Immersion Cooling Fluids Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Mineral Oil, Synthetic Fluids, Fluorocarbon-based Fluids, Others), By End User (BFSI, Energy, Manufacturing, Healthcare, IT& Telecommunication, Others), By Region and Competition, 2020-2030F

Market Overview

Global Immersion Cooling Fluids Market was valued at USD 1.75 Billion in 2024 and is anticipated to project robust growth in the forecast period with a CAGR of 4.80% through 2030. Immersion cooling is an innovative thermal management approach commonly employed in IT cooling systems. It involves submerging electronic equipment, including entire servers and storage devices, in a thermally conductive but electrically insulating dielectric liquid or coolant. This liquid absorbs heat from the components by direct contact, and then the heated liquid is passed through cool heat exchangers to dissipate the heat. The popularity of immersion cooling has soared in recent years, especially in the context of bitcoin mining, as it not only provides effective cooling but also generates usable heat. In fact, a single ASIC miner operating in a cold environment can produce exceptionally efficient electric heat conversion, which can suffice to warm an entire home.

The immersion cooling market is anticipated to thrive due to factors such as increasing server rack density, chip density, and the emergence of new use cases like hazardous edge computing settings. Additionally, the demand to minimize energy consumption during data center cooling is a key driver. The industry showcases numerous global and regional competitors, each offering unique immersion cooling systems. Some manufacturers even retrofit off-the-shelf Information Technology Equipment (ITE) to make it compatible with their technology. Moreover, manufacturers also provide customized solutions to cater to the specific needs of their clients.

The expanding demand for IoT capabilities and cloud computing infrastructure is expected to further fuel the need for data centers, particularly hyper-scale data centers. These hyper-scale facilities enable digital platforms to efficiently store and process vast amounts of data. Compared to traditional data centers, hyper-scale data centers have the ability to handle high-volume traffic and large computational workloads with ease. With the continuous growth of data-driven technologies, the importance of immersion cooling in the IT industry is set to expand even more in the coming years.

Key Market Drivers

Growing Demand of Immersion Cooling Fluids in Healthcare Industry

Immersion cooling fluids play a pivotal role in the healthcare industry. They are specifically designed to cool down high-performing medical devices and machinery, ensuring these critical tools function optimally and safely. Approximately 375 million computed tomography (CT) scans are performed worldwide each year, with an annual growth rate of 3-4%, according to a 2021 Frost & Sullivan report. This increasing utilization underscores the growing significance of CT imaging in modern healthcare diagnostics and treatment planning, as medical institutions continue to adopt advanced imaging technologies to enhance precision, efficiency, and patient outcomes, medical imaging devices like MRI and CT scanners, known for their high processing power, generate a significant amount of heat during operation. Immersion cooling fluids are essential in maintaining the temperature of these machines, effectively preventing overheating and potential damage.

As the healthcare industry continues to evolve rapidly, the demand for advanced medical devices is on the rise. The United States holds the position as the world’s largest medical device market, accounting for over 40% of the global medtech industry. The country has consistently maintained a strong export performance, with U.S. medtech exports surpassing imports. This increase in demand naturally results in a corresponding growth in the need for reliable and efficient immersion cooling fluids. These advanced medical devices, including high-resolution imaging equipment and robotic surgical systems, require highly effective cooling solutions to ensure consistent performance and longevity.

Moreover, the ongoing digital transformation within the healthcare industry is another critical factor that drives the demand for immersion cooling fluids. With the surge in data generation and storage, particularly in relation to Electronic Health Records (EHRs) and telemedicine, there has been a significant expansion of data centers within the healthcare sector. A 2021 OECD survey conducted across 27 countries revealed an increasing adoption of electronic health records (eHRs). However, system fragmentation remains a key challenge, with only 15 countries implementing a nationally unified eHR system. Despite this, 24 countries have established a minimum data set to ensure the standardization of core health information, reflecting ongoing efforts to enhance data interoperability and healthcare efficiency. These data centers, serving as the backbone of digital healthcare infrastructure, require robust and efficient cooling systems to prevent overheating and ensure smooth operation. Consequently, the demand for immersion cooling fluids has seen a notable increase alongside the growth of data centers in the healthcare industry.

Furthermore, technological advancements in cooling solutions have contributed to the growing demand for immersion cooling fluids in the healthcare sector. The development of environmentally-friendly and energy-efficient immersion cooling fluids has not only improved the performance of medical devices and data centers but also aligns with the industry's increasing focus on sustainability. These innovative cooling solutions not only provide effective temperature management but also contribute to the overall environmental goals of the healthcare industry.

Immersion cooling fluids are indispensable in the healthcare industry, serving as key components in maintaining the optimal performance and safety of high-performing medical devices and machinery. As the healthcare industry evolves and embraces advancements in technology and digital transformation, the demand for immersion cooling fluids continues to grow. With a focus on efficiency, sustainability, and the need to ensure consistent performance, immersion cooling fluids play a vital role in shaping the future of healthcare.

Growing Demand of Immersion Cooling Fluids in Telecommunication Industry

In the telecommunication industry, immersion cooling fluids play a critical role in maintaining optimal equipment performance. With the increasing demand for high-performance servers and data centers that handle and store massive amounts of data, effectively managing the generated heat becomes paramount. Failure to manage heat can lead to equipment failure or damage. Immersion cooling fluids are specifically designed to regulate and maintain the temperature of these machines, preventing overheating and ensuring safe and efficient operations.

As we witness a surge in digital connectivity and the use of data-intensive applications, data traffic has seen a significant increase in recent years. This surge in data traffic necessitates the expansion of data centers, which, in turn, drives the demand for reliable and efficient immersion cooling fluids.

Data centers heavily rely on effective cooling solutions to manage the heat produced by servers and ensure uninterrupted operations. Immersion cooling fluids have proven to be an efficient and reliable solution for this challenge, contributing to their growing demand in the telecommunication industry.

Furthermore, the ongoing advancements in telecommunication technology, such as the rollout of 5G networks, further escalate the demand for immersion cooling fluids. These new technologies require high-performing servers and data centers capable of processing and storing massive amounts of data. Consequently, the need for efficient cooling solutions like immersion cooling fluids continues to rise.

Additionally, the telecommunication industry has been placing increasing emphasis on sustainability and energy efficiency. Immersion cooling fluids, particularly those that are environmentally friendly, align perfectly with this industry focus. In addition to offering efficient cooling capabilities, these fluids also contribute to reducing energy consumption and carbon emissions.

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Key Market Challenges

Limited Availability of Specialized Fluids

Specialized immersion cooling fluids are meticulously formulated to provide not only superior thermal conductivity and heat transfer efficiency, but also exceptional reliability and performance. These fluids are specifically tailored to meet the demanding requirements of high-performance computing systems and data centers, where maintaining optimal operating temperatures is crucial.

By leveraging advanced chemical compositions and cutting-edge manufacturing processes, these specialized fluids excel in dissipating heat effectively, ensuring that critical components of computing systems are kept within safe temperature limits. This not only enhances the overall performance and longevity of the equipment but also minimizes the risks of overheating and potential system failures.

However, the production and availability of these specialized fluids are not without challenges. The complex manufacturing processes involved, coupled with stringent regulatory requirements, pose significant barriers for manufacturers. The development of these fluids necessitates substantial investments in research and development, as well as a deep understanding of the unique thermal characteristics and compatibility requirements of various computing systems.

Furthermore, the production and use of immersion cooling fluids are subject to stringent environmental and safety regulations. Manufacturers must adhere to these regulations to ensure the responsible and sustainable use of these fluids. This compliance can present additional obstacles, potentially limiting the production capacity and availability of these specialized fluids.

The limited availability of specialized fluids in the market has far-reaching implications. With increasing demand across various industries, the supply-demand imbalance may lead to price escalations, rendering these products less accessible to certain users. Moreover, the constrained availability of these fluids may impede the growth potential of the immersion cooling fluids market, hindering the adoption of this innovative cooling solution in new sectors and applications.

Key Market Trends

Rapid Growth in Data Center Immersion Cooling

Data centers play a critical role in storing and processing vast amounts of digital information, serving as the backbone of our increasingly digitalized world. With the surge in digitalization across various sectors, the demand for data centers has substantially increased. This heightened demand necessitates the implementation of efficient cooling solutions to effectively manage the significant heat produced by servers and ensure smooth operation.

In response to this demand, immersion cooling has emerged as an effective and energy-efficient solution. While traditional air-cooling methods in data centers often consume a significant amount of energy, immersion cooling utilizes specialized fluids to directly absorb heat from components, resulting in lower energy consumption. This increased energy efficiency aligns well with the industry's growing focus on sustainability and reducing carbon emissions in data centers, further driving the adoption of immersion cooling fluids.

Furthermore, the emergence of high-density computing, particularly in areas such as artificial intelligence (AI) and machine learning (ML), has presented new challenges for cooling solutions in data centers. High-density servers generate a considerable amount of heat, which traditional cooling solutions may struggle to effectively manage. However, immersion cooling fluids offer superior thermal conductivity and heat transfer efficiency, making them an ideal choice for high-density computing environments.

Segmental Insights

Type Insights

The synthetic fluids segment is the fastest-growing in the global immersion cooling fluids market in 2024, primarily due to their advanced performance characteristics and their ability to reduce maintenance costs in immersion cooling systems. Synthetic fluids offer exceptional low- and high-temperature viscosity performance, ensuring stable operation even under extreme service conditions. With a high viscosity index (VI), they demonstrate remarkable chemical and shear stability, excellent oxidation resistance, and thermal breakdown resistance, all of which enhance the durability and longevity of cooling systems. Furthermore, their lower evaporative loss contributes to the overall efficiency of immersion cooling solutions.

As awareness of the numerous advantages of synthetic fluids grows, their adoption in immersion cooling applications is expected to accelerate, further driving market expansion. Additionally, while the fluorocarbon-based fluids segment holds the second-highest market share, their excellent electrical insulation properties make them highly suitable for electronic cooling, reinforcing their importance in the market. Together, these factors position synthetic fluids as the dominant and fastest-growing segment in the immersion cooling fluids market.

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Regional Insights

Asia Pacific emerged as the dominant region in the Global Immersion Cooling Fluids Market in 2024, holding the largest market share in terms of value. The data centre business in the Asia Pacific area is experiencing rapid growth and placing a greater emphasis on efficiency and uptime. With the increasing adoption of 5G, wearable devices, the internet of things, and artificial intelligence, there is a surging demand for processing capacity. As a result, larger organizations are expanding and scaling out their data centres to ensure the stability and reliability of data services.

To keep up with the evolving landscape, accelerator processors are being integrated into company data centres, enabling the seamless execution of artificial intelligence and other intensive workloads across various industry verticals in China. This trend represents a significant shift towards a more advanced and interconnected digital infrastructure, poised to support and drive the continued innovation and technological advancements in the region.

Recent Developments

• In October 2024, Cooling specialist Submer has raised $55.5 million in new funding to scale its sustainable liquid cooling solutions for data centers. This investment aims to tackle the increasing cooling demands driven by the rise of artificial intelligence (AI) and the growing challenge of preventing server overheating in high-performance computing environments.
• In June 2024, ZTE’s IceTank immersion cooling server is transforming data center cooling with its advanced heat dissipation capabilities. Engineered for high-performance efficiency, each node is designed to handle over 2000W of power, making it a robust solution for power-intensive computing environments.
• In February 2024, Green Revolution Cooling (GRC), a global leader in immersion cooling technology for data centers, has announced that the Special Fluids division of TotalEnergies, a multi-energy industry leader, has joined its ElectroSafe Fluid Partner Program. This collaboration aims to enhance the performance and reduce the environmental footprint of single-phase immersion cooling fluids, driving innovation in sustainable data center cooling solutions.
• In December 2023, Infosys has adopted Shell Immersion Cooling Fluid, a single-phase synthetic immersion coolant, for its Topaz AI platform as part of its strategy to develop an integrated green data center solution. The initiative aligns with efforts to enhance energy efficiency and reduce carbon footprints in data centers, which currently consume an estimated 1.5% of global electricity production and contribute approximately 1% of global CO₂ emissions.
• In August 2022, OneAsia, a leading data center operator in Hong Kong, unveiled an innovative immersion cooling technology aimed at revolutionizing the industry. This groundbreaking technology not only significantly reduces data center energy consumption but also ensures more consistent performance, setting a new standard for efficiency and reliability. With the successful implementation of this technology in Hong Kong, OneAsia has ambitious plans to expand its service to all its other data centers across Greater China, East and Southeast Asia, and Japan, making it the first data center operator in Hong Kong to offer this cutting-edge cooling solution.
• In March 2022, S.K. Lubricants, a renowned US-based producer of liquid immersion cooling solutions for data centers, made a strategic move by investing USD 25 million in GRC (Green Revolution Cooling). This significant investment aims to bolster S.K. Lubricants' liquid-based heat management activities and further reinforce its commitment to sustainable practices outlined in its green ESG (Environmental, Social, and Governance) strategy. By expanding its capabilities in this crucial area, S.K. Lubricants is well-positioned to meet the growing demand for efficient and eco-friendly cooling solutions in the data center industry.
• In January 2022, Intel, a global technology leader, joined forces with Green Revolution Cooling (GRC) to spearhead the design and implementation of enhanced technologies for future data centers. This strategic partnership brings together Intel's expertise in cutting-edge computing solutions and GRC's innovative liquid immersion cooling technology. By leveraging their combined strengths, Intel and GRC aim to develop state-of-the-art data center solutions that deliver unparalleled performance, energy efficiency, and scalability. This collaboration reinforces their commitment to meeting the evolving needs of data center clients and driving the next wave of technological advancements in the industry.

Key Market Players

• FUCHS SE
• The Lubrizol Corporation
• 3M Company
• Castrol Limited
• M&I Materials Ltd.
• Shell plc
• TotalEnergies SE
• Cargill, Incorporated
• Dober Chemical Corp
• LANXESS AG

Report Scope:

In this report, the Global Immersion Cooling Fluids Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Immersion Cooling Fluids Market, By Type:

o   Mineral Oil

o   Synthetic Fluids

o   Fluorocarbon-based Fluids

o   Others

• Immersion Cooling Fluids Market, By End User:

o   BFSI

o   Energy

o   Manufacturing

o   Healthcare

o   IT& Telecommunication

o   Others

• Immersion Cooling Fluids Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   Asia-Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Immersion Cooling Fluids Market.

Available Customizations:

Global Immersion Cooling Fluids Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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