The Global "Immersion Cooling Market" is expected to grow at a high CAGR during the forecasting period (2022-2029).
Immersion cooling, also known as liquid submersion cooling, is the process of cooling computer components like servers, GPUs, ASICs, and other IT hardware such as memory, drives, and CPUs by submerging them in a dielectric liquid (thermally conductive but electrically insulative). There are two types of immersion cooling based on the state of the coolant- Single-Phase Cooling and Two-Phase Cooling.
Demand for improved immersion cooling of computer systems
Immersion cooling is more effective than the direct cooling system which requires air as a medium to conduct heat, whereas the former requires a non-electrically conductive liquid for heat transmission and liquid is a better thermal conductor than air. Thus, it helps in cutting energy consumption and reducing carbon dioxide emissions. It is useful for reducing costs and increasing location flexibility as computer systems work optimally at optimal temperatures. According to a 2020 report by the Tokyo Institute of Technology, the data centers contribute around 2% of the total electricity consumption of the world and is expected to increase in the future with rising in the number of internet users, and about 40% of the total electricity consumption by a data center is required for coolant purpose.
It simplifies the work of integrating coolant with the system as one needs to simply immerse IT hardware in a non-conductive liquid. It significantly reduces the noise in server rooms. The immersion cooling prevents information technology equipment from environmental contaminants such as dust and sulfur. The growing usage of the internet, artificial intelligence, cloud computing, and high-performance computing (HPC) shall stimulate market growth as these will increase data consumption and usage significantly in the forecast period.
Launch and adoption of Innovative techniques and design in Immersion Cooling System
There is the increase in the launch of innovative immersion cooling techniques. For instance, in May 2021, GRC (Green Revolution Cooling), manufacturer of single-phase liquid immersion cooling for data centers, introduced the latest redesign of its immersion cooling solutions: ICEraQ Series 10. It was built to deliver improved energy efficiency, performance, and usability, as well as integrate additional features. It was designed with keeping sustainability in mind, which continues to be a priority for today’s enterprise data center operators. It provides unparalleled cooling capacity while at the same time decreasing total data center energy usage by up to 50 percent, delivering PUE of <1.03, and reducing server power by 10-20 percent by disabling or removing server fans.
Microsoft in one of its April 2021 reports mentions liquid immersion as a cooling solution for high-performance computing applications such as AI. Among other things, the report also revealed that two-phase immersion cooling reduced power consumption for any given server by 5% to 15%. The company is also investigating two-phase immersion cooling which is part of the company’s multi-pronged strategy to make datacentres more sustainable and efficient to build, operate and maintain.
Another instance, in September 2018, Fujitsu had launched the Fujitsu Server PRIMERGY Liquid Immersion Cooling System in Japan. It is the cooling system designed to efficiently cool the entire IT devices equally by immersing it in cooling fluid. It reduces the total power consumption for the server system as a whole by about 40% in comparison to the existing air cooling systems. It provides the customers with a dramatic reduction of power consumption doubles the server density in the same installation space.
Covid-19 Impact Analysis
For hyper-scale data center companies, the pandemic has not affected the market growth and thus the demand for immersion cooling systems is also expected to rise in the forecast period. For instance, in 2020 in spite of the global crisis, more than 100 new hyperscale data center facilities were built around the world. The world advanced at least 5 years as many organizations and companies which were not expecting digital transformation soon had to go digital within days.
The global immersion cooling market is segmented based on product type as single-phase immersion cooling and two-phase systems immersion cooling. In single-phase immersion cooling, the coolant does not go change in phase during the entire process and this completely eliminates all pressure, fumes, vapors, and corrosion due to micro-cavitation created by a coolant’s state transition from liquid to gas. It accounts for the highest market share and is expected to grow at a higher CAGR due to its higher usage owing to its benefits such as high coolant heat capacity, high dielectric strength, high biodegradability, and low environmental impact in comparison to the two-phase immersion cooling systems. Its market share can be demonstrated from the example - in February 2020, Asperitas and Shell had launched the shell immersion cooling fluid S5X which is a synthetic, single-phase immersion cooling fluid made from gas using Shell’s gas-to-liquids technology. It is optimized for Asperitas’ natural-convection-driven immersion cooling solutions but can also be used in the pump/forced circulation systems of other providers. The fluid is useful for reducing energy costs and emissions through its high cooling efficiency, excellent flow behavior, and thermodynamic properties.
The two-phase systems immersion cooling segment is expected to gain market share as it provides higher energy efficiency and energy savings, better reliability, lower maintenance cost, and deployment flexibility than an air cooling system. The fluorinated fluids used in two-phase systems are costly in comparison to the single-phase systems. The coolants used in the two-phase systems immersion cooling include very high pressures as it involves the transition to the gas that involves the complex systems with significant safety systems resulting in increasing the overall operation and maintenance costs. Since there is a phase transition involved, it also increases the chance of explosion.
By region, the global immersion cooling market is segmented into North America, South America, Europe, Asia-Pacific, Middle-East, and Africa. Among all of the regions, North America dominated the global immersion cooling market and is expected to grow at the highest CAGR during the forecasted period owing to the high number of hyper-scale data centers in the various industries for increasing the computing ability, memory, networking infrastructure, or storage resources. There is high availability of hyper-scale data centers with the physical infrastructure and distribution systems for maximizing cooling efficiency, and the ability to scale computing tasks in a quicker and faster way.
For instance, Amazon, a US-based company, is the largest hyper-scale data center company in the world. Microsoft, Google, and Amazon operate more than half of the 600 hyperscale data centers in the world. Google to support the systems which operate its AI software had recently deployed immersion cooling systems in its data centers. In 2021, Microsoft has announced to invest 200 million dollars in building two hyper-scale data centers in Chicago, the USA as the demand for Microsoft Azure and its cloud services rises. With more data centers in the world, the need for a better and efficient cooling system is going to rise.
The global immersion cooling market is highly competitive with the presence of several international and local markets. Product diversification, revenue generation, and opportunities intensify the market competition. Fujitsu Limited, Green Revolution Cooling Inc., Submer Technologies, Allied Control Ltd., Asperitas, Midas Green Technologies, Liquidcool Solutions, Inc., and DCX are the leading market players with significant market share.
The different strategies adopted by different companies to gain market share include product development, novel product launches, market expansion, and product diversification. For instance, in May 2021, Vertiv launched a new product called Liebert VIC – Liquid Immersion Cooling which it claims to be the next generation in data cooling. In June 2021, Super Micro Computer announced that it is adding a range of liquid cooling solutions to its server products. Customers who implement liquid cooling can improve data center PUE by more than 40% by cutting power costs.
In December 2019, CoolBitts had launched the USD USD2450 PC Immersion Cooling Kit including the chassis, coolant, fans, PCIe tray, power meter, pump, radiator, and rear IO panel.
In June 2019, DCX Liquid Cooling Company had launched the immersion liquid cooling system for crypto mining operators. This Immersion Liquid Cooling System for Crypto Mining Operators. This immersion liquid cooling system is a reliable and affordable liquid cooling solution providing energy savings, unparalleled hash rate increase, and complete noise, dust, and fire protection.
The companies are entering into collaborations as strategies for gaining market share. For instance, in May 2020, Asperitas entered into the collaboration with the European data center owner maincubes. The two companies are providing the Immersion Cooling Solutions from dedicated immersion cooling colocation suites in the maincubes Amsterdam AMS01 data center. AMS01 is also home to the European Open Compute Project (OCP) Experience Center, which aligns well with the goals of Asperitas a leading OCP standards contributor in the field of immersion cooling. The colocation suites are uniquely developed for housing Asperitas’ immersion cooling technology. Another instance, in May 2021, Submer leading innovator in advanced immersion cooling solutions for data centers, announced its latest partnership with Hypertec, a large and rapidly growing global provider of innovative information technology solutions.
Get your free sample proposal with a single click!