Immersion Cooling Market Size, Share & Trends Analysis Report By Type (Single-Phase Immersion Cooling, Two-Phase Immersion Cooling), By Application (High-Performance Computing, Artificial Intelligence, Edge Computing, Cryptocurrency Mining), By Cooling Fluid (Mineral Oil, Synthetic, Fluorocarbon-Based) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2022-2030

Market Overview

The global immersion cooling market size was valued at USD 248.00 million in 2021. It is projected to reach USD 3,844.05 million by 2030, growing at a CAGR of 35.6% during the forecast period (2022–2030).

Immersion cooling is anticipated to be pushed by a greater density of server racks and processors and aims to reduce data center cooling energy consumption. Liquid submersion cooling modifies computer components in a thermally conductive liquid but not electrically conductive. Typical techniques for cooling major power distribution components, such as transformers, involve immersion in liquid. This technique is gaining favor among the world's most innovative data centers.

However, it is still rarely employed for cooling IT hardware. Extremely dense supercomputers Cray-2 and Cray T90 use large liquid-to-chilled heat exchangers for heat disposal. The liquid's electrical conductivity must be low enough not to interfere with the computer's regular operation. Depending on the liquid's electrical conductivity, insulating components susceptible to electromagnetic interference, such as the CPU, may be essential. It is desired that the liquid be dielectric for these reasons. Many global and regional players are present in the market.

Market Dynamics

Global immersion cooling market drivers

Increasing concentration of server space to support market growth

The needed performance does not demand the usage of high-density servers in conventional data centers. New technologies such as deep learning, machine learning, the Internet of Things (IoT), smart cities, artificial intelligence (AI), cloud computing, and blockchain need the processing of large volumes of data. Immersion cooling can manage greater heat loads than air cooling, which increases the market need for immersion cooling systems. Immersion cooling solutions can keep these high-density server racks cool at a low-cost while being non-hazardous and environmentally friendly. The advantages of employing a nontoxic and less corrosive dielectric fluid for liquid immersion cooling are attracting an increasing number of end-users and driving the market for immersion cooling.

Growing carbon footprint of data centers to bolster market growth

Immersion cooling is one example of advanced liquid cooling that has become increasingly popular due to several important factors, including the expanding data center industry's carbon footprint. According to a recent study by 3M, a well-known synthetic coolant supplier in the immersion cooling market, electronic components in data centers with conventional air-based cooling systems consume 38% of the electricity needed to keep the building at an occupiable temperature.

Global immersion cooling market restraints

Lack of recognition to restrict market growth

Immersion cooling is an emerging technique with numerous high-performance computing (HPC) applications, artificial intelligence, machine learning, cryptocurrency mining, and data mining. Microsoft's data center along the eastern Columbia River has transitioned from conventional fan cooling to liquid cooling. Google has adopted immersion cooling for its latest artificial intelligence and machine learning technologies. However, end-users such as Facebook and Amazon, among other hyper scalers, do not recognize this technology appropriately. Most large corporations are in the early stages of utilizing it for emerging technologies such as AI, machine learning, and cloud computing. Thus, the lack of end-user recognition impedes the market's growth.

Global immersion cooling market opportunities

Growth of artificial intelligence, blockchain, high-performance electronics, and telecom to boost market opportunities

Artificial intelligence and blockchain are gaining popularity nowadays. These technologies necessitate more potent processing units, such as graphics processing units (GPU) and Tensor Processing Units (TPU), with much higher thermal points in their hardware accelerators. Immersion cooling technology is ideally adapted to serve these more outstanding power processing units in an environmentally responsible manner. Immersion cooling is necessary for enterprises to take advantage of these technologies, as it permits substantial performance benefits. These methods also reduce a data center's electricity usage and PUE. Additionally, computationally intensive workloads are produced by high-frequency trading systems and blockchain-based applications, necessitating ultra-high-performance central processing units (CPUs) and graphics processing units (GPUs). This results in increasing demand during the forecast period.

Regional Analysis

The global immersion cooling market is segmented into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.

North America dominates the market for liquid immersion cooling due to the region's large concentration of data centers and the increasing need for such cooling systems for data centers, particularly in the United States. Companies invest heavily in data centers to meet the escalating demands of their operations. For instance, Microsoft declared in April 2021 that a new liquid immersion cooling system would be set up in a data center in Washington, saving water and lowering energy costs. This move to liquid immersion cooling with two phases increases the adaptability of cloud resource management. For instance, software that manages cloud resources can allocate sudden increases in data center compute demand to the liquid-cooled tanks' servers, which can run at high power without overheating.

The United States-based 3M Company is a significant fluids provider connected with immersion cooling technology. The 3M Fluorinert liquids possess the highest dielectric strength and electrical resistance of all organic fluids and are significantly superior to air. The governments are undertaking considerable initiatives to support smart cities and requesting that private sector companies install intelligent solutions in cities under construction. These elements are anticipated to hasten the regional deployment of servers, data centers, equipment, and devices for the Internet of Things, leading to a quick sector expansion over the anticipated time frame.

Segmental Analysis

The global immersion cooling market is segmented by type, application, and cooling fluid.

On the basis of types

Based on types, the market is segmented into single-phase and two-phase immersion cooling.

The single-phase immersion cooling is predicted to lead the market with a CAGR of 20.1% during the forecast period. The demand for single-phase immersion cooling will increase since it is less expensive and more energy-efficient to install. As customer awareness of the differences between single-phase and two-phase immersion increases, the market for single immersion cooling will grow. Subsystems, electrical components, and electronics are entirely immersed in a single-phase dielectric heat transfer fluid in a single-phase system, which is a straightforward, cost-effective, and effective cooling solution. Two-phase Immersion cooling is an innovative form of data center cooling. In a two-phase immersion cooled system, electronic components are immersed in a bath of dielectric heat-transfer liquid, which conducts heat more efficiently than air, water, or oil. The fluid with a low boiling point of 50 degrees Celsius boils close to the surface of heat-generating components, and the rising vapor passively transfers heat.

On the basis of application

Based on application, the market is segmented into high-performance computing, artificial intelligence, cutting-edge computing, and cryptocurrency mining.

Cryptocurrency mining maintains the most significant market share. Small and medium-sized businesses (SMEs), startups, and entrepreneurs see cryptocurrencies as revolutionary for getting around transactional compliance requirements. Due to these elements, the ecosystem has attracted a lot of venture capital, partnerships, and collaborations increasing the demand for immersion cooling. This immersion cooling industry is highly competitive due to the enormous development potential in countries like the United States, Japan, India, and Germany.

On the basis of cooling fluid

Based on cooling fluid, the market is segmented into mineral oil, synthetic, and fluorocarbon.

The market for immersion cooling is dominated by mineral oil, with a CAGR of 20.9% during the forecast period. Mineral oils are preferred by end-users seeking a low-cost, energy-efficient cooling solution. Due to its 1,000 times, greater capacity to retain heat than air, mineral oil requires less energy to cool. It serves as a thermal insulator, allowing the device to function correctly while submerged, increasing the demand for immersion cooling systems. Blending mineral oil from various sources and batches increases deployment and operation flexibility.

Recent Developments

• April 2022- LiquidStack and Standard Power Team Up to Build New Liquid Immersion-Cooled Data Center in the Midwest.
• June 2022- GRC White Paper on Immersion Cooling for Profitable and Sustainable Cryptocurrency Mining.
• May 2022- Submer Unites With BIT, To Showcase Immersion Powered Cooling Technology in The Netherlands.
• June 2022- Model building with DUG Wave Full Waveform Inversion.