The Immersion Cooling for EV Batteries market size is expected to reach US$ 278.45 million by 2031 from 2.1 million in 2023 in 2023, at an estimated CAGR of 88.3% from 2026 to 2031.
By Geography the Immersion Cooling for EV Batteries market is segmented into North America, Europe, Asia Pacific, and rest of world. In 2023, the North America regions held a significant market share. The North America immersion cooling for EV batteries market is segmented into the US and the Rest of North America. The expected rise in the adoption of immersion cooling for EV batteries in this region can be credited to the growing EV sales and production in the region. According to the report by Cox Automotive in October 2024, an estimated 3,463,091 EVs were sold in Q3 2024, representing a 5% increase over Q2. The EV share of sales in Q3 reached 8.9%, the highest ever recorded and up from 7.8% in Q3 2023.
Tesla is one of the largest seller of EVs in the US, selling more than 16,000 Cybertrucks. Also, as per Alliance for Automotive Innovation, EV sales increased from about 300,000 in Q1 2023 to 375,000 in Q3 2023. This increase in EV sales and production is raising the demand for EV battery manufacturing in the region. For this, various automotive manufacturers are also continuously investing in the manufacturing of batteries and EVs. In October 2022, Energy Storage Firm ONE announced the investment of US$ 1.6 billion in EV battery manufacturing in Michigan, US.
This new factory, ONE Circle is expected to be operational by the end of 2027. It is expected that the factory will achieve a 45% reduction in carbon emissions by 2028 through a circular manufacturing approach. Such continuous focus on producing EVs and EV batteries is expected to create opportunities for companies to develop more efficient immersion cooling batteries.
The Immersion Cooling for EV Batteries market analysis has been carried out by considering the following segments: type, cooling fluid type, and vehicle type.
Based on cooling fluid type, the market is segmented into cooling fluid type into mineral oil, synthetic oil, fluorocarbon-based fluid, and others. Synthetic oil is typically ester oil that has been chemically synthesized. Synthetic oil has a lower evaporation tendency with excellent dielectric characteristics and offers excellent thermal stability in EV batteries, increasing product adoption among manufacturers.
Furthermore, they have electrical insulation properties that reduce battery noise and protect against short circuits in EV battery systems. Moreover, major players such as 3M and Cargill Inc manufacture synthetic oil specifically for cooling purposes. The availability of synthetic oil that offers good low-temperature and high-performance EV batteries is driving the market for synthetic oil.
Moreover, factor such as Increase in demand for high-capacity batteries to extend EV driving range and growing demand for electric vehicles propel the Immersion Cooling for EV Batteries market growth. Also, growing incorporation of immersion-cooled battery into road-going vehicles is expected to bring new Immersion Cooling for EV Batteries market trends in the coming years.
By vehicle type, the market is categorized into passenger vehicles, light commercial vehicles, and heavy commercial vehicles. Immersion cooling is becoming more popular in passenger cars, especially electric vehicles (EVs). The growing demand for high-performance batteries and effective thermal management systems in EVs has prompted the adoption of the immersion cooling technique. In passenger EVs, immersion cooling is most commonly used for controlling the temperature of high-capacity lithium-ion batteries. These batteries produce a lot of heat when charging and discharging. This heat can shorten their lifespan and impair performance, which increases the demand for immersion cooling for controlling excess heat in batteries.
Battery cells or modules are immersed in a dielectric fluid that efficiently absorbs and distributes heat in order to achieve immersion cooling. Similarly, the technique is also used for cooling power electronics integrated into passenger vehicles. For instance, various power electronics such as motors, power inverters, and other vital power electronics produce heat during operation.
These power electronics are kept within ideal temperature ranges by immersion cooling, which guarantees effective operation and avoids overheating. Additionally, significant benefits offered by immersion cooling to passenger vehicles, such as improved battery life, energy efficiency, and noise reduction by enhancing vehicle performance, are boosting the market for passenger vehicles..
Ricardo Plc, Mahle GmbH, Exoes SAS, Xing Mobility Inc, The Lubrizol Corp, Rimac Technology Ltd, Cargill Inc, Engineered Fluids Inc, GS Caltex Corporation, and Shell Plc. are among the key players profiled in the Immersion Cooling for EV Batteries market report.
The Immersion Cooling for EV Batteries market forecast is estimated on the basis of various secondary and primary research findings such as key company publications, association data, and databases. Exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the Immersion Cooling for EV Batteries market growth. The process also helps obtain an overview and forecast of the market with respect to all the market segments.
Also, multiple primary interviews have been conducted with industry participants to validate the data and gain analytical insights. This process includes industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the Immersion Cooling for EV Batteries market.
By Geography the Immersion Cooling for EV Batteries market is segmented into North America, Europe, Asia Pacific, and rest of world. In 2023, the North America regions held a significant market share. The North America immersion cooling for EV batteries market is segmented into the US and the Rest of North America. The expected rise in the adoption of immersion cooling for EV batteries in this region can be credited to the growing EV sales and production in the region. According to the report by Cox Automotive in October 2024, an estimated 3,463,091 EVs were sold in Q3 2024, representing a 5% increase over Q2. The EV share of sales in Q3 reached 8.9%, the highest ever recorded and up from 7.8% in Q3 2023.
Tesla is one of the largest seller of EVs in the US, selling more than 16,000 Cybertrucks. Also, as per Alliance for Automotive Innovation, EV sales increased from about 300,000 in Q1 2023 to 375,000 in Q3 2023. This increase in EV sales and production is raising the demand for EV battery manufacturing in the region. For this, various automotive manufacturers are also continuously investing in the manufacturing of batteries and EVs. In October 2022, Energy Storage Firm ONE announced the investment of US$ 1.6 billion in EV battery manufacturing in Michigan, US.
This new factory, ONE Circle is expected to be operational by the end of 2027. It is expected that the factory will achieve a 45% reduction in carbon emissions by 2028 through a circular manufacturing approach. Such continuous focus on producing EVs and EV batteries is expected to create opportunities for companies to develop more efficient immersion cooling batteries.
The Immersion Cooling for EV Batteries market analysis has been carried out by considering the following segments: type, cooling fluid type, and vehicle type.
Based on cooling fluid type, the market is segmented into cooling fluid type into mineral oil, synthetic oil, fluorocarbon-based fluid, and others. Synthetic oil is typically ester oil that has been chemically synthesized. Synthetic oil has a lower evaporation tendency with excellent dielectric characteristics and offers excellent thermal stability in EV batteries, increasing product adoption among manufacturers.
Furthermore, they have electrical insulation properties that reduce battery noise and protect against short circuits in EV battery systems. Moreover, major players such as 3M and Cargill Inc manufacture synthetic oil specifically for cooling purposes. The availability of synthetic oil that offers good low-temperature and high-performance EV batteries is driving the market for synthetic oil.
Moreover, factor such as Increase in demand for high-capacity batteries to extend EV driving range and growing demand for electric vehicles propel the Immersion Cooling for EV Batteries market growth. Also, growing incorporation of immersion-cooled battery into road-going vehicles is expected to bring new Immersion Cooling for EV Batteries market trends in the coming years.
By vehicle type, the market is categorized into passenger vehicles, light commercial vehicles, and heavy commercial vehicles. Immersion cooling is becoming more popular in passenger cars, especially electric vehicles (EVs). The growing demand for high-performance batteries and effective thermal management systems in EVs has prompted the adoption of the immersion cooling technique. In passenger EVs, immersion cooling is most commonly used for controlling the temperature of high-capacity lithium-ion batteries. These batteries produce a lot of heat when charging and discharging. This heat can shorten their lifespan and impair performance, which increases the demand for immersion cooling for controlling excess heat in batteries.
Battery cells or modules are immersed in a dielectric fluid that efficiently absorbs and distributes heat in order to achieve immersion cooling. Similarly, the technique is also used for cooling power electronics integrated into passenger vehicles. For instance, various power electronics such as motors, power inverters, and other vital power electronics produce heat during operation.
These power electronics are kept within ideal temperature ranges by immersion cooling, which guarantees effective operation and avoids overheating. Additionally, significant benefits offered by immersion cooling to passenger vehicles, such as improved battery life, energy efficiency, and noise reduction by enhancing vehicle performance, are boosting the market for passenger vehicles..
Ricardo Plc, Mahle GmbH, Exoes SAS, Xing Mobility Inc, The Lubrizol Corp, Rimac Technology Ltd, Cargill Inc, Engineered Fluids Inc, GS Caltex Corporation, and Shell Plc. are among the key players profiled in the Immersion Cooling for EV Batteries market report.
The Immersion Cooling for EV Batteries market forecast is estimated on the basis of various secondary and primary research findings such as key company publications, association data, and databases. Exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the Immersion Cooling for EV Batteries market growth. The process also helps obtain an overview and forecast of the market with respect to all the market segments.
Also, multiple primary interviews have been conducted with industry participants to validate the data and gain analytical insights. This process includes industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the Immersion Cooling for EV Batteries market.
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Table of Contents
1. Introduction
2. Executive Summary
3. Research Methodology
4. Immersion Cooling for EV batteries market Landscape
5. Immersion Cooling for EV batteries market - Key Market Dynamics
6. Immersion Cooling for EV batteries market - Global Market Analysis
7. Immersion Cooling for EV batteries market Analysis - by Type
8. Immersion Cooling for EV batteries market Analysis - by Cooling Fluid Type
9. Immersion Cooling for EV batteries market Analysis - by Vehicle Type
10. Immersion Cooling for EV batteries market - Geographical Analysis
11. Competitive Landscape
12. Industry Landscape
13. Company Profiles
14. Appendix
List of Tables
List of Figures
Companies Mentioned
Some of the leading companies in the Immersion Cooling for EV Batteries Market include:- Ricardo Plc
- Mahle GmbH
- EXOES SAS
- XING Mobility Inc
- The Lubrizol Corp
- Rimac Technology Ltd
- Cargill, Incorporated
- Engineered Fluids Inc
- GS Caltex Corporation
- Shell Plc
