According to the Market Statsville Group (MSG), the global immersion cooling fluids market size is expected to grow around USD 3,735.2 million by 2033, at a CAGR of 7.82% from 2023 to 2033.

Electronic devices and IT components, including whole servers and storage devices, are immersed in a thermally conducting but electrically insulating dielectric liquid or coolant as part of the thermal management technique known as immersion cooling. Heat is removed from the system by moving relatively cold liquid into proximity to hot components and then moving the heated liquid through cool heat exchangers. Equipment like transformers, data centers, and EV batteries employ immersion cooling fluids to cool or transmit heat.

Growth is anticipated to be fueled by data centers’ rising demand for cooling solutions that are both economical and energy efficient. Following the COVID-19 pandemic in 2020, international governments imposed strict lockdowns, which hindered industrial growth. The growing need for data centers, particularly hyper-scale data centers, is anticipated to rise in response to the growing demand for IoT capabilities and cloud computing infrastructure. Digital platforms can store and move data effectively with the help of hyper-scale data centers.

COVID-19 Impact on the Global Immersion Cooling Fluids Market

The COVID-19 pandemic has had a major effect on the world economy and negatively impacted the market growth for immersion cooling fluids. The lockdown affected the data centers since the consolidation of data centers was halted. In the COVID-19 universe, tasks like moving servers, shutting down buildings, and setting up a new site were more challenging.

On the other hand, data centers experienced an increase in demand, primarily due to the global working-from-home trend and an expansion in e-commerce. Due to participants in this industry expanding their capacity to fulfill the rising demand for the product from data centers, the immersion cooling market in the United States is changing as a result of the COVID-19 pandemic. The COVID-19 crisis accelerated the growth of e-commerce by opening it up to new businesses, clients, and product categories. Additionally, the demand for data centers, particularly hyper-scale data centers, is projected to increase due to the growing demand for IoT capabilities and cloud computing infrastructure in the United States.

 Global Immersion Cooling Fluids Market Dynamics

Drivers: Rising Penetration of Advanced Technologies Across Various Verticals

Factors driving the growth of the immersion market are the rising adoption of cutting-edge technologies in the mining, construction, and healthcare sectors. As people's lifestyles change, they are more likely to use sophisticated technology, which is expected to support market growth for immersion cooling. The increased use of digital gadgets, including online studies, bookings, and other activities, is made possible by increased disposable money, driving up industrial demand. Additionally, the government is increasing expenditures to support the growth and development of the electronic industry.

Another significant reason fuelling the industry's expansion is the implementation of strict legislation encouraging the adoption of low-energy solutions. For instance, according to IOP SCIENCE, in 2021, initiatives for cutting-edge home technology are expected to grow significantly. Additionally, it is reported that home entertainment technologies include cutting-edge faucets. In the upcoming years, these variables are anticipated to increase industry demand.

Restraints: Mineral Oil Consumption in Transformers Raises Environmental Problems

Due to its great cooling efficiency, ease of accessibility, and helpful chemical features like a good pour point at low temperatures and exceptional thermal cooling capacity, mineral oil has long been the favored transformer cooling oil. However, due to their processing and purification, these oils are largely non-biodegradable. This raises the problem of how to recycle and discard these oils after usage. As a result, the environmental concern about the usage of mineral oil would hinder the market's expansion for immersion cooling fluids, which will have a negative effect on consumer demand.

Opportunities: Adoption of Bio-Based Oils for Immersion Cooling

From vegetable oil as a feedstock, bio-based transformer oil is created. Due to the absence of silicone, petroleum hydrocarbons, and halogens, bio-based transformer oil has a high fire resistance and is biodegradable. In comparison to mineral oil, bio-based oil also exhibits a larger dielectric breakdown. It is also an environmentally beneficial immersion cooling fluid. This opens up the possibility of using bio-based oil as an immersion cooling fluid in the end, like transformers and data centers. Players tapping this opportunity will gain a competitive advantage and market share over other players.

Scope of the Global Immersion Cooling Fluids Market

The study categorizes the immersion cooling fluids market based on type, technology, application, and end-use at the regional and global levels.

By Type (Sales, USD Billion, 2019-2033)

• Mineral Oil
• Synthetic Fluids
• Fluorocarbon-Based Fluids
• Others    

By Technology (Sales, USD Billion, 2019-2033)

• Single-Phase Immersion Cooling
• Two-Phase Immersion Cooling

By Application (Sales, USD Billion, 2019-2033)

• High-performance Computing
• Cryptocurrency Mining
• Artificial Intelligence
• Edge Computing
• Others

By End-Use (Sales, USD Billion, 2019-2033)

• Transformers
• Data Centers
• EV Batteries
• Solar Photovoltaic

By Region Outlook (Sales, USD Billion, 2019-2033)

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Italy
  • France
  • UK
  • Spain
  • Poland
  • Russia
  • The Netherlands
  • Norway
  • Czech Republic
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Indonesia
  • Malaysia
  • Thailand
  • Singapore
  • Australia & New Zealand
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Colombia
  • Rest of South America
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • South Africa
  • Northern Africa
  • Rest of MEA

Single-Phase Immersion Cooling segment accounts for the largest market share during the forecast period by technology

Based on technology, the market is bifurcated into single and two-phase immersion cooling. During the forecast period, the single-phase immersion cooling segment accounts for the largest market share. Single Phase Immersion is the most popular type of immersion cooling, and it makes use of a dielectric fluid-filled accessible container. A pump inside the enclosed space circulates the dielectric fluid or deionized water until it encounters a heat exchanger, which extracts the heat and transfers it to a water circuit before recirculating the cooler fluid inside the enclosure. With single-phase immersion, there is minimal to no chance of evaporation, and the coolant never boils or freezes. Servers are often mounted vertically inside a cooling bath that is horizontally oriented. The fluid is kept in a liquid during the equipment's cooling operation. Because there is no immersion cooling fluid loss, the single-phase immersion cooling system is maintenance-free and economical. These are a few of the variables that will influence the segment's market.

Asia Pacific accounts for the largest market share, by Region

Based on the regions, the global immersion cooling fluids market has been segmented across North America, Asia-Pacific, Europe, South America, and the Middle East & Africa. Asia Pacific will dominate the global immersion cooling fluids market in 2022. Energy consumption in the area is increasing, necessitating the construction of transmission infrastructure. The need for efficient immersion cooling solutions for transformers will result from this. Additionally, the region has experienced a rise in sales and demand for electric vehicles, and ongoing R&D for EV batteries has created a market potential for immersion cooling fluids utilized for EV batteries. The region's market for immersion cooling fluids is partly expanding due to the rising need for data centers.

Also, businesses from all sectors emphasize IT scalability and resilience in preparation for potential systemic catastrophes akin to pandemics by employing hybrid and perhaps colocation solutions. Additionally, technology service providers like Platform-as-a-Service (PaaS) and Software-as-a-Service (SaaS) companies in the Asia Pacific consider public cloud providers for their service offerings.

Key Market Players in the Global Immersion Cooling Fluids Market

Major businesses compete for leadership in their respective industries in a fiercely competitive market. To improve their market positions, major firms place a strong emphasis on integration along the whole value chain. Companies use partnerships, collaborations, and new product creation as strategies to strengthen their market positions. Companies like Asperitas and Green Revolution Cooling have teamed up to raise awareness of the solutions used in the sector.

Strategies assist businesses in growing their market share and meeting the shifting technological needs of various end-use sectors, including data centers and IT firms.

Major players in the global immersion cooling fluids market are:

• Fujitsu Limited
• Dug Technology
• Green Revolution Cooling Inc.
• Submer
• Nynas AB
• Ergon, Inc.
• PetroChina Company Limited
• APAR Industries
• Sinopec Lubricant Company
• Liquid Stack
• Midas Green Technologies
• Asperitas
• DCX- The Liquid Cooling Company
• LiquidCool Solutions
• ExaScaler Inc

Recent Developments

• In August 2022, UNICOM Engineering, a significant partner in system integration, unveiled a new line of servers that are prepared for both single-phase and two-phase immersion cooling. By meeting the computation, density, and storage needs of present and future workloads, these servers were created to push the limits of today's data centers.
• In March 2022, GRC (Green Revolution Cooling) announced the start of its Immersion Cooling Pilot Program. This "Try Before You Buy" option enables data center owners and operators to deploy an ICEraQ Series 10 immersion cooling system for evaluation purposes.
• In October 2020, Ergon, Inc. raised the storage capacity to 39000 m3 at the Antwerp terminal in Belgium in October 2020. This growth will enable the business to meet the rising demand for specialized oils. Transformer immersion cooling fluids are one of specialized oils.
•  In March 2020, Nynas AB unveiled NYTRO BIO 300X, a 100% renewable transformer oil, in March 2020. The oil is oxidation stable and has a very low viscosity. The cooling capabilities of the transformer oil are remarkable.

Key Issues Addressed

• What is the market size by various segmentation of the immersion cooling fluids by region and its respective countries?
• What are the customer buying behavior, key takeaways, and Porter's 5 forces of the immersion cooling fluids market?
• What are the key opportunities and trends for manufacturers involved in the immersion cooling fluids supply chain?
• What are the fundamental dynamics (drivers, restraints, opportunities, and challenges) of the market?
• What and how regulations, schemes, patents, and policies are impacting the growth of the market?
• What are the upcoming technological solutions influencing market trends? How will existing companies adapt to the new change in technology?
• The market player positioning, top winning strategies by years, company product developments, and launches will be?
• How has COVID-19 impacted the demand and sales of immersion cooling fluids in the global market? Also, the expected BPS drop or rise count of the market and market predicted recovery period.
• Detailed analysis of the competitors and their latest launch, and what are the prominent startups introduced in the target market? Also, detailed company profiling of 25+ leading and prominent companies in the market.