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The immersion cooling market size is estimated to grow at a CAGR of 21.28% between 2022 and 2027. The market size is forecast to increase by USD 529.56 million. The growth of the market depends on several factors, including increasing investments in data centers, the growing inclination for immersion cooling solutions, and the growing emphasis on reduction in power consumption by data centers. In immersion cooling, IT components and other electronics, such as servers and storage devices, are immersed in a thermally conductive dielectric liquid or coolant. The liquid coolant has insulating properties that help remove the heat generated from IT hardware components and other electronics.
This immersion cooling market report extensively covers market segmentation by type (single-phase immersion cooling and two-phase immersion cooling), application (high-performance computing, edge computing, and cryptocurrency mining), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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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 vendors 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, cooling immersion systems help reduce the energy consumption in data centers by more than 85% when compared with traditional air-based cooling systems. Also, A higher number of racks at data center sites will lead to a rise in rack density, thus making vendors more inclined to use data center liquid immersion cooling solutions over Air Based Cooling. Due to the increased concerns about high power consumption in data centers, the global immersion cooling market is expected to witness high growth during the forecast period.
The emergence of advanced technologies is a primary trend in the immersion cooling 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 cooling 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, immersion cooling solutions minimize data center power consumption and enhance PUE. Therefore, such factors are anticipated to propel the growth of the global immersion cooling market during the forecast period.
The availability of alternative cooling methods is a major challenge in the immersion cooling 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 cooling market for data centers are moving from air conditioning to chilled water-based solutions.
Currently, air-based cooling 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 the single-phase immersion cooling type, 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 around a chassis, enclosure, or tank in order 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 111.51 million in 2017 and continued to grow by 2021. Its simplicity overwhelmed a number of installations that had switched to single-phase immersion cooling, which translates into easier operations, greater upfront affordability, and lower maintenance. The coolants utilized in this type of immersion cooling are Newtonian fluids, which are circulated within the system at low flow rates. Such factors will increase segment growth during the forecast period.
The two-phase immersion cooling system is similar to that of a single-phase immersion cooling system, with the only difference being that the fluid changes from one state to another, i.e., from the liquid to the gaseous state. In a two-phase immersion-cooled system, the IT components, servers, and devices are sealed inside a bath containing a specially engineered fluorocarbon-based liquid. When they switch to the gaseous phase, coolants used in two-phase immersion refrigeration systems must be subjected to increased pressure. This means that, as a result of this requirement, total costs for operating and maintenance of the air conditioning system will increase due to the design of complex systems with large safety systems.
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 cooling systems has also seen a marked increase.
Immersion cooling systems are used in edge data centers worldwide to lower the heat generated by IT equipment. These systems involve the use of liquid-based cooling techniques. As the cooling process accounts for 40% of the power consumed in data centers, vendors are innovating and testing their techniques to reduce the associated operational expenditure. The effectiveness of liquid-based cooling is more efficient than that of traditional cooling systems such as air cooling. The most widely accepted cooling system is liquid-based heating, which can be used in refrigerators, heat pumps, and an economizer (a part of a building cooling system). Moreover, liquid-based cooling solutions are ideal for edge data centers. The developments are expected to drive the growth of the edge computing segment, which, in turn, is anticipated to propel the growth of the market in focus during the forecast period.
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North America is estimated to contribute 43% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The immersion cooling 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.
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 data 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 vendors 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 outbreak of COVID-19 had a positive impact on market growth in the region in 2020. Factors such as the implementation of large-scale COVID-19 vaccination drives from Q4 2020, the lifting of COVID-19-related restrictions, the growing number of data centers being established in the region, and the demand for thermal solutions, such as immersion heating systems, are expected to increase with the advent of Big Data Analytics and cloud computing, which, in turn, is anticipated to propel the growth of the regional market in focus during the forecast period.
The Immersion Cooling Market industry report includes the adoption lifecycle of the market, 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 growth strategies.
Global Immersion Cooling 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.
Aecorsis BV - The company offers immersion cooling products such as Aquarius immersion cooling systems.
Bitfury Group Ltd. - The company offers immersion cooling products such as Bitfury Poseidon immersion cooling systems.
DCX The Liquid Cooling Co. The company offers immersion cooling products such as Thermasafe N Engineered Fluid.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
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 immersion cooling market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Immersion Cooling Market Scope |
|
Report Coverage |
Details |
Page number |
158 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 21.28% |
Market growth 2023-2027 |
USD 529.56 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
20.26 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 43% |
Key countries |
US, China, India, UK, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, 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, and 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. |
We can help! Our analysts can customize this market research report to meet your requirements.
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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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