Immersion Cooling Market 2020 and Forecast 2021-2027

                                          
Report Overview: Immersion Cooling Market


The global immersion cooling market size was valued at USD 154.0 million in 2020 and looks set to grow at a compound annual growth rate (CAGR) of 11.7% from 2021 to 2027. The market is driven by the rise in global IP traffic and the demand for supercomputers and hyperscale data centers worldwide.

There are more than 7,500 data centers across the globe, with over 2600 in the top 20 cities alone. The data center construction is anticipated to grow at 21% per year in the next three years according to the semi-annual ranking of the Top 500. Rising investments in data center infrastructure along with the increase in power consumption are expected to surge the demand for immersion cooling systems in the forthcoming years.

The Chinese data center industry stood at USD 17.8 billion in 2019, up 30% year-on-year, and is expected to reach USD 29 billion in 2020 according to the statistics provided by Yingkou Peoples Municipal Government. China continued to dominate the list of the world’s fastest supercomputers in terms of computer units and opened 437 new data centers in the last three years.

When the average power density of data centers per rack is greater than 7 kW, the space utilization gets reduced by 50% as almost half of this space is required by cooling and power equipment alone, and only 50% is left for the actual IT equipment. Hence, the demand for immersion cooling systems is expected to grow exponentially as these systems do not require additional space and have low power usage in comparison to conventional cooling methods.

With the explosion of internet of thing (IoT) and artificial intelligence (AI) in the enterprise, companies are now working with unprecedented amounts of data which require higher density IT gear to work at an enterprise level. A large number of existing data centers cannot accommodate these new types of workloads. This in result has strengthened the demand for immersion cooling data centers on account of their space optimization and low power usage effectiveness.

More than 60% of the data centers across the globe use air cooling on account of its low costs and no environmental impact. In addition, converting an existing data center into immersion cooling data center requires a rack by rack conversion which in turn increases the operation and maintenance costs. Furthermore, fluorocarbons used as a coolant in two-phase system recondense on everything leaving a toxic dew which if inhaled can damage the lungs.

Product Insights: Immersion Cooling Market

In terms of product segmentation, the immersion cooling market is categorized into single-phase and two-phase systems. Single-phase is expected to maintain its dominance over the forecast period, on account of low system, tank and coolant cost; high coolant heat capacity; high dielectric strength; high biodegradability, and low environmental impact (GWP) in comparison to two-phase immersion cooling systems.

Two-phase systems are anticipated to expand at a CAGR of 12.3% over the coming years owing to higher energy efficiency and energy savings, improved reliability, lower maintenance requirement, and deployment flexibility offered by the product. Furthermore, Power Usage Effectiveness (PUE) for two-phase systems is 1.01 which is 5% lower than the single-phase systems making them a preferred cooling technology for hyperscale data centers.

Coolants used in two-phase produce systems require very high pressures because they transition to a gas that requires complex systems with significant safety systems resulting in increasing the overall operation and maintenance costs. In addition, fluorinated fluids used in two-phase systems are very expensive and so is their replacement due to loss in comparison to single-phase systems.

Application Insights: Immersion Cooling Market

In terms of application segmentation, the market is categorized into high-performance computing, edge computing, cryptocurrency mining, artificial intelligence, and others. The edge computing application segment is expected to contribute more than 24% to the overall market on account of the rise of cloud computing and the distinctive technology demand of mobile applications on the data center industry.

The escalating demand for hyperscale data centers as they provide advantages for organizations that need a vast amount of computing power from their cloud providers is anticipated to boost the market growth over the coming years. In addition, the rising demand for cryptocurrency as it offers enhanced transactional security, quick international transfers, decentralized system, and protection from fraud is projected to further stimulate the product demand over the forecast period 2021-2027.

The rediscovery of deep learning, strong research cluster for AI in U.S. lead by Microsoft, Google, Amazon, and Facebook, Israel’s thriving AI ecosystem, and burgeoning demand for AI applications has increased the load on AI servers. This in result has forced application companies to look for better cooling techniques that not only solve the thermal challenges but increase the power densities. All these factors are expected to drive market growth in the coming years.

With the rapid development of internet of things, virtual reality (VR), 5G, artificial intelligence, and the commercial application of the new cutting edge technologies, the demand for information interaction and data processing is increasing which has speed up the construction of new data centers resulting in creating opportunities for immersion cooling system manufacturers in recent times.

Regional Insights: Immersion Cooling Market

The Asia Pacific region is home to the most cloud data centers (95), followed by North America (79). Together, these regions account for 72% of the world’s cloud data centers and are expected to maintain their dominance over the forecast period. The increase in worldwide spending on public cloud services and infrastructure is expected to surge the demand for immersion cooling systems over the forecast period.

The digital data in India is expected to reach up to 2.3 million petabytes by 2021 on account of the “Digital India” and “Make in India” government initiatives. In addition, Indian mega conglomerates announced more than $12 billion investments in data centers in the next seven years, which is expected to stimulate the demand.

There are more than 107 colocation data centers in the Netherlands as it is one of Europe’s largest financial technology hubs, with more than 400 companies active in the market. However, the country has stopped setting up any more data centers until the year-end as the speed with which they have opened these data centers is putting a strain on its power networks and property markets.
Rising investments in single assets and portfolios along with the increasing capitalization rates for stabilized data centers in the U.S. has surged the demand for new data centers. In addition, rising investments in AI by leading corporations along with the development of supercomputers has created opportunities for immersion cooling system manufacturers in recent times.

Key Companies & Market Share Insights: Immersion Cooling Market

The market exhibits the presence of a large number of global and regional players. Companies are investing a lot in integrating advanced technologies, saving energy, and improving computer efficiency because of the increasing adoption of green computing which means eco-friendly and environmentally responsible use of computers and their sources. Companies such as Green

Revolution Cooling and Asperitas have launched a joint website to create awareness about immersion cooling systems in the market space. In addition, a joint venture between Prasa and GRC to provide high-quality immersion cooling products including HashTank, ICEraQ, HashRaQ and ICEtank in India is expected to increase the market growth over the forecast period. Some of the prominent players in the immersion cooling market include:

Key companies Profiled: Immersion Cooling Market Report

 	
GRC
 	
 Submer
 	
Fujitsu
 	
Allied Control Ltd
 	
 Midas Green Technologies

This report forecasts revenue growth at global, regional, and country level and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Trusted Business Insights has segmented the global immersion cooling market report based on product, application, cooling liquid, and region:

Product Outlook (Revenue, USD Million, 2016 - 2027)

 	
Single-phase
 	
Two-phase

Application Outlook (Revenue, USD Million, 2016 - 2027)

 	
High-performance Computing
 	
Edge Computing
 	
Cryptocurrency Mining
 	
Artificial Intelligence
 	
Others

Cooling Liquid Outlook (Revenue, USD Million, 2016 - 2027)

 	
Mineral Oil
 	
Fluorocarbon-based Fluids
 	
Deionized Water
 	
Others