Immersion Cooling

Global Immersion Cooling Market to Reach US$2.2 Billion by 2030

The global market for Immersion Cooling estimated at US$585.7 Million in the year 2023, is expected to reach US$2.2 Billion by 2030, growing at a CAGR of 20.6% over the analysis period 2023-2030. Single-Phase Immersion Cooling, one of the segments analyzed in the report, is expected to record a 17.8% CAGR and reach US$1.3 Billion by the end of the analysis period. Growth in the Two-Phase Immersion Cooling segment is estimated at 25.6% CAGR over the analysis period.

The U.S. Market is Estimated at US$165.7 Million While China is Forecast to Grow at 20.1% CAGR

The Immersion Cooling market in the U.S. is estimated at US$165.7 Million in the year 2023. China, the world`s second largest economy, is forecast to reach a projected market size of US$338.2 Million by the year 2030 trailing a CAGR of 20.1% over the analysis period 2023-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 17.8% and 17.4% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 14.2% CAGR.

Global Immersion Cooling Market - Key Trends and Drivers Summarized

Why Is Immersion Cooling Emerging as a Critical Solution in Data Centers?

Immersion cooling is revolutionizing thermal management in data centers by offering an efficient, cost-effective, and environmentally friendly alternative to traditional air cooling systems. As data centers grow in complexity and power density, particularly with the advent of AI, machine learning, and cloud computing, managing the heat generated by high-performance servers has become a top priority. Immersion cooling involves submerging IT hardware in a thermally conductive, dielectric liquid that absorbs heat more effectively than air, allowing for better heat dissipation. This method not only reduces energy consumption associated with cooling but also prolongs the life of equipment by minimizing exposure to heat-related wear and tear. With rising energy costs and increasing awareness of the environmental impact of data centers, immersion cooling offers a promising solution for both energy efficiency and sustainability.

How Are Technological Innovations Shaping the Immersion Cooling Market?

Technological advancements are driving significant improvements in immersion cooling systems, particularly in liquid formulations and cooling unit designs. Modern dielectric fluids are specifically engineered to enhance heat transfer while maintaining compatibility with sensitive electronic components. These fluids are often non-toxic, biodegradable, and have high boiling points, ensuring reliable cooling even under extreme workloads. On the hardware side, manufacturers are developing more compact and modular immersion cooling tanks that can be easily integrated into existing data center infrastructures. Additionally, the use of AI and machine learning for predictive maintenance and system optimization is becoming more prevalent, allowing data centers to adjust cooling systems dynamically based on real-time workloads and environmental conditions. These innovations are making immersion cooling more efficient, scalable, and accessible for a wider range of applications beyond just high-performance computing.

How Do Market Segments Define the Growth of the Immersion Cooling Industry?

Types of immersion cooling include single-phase and two-phase systems, with single-phase systems leading the market due to their simplicity and lower maintenance requirements. Applications of immersion cooling range from data centers and high-performance computing to edge computing and cryptocurrency mining, with data centers accounting for the largest market share. End-users include hyperscale data centers, colocation providers, and enterprise IT, with hyperscale data centers driving the most significant demand as they face increasing pressure to improve energy efficiency while scaling operations. The market is also expanding geographically, with North America and Asia-Pacific regions leading the adoption of immersion cooling solutions due to their concentration of large-scale data centers and tech industries.

What Factors Are Driving the Growth in the Immersion Cooling Market?

The growth in the immersion cooling market is driven by several factors, including the increasing demand for energy-efficient cooling solutions in data centers, the rising cost of electricity, and the need for more sustainable operations in the tech industry. As power densities in data centers continue to rise, traditional air-based cooling systems are becoming less effective and more expensive to operate. Immersion cooling, with its superior heat dissipation and lower energy consumption, is emerging as a critical solution to these challenges. Additionally, the growth of cloud computing, AI, and cryptocurrency mining is pushing data centers to adopt more advanced cooling technologies to support the intense computational workloads. Regulatory pressure to reduce the carbon footprint of data centers is also playing a significant role in driving the adoption of immersion cooling systems.

Select Competitors (Total 33 Featured) -

• Allied Control Ltd
• Asperitas
• DCX – the Liquid Cooling Company
• Downunder Geosolutions Pty Ltd
• Exascaler Inc
• Fujitsu Limited
• Green Revolution Cooling Inc
• Iceotope Technologies Limited
• Liqit.Io
• Liquidcool Solutions, Inc
• Midas Green Technologies
• Qcooling
• Submer Technologies

Please note: Reports are sold as single-site single-user licenses. Electronic versions require 24-48 hours as each copy is customized to the client with digital controls and custom watermarks. The Publisher uses digital controls protecting against copying and printing is restricted to one full copy to be used at the same location.

The latest version of Adobe Acrobat Reader is required to view the report. Upon ordering an electronic version, the Publisher will provide a link to download the purchased report.

Prior to fulfillment of an order, the client will be required to sign a document detailing the purchase terms for a publication from this publisher.