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The immersion cooling fluid market size is projected to increase by USD 988 million at a CAGR of 28.62% between 2023 and 2028. Market growth is driven by rising investments in data centers, a growing preference for immersion cooling solutions, and an increasing focus on reducing power consumption in data centers. These trends highlight the industry's commitment to enhancing efficiency and sustainability, optimizing resource utilization, and mitigating environmental impact.
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The market is witnessing rapid growth due to the increasing demand for energy-efficient solutions in data centers. These solutions offer significant cost advantages by reducing operational expenditures related to energy costs and maintenance costs. The market is also driven by advancements in blockchain technologies and complex algorithms, which optimize temperatures and improve mining power. They are known for their reliability and hardware longevity, providing improved energy savings and efficiency in heat dissipation. With a focus on digital transformation and cloud services, the market is expected to continue its growth trajectory, meeting the needs of hyper-scale data centers and other industries requiring intensive solutions.
The market growth and forecasting report includes key players detailed analyses of the competitive landscape of the market and information about 10 market companies, including Comfort Systems USA Inc., DCX The Liquid Cooling Co., Delta Electronics Inc., DUG Technology Ltd., Engineered Fluids Inc., Furukawa Electric Co. Ltd., Gigabyte Technology Co. Ltd., Green Revolution Cooling Inc., Iceotope Technologies Ltd., LiquidCool Solutions, LiquidStack B.V., Midas Immersion Cooling, PEZY Computing KK, SixtyOneC, Submer Technologies SL, TEIMMERS, TMGcore Inc., and Wiwynn Corp. . Additionally, Aecorsis BV - The company offers immersion cooling products such as Aquarius immersion cooling systems.
The market is evolving with the integration of advanced technologies and the adoption of innovative solutions. Factors such as the growing global workforce, the rise of e-commerce, and the need to reduce capital costs are driving the demand. This trend is supported by hardware modification and solutions offered by Managed Service Providers for single-phase system and IT component, reflecting the changing lifestyle and industry dynamics. Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
The growing emphasis on reduction in power consumption by data centers is driving the growth of the market. Increasing concerns about rising power consumption in data centers, which use air-cooled technologies, have led to a significant increase in the use of cold water immersion solutions for data centers. Data center companies are investing in research and development (R&D) to reduce operating expenses (OPEX), but they are still struggling to develop data center infrastructure that requires minimal maintenance and consumes less power.
Moreover, these systems help reduce the energy consumption in data centers by more than 85% when compared with traditional systems. Also, A higher number of racks at data center sites will lead to a rise in rack density, thus making companies more inclined to use data center liquid immersion solutions over Air Based. Due to the increased concerns about high power consumption in data centers, the market is expected to witness high growth during the forecast period.
The emergence of advanced technologies is a primary trend in the market. Advanced technology like machine learning, artificial intelligence, and blockchains are being increasingly adopted and used. Powerful new hardware for AI workloads also can produce high flux, wherein the power usage in a rack surges rapidly as the hardware begins a new workload, which can be difficult to manage using the traditional air method. Several service providers are offering air-cooled solutions that improve the performance of their workload for more densely populated areas.
However, blockchain-based applications and high-frequency trading systems also generate computationally intensive workloads that need ultra-high-performance GPUs and central processing units (CPUs), leading to substantial heat generation. Thus, injection cooling is necessary to allow these techniques to be exploited by businesses that wish to benefit from it, as they will make a significant increase in performance. Moreover, these solutions minimize data center power consumption and enhance PUE. Therefore, such factors are anticipated to propel the growth of the during the forecast period.
The availability of alternative cooling methods is a major challenge in the market. There is a growing power consumption in data centers around the world. This scenario has made data center operators look for alternative solutions that are efficient in terms of power consumption and performance. Distributors in the market for data centers are moving from air conditioning to chilled water-based solutions.
Currently, air-based solutions using airside economizers and waterside economizers are effective and are used to operate a data center at a PUE of 1.1, with lower energy consumption by using renewable resources. Other techniques, such as Microsoft underwater cooling, will also pose a challenge to market growth during the forecast period.
The market share growth by the single-phase immersion cooling segment will be significant during the forecast period. In this segment, the components, devices, and sub-systems are immersed in a hydrocarbon-based dielectric fluid. The fluid will absorb heat from the information technology components and systems, which (the fluid) is then pumped and circulated a chassis, enclosure, or tank to help dissipate the heat.
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The single-phase immersion cooling segment showed a gradual increase in the market share of USD 134.70 million in 2018. Its simplicity overwhelmed several installations that had switched to single-phase system, which translates into easier operations, greater upfront affordability, and lower maintenance. The coolants utilized in this type are Newtonian fluids, which are circulated within the system at low flow rates. Such factors will increase segment growth during the forecast period.
High-performance computing (HPC) is a combination of processes that deliver higher and very efficient computing. Usually, HPC systems are a cluster of processors with 16-64 nodes. These systems use algorithms, networks, and simulated environments for computers, ranging from small cluster computers to large supercomputers. HPC systems are primarily used for scientific and engineering applications. Compared with general-purpose computers, they have higher computing performance. To solve recurring problems and to perform more complicated operations, mainly in applications such as physics simulations, weather forecasting, quantum mechanics, etc., high-performance computing systems significantly speed up the process and provide greater efficiency. The increasing use of HPC will continue to require high-performance data centers. As the heat generated by these high-density servers and data centers has risen considerably, the need for efficient systems has also seen a marked increase.
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North America is estimated to contribute 45% to the growth of the global market during the forecast period.
Technavio's analysts have provided extensive insight into the market forecast, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. The market in North America is expected to witness a steady growth rate, owing to the switching of enterprises from hardware-based services to software-based services and the increasing number of data centers being established in the region.
Further, several major companies, such as Cisco Technologies Inc. (Cisco), IBM Corp. (IBM), VMware Inc. (VMware), Microsoft Corp. (Microsoft), and Hewlett Packard Enterprise Development LP (HP), have set up their information centers in the US. Further, the demand for immersion heaters is being driven by the increase in mobile broadband services, as well as the growing use of big data analysis and cloud computing. Some of the companies operating in the region are focusing on launching new edge computing platforms. Such factors will increase the market growth in this region during the forecast period.
The market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and trends strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2022 for the following segments.
The market is driven by the need for optimal temperatures and increased efficiency in data centers, leading to improved mining power and reduced energy costs. These solutions address challenges such as leakage and high water usage while offering a smaller physical footprint compared to traditional air cooling systems. These enable the use of low-density data servers and provide energy-saving capabilities through the use of cooling fluids. The market's growth is further fueled by the integration of Artificial Intelligence (AI) and IoT capabilities, enhancing energy efficiency and scalability. As industries adopt digital solutions, including cloud computing and IoT, thus it is becoming a preferred choice due to its ability to meet stringent laws and offer low-energy solutions.
Further, the market is witnessing significant advancements driven by the integration of Artificial Intelligence (AI) and the adoption of AI applications in data centers. These advancements include the development of AI models and intense learning models to optimize power densities and prevent thermal throttling. These solutions offer versatility in hardware configurations and provide high thermal conductivity and stability. They are increasingly used in AI-driven applications, cloud computing infrastructure, and IoT functionality to improve energy efficiency and reduce operational costs. The market is also influenced by factors such as changing industry dynamics, the adoption of home technologies, and the need for cooling fluid solutions in various sectors, including hospitals, schools, and heavy electronics devices.
Industry Scope |
|
Report Coverage |
Details |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 28.62% |
Market growth 2024-2028 |
USD 988 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
22.32 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 45% |
Key countries |
US, China, UK, India, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aecorsis BV, Bitfury Group Ltd., Comfort Systems USA Inc., DCX The Liquid Cooling Co., Delta Electronics Inc., DUG Technology Ltd., Engineered Fluids Inc., Furukawa Electric Co. Ltd., Gigabyte Technology Co. Ltd., Green Revolution Cooling Inc., Iceotope Technologies Ltd., LiquidCool Solutions, LiquidStack B.V., Midas Immersion Cooling, PEZY Computing KK, SixtyOneC, Submer Technologies SL, TEIMMERS, TMGcore Inc., and Wiwynn Corp. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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