Global Immersion Cooling Market 2021


Market Overview

The global immersion cooling market reached an estimated value of $251 million in 2021 and is projected to grow at a compound annual growth rate (CAGR) of 36.3% to reach $1,606 million by 2027. This growth is primarily driven by the increasing scarcity of water and the rising number of colocation and hyper data centers.

Data centers are adopting immersion cooling systems to reduce water usage and enhance cooling efficiency. This helps in reducing operating costs, contributing to the expansion of the global immersion cooling market. Additionally, the development of carbon-neutral data centers, supported by government initiatives and environmental guidelines aimed at reducing carbon emissions, is also propelling the market. For example, influenced by initiatives like the Paris Agreement, data centers and other industries are adopting immersion cooling technology to decrease heat dissipation and mitigate global warming.

Product Type

Market Report

No. of Pages

128

Release Date

May 2022

Base Year

2021

Forecast Period

2022-2027

Market Size

USD 1606 Mn incremental growth between 2021 and 2026

Market Segments

Application, Technology, Region

Region

Global

No. of Companies Mentioned

30


However, one major challenge hindering the growth of the global immersion cooling market is the lack of standardization. Moreover, implementing an immersion cooling system often requires redesigning and modifying the data center infrastructure, making it difficult for companies to reduce cooling system costs.

The demand for immersion cooling is driven by the increasing number of data centers and the need for efficient cooling solutions. Cooling is crucial in data centers to prevent overheating and potential outages. The adoption of liquid cooling technologies, including immersion cooling, aligns with sustainable development goals such as water conservation, climate action, and recyclability.

Immersion cooling has a significant impact on thermal management, as it allows the use of dielectric coolants, enabling high-density configurations. This technology enables closer clustering of CPU and GPU clusters, protecting critical components from thermal and environmental risks.

In response to the COVID-19 pandemic, the immersion cooling market experienced a slight decline in revenues in 2020. However, companies in the industry have implemented strategies to recover from this crisis, and the market is expected to rebound strongly in the future. The increased demand for data usage, which has risen by 34% compared to pre-pandemic levels, will contribute to the market’s recovery.

The demand drivers for the immersion cooling market include the need for sustainable cooling solutions and the reduction of operational costs. However, the market may face limitations due to the existence of alternative technologies and the additional costs associated with system failures and fluid leakages.


Market Segmentation

The market is segmented based on various factors, including application, technology, and region.

Segmentation by Application
Blockchain
High-Performance Computing
Data Center

Segmentation by Technology
Single-Phase Immersion Cooling System
Two-Phase Immersion Cooling System

Segmentation by Region
North America – U.S., Canada, and Mexico
Europe – Germany, France, Spain, Netherlands, and Rest-of-Europe
China
U.K.
Asia-Pacific and Japan – Taiwan, India, Japan, Australia, Singapore, and Rest-of-Asia-Pacific and Japan
Rest-of-the-World- Middle East and Africa and South America

Immersion cooling can be achieved through two types of technologies: single-phase immersion cooling liquid and two-phase immersion cooling liquid. In the single-phase immersion cooling technology, IT components such as servers are immersed vertically in a coolant bath containing hydrocarbon-based dielectric fluid, similar to mineral oil in properties. On the other hand, the two-phase immersion cooling system uses a low-temperature evaporation process to transfer heat from the liquid and cool hot IT servers and components.

The market for single-phase immersion cooling system technology is expected to dominate the global immersion cooling market. This is driven by the increasing demand for its cost-effectiveness during setup and its superior energy efficiency. The immersion cooling approach involves using cooling liquids rather than air or water to draw out heat from IT components. It finds applications in industries such as blockchain, high-performance computing, and data centers. By circulating dielectric fluids, immersion cooling effectively removes heat from the server components. These cooling liquids belong to two categories: hydrocarbons (mineral, synthetic, or bio-oils) and fluorocarbons (fully engineered liquids). Liquid has been found to be a better conductor of heat than air, making immersion cooling a compelling alternative to traditional cooling methods.

The data center immersion cooling market holds the largest share in the global immersion cooling market, primarily due to the intensive computing resources required in artificial intelligence (AI) and machine learning (ML). These systems utilize high-density CPUs and custom chips, posing challenges for air cooling systems. Immersion cooling technology proves to be the best choice for cooling such applications.

In 2021, North America generated the highest revenue of $92 million in the immersion cooling market. The region’s growth is attributed to the increasing utilization of immersion cooling in operational applications such as data centers and edge computing systems. However, alternative cooling options are also posing competition to this technology. The Asia-Pacific region is expected to experience faster growth in the market.

The immersion cooling market’s high growth rate is driven by several factors, including the presence of numerous data centers and the growing demand for innovative technologies in regions like North America and Europe. Sectors such as high-performance computing, cryptocurrency mining, edge computing, artificial intelligence, and cloud computing contribute significantly to the demand for immersion cooling.


Competitive Landscape

Over the past five years, the global immersion cooling market has witnessed significant strategic and industrial developments initiated by key market players in order to establish their presence in this evolving sector. These developments have encompassed various strategies such as product development, innovation, partnerships, collaborations, business expansions, product launches, investments, and receiving awards and recognition. Among these strategies, business expansion and partnership, joint ventures, and collaborations have emerged as the favored approaches for firms aiming to strengthen their position in the global immersion cooling market. Many manufacturers are introducing new products catering to different applications and adopting sustainable development strategies to ensure future growth.

For instance, in January 2022, Submer secured a funding of $34 million from Planet First, including Norrsken VC, Alma Mundi Ventures, and Tim Reynolds. This funding will facilitate their initiatives in the market. In November 2021, LiquidStack unveiled a high-performance open accelerator infrastructure (OAI) server specifically designed for 2-phase immersion cooling systems. The utilization of immersion cooling technology requires minimal energy input, resulting in cost and energy savings, which is expected to have a positive impact on the growth of the global immersion cooling market.


Recent Industry Developments

In January 2022, Green Revolution Cooling entered into a collaboration with Intel aimed at mitigating the environmental impact of digital infrastructure. As a result of this collaboration, customers will be able to develop and implement advanced immersion cooling techniques in their future data centers.

In March 2021, Submer and SYNNEX Corporation formed a partnership. According to the agreement, Submer’s range of liquid cooling and edge-ready solutions will be manufactured in the United States and distributed by SYNNEX.

In September 2018, Fujitsu introduced a liquid immersion cooling system designed to reduce the total cost of ownership.

In March 2021, LiquidStack emerged from stealth mode and announced new deployments across critical sectors such as high-performance computing (HPC), cloud services, artificial intelligence (AI), edge computing, and telecommunications. The company was also funded by Strategic Partner Wiwynn in a Series A funding round.


Key Questions Answered

What is the projected revenue size of the global immersion cooling market for the forecast period 2022-2027?

What is the anticipated compound annual growth rate (CAGR) for the immersion cooling market during the forecast period 2022-2027?

What are the key drivers and opportunities in the immersion cooling market?

What are the main restraints that are impeding the growth of the global immersion cooling market?

How are existing market players adopting new strategies to expand their market position in the immersion cooling industry?

What is the revenue expectation and growth percentage for each segment during the forecast period?

What types of start-up companies are operating in the immersion cooling market ecosystem, and what is their significance in the global market?

What are the expected scenarios in data centers, such as hyperscale centers, enterprise centers, colocation centers, and others?

Global Immersion Cooling Market 2021

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