Immersion Cooling Fluids Market Size, Share, and Industry Analysis By Technology (Single Phase and Two Phase), By Fluid Type (Mineral Oil, Fluorocarbon-based Fluids, Synthetic Fluids, and Others), By Application (Data Centers, Transformers, Automotive, Aerospace & Defense, and Others), and Regional Forecast till 2032

The global immersion cooling fluids market has been increasing due to several significant factors, including the rising demand for energy-efficient cooling approaches in data centers and electric vehicles. Immersion cooling fluids contribute to better thermal management, reduce energy bills, and increase the effective service life of electronic components in many applications.

• According to the U.S. Department of Energy, immersion cooling can cut energy use in data centers by up to 50%, making it a good prospect for huge buildings. It is worth noting that according to its own survey results, the European Commission calculated energy consumption from data centers in Europe to reach 104 TWh in 2022.

Besides data centers, immersion coolants are used to a growing extent in electric vehicles to improve battery performance and life. As fluid technologies are rapidly evolving, the industry is innovating eco-friendly formulations in line with global sustainability trends.

Immersion Cooling Fluids Market Driver

Market Growth In Immersion Cooling Driven By Efficiency Demand

The need for the development of efficient and advanced designing cooling systems for high-performance computing data centers artificial intelligence and huge-scale operations has increased the demand for immersion cooling. In fact, North America, where approximately 40% of global data center energy consumption is consumed, has emerged as developing by experiencing a 20% increase in the adoption of immersion cooling by the market of U.S., according to the Department of Energy, 2021. The adoption of immersion cooling has an effect on the bottom line as the Asia Cloud Computing Association states it could decrease energy charges by a further 30% and allows for evidence for more pull into expanded markets.

Immersion Cooling Fluids Market Restraint

High Costs, Complexity, And Low Awareness Hinder Market Growth

Upfront expenses and major challenges in specialized immersion cooling infrastructure continue to be set up for many organizations. The risk from technical complexity, for instance, fluid leakage and hardware compatibility issues, creates barriers to wide adoption. Limited awareness and expertise in immersion cooling technologies are further hindering market growth, as many enterprises are still relying on standard air cooling systems.

Immersion Cooling Fluids Market Opportunity

Eco-Friendly Research And Industrialization Drive Market Growth

Global trends and new opportunities for growth are present with the advanced research of immersion cooling fluids that are eco-friendly. The fact that Asia is responsible for 30% of the global data center energy consumption clearly indicates that the continued rapid industrialization provides immense growth opportunities. Large-scale adoption of renewable energy in data centers, as a prime example, is Sweden's example in which it exploits its 100% renewable energy with an immersion cooling adoption of around 10%, indicating the market growth potential for sustainability.

Segmentation

Key Insights

The report covers the following key insights:

• Expansion of Data Centers and EVs, By Key Regions
• Drivers, Restraints, Trends, and Opportunities
• Energy Efficiency Initiatives and Regulatory Policies, By Major Countries
• Business Strategies Adopted by Key Players
• Consolidated SWOT Analysis of Key Players
• Key Industry Developments (Product Launches, Investments, Market Expansions)
• Overview: Technological Advancements in Cooling Fluids

Analysis by Technology

By technology, the market is divided into single phase and two phase.

The single-phase immersion cooling segment is expected to dominate the overall market on account of being affordable and the streamlined nature of its installation. This technology works with dielectric fluid in liquid form, giving high thermal efficiency and less maintenance. Its increasing adoption in data centers and edge computing facilities is also poised to drive steady market growth over the next seven years.

The two-phase immersion cooling segment is expected to witness significant growth, following the other type of single-phase immersion cooling as the two-phase solutions are more efficient in cooling working fluids and are more effective in cooling HPC systems or hyperscale data centers. This technology is based on a phase change, where the fluid evaporates and then condenses to efficiently transfer heat away.

Analysis by Fluid Type

By fluid type, the market is divided into mineral oil, fluorocarbon-based fluids, synthetic fluids, and others.

The mineral oil-based fluids segment is expected to dominate the market share owing to their cost-effectiveness and compatibility with existing cooling systems. These fluids offer optimal heat dissipation with little equipment corrosion. This extensive deployment in data centers and industry continues to underpin their relatively strong position in the market.

The segment of fluorocarbon-based fluids is anticipated to register substantial growth during the forecast period. Thus, they have risen to be the go-to options for high-stakes, lower-effort types of endeavors, including aerospace and defense, where reliability and thermal stability are top requisites. Low-carbon technologies may not be widely adopted as they are expensive and environmentally suited for the place.

Analysis by Application

By application, the market is divided into data centers, transformers, automotive, aerospace & defense, and others.

As immersion cooling improves energy efficiency in hyperscale and colocation facilities, the data centers segment is expected to dominate the market share. As global energy consumption in data centers breaks records, companies invest in cutting-edge cooling solutions to lower operational costs and carbon footprints.

The automotive segment is likely to witness significant growth in particular for electric vehicles (EVs). Such immersion cooling fluids boost battery performance, ease thermal stress, and prolong battery life. Rapid growth in EV demand, particularly in the Asia-Pacific, is accelerating the adoption of such cooling technologies.

Regional Analysis

Based on geography, the market has been studied across North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa.

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It will be North America that will eventually be the biggest market for immersion cooling fluids, thanks directly to the heavy emphasis on technological innovations, environmental regulations, and the nation-by-nation appetite for digitalization. As per the Department of Energy, the US has over 2,600 data centers, where only 5% of new facilities use immersion cooling methods, while stringent energy policies are pushing more establishments toward the adoption of sustainable cooling technologies.

Europe, too, has considerable market significance with some countries considering it as an aspect propelling their sustainability initiatives and adoption of electric vehicles. There are more than 500 data centers in Germany, 8% of which use immersion cooling technology, according to the German Federal Statistical Office. An 18% rise in immersion cooling applications was also registered in 2021, as noted by the European Commission.

Corresponding with the increasing proliferation of data centers, demand for EV cooling solutions has brought fast-paced growth to the Asia-Pacific economy. China has over 400,000 data centers using immersion cooling in 3% of them, according to the National Bureau of Statistics of China. Meanwhile, India's data center is said to grow forward at a yearly rate of 15% till 2025, strengthening the region's market.

Key Players Covered

The report includes the profiles of the following key players:

• Aecorsis BV (Netherlands)
• DCX POLSKA SP (Poland)
• DUG Technology (Australia)
• Fujitsu (Japan)
• Green Revolution Cooling, Inc. (U.S.)
• LiquidStack Holding B.V. (Netherlands)
• Midas Immersion Cooling Solutions (U.S.)
• STULZ GMBH (Germany)
• Submer (Spain)

Key Industry Developments

• In August 2024, Nvidia proclaimed its anticipated launch of the GB200 Server Racks, equipped with a type of liquid cooling technology mainly intended to energize the present developmental stage of data centers processing power and efficiencies. The move further indicates a larger shift of focus into immersion cooling for high-performance computing. In addition, the developing trend aligns with the increasing demand for and preference toward cooling for hyperscale facilities that are sustainable and effective.
• In November of 2024, Accelsius raised $24 million Series A to develop cooling products for AI-powered data centers. It's another indication of growing interest in immersion cooling technologies intended to solve the heat challenges of high-density computing environments. The funding will spearhead further innovation and commercialization of energy-efficient cooling systems.