Immersion Cooling Fluids Market Size and Share
Market Overview
| Study Period | 2019 - 2030 |
|---|---|
| Market Size (2025) | USD 2.51 Billion |
| Market Size (2030) | USD 4.04 Billion |
| Growth Rate (2025 - 2030) | 9.97% CAGR |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
|
Immersion Cooling Fluids Market Analysis by Mordor Intelligence
The Immersion Cooling Fluids Market size is estimated at USD 2.51 billion in 2025, and is expected to reach USD 4.04 billion by 2030, at a CAGR of 9.97% during the forecast period (2025-2030). The transition from air-cooled to liquid-immersion architectures underpins this growth as AI training clusters, hyperscale data centers, and high-density servers outstrip the thermal limits of legacy systems. Synthetic hydrocarbon oils remain the preferred fluid type, helped by proven material compatibility and emerging regulatory pressures on PFAS compounds. Single-phase designs dominate adoption thanks to lower complexity and easier maintenance compared with two-phase alternatives. Geographically, North America retains leadership, yet Asia-Pacific is the fastest-growing region as India and China add multi-billion-dollar hyperscale capacity.
Key Report Takeaways
- By fluid type, synthetic hydrocarbons captured 36.67% of the immersion cooling fluids market share in 2024, while fluorinated fluids are growing at a 10.34% CAGR through 2030.
- By cooling type, single-phase systems held 65.38% of the immersion cooling fluids market size in 2024 and are advancing at a 10.45% CAGR through 2030.
- By application, hyperscale data centers led with 46.67% revenue share in 2024; HPC and AI clusters are projected to expand at an 11.15% CAGR to 2030.
- By end-user industry, IT and telecom accounted for 55.42% share of the immersion cooling fluids market size in 2024, while automotive and transportation is growing at a 10.78% CAGR through 2030.
- By geography, North America commanded 42.12% of the immersion cooling fluids market share in 2024; Asia-Pacific is set to register a 10.58% CAGR between 2025-2030.
Global Immersion Cooling Fluids Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Explosive growth of AI/HPC workloads and high-density servers | +3.20% | Global, with concentration in North America and Asia-Pacific | Medium term (2-4 years) |
| Rising energy-efficiency and PUE optimization pressures | +2.80% | Global, particularly EU and North America due to regulations | Long term (≥ 4 years) |
| Sustainability and carbon-neutral targets accelerate adoption | +2.10% | Global, led by Europe and North America | Long term (≥ 4 years) |
| Water-usage regulations incentivising liquid-free cooling | +1.40% | APAC core, spill-over to MEA and water-scarce regions | Medium term (2-4 years) |
| Government incentives for circular economy fluids and recycling | +0.80% | Europe and North America, emerging in Asia-Pacific | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Explosive AI/HPC Workload Growth
GPU power envelopes now exceed 1,000 W, pushing rack densities toward 140 kW and overwhelming air-cooling limits. Immersion cooling fluids remove thermal bottlenecks by contacting every heat-generating surface, enabling sustained full-power AI training. Microsoft reported a 5-15% facility-level power reduction after adopting two-phase immersion tanks. Edge sites also benefit because space constraints amplify the value of tighter power density. Hyperscale procurement teams have begun integrating immersion specifications into 2026 server roadmaps, signaling structural demand for the immersion cooling fluids market.
Rising Energy-Efficiency & PUE Optimization Pressures
Cooling often represents 30-40% of total facility load, making efficiency gains critical to achieving PUE targets. Shell’s Intel-certified fluid portfolio has demonstrated data-center-wide energy savings of up to 48% and partial PUE values near 1.03. Lower fan power and the opportunity to capture waste heat translate to meaningful operating-expense declines. China’s 2025 mandate for average PUE below 1.5 accelerates regional adoption, and similar standards are emerging across Europe[1]Government of China, “China sets green targets for data centers,” gov.cn .
Sustainability & Carbon-Neutral Targets
Enterprises are using immersion cooling as a decarbonization lever because closed-loop systems eliminate evaporative water loss and enable up to 99% heat recovery for building heating. Biosourced fluids such as TotalEnergies’ BioLife further reduce lifecycle emissions and comply with ISCC PLUS certification, positioning suppliers for ESG-driven procurement.
Government Incentives for Circular-Economy Fluids
The EU’s updated Waste Framework Directive rewards regenerable specialty oils and recycling programs, lowering Total Cost of Ownership for operators that deploy reclaimable immersion fluids. Fluid suppliers now bundle take-back services to align with these incentives, driving incremental volume for the immersion cooling fluids market.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Higher upfront conversion costs vs. air/liquid cooling | -2.30% | Global, particularly cost-sensitive emerging markets | Short term (≤ 2 years) |
| Material compatibility, safety and PFAS regulatory scrutiny | -1.80% | Global, with heightened impact in EU and North America | Medium term (2-4 years) |
| Limited standards/interoperability across OEM ecosystems | -1.50% | Global, with heightened impact in North America and Europe due to diverse hardware ecosystems | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Higher Upfront Conversion Costs vs. Air/Liquid Cooling
Retrofitting legacy halls requires floor reinforcement and purpose-built tanks that can weigh more than 4 t when filled, driving capex beyond budget for smaller operators. Fluid prices also exceed those of standard glycol, lengthening payback to 3-5 years. Hyperscalers absorb these costs through scale, but cost-sensitive colocation and enterprise facilities often postpone adoption until next-build cycles.
Material Compatibility, Safety & PFAS Regulatory Scrutiny
The proposed EU PFAS ban threatens established fluorinated fluid chemistries that offer low boiling points and high dielectric strength. Hardware vendors must certify every gasket, cable, and solder joint for multi-year immersion, stretching qualification timelines. Suppliers now accelerate PFAS-free portfolios—Chemours’ Opteon 2P50 and ZutaCore’s 2026 road-map exemplify this shift.
Segment Analysis
By Fluid Type: Regulatory Transition Drives Synthetic Hydrocarbon Leadership
Synthetic hydrocarbons commanded 36.67% of the immersion cooling fluids market share in 2024 and remain the anchor segment despite looming fluorinated-fluid restrictions. Fluorinated fluids still post a 10.34% CAGR thanks to two-phase heat-transfer superiority; however, 3M’s 2025 PFAS exit and upcoming EU rulings shift mindshare toward PFAS-free chemistries.
Single-phase mineral oils maintain relevance in crypto-mining and industrial controls where cost outweighs ultimate performance, yet limited thermal conductivity constrains adoption in AI workloads. Bio-esters gain visibility as corporate procurement links fluid choice to Scope 3 emissions. Chemours and Shell each plan commercial rollouts of ultra-low-GWP formulations by 2026, likely reshaping competitive share allocations within the immersion cooling fluids market.
Note: Segment shares of all individual segments available upon report purchase
By Cooling Type: Operational Maturity Sustains Single-Phase Adoption
Single-phase designs represented 65.38% of the immersion cooling fluids market size in 2024 and registered the fastest 10.45% CAGR as operators favor straightforward plumbing, lower pressure ratings, and familiar safety profiles. Two-phase tanks offer higher heat-flux capacity via latent-heat boiling yet require vapor containment, specialized heat exchangers, and refrigerant handling certification.
Intel’s Submer-assisted convection package enables 1,000 W chips inside single-phase baths, closing performance gaps and reinforcing market bias. Meanwhile, Microsoft’s two-phase pilot underscores that extreme-density AI nodes will preserve a niche for refrigerant-based fluids where facility budgets can absorb added complexity.
By Application: AI Clusters Propel Hyperscale Spending
Hyperscale operators held a 46.67% share in 2024, leveraging standardized server skids that simplify factory-level immersion integration. HPC and AI training clusters expand at 11.15% CAGR as generative-model sizes double each year, pushing GPU counts per rack beyond 48.
Colocation adoption lags because diversity of tenant equipment complicates universal bath design, but modular tanks now allow cage-level offerings. Fast-charging EV stations and battery packs appear as non-data-center growth vectors: direct-fluid contact prevents thermal runaway and enables sub-10-minute charging cycles. These adjacent uses broaden the total addressable immersion cooling fluids market over the forecast horizon.
By End-User Industry: Automotive Momentum Complements IT Stronghold
IT and telecom generated 55.42% of 2024 revenue as cloud majors executed multi-MW deployments, consolidating demand for qualified hydrocarbon oils. Automotive and transportation advances at 10.78% CAGR, driven by automakers experimenting with immersion-cooled battery modules that shave weight while improving cycle life.
Manufacturing and industrial users adopt immersion cooling at edge gateways where dust, humidity, and temperature extremes compromise air-cooled electronics. Energy-storage integrators likewise specify dielectric fluids to dissipate inverter heat inside grid-scale battery containers, enhancing reliability in remote renewables installations.
Note: Segment shares of all individual segments available upon report purchase
Geography Analysis
North America generated 42.12% of 2024 revenue for the immersion cooling fluids market, reflecting hyperscale concentration, early PFAS-free R&D, and favorable intellectual-property regimes. Fluid vendors such as Shell and ExxonMobil operate pilot lines in Texas, enabling rapid scale-up once AI lease requirements materialize. Federal and state-level clean-energy incentives also underwrite capex for efficient data-center cooling retrofits.
Asia-Pacific posts the highest 10.58% CAGR, propelled by India’s USD 100 billion data-center buildout and China’s PUE-reduction edict. Japanese telecoms install liquid tanks in downtown edge nodes to offset real-estate constraints, achieving 30% energy savings versus air cooling. Singapore’s strict water caps further accelerate immersion cooling take-up across hyperscale campuses.
Europe remains steady as sustainability regulation channels investment into PFAS-free chemistries and heat-reuse projects; Germany pilots district-heating loops fed by immersion waste heat, while France advances biosourced-fluid innovation through TotalEnergies. Tax credits tied to circular-economy compliance continue to differentiate European demand patterns relative to other mature markets.
Competitive Landscape
The immersion cooling fluids market is highly consolidated: the top five suppliers collectively control around 66% of global revenue, anchored by Shell, ExxonMobil, Engineered Fluids, M&I Materials Ltd, and 3M. These incumbents exploit scale in hydrocarbon refining, fluorochemical synthesis, and global logistics. New entrants such as Engineered Fluids differentiate through PFAS-free single-phase formulations targeted at crypto-mining operators, but lack the portfolio breadth to threaten incumbents on hyperscale bids.
Strategic alliances intensify. Shell secured Intel certification to validate material compatibility across server boards, unlocking preferred-vendor status in 2026 cloud tenders. Chemours partnered with Navin Fluorine to accelerate Opteon 2P50 manufacturing, aiming for commercial volumes in 2026[2]Chemours, “Chemours and Navin Fluorine announce agreement,” chemours.com . ExxonMobil collaborates with Intel on 2,000 W processor road-maps to guarantee forward compatibility of dielectric properties.
White-space innovation focuses on ultra-low-GWP two-phase fluids, biodegradable esters, and battery-grade coolants. Suppliers that bundle fluid, tank, and monitoring software increasingly capture enterprise deals, signaling a shift from commodity fluids toward integrated thermal-management offerings.
Immersion Cooling Fluids Industry Leaders
-
3M
-
Engineered Fluids
-
ExxonMobil Corporation
-
M&I Materials Ltd
-
Shell plc
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- May 2025: Shell has achieved Intel certification for its immersion cooling fluids, marking a first in the industry. This certification highlights the fluids' ability to reduce energy consumption by up to 48% and lower total ownership costs by 33% compared to traditional cooling methods.
- May 2025: Chemours has announced a partnership with Navin Fluorine to manufacture the Opteon two-phase immersion cooling fluid. This collaboration marks a significant expansion of their Liquid Cooling Venture, with commercial production set to commence in 2026.
Global Immersion Cooling Fluids Market Report Scope
| Synthetic Hydrocarbon Oils |
| Mineral Oils |
| Fluorinated Fluids |
| Esters / Bio-based and Biodegradable Fluids |
| Other Fluid Types |
| Single-phase Immersion Cooling |
| Two-phase Immersion Cooling |
| Data Centers – Hyperscale |
| Data Centers – Colocation |
| Data Centers – Enterprise |
| Crypto-mining/Blockchain |
| HPC and AI Training Clusters |
| Power Electronics and Industrial Computing |
| EV Fast-charging and Battery Thermal Management |
| Other Applications |
| IT and Telecom |
| BFSI |
| Manufacturing and Industrial |
| Energy and Utilities |
| Automotive and Transportation |
| Other End-user Industries |
| Asia-Pacific | China |
| India | |
| Japan | |
| Singapore | |
| South Korea | |
| Rest of Asia-Pacific | |
| North America | United States |
| Canada | |
| Mexico | |
| Europe | Germany |
| United Kingdom | |
| France | |
| Netherlands | |
| Rest of Europe | |
| South America | Brazil |
| Argentina | |
| Rest of South America | |
| Middle East and Africa | UAE |
| Saudi Arabia | |
| South Africa | |
| Rest of Middle East and Africa |
| By Fluid Type | Synthetic Hydrocarbon Oils | |
| Mineral Oils | ||
| Fluorinated Fluids | ||
| Esters / Bio-based and Biodegradable Fluids | ||
| Other Fluid Types | ||
| By Cooling Type | Single-phase Immersion Cooling | |
| Two-phase Immersion Cooling | ||
| By Application | Data Centers – Hyperscale | |
| Data Centers – Colocation | ||
| Data Centers – Enterprise | ||
| Crypto-mining/Blockchain | ||
| HPC and AI Training Clusters | ||
| Power Electronics and Industrial Computing | ||
| EV Fast-charging and Battery Thermal Management | ||
| Other Applications | ||
| By End-user Industry | IT and Telecom | |
| BFSI | ||
| Manufacturing and Industrial | ||
| Energy and Utilities | ||
| Automotive and Transportation | ||
| Other End-user Industries | ||
| By Geography | Asia-Pacific | China |
| India | ||
| Japan | ||
| Singapore | ||
| South Korea | ||
| Rest of Asia-Pacific | ||
| North America | United States | |
| Canada | ||
| Mexico | ||
| Europe | Germany | |
| United Kingdom | ||
| France | ||
| Netherlands | ||
| Rest of Europe | ||
| South America | Brazil | |
| Argentina | ||
| Rest of South America | ||
| Middle East and Africa | UAE | |
| Saudi Arabia | ||
| South Africa | ||
| Rest of Middle East and Africa | ||
Key Questions Answered in the Report
What is the projected value of global immersion cooling fluids demand by 2030?
The market is forecast to reach USD 4.04 billion by 2030, expanding at a 9.97% CAGR.
Which fluid category leads current deployments?
Synthetic hydrocarbons hold 36.67% share, benefiting from PFAS-free chemistry.
Which end-user segment is growing fastest?
Automotive and transportation posts a 10.78% CAGR due to electric-vehicle battery cooling.
How does immersion cooling improve data-center PUE?
Certified fluids have achieved partial PUE figures near 1.03 by eliminating fan loads and enabling heat reuse.
Why are two-phase fluids facing regulatory risk?
Upcoming EU PFAS restrictions may limit fluorinated chemistries, prompting suppliers to develop PFAS-free alternatives.
Which region shows the highest growth rate?
Asia-Pacific is expanding at 10.58% CAGR, supported by large-scale investments in India and China.
Page last updated on:
