Immersion Cooling Fluids Market Report 2025

The immersion cooling fluids market size has grown strongly in recent years. It will grow from $2.05 billion in 2024 to $2.23 billion in 2025 at a compound annual growth rate (CAGR) of 8.8%. The growth in the historic period can be attributed to increased data center power density, raised energy costs, focus on green data centers, rapid growth in data storage, increased cloud computing.

The immersion cooling fluids market size is expected to see rapid growth in the next few years. It will grow to $3.34 billion in 2029 at a compound annual growth rate (CAGR) of 10.5%. The growth in the forecast period can be attributed to increasing adoption of 5G technology, increased focus on energy recovery, expansion of Internet of Things (IoT), rise in quantum computing applications, increased collaboration between tech companies. Major trends in the forecast period include hybrid cooling solutions, AI-driven management systems, customized immersion cooling solutions, maintenance-free solutions, focus on aesthetics and design.

The rising demand for data centers is anticipated to drive the growth of the immersion cooling fluids market in the coming years. A data center comprises a large network of interconnected computer servers that businesses typically utilize for remote processing, archiving, or transferring substantial volumes of data. The increasing demand for data centers leads to a greater use of immersion cooling fluids, which are employed to directly submerge IT equipment in a non-conductive liquid for cooling purposes. For example, in 2022, CBRE Group Inc., a US-based real estate firm, reported that investor interest in new data center developments was at 40%, this figure rose to 66% in 2023 and is expected to reach 80% in 2024. Consequently, the growing demand for data centers is driving the expansion of the immersion cooling fluids market.

The rising demand for cryptocurrency mining is also expected to contribute to the growth of the immersion cooling fluids market in the future. Cryptocurrency mining involves creating new units of cryptocurrency and securing blockchain transactions by solving complex mathematical problems. Immersion cooling fluids are beneficial for cryptocurrency mining as they offer an efficient cooling solution for mining hardware, such as ASIC (Application-Specific Integrated Circuit) or GPU (Graphics Processing Unit) mining rigs. For instance, in February 2024, the U.S. Energy Information Administration, a federal statistical agency, estimated that global electricity consumption related to Bitcoin mining in 2023 ranged from 67 terawatt-hours (TWh) to 240 terawatt-hours (TWh), with a central estimate of 120 terawatt-hours (TWh). Additionally, global Bitcoin mining activity increased by 37.8% in January 2022. Therefore, the increasing demand for cryptocurrency mining is propelling the growth of the immersion cooling fluids market.

Major companies are launching data center immersion cooling fluids to enhance profitability. ExxonMobil Corporation, a US-based natural gas company, introduced immersion fluid products for data centers in October 2023. These products, available in synthetic and non-synthetic variants, offer efficient heat dissipation, enhance energy efficiency, and reduce overall ownership costs. Compatible with various materials, these fluids contribute to prolonged equipment lifespan, optimal performance, and lower Power Usage Effectiveness compared to traditional air-cooling methods.

Major companies in the immersion cooling fluids market are introducing new products incorporating technologies such as flow technology to enhance market profitability. Flow technology in immersion cooling fluids involves managing and controlling circulation systems, pumps, and components to ensure a controlled flow of dielectric fluid around submerged components. In November 2023, US-based liquid cooling provider LiquidStack launched a single-phase immersion cooling solution for data centers. This liquid cooling solution surpasses air cooling with 28 times greater heat rejection capacity, making it ideal for powering high-demand generative AI processors. The efficiency of liquid cooling leads to a 32% reduction in capital expenditures compared to air cooling, stemming from minimized space, materials, water, and power usage. The LiquidStack system, part of MacroModular, accommodates 1.5MW liquid cooling in a modular container, achieving over 110kW performance using W32 water and enhancing heat transfer dynamics through flow technology.

In July 2022, Cargill, a US-based global food corporation, acquired Croda's Performance Technologies and Industrial Chemicals businesses for $754 million. This acquisition enhances Cargill's ability to offer naturally-based solutions, leveraging fresh skills and talent. Croda is a UK-based chemical company known for manufacturing immersion cooling fluids.

Major companies operating in the immersion cooling fluids market include ExxonMobil Corporation, Shell plc, Cargill Incorporated, Honeywell International Inc., 3M Company, Fujitsu Limited, Asperitas Company, Liquid Stack Inc., Solvay SA, The Lubrizol Corporation, Submer Technologies SL, CoolIT Systems Inc., Castrol Limited, Fuchs Petrolub SE, Clustered Systems Co., Iceotope Limited, Cooltera Inc., Asetek A/S, Green Revolution Cooling Inc., M&I Materials Limited, Allied Control Limited, LiquidCool Solutions Inc., Ebullient Inc., Midas Green Technologies LLC, Engineered Fluids Inc., ExaScaler Inc., DCX Liquid Cooling Systems.

Asia-Pacific was the largest region in the immersion cooling fluids market in 2024. Asia-Pacific is expected to be the fastest-growing region in the immersion cooling fluids market report during the forecast period. The regions covered in the immersion cooling fluids market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the immersion cooling fluids market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Immersion cooling fluids are liquids used to submerge IT hardware components in a dielectric fluid for equipment cooling.

The primary technologies for immersion cooling fluids encompass single-phase immersion cooling and two-phase immersion cooling. Single-phase immersion cooling involves submerging electrical components in a dielectric heat transfer fluid, either passively cycled by natural convection or actively circulated by a pump. These fluids include mineral oil, synthetic fluids, fluorocarbon-based fluids, and others, serving applications in high-performance computing, edge computing, cryptocurrency mining, artificial intelligence, transformers, data centers, EV batteries, and solar photovoltaics.

The immersion cooling fluids market research report is one of a series of new reports that provides immersion cooling fluids market statistics, including immersion cooling fluids industry global market size, regional shares, competitors with an immersion cooling fluids market share, detailed immersion cooling fluids market segments, market trends and opportunities, and any further data you may need to thrive in the immersion cooling fluids industry. This immersion cooling fluids market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The immersion cooling fluids market consists of sales of dielectric fluids, engineered fluids, and liquid coolants. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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