|Fastest Growing Market:||North America|
|Largest Market:||North America|
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The global immersion cooling market in data centers was valued at USD 399.9 million in 2021 and is expected to reach USD 1596.1 million by 2027, registering an estimated CAGR of 26.06% during the period of 2022-2027. The increasing carbon footprint of the data centers is one of the major reasons leading to the increased adoption of advanced liquid cooling technology, such as immersion cooling. In a recent study conducted by company 3M, a prominent synthetic coolant provider in the immersion cooling market, it was identified that 38% of the electricity needed in data centers equipped with traditional air-based cooling technologies is utilized just to cool the electronic components.
- The increase in the number of hyper-scale data centers is driving the market as hyper-scale data centers are broadly used in different sectors to increase computing ability, memory, networking infrastructure, or storage resources. The different features of the hyper-scale data centers include the physical infrastructure and distribution systems that support the data centers for maximizing cooling efficiency, as well as the ability to scale computing tasks in a quicker and faster way.
- Dealing with high-density power consumption is driving the market, as many industry estimates put cooling costs at around 40% of the data center's energy consumption. The immersion cooling can reduce the data center's energy usage by over 60%, with some systems stating it could be as much as a 95% reduction. For many data centers, this provides millions of dollars in savings annually.
- The increasing carbon footprint of the data centers is another major issue leading to the increased adoption of advanced liquid cooling technology, such as immersion cooling. In a recent study conducted by company 3M, a prominent synthetic coolant provider in the immersion cooling market, it was identified that 38% of the electricity needed in data centers equipped with traditional air-based cooling technologies is utilized to cool the electronic components.
- High investment with greater capital expenditure is restraining the market growth, as a requirement of specialized infrastructure is needed and hence needs to be justified with a longer-term ROI in mind.
- The recent outbreak of the COVID-19 pandemic posed additional stress on multiple economies across various sectors. This shifted the focus toward a digital economy. Considering the role of immersion cooling, as the data centers manage more next-generation applications like the Internet of Things and Artificial Intelligence, they require higher density processors, which produce more heat, thus requiring more cooling power.
Scope of the Report
Immersion cooling involves the installation of the IT hardware, such as memory, drives, and CPUs, directly into non-conductive dielectric liquids, which cool the system. The heat generated from these systems is directly transferred to coolants, reducing the need for active cooling components, such as heat sinks, fans, and interface materials commonly used for air cooling.
The Immersion Cooling Market in Data Centers is Segmented by Type (Single-phase Immersion Cooling System, Two-phase Immersion Cooling System), Cooling Fluid (Mineral Oil, Deionized Water, Fluorocarbon-based Fluids, Synthetic Fluids), Application (High-performance Computing, Edge Computing, Artificial Intelligence, Cryptocurrency Mining) and Geography.
|Single-phase Immersion Cooling System|
|Two-phase Immersion Cooling System|
|By Cooling Fluid|
|Rest of the World|
Key Market Trends
High Performance Computing will drive the market
- There has been an increasing rise in investment in high-density data centers and high-performance computing applications. Moreover, due to technological progress, faster microprocessors will become available each year, and cheap HPC systems with a few processors will offer a performance that could formerly be achieved only by expensive vector computers or MPP systems. Thus, high-performance computers are no longer limited to specialized architectures but contribute to a high end of a continuum of fast desktop systems and servers.
- The advent of the internet of things (IoT) has enabled all the devices’ interconnectivity, turning every device into a data point that can be tracked and translated into insight and learning. This allows many organizations to invest in automation and artificial intelligence, conjuring new ways to make users’ professional and personal lives more efficient. Rapid development in the manufacturing sector and industry 4.0 trends are also responsible for the boom in HPC applications.
- With many computing processes moving to cloud platforms and software systems becoming more standardized, companies are looking at ways to incorporate HPC into their data operations. The biggest challenge associated with data center HPC is power requirements.
- The increasing complexity of high-performance computing (HPC) applications requires the mathematical number-crunching genius of GPUs working side-by-side with a server’s main CPU to accelerate crucial algorithms. These compute-intensive applications have brought GPU-accelerated servers, and they cause heat dissipation problems in many data centers globally.
- As power and heat loads are increasingly pushed within the data center, more sophisticated cooling, such as immersion, is required by data centers to meet those demands. LiquidStack launched in March 2021 as a stand-alone company with USD 10 million in Series A funding from hyper-scale hardware maker Wiwynn is ambitious to address growing cooling challenges in cloud data centers and high-performance computing (HPC).
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North America to Hold the Dominant Share
- North America dominates the liquid immersion cooling market primarily due to the presence of a large number of data centers in the region, along with the rising popularity of such cooling methods for data centers, especially in the United States.
- The US-based company, 3M Company, is a prominent provider of fluids related to immersion cooling technology. 3M Fluorinert liquids have the highest dielectric strength and electrical resistivity of all organic fluids, much better than air. And unlike hydrocarbon liquids such as mineral oil, 3M Fluorinert liquids are entirely fluorinated.
- Moreover, the mobile data traffic in the United States increased considerably over the years, from 1.26 exabytes per month of data traffic in 2017 to 7.75 exabytes per month of data traffic by 2022, as reported by Cisco Systems. According to Ericsson, this data traffic is expected to triple further by 2030. Thus, the distributed cloud that can secure the low latency and high bandwidth required to connect such scale with ease is coming into action.
- Companies are rigorously investing in data centers to meet the growing demand from respective operations. For instance, in April 2021, Microsoft announced the installation of a new liquid immersion cooling infrastructure at a data center in Washington, which saves water and lowers energy costs. This shift to two-phase liquid immersion cooling provides increased flexibility for the proper management of cloud resources. For instance, software that manages cloud resources can allocate sudden spikes in data center compute demand to the liquid-cooled tanks' servers, as these servers can run at high power, a process called overclocking, without the risk of overheating.
- Furthermore, in March 2021, Submer, a prominent provider of immersion cooling solutions, announced its latest agreement with SYNNEX Corporation, a provider of distribution, systems design, and integration services for the technology industry. In the agreement, Submer’s portfolio of liquid cooling and edge-ready solutions will be manufactured in the United States and distributed by SYNNEX. The deal will allow Submer to continue expanding its footprint in the United States, improving its reach.
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The degree of competition in the market studied is high and is expected to increase over the forecast period. The current market includes a number of companies vying for attention where the total addressable market is high. However, certain companies are strongly backed by government funding or investors. For instance, Iceotope is backed by Schneider Electric, which also has data center cooling solutions. GRC also recently acquired its series funding to become a USD 15 million in total funds.
- August 2021 - SUBMER, a leading creator of sophisticated immersion cooling solutions for Cloud and Edge computing data centers, announced a partnership with Hypertec. Immersion liquid cooling allows data centers to keep up with the growing demand for better power density while also providing protection from the outside elements that could harm the hardware.
- August 2021 - Green Revolution Cooling (GRC), in collaboration with Intel, announced a partnership aimed at testing the reliability and safety of this tech and optimizing the system performance of immersion-cooled racks powered by Intel Xeon Scalable processors.
- March 2022 - SK Lubricants, an American liquid immersion cooling solution provider for data centers, has made an equity investment of USD 25 million in GRC; the investment will increase SK Lubricant’s liquid-based thermal management operations and execution of green ESG strategy. As part of this collaboration and investment and the companies will come together to develop high-grade single-phase immersion coolants and liquid immersion cooling systems for data centers, working together to increase and commercialization and rapid standardization of these systems.
- August 2021 - Intel and Submer teamed up to develop the Precision Immersion Cooling Fluid Cloud for next-generation data centers. This Precision Immersion Cooling Fluid Cloud idea incorporates a precision immersion cooling architecture within each node to achieve the next level of efficiency and density by rethinking the usage of IT thermals.
Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
2.1 Research Framework
2.2 Secondry Research
2.3 Primary Research Approach and Key Respondents
2.4 Data Triangulation and Insight Generation
3. EXECUTIVE SUMMARY
3.1 MARKET INSIGHTS
3.1.1 Market Overview
3.1.2 Industry Attractiveness - Porter's Five Forces Analysis
184.108.40.206 Bargaining Power of Suppliers
220.127.116.11 Bargaining Power of Buyers
18.104.22.168 Threat of New Entrants
22.214.171.124 Degree of Competitions
126.96.36.199 Threats of Substitutes
3.1.3 Assessment Of COVID-19 Impact On The Industry
4. MARKET DYNAMICS
4.1.1 Increase in the Number of Hyper-Scale Data Centers
4.1.2 Dealing with High-Density Power Consumption
4.2.1 High Investment with Greater Capital Expenditure
5. TECHNOLOGY SNAPSHOT
5.1 Evolution of Data Center Cooling
5.2 Energy Consumption and Computing Density Metrics, and Key Considerations
5.3 Teardown of Fluid, Processor, GPUs, Racks, and Infrastructure Providers
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 Single-phase Immersion Cooling System
6.1.2 Two-phase Immersion Cooling System
6.2 By Cooling Fluid
6.2.1 Mineral Oil
6.2.2 Deionized Water
6.2.3 Fluorocarbon-based Fluids
6.2.4 Synthetic Fluids
6.3 By Application
6.3.1 High-performance Computing
6.3.2 Edge Computing
6.3.3 Artificial Intelligence
6.3.4 Cryptocurrency Mining
6.3.5 Other Applications
6.4 By Geography
6.4.1 North America
6.4.3 Asia Pacific
6.4.4 Rest of the World
7. COMPETITIVE LANDSCAPE
*List Not Exhaustive
7.1 Company Profiles
7.1.1 Fujitsu Limited
7.1.2 Green Revolution Cooling Inc.
7.1.3 Submer Technologies
7.1.4 Liquid Stack Inc.
7.1.5 Asperitas Company
7.1.6 LiquidCool Solutions
7.1.7 Midas Green Technologies
7.1.8 Iceotope Technologies Ltd
7.1.9 Wiwynn Corporation
7.1.10 DCX Ltd
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
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Frequently Asked Questions
What is the study period of this market?
The Immersion Cooling Market in Data Centers market is studied from 2020 - 2027.
What is the growth rate of Immersion Cooling Market in Data Centers?
The Immersion Cooling Market in Data Centers is growing at a CAGR of 26.06% over the next 5 years.
Which region has highest growth rate in Immersion Cooling Market in Data Centers?
North America is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Immersion Cooling Market in Data Centers?
North America holds highest share in 2021.
Who are the key players in Immersion Cooling Market in Data Centers?
Fujitsu Limited, Green Revolution Cooling Inc., Submer Technologies, Liquid Stack Inc., Asperitas Company are the major companies operating in Immersion Cooling Market in Data Centers.