Immersion Cooling Market to Grow by USD 988 Million from 2024-2028, Driven by Rising Data Center Investments, AI-Powered Market Evolution- Technavio

NEW YORK, Sept. 9, 2024 /PRNewswire/ -- Report on how AI is driving market transformation- The global immersion cooling market size is estimated to grow by USD 988 million from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 28.62% during the forecast period. Increasing investments in data centers is driving market growth, with a trend towards emergence of advanced technologies. However, lack of demand and awareness poses a challenge. Key market players include 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..

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Market Driver

The adoption of advanced technologies such as machine learning, artificial intelligence, and blockchain is driving the demand for high-performance computing hardware, including tensor processing units (TPUs) and graphics processing units (GPUs). These hardware components generate significant heat, making traditional air cooling methods inadequate. As workload densities increase beyond 25-30 kW per rack, immersion cooling becomes an ideal solution. This eco-friendly technology efficiently manages heat from high-power processing units, enabling enterprises to capitalize on computationally intensive applications like blockchain and high-frequency trading. Immersion cooling also reduces data center power consumption and enhances Power Usage Effectiveness (PUE), making it a cost-effective and sustainable choice for managing high-density workloads. 

The Immersion Cooling Market is experiencing significant growth due to the increasing demand for energy-efficient solutions in various industries. Managed Service Providers are adopting immersion cooling systems for High-performance data centers and heavy electronics devices to reduce energy consumption and operational expenditures. Single-phase systems using coolants like mineral oil and synthetic fluids are gaining popularity over traditional air conditioning systems. Fluorinated fluids and fluorocarbon-based fluids are also used in some applications. Industry dynamics, changing lifestyle, and stringent laws are driving the market. Immersion cooling solutions are being used in sectors like Hospitals, Schools, and Digital Solutions for IT components and electronics. Cooling fluids play a crucial role in managing heat generation from complex algorithms and high-performance hardware. Low-energy solutions, home technologies, artificial intelligence, edge computing, and blockchain technologies are also contributing to the market's growth. Energy-efficient immersion cooling offers cost advantages and improved mining power for cryptocurrency and other data-intensive applications. However, concerns over leakage and the need for optimal temperatures and energy costs remain challenges. The Migrates Policy Institute's focus on energy efficiency and sustainability further boosts the market. 

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 Market Challenges

• Immerision cooling systems have gained attention in the IT industry for enhancing infrastructure performance in data centers. While various cooling technologies exist, immersion cooling's impact remains minimal due to concerns over potential infrastructure malfunctions from submerging electronic components in heat transfer liquids. Microsoft Corp. Is among the pioneers in adopting this technology, but widespread acceptance is limited among major hyperscalers like Amazon and Facebook. The technology's potential lies in powering data-intensive applications, such as HPC, cryptocurrency mining, AI, ML, and data mining. Despite this, the lack of recognition from key players hampers the immersion cooling market's growth during the forecast period.
• The Immersion Cooling market is gaining traction due to its ability to address the challenges of water usage, heat dissipation, and performance in data centers. However, reliability is a key concern due to the use of tanks, pumps, and heat exchangers. Low-density data servers benefit from this cooling method, but physical footprint and maintenance costs are considerations. Data center operators seek energy savings and simplified infrastructure, making energy-saving capabilities and versatility attractive. Scalability is essential, especially in the Artificial Intelligence segment, where high-performance computing, AI applications, and intense learning models require high power densities. Cooling fluids, including synthetic fuels, offer customization and stability. Digital transformation, cloud services, and AI-driven applications demand energy efficiency and IoT capabilities, driving the need for immersion cooling in cloud computing infrastructure and hyper-scale data centers. Capital costs and hardware modification are also factors to consider.

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Segment Overview 

This immersion cooling market report extensively covers market segmentation by

1. Type 
• 1.1 Single-phase immersion cooling
• 1.2 Two-phase immersion cooling
2. Application 
• 2.1 High-performance computing
• 2.2 Edge computing
• 2.3 Cryptocurrency mining
3. Geography 
• 3.1 North America
• 3.2 Europe
• 3.3 APAC
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Single-phase immersion cooling- The single-phase immersion cooling market witnessed significant growth in 2020, with this cooling method leading the market. In single-phase immersion cooling, IT components and systems are submerged in a hydrocarbon-based dielectric fluid that absorbs the heat produced. The heated fluid is then pumped through a secondary liquid-to-liquid or air-to-liquid heat exchanger for cooling before being recirculated back into the immersion bath. Newtonian fluids, which are circulated at low flow rates and pressure, are used as coolants. This cooling method offers simplicity, easier operations, and lower maintenance, making it an attractive choice for data centers. The single-phase immersion cooling segment is projected to continue its dominance in the market due to its cost-effectiveness and energy efficiency. As consumers become more aware of the advantages of single-phase immersion cooling over two-phase, demand for this technology is expected to increase substantially during the forecast period. For instance, Submer's immersion cooling solution utilizes a single-phase immersion coolant and provides open-bath systems designed for easy operation.

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Research Analysis

The Immersion Cooling market is gaining significant traction due to its energy-efficient solutions, offering cost advantages over traditional air cooling systems. With the increasing demand for data centers, cryptocurrency mining, and blockchain technologies, the heat generation from complex algorithms is becoming a major concern. Immersion cooling provides a solution by submerging IT components in a dielectric fluid, eliminating the need for air conditioning and reducing operational expenditures. The market is not limited to data centers alone, but also finds applications in cloud computing infrastructure, hyper-scale data centers, and IoT functionality. The global workforce's shift towards digital solutions, e-commerce growth, and changing lifestyles are driving the market's industry dynamics. Stringent laws on energy consumption and capital costs are also encouraging hardware modification towards immersion cooling. Managed Service Providers offer single-phase immersion cooling systems, making it accessible to schools, digital solutions, electronics, and industries.

Market Research Overview

The Immersion Cooling Market is experiencing significant growth due to the increasing demand for energy-efficient solutions in various sectors. Immersion cooling offers cost advantages by reducing operational expenditures through lower energy consumption. Data centers, cryptocurrency mining, and blockchain technologies are major adopters of immersion cooling due to the complex algorithms and intense heat generation. The market is driven by the need to maintain optimal temperatures and reduce energy costs while increasing efficiency and improving hardware longevity. Leakage and water usage are concerns, but the market offers versatile solutions, including synthetic fuels and single-phase systems. The market caters to various industries, including high-performance computing, artificial intelligence, and healthcare, with customizable hardware configurations and thermal conductivity. Digital transformation, cloud services, and IoT capabilities are also driving the market, with a focus on energy savings and maintenance costs. The market offers simplicity, scalability, and reliability, with a range of cooling fluids and cooling systems, including air conditioning and fluorocarbon-based fluids. The market dynamics are influenced by digital transformation, changing lifestyle, stringent laws, and the global workforce's shift towards low-energy solutions. Immersion cooling is a promising solution for high-performance data centers, heavy electronics devices, hospitals, schools, and digital solutions, offering energy savings and improved mining power.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Type
• Single-phase Immersion Cooling
• Two-phase Immersion Cooling
• Application
• High-performance Computing
• Edge Computing
• Cryptocurrency Mining
• Geography
• North America
• Europe
• APAC
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio