Immersion Cooling Market Analysis North America,Europe,APAC,South America,Middle East and Africa - US,China,India,UK,Germany - Size and Forecast 2023-2027

Immersion Cooling Market Size 2023-2027

The immersion cooling market size is estimated to grow by USD 529.56 million at a CAGR of 21.28% between 2022 and 2027. The market's growth relies on various factors, including rising investments in data centers, a growing preference for immersion cooling solutions, and an increasing focus on reducing power consumption in data centers. These elements collectively drive market expansion, reflecting the industry's commitment to enhancing efficiency and sustainability. Investments in data centers signify the sector's growth and evolving needs, while the adoption of immersion cooling solutions indicates a shift towards more efficient and environmentally friendly cooling methods. Moreover, the emphasis on reducing power consumption underscores the industry's efforts to mitigate environmental impact and optimize resource utilization. These trends reflect a broader industry movement towards more sustainable and efficient data center operations, driving market growth and innovation.

It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

What will be the size of the Market During the Forecast Period?

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Market Segmentation

This 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).

By Type

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 111.51 million in 2017. 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.

The two-phase immersion cooling system is similar to that of a single-phase 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.

By Application

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. 

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 process accounts for 40% of the power consumed in data centers, companies 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. The most widely accepted system is liquid-based heating, which can be used in refrigerators, heat pumps, and an economizer. Moreover, liquid-based 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.

By Region

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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 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 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.

Market Dynamics

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 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.

Key Market Driver

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.

Significant Market Trends

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.

Major Market Restrain

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.

Key Market Customer Landscape

The market 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 Market Customer Landscape

Who are the Major Market Companies?

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:

• 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

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.

Segment Overview

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.

• Type Outlook 
  • Single-phase immersion cooling
  • Two-phase immersion cooling

• Application Outlook 
  • High-performance computing
  • Edge computing
  • Cryptocurrency mining

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Chile
    • Argentina
    • Brazil

Market Analyst Overview

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.

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.

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 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 Forecasting,  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 market 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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What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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