd.

Market Segmentation

By Type:

  • Single Phase
  • Two Phase

By Fluid Type:

  • Fluorocarbon-based Fluids
  • Mineral Oil
  • Synthetic Oil

By Application:

  • High-performance Computing
  • Edge Computing
  • Artificial Intelligence
  • Cryptocurrency Mining

By Region:

  • North America
  • Western Europe
  • Eastern Europe
  • Asia Pacific
  • The Middle East
  • Rest of the World