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South East Asia Immersion Cooling Market Size, Share, Industry, Forecast and outlook (2024-2031)

Published: October 2023 || SKU: FMCG6317
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South East Asia Immersion Cooling Market is Segmented By Product Type, By Cooling Fluid Type, By Application, and By Country(Singapore, Malaysia, Indonesia, Philippines, Others)

 

South East Asia Immersion Cooling Market

Growing digitalization and development of several advanced technologies in South East Asia, boosts the region's immersion cooling market

Over the forecast period, the South East Asia Immersion Cooling Market is anticipated to have the quickest growth. Businesses across numerous sectors focus more on IT scalability and resilience by implementing hybrid and cloud colocation solutions in anticipation of upcoming systemic disruptions akin to pandemics.

Additionally, South East Asia is one of the regions with data centers developing the fastest globally. Data Centers (DC) are now playing a bigger role in enterprises due to the rise in importance of smart technologies, IoT-enabled devices, Big Data, Industry 4.0, 5G and cloud computing in the region in recent years. The region's data center industry is expanding due to the introduction of 5G networks, liquid immersion and direct-to-chip cooling technologies. Other reasons propelling the market for data centers and immersion cooling in the area include purchasing renewable energy, installing cutting-edge data center equipment and artificial intelligence-enhancing liquid immersion and direct-to-chip cooling adoption.

Adoption of HPC systems for scientific research and weather forecasting

Due to the increased adoption of HPC systems for scientific research and weather forecasting, the South East Asia immersion cooling market is expected to grow rapidly over the forecast period. 

In addition, Due to the rising adoption of artificial intelligence by both the business and public sectors, the Asia-Pacific industry has been rising in recent years. Along with these investments, the market is benefiting from the creation of various start-ups making advances in Artificial Intelligence. In the field of artificial intelligence, South East Asia has made significant advances. Many e-commerce companies in the region have begun to employ AI technologies. The growth in the adoption of recent technologies has boosted the opportunities for the immersion cooling market in the region

In terms of coolant type, mineral oil segment dominates the market

The Mineral oil segment in South East Asia immersion cooling market was valued at US$ XX million in 2021 and is expected to reach US$ XX million by 2029 with a CAGR of 28.4% during the forecast period 2022 to 2029. The market share percentage for the Mineral oil Segment in 2021 was xx% which is expected to reach up to xx% in 2029. 

Mineral oil is a dielectric fluid utilized as heat transfer fluids for immersion cooling of electronics and bit miners due to their low cost and dielectric properties. Because of its dielectric properties, it is also called dielectric oil. Mineral oil comprises complex paraffin chains of straight, branched and aromatic hydrocarbons with 15 or more carbon. The physical features of mineral oil are dictated by its composition, defined by the amount of carbon determined by crude oil. Thus, mineral oil variations have physical properties such as boiling points ranging from 300oC to 600oC and specific gravity ranging from 0.820 for base oils or mild paraffin operations to more than 1.0 for oils in high aromatic processes. In addition, mineral oil is insoluble in water and alcohol but soluble in chloroform, ether, benzene, protelium ether and carbon disulfide.

The immersion cooling system that uses mineral oil as the medium has a heat capacity several times more than the immersion cooling system that uses conventional air cooling as the medium. The benefits of using mineral oil for computer cooling systems include providing a simple design compared to conventional cooling using fans, solving the overheating problem and reducing the impact of migration corrosion. In addition, its dielectric properties do not affect computer reliability or component compatibility or disrupt computer systems. Mineral oil collects heat generated by servers in an immersion cooling system. Its heat is then fed into a coolant distribution unit (CDU), where a heat exchanger transfers it to a different liquid - often water. The device then chills the water and discharges the heat into the atmosphere. Alternatively, the water is sent through a warm water loop before being cooled by a cooling tower.

Immersion cooling or immersing servers in heat-absorbing mineral oil for data centers is available in a relatively tiny market segment. However, according to Dell'Oro Group analyst Lucas Beran, immersion cooling is nearing a tipping point as thermal management becomes a rising problem within data centers.

The components are vulnerable to the corrosive effects of the many naturally occurring sulfur compounds in mineral oils. Sulfur is a naturally occurring chemical found in crude oil. Over 30 sulfur compounds are commonly detected in mineral crude oils. The sulfur species are then present in lubricant base oils, causing issues with any active metals exposed to the mineral oil. Corrosive sulfur is not only an issue but also quite expensive. Sulfur Corrosion caused by mineral oils can cost tens of millions of dollars each year, not including the costs of maintenance, mitigation, damage and downtime caused by these incidents.

Market players focus on addressing supply-demand dynamics and supply chain issues amid COVID-19 pandemic

Due to the COVID-19 pandemic, people's social and professional lives were quickly transferred online. Due to people working from home, using telehealth for doctor's appointments and using internet streaming services to pass the time, in-home data consumption has skyrocketed. In the first three weeks of March 2020, data usage climbed by 18% in the in-home sector compared to the same period in 2019, with a 34% increase in smartphone data usage. It is hardly surprising that data centers operate fully to meet the rising demand for data. One of the biggest challenges in running a data center is the vast amount of energy. Most energy costs in data centers are incurred specifically for cooling electronics.

Datacenter CPUs produce a lot of heat; without adequate cooling, internal device temperatures rise, decreasing device efficiency. Due to the increase in data transfer during the pandemic, broad adoption of the relevant technology was observed since immersion cooling is a very effective cooling technique. Like this, immersion cooling inventions, improvements and experiments also serve as a key market driver in the post-COVID-19 industry. Major manufacturers are also employing various market strategies to obtain an advantage over rivals in the post-pandemic South East Asia immersion cooling industry. For instance, GRC, a company that offers immersion cooling for data centers, announced the beginning of its Global Alliance Partnership on December 13, 2021. As part of the program, GRC and partners will work together to develop immersion cooling systems for data centers. The joint venture will market integrated solutions that include GRC immersion cooling systems and ITE hardware. The market prospects for immersion cooling are anticipated to surpass their former glory as the economy and industries return to their former selves and are even displaying more improvement than in earlier case scenarios. The market for immersion cooling in South East Asia is anticipated to grow due to the expanding use of information technologies like IoT, machine learning and AI.

DataM Analysis Report

The market for immersion cooling in South East Asia is anticipated to grow significantly during the forecast period. The market is rising due to the growing focus on developing innovative immersion cooling in accordance with the applications and technological advancements of the changing market landscape. Market participants are urged to keep a close eye on the most recent trends and move toward product development to acquire a competitive edge in the South East Asia Immersion Cooling Market's competitive environment. 

Market Overview

  • As per DataM Intelligence's most comprehensive research report on the South East Asia Immersion Cooling Market for the historical period of 2020 and the forecast period of 2022-2029, a developing breakthrough in digitalization, automation and telecommunications industry is a significant market driver. The market is increasingly driven by the rising popularity of consumer electronics and data centers, which is the primary application for immersion cooling. AI and unified design architecture have opened up new potential for the South East Asian immersion cooling sector. Due to COVID-19, the South East Asian Immersion Cooling market shrank in 2020.
  • However, the pandemic is expected to have a favorable long-term impact on the South East Asian immersion cooling industry, despite the short-term challenges. The need for immersion cooling is projected to grow as electronics, cloud computing, big data and other associated technologies become more prevalent, potent and useful in daily life.
  • With a CAGR of xx% from 2022 to 2029, the South East Asia Immersion Cooling Market is projected to increase from US$ xx Million in sales in 2021 to US$ xx Million by 2029.

Key Driver

  •  South East Asia-Pacific Immersion Cooling is expected to grow fastest in the forecast period due to the rapid expansion of industries, technological growth and digitalization. 
  • OneAsia, a leading provider of cloud-based solutions and data center services in Asia, introduced an immersion cooling solution in South East Asia and North Asia on August 22, 2022. OneAsia invests in cutting-edge technologies that offer the greenest, most dependable and most efficient IT infrastructure and solutions. OneAsia has data centers in Hong Kong, Greater China, Japan, South Korea, Thailand and Indonesia. The novel technology will be used for the first time in Hong Kong, considerably lowering the energy consumption of data centers while delivering more dependable performance. The aforementioned decision represents a game-changing transition for an industry that consumes a lot of energy towards a greener future by adopting cutting-edge, sustainable technologies and practices.
  • On September 06, 2018, Fujitsu Introduced a Liquid Immersion Cooling System to Reduce the Total Cost of Ownership. The Fujitsu Server PRIMERGY Liquid Immersion Cooling System is already available in Japan, with a global rollout planned for the future. The product is a cooling system meant to evenly cool all IT devices by submerging them in cooling fluid. Because large-scale cooling equipment isn't needed, the system's size is reduced.
  • On June 24, 2019, DCX launched a full portfolio of global crypto mining immersion cooling systems. The company released an Immersion Liquid Cooling System for Crypto Mining Operators.

The high inertness, non-reactivity, lower thermal conductivity, specific heat and heat of vaporization than water boosts the demand for fluorocarbon-based fluid in the South East Asia Immersion Cooling Market

  • Fluorocarbon-Based fluid is a colorless antithesis that resembles water. The fluid is highly inert and non-reactive. Further, the fluids have a lower thermal conductivity, specific heat and heat of vaporization than water. Fluorocarbon liquids are widely considered the best liquids for direct immersion cooling Despite their poorer thermo-physical qualities.
  • Fluorocarbons have the rare virtue of being both hydrophobic and lipophobic, implying that they will neither mix with water or organic solvents nor conduct electricity. As a result, electronic devices, such as mobile phones, will continue to function inside the liquid.
  • The fluid can also dissolve very high oxygen concentrations, allowing it for liquid breathing in deep-sea diving. Because the attractive forces between fluorocarbon molecules are fairly weak, these liquids are not extremely vicious, but they are significantly denser than water due to their high molecular weights.
  • The coolants are clear, colorless per-fluorinated liquids with a relatively high density and low viscosity. The fluids also have high dielectric strength and volume resistivity. For instance, the boiling points of commercially available "Fluorinert" liquids manufactured by the 3M Company range from 30 to 253 °C.
  • The 3M Company is a significant global manufacturer and supplier of fluorocarbon-based fluids. For example, for over 60 years, the company has created 3M Fluorinert Electronic Liquids, which have set the industry benchmark for direct-contact electronics cooling.
  • 3M Fluorinert Electronic Liquids are odorless, non-flammable and non-corrosive, with a broad operating temperature range and great thermal and chemical stability. The fluids are highly inert, completely fluorinated liquids with extraordinary dielectric strength and material compatibility. 
  • Furthermore, the fluids have low dielectric constants, making them perfect for single-phase and two-phase immersion cooling applications in data centers.
  • Because fluorocarbon liquids are expensive, they should only be used in closed systems. Whether in a self-contained module like the LEM or a forced flow design, care must be given to ensure that the seal materials used are compatible with the liquid.
  • Moreover, temperature overshoot is a common issue linked with pool boiling of fluorocarbon liquids. The behavior is characterized by a delay in the onset of nucleate boiling, causing the heated surface to be cooled by natural convection, with rising surface temperatures unless a sufficient superheat is obtained for boiling. 
  • Even though significant research has been conducted in this area, it remains a possible issue that the thermal engineer must consider while utilizing fluorocarbon-based fluids.

Competition Landscape

  • The South East Asia Immersion Cooling Market research report contains thorough and in-depth assessments of the financials, important product portfolios, most recent developments and strategies of market participants with significant market shares in South East Asia.
  • Fujitsu Limited, Submer Technologies, Green Revolution Cooling Inc., Asperitas, LiquidStack, Midas Immersion Cooling, Iceotope Technologies Limited, Liquidcool Solutions, Inc., Downunder Geosolutions Pty Ltd and DCX The Liquid Cooling Company are major players in the South East Asia immersion cooling market.

Strategic Partnerships

  • • On August 24, 2021, Intel and Submer announced their collaboration on developing a precise immersion cooling fluid cloud for next-generation data centers. Intel and Submer combine immersion-optimized server boards powered by Intel Xeon processors and Summer's precision cooling technique to show the high-grade waste heat produced by computing components in data centers. The partnership between Intel and Submer will hasten the implementation of immersion cooling industry standards.
  • In April 2021, Wiwynn Corporation, a Taiwan-based company, collaborated with Microsoft to create a two-phase data center immersion cooling technology. The partnership's technology advancements will be evaluated at a Microsoft-owned data center.
  • After a test launch of LiquidStack's two-phase immersion systems at a Japanese data center, NTT Data plans to implement immersion cooling. Network and server equipment was operated in a Liquid, two-phase immersion tank from March to April 2022 at NTT's Mitaka Data Center East and it was discovered that the IT equipment could be reliably operated while consuming 97% less cooling energy than a conventional cooling system. NTT will now strive to provide energy-saving data center services in 2023 by adopting immersion cooling systems. With facilities recently opening in Mumbai, London, Oregon, Illinois and California, as well as plans for facilities in Spain, Arizona, Jakarta, Indonesia and Ho Chi Minh City, Vietnam, NTT Data has data centers all over the world. The company currently claims that 2-phase immersion cooling will be a tool to help reach that goal. The corporation expects to reduce greenhouse gas emissions by 80% by 2030 and become carbon neutral by 2040.

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