The Immersion Cooling Market – involving advanced liquid-based cooling systems where electronic components are submerged in thermally conductive, non-conductive fluids to dissipate heat – is witnessing rapid growth as industries tackle rising data processing demands and dense computing environments. Stratview Research estimates that the market, valued at USD 317.1 million in 2022, is likely to reach USD 1,173.75 million by 2028, growing at a CAGR of 24.37% during the forecast period of 2022 – 2028. The primary driver of this expansion is the escalating number of data centers globally, where immersion cooling’s superior thermal management efficiently addresses high heat loads from high-density computing.
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Market Statistics
• Market size: USD 317.1 million in 2022
• Forecast value: USD 1,173.75 million by 2028
• CAGR: 24.37% during 2022 – 2028
• Forecast period: 2022 – 2028
• Base year: 2022
• Total number of segments: 4
• Tables & figures: 100+
• Country-Level Market Assessment: 20
MARKET SEGMENTATION
By Cooling System Type
• Single-Phase Immersion Cooling System
• Two-Phase Immersion Cooling System
By Application Type
• High-Performance Computing
• Edge Computing
• Cryptocurrency Mining
• Others
By Cooling Fluid Type
• Mineral Oil
• Synthetic Oil
• Fluorocarbon-Based
• Others
By Region
• North America
• Europe
• Asia-Pacific
• Rest of the World
SEGMENT ANALYSIS
In Cooling System Type, single-phase immersion cooling systems dominate due to their simpler design and stable liquid state that avoids boiling or freezing, enabling easier deployment and maintenance in existing data center environments. As computing infrastructures evolve, two-phase systems are anticipated to gain traction because their phase-change mechanisms provide superior heat dissipation for extremely high-density applications, prompting innovation opportunities for solution providers.
Within Application Type, high-performance computing (HPC) holds the largest share as complex simulations and data-intensive tasks generate significant heat, making immersion cooling an effective method to maintain performance and reliability. Meanwhile, cryptocurrency mining is the fastest-growing application segment, driven by continuous computational loads and the need for efficient cooling solutions, highlighting potential growth areas for specialized immersion solutions.
In Cooling Fluid Type, the mineral oil segment remains dominant because of its cost-effectiveness and energy efficiency, encouraging broad adoption across various customer segments. Synthetic and fluorocarbon-based fluids are increasingly explored for enhanced thermal properties, suggesting investment opportunities in advanced coolant technologies.
REGIONAL INSIGHTS
North America is the largest region for immersion cooling, supported by extensive deployment in data centers, artificial intelligence, cloud computing, and edge environments. The strong presence of hyperscale facilities and continuous technology investments make this region strategic for vendors and investors eyeing robust market opportunities.
Asia-Pacific is the fastest-growing region as rapid digitalization, expanding cloud infrastructure, and increasing adoption of high-density computing systems in China, India, and Southeast Asia drive demand for efficient cooling technologies. This growth trend creates compelling prospects for companies expanding operations or partnerships in the region.
MARKET DRIVERS
• Rising number of data centers globally leading to higher cooling requirements.
• Increased government funding and initiatives supporting energy-efficient thermal management solutions.
• Growing adoption of disruptive technologies such as AI, GenAI, and HPC generating large data volumes.
• Need for sustainable and energy-efficient cooling solutions to reduce operational costs.
• Demand for high-density computing applications that traditional air cooling cannot efficiently manage.
Competitive Landscape
Top Companies in the Market
• Allied Control Ltd
• Asperitas
• DCX The Liquid Cooling Company
• DownUnder GeoSolutions Pty Ltd
• Fujitsu Limited
• Green Revolution Cooling Inc
• Iceotope Technologies Limited
• LiquidCool Solutions
• Midas Green Technologies
• Submer Technologies
FAQs
1. What was the immersion cooling market size in the base year?
The immersion cooling market was valued at USD 317.1 million in 2022.
2. How fast is the immersion cooling market expected to grow through 2028?
It is forecast to grow at a CAGR of 24.37% during 2022-2028.
3. Which immersion cooling application currently holds the largest share?
High-performance computing (HPC) accounts for the largest application share.
4. Which application segment is growing the fastest?
Cryptocurrency mining is anticipated to be the fastest-growing application segment.
5. Which region dominates the immersion cooling market?
North America is expected to remain the largest market.
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