Immersion Cooling Market By Type (Single-phase Immersion Cooling, Two-phase Immersion Cooling); By Application (Data Centers, High-Performance Computing (HPC), Edge Computing, Cryptocurrency Mining, Other Applications); By Cooling Liquid (Fluorocarbon-based Fluids, Hydrocarbon-based Fluids (eg, Mineral Oil), Other Fluids (Deionized Water, Dielectric Fluids)); By End User (IT & Telecom, BFSI (Banking, Financial Services, Insurance), Healthcare, Government, Healthcare, Government, Others (Manufacturing, Retail); By Geography, Segment revenue estimation, Forecast, 2024-2032.

Industry Report and Statistics (Facts & Figures)

The Global Immersion Cooling Market was valued at USD 0.83 billion in 2023 and is projected to reach USD 4.48 billion by 2030, expanding at a strong CAGR of 27.3%, driven by data center cooling, liquid cooling technology, high-density computing, AI workloads, energy-efficient cooling, and thermal management, as highlighted by Strategic Market Research.

 

Immersion cooling is the technique of submerging electronic components in a non-conductive liquid, like 3M Fluorinert FC-43 or Engineered Fluids Electrocool. One of the biggest applications of immersion cooling to reduce total energy usage is in data centers. Immersion cooling eliminates the need for fans and heat sinks, providing a more energy-efficient & quieter solution.

 

Factors like shift towards more energy-efficient and sustainable cooling solutions, increasing adoption in high-density data centers, advancements in cooling technology, & growing interest from industries utilizing high-performance computing such as AI, blockchain, and big data analytics are the key trends driving the immersion cooling market.

 

Growing concerns about climate change are driving stricter environmental regulations, leading data center operators to adopt more energy-efficient cooling solutions, such as immersion cooling, which can reduce energy consumption by up to 40%.

 

 

Comprehensive Market Snapshot – Immersion Cooling Market

The Global Immersion Cooling Market was valued at USD 0.83 billion in 2023 and is projected to reach USD 4.48 billion by 2030, expanding at a strong 27.3% CAGR.
Based on this growth rate, the global market size in 2024 is estimated at USD 1.06 billion.

Regional Market Sizing & Forecast

United States

• Based on a 30.0% share of the 2024 global market, the USA Immersion Cooling Market is estimated at USD 0.32 billion in 2024.

• At a 25.1% CAGR, the market is projected to reach USD 1.23 billion by 2030.

Europe

• With a 13.0% share, the Europe Immersion Cooling Market is estimated at USD 0.14 billion in 2024.

• Growing at a 24.9% CAGR, it is expected to reach USD 0.52 billion by 2030.

Asia Pacific (APAC)

• Holding a 20.0% share, the APAC Immersion Cooling Market is estimated at USD 0.21 billion in 2024.

• At the fastest CAGR of 30.4%, the market is projected to reach USD 1.03 billion by 2030.

 

Regional Insights

• North America (USA) accounted for the largest market share of 30.0% in 2024, driven by hyperscale data centers, AI workloads, and liquid-cooling-ready infrastructure.

• Asia Pacific (APAC) is expected to expand at the fastest CAGR of 30.4% during 2024–2030, supported by rapid data-center expansion, cloud adoption, and crypto-mining clusters.

 

By Type

• Single-phase Immersion Cooling accounted for the largest market share of 65.0% in 2024, driven by simpler system architecture and lower operational complexity, translating to an estimated market value of approximately USD 0.69 billion.

• Two-phase Immersion Cooling represented 35.0% of the global market in 2024, valued at around USD 0.37 billion, and is projected to grow at a faster CAGR during 2024–2030 due to superior thermal efficiency and increasing adoption in high-performance computing environments.

 

By Application

• Data Centers held the highest market share of 50.0% in 2024, reflecting strong demand from hyperscale and colocation facilities, with an estimated market value of approximately USD 0.53 billion.

• High-Performance Computing (HPC) accounted for 20.0% of the market in 2024, valued at around USD 0.21 billion, and is expected to grow at a strong CAGR through 2030, driven by AI training, scientific modeling, and defense computing workloads.

• Edge Computing represented 15.0% of the global market in 2024, translating to an estimated value of USD 0.16 billion, supported by latency-sensitive and distributed computing deployments.

• Cryptocurrency Mining contributed 10.0% of the market in 2024, with a corresponding value of approximately USD 0.11 billion, driven by the need for efficient thermal management in dense mining operations.

• Other Applications accounted for the remaining 5.0% market share in 2024, valued at around USD 0.05 billion, encompassing research labs and niche industrial computing use cases.

 

By Cooling Liquid

• Fluorocarbon-based Fluids dominated the market with a 45.0% share in 2024, owing to superior dielectric properties and thermal stability, resulting in an estimated market size of approximately USD 0.48 billion.

• Hydrocarbon-based Fluids (Mineral Oil) represented 40.0% of the global market in 2024, valued at around USD 0.42 billion, and are forecast to grow at a notable CAGR supported by lower cost and sustainability considerations.

• Other Fluids (Deionized Water, Specialty Dielectrics) accounted for 15.0% of the market in 2024, translating to an estimated value of approximately USD 0.16 billion, driven by experimental and application-specific cooling requirements.

 

By End User

• IT & Telecom contributed the largest share of 45.0% in 2024, driven by cloud platforms, AI data centers, and network infrastructure expansion, with a corresponding market value of approximately USD 0.48 billion.

• BFSI accounted for 20.0% of the global market in 2024, valued at around USD 0.21 billion, and is anticipated to expand at a robust CAGR during 2024–2030 due to high-density computing and low-latency requirements.

• Healthcare represented 10.0% of the market in 2024, translating to an estimated value of approximately USD 0.11 billion, supported by data-intensive clinical and research workloads.

• Government end users held a 15.0% market share in 2024, valued at around USD 0.16 billion, driven by investments in defense, public-sector HPC, and national computing infrastructure.

• Others (Manufacturing, Retail) collectively accounted for 10.0% of the market in 2024, with an estimated value of approximately USD 0.11 billion, supported by industrial analytics and enterprise computing applications.

 

Strategic Questions Guiding the Evolution of the Global Immersion Cooling Market

1. What cooling technologies, system architectures, and deployment environments are explicitly included within the Immersion Cooling Market, and which cooling solutions remain out of scope?

2. How does the Immersion Cooling Market differ structurally from adjacent air cooling, liquid cold plate cooling, and hybrid thermal management markets?

3. What is the current and forecasted size of the Global Immersion Cooling Market, and how is value distributed across major technology and application segments?

4. How is revenue allocated between single-phase and two-phase immersion cooling systems, and how is this mix expected to evolve over the forecast period?

5. Which application segments (e.g., hyperscale data centers, high-performance computing, edge computing, cryptocurrency mining) account for the largest and fastest-growing revenue pools?

6. Which segments contribute disproportionately to profitability and margin expansion, rather than system shipment volume alone?

7. How does demand differ across low-density, mid-density, and ultra-high-density compute environments, and how does this influence cooling system selection?

8. How are baseline, optimized, and advanced immersion cooling deployments evolving within data center design and retrofit pathways?

9. What role do system lifecycle length, upgrade cycles, and fluid replacement intervals play in long-term segment-level revenue growth?

10. How are data center expansion rates, AI workload adoption, and compute intensity trends shaping demand across immersion cooling segments?

11. What technical, regulatory, or operational barriers limit adoption in specific end-user or regional segments of the Immersion Cooling Market?

12. How do capital expenditure constraints, operating cost trade-offs, and energy efficiency mandates influence purchasing decisions and revenue realization?

13. How strong is the current and mid-term technology pipeline, and which innovations are likely to create new immersion cooling sub-segments?

14. To what extent will next-generation immersion systems expand the addressable market versus intensify competition within existing deployments?

15. How are advances in dielectric fluids, materials science, and system design improving thermal performance, safety, and maintenance efficiency?

16. How will standardization efforts, interoperability requirements, and vendor lock-in concerns reshape competitive dynamics across the market?

17. What role will cost-optimized fluids, modular systems, and alternative cooling chemistries play in price compression and adoption acceleration?

18. How are leading vendors aligning product portfolios, partnerships, and go-to-market strategies to defend or grow market share?

19. Which geographic regions are expected to outperform global market growth, and which applications or end-user segments are driving this outperformance?

20. How should equipment manufacturers, data center operators, and investors prioritize technologies, applications, and regions to maximize long-term value creation?

 

Segment-Level Insights and Market Structure – Immersion Cooling Market

The Immersion Cooling Market is organized around distinct cooling technologies, application environments, cooling fluids, end-user groups, and deployment channels, each reflecting differences in thermal performance requirements, infrastructure complexity, capital intensity, and operational priorities.
Each segment contributes differently to overall market value, competitive positioning, and long-term growth potential, shaped by compute density, workload criticality, energy efficiency goals, and data-center design strategies.

 

Cooling Technology Type Insights:

Single-Phase Immersion Cooling

Single-phase immersion cooling represents the most widely deployed technology within the market, particularly in early-stage and scaled commercial implementations. In this approach, IT hardware is submerged in a dielectric fluid that absorbs heat without undergoing phase change, enabling stable and predictable thermal management.

From a market perspective, single-phase systems benefit from lower engineering complexity, simpler maintenance protocols, and broader compatibility with existing server designs. These characteristics make them attractive for hyperscale data centers, enterprise facilities, and retrofit projects seeking efficiency improvements without radical infrastructure redesign.
Over time, single-phase immersion cooling is evolving through improved fluid formulations, modular tank designs, and tighter integration with rack-level architectures.

Two-Phase Immersion Cooling

Two-phase immersion cooling represents a more advanced and performance-oriented segment of the market. These systems rely on dielectric fluids that boil at low temperatures, absorbing large amounts of heat through phase transition and enabling extremely high heat-flux dissipation.

Commercially, two-phase systems are more selectively adopted due to higher upfront costs, specialized fluid handling requirements, and greater system design complexity. However, they are gaining strategic importance in high-performance computing, AI training clusters, and ultra-dense workloads where conventional cooling approaches become limiting.
As chip power densities continue to rise, two-phase immersion cooling is expected to expand its relevance, particularly in greenfield facilities optimized for next-generation compute.

 

Application Environment Insights:

Data Centers

Data centers form the core application segment for immersion cooling, accounting for the largest share of deployed systems. Adoption is driven by the need to manage escalating server heat loads while reducing energy consumption, floor space requirements, and cooling infrastructure overhead.

Immersion cooling in data centers supports higher rack densities, improves power usage effectiveness, and enables more flexible facility layouts. Both hyperscale and colocation operators are increasingly evaluating immersion systems as part of long-term capacity planning and sustainability strategies.

High-Performance Computing (HPC)

HPC environments represent a strategically important and rapidly growing application segment. These systems generate extreme thermal loads due to sustained high utilization, making immersion cooling particularly well-suited.

In HPC deployments, immersion cooling supports consistent performance, minimizes thermal throttling, and reduces mechanical cooling complexity. The segment is closely linked to research institutions, defense applications, scientific modeling, and advanced AI workloads, where performance stability is mission-critical.

Edge Computing

Edge computing applications are emerging as a distinct use case for immersion cooling, particularly in environments with limited physical space, constrained airflow, or harsh operating conditions.

Immersion cooling enables compact, sealed, and low-maintenance edge deployments, reducing reliance on traditional HVAC systems. As latency-sensitive applications expand, this segment is expected to gain traction, especially in industrial, telecom, and smart-infrastructure settings.

Cryptocurrency Mining

Cryptocurrency mining has played a catalytic role in early immersion cooling adoption. The segment values immersion cooling for its ability to support overclocking, reduce hardware failure rates, and improve energy efficiency.

While market volatility affects deployment cycles, mining continues to serve as a testing ground for large-scale immersion implementations and contributes to broader industry learning and cost optimization.

Other Applications

Other applications include specialized compute labs, defense systems, industrial simulation environments, and experimental AI platforms. These deployments are typically niche but strategically relevant, often serving as early adopters for novel system designs and fluid technologies.

 

Cooling Liquid Type Insights:

Fluorocarbon-Based Fluids

Fluorocarbon-based dielectric fluids dominate high-performance immersion cooling deployments due to their thermal stability, chemical inertness, and excellent dielectric properties. These fluids are particularly favored in two-phase systems and mission-critical environments.

From a market standpoint, they command premium pricing but support superior system reliability and long service life.

Hydrocarbon-Based Fluids (Mineral Oils)

Hydrocarbon-based fluids, including refined mineral oils, are widely used in single-phase immersion cooling systems. Their relatively low cost and proven performance make them attractive for large-scale commercial deployments.

Ongoing improvements in fluid purity, oxidation resistance, and recyclability are strengthening their competitive position within cost-sensitive segments of the market.

Other Fluids

Other fluids, including specialized synthetic dielectrics and experimental formulations, represent a smaller but innovation-driven segment. These fluids are often developed to address specific thermal, environmental, or regulatory requirements and may gain importance as sustainability considerations intensify.

 

End User Insights:

IT & Telecom

IT and telecom operators constitute the largest end-user segment, driven by cloud services, AI workloads, and network infrastructure expansion. Immersion cooling supports their need for scalability, energy efficiency, and predictable operating costs.

BFSI

The BFSI sector is increasingly adopting immersion cooling for high-reliability computing environments that demand low latency, continuous uptime, and robust thermal control. Security-sensitive workloads and regulatory compliance further reinforce the appeal of controlled cooling systems.

Healthcare

Healthcare applications leverage immersion cooling in research computing, imaging analytics, and genomics workloads. The segment values system reliability and thermal stability, particularly in data-intensive diagnostic and research environments.

Government

Government and defense users adopt immersion cooling for secure computing facilities, research labs, and mission-critical systems. Procurement cycles are longer, but deployments tend to be high-value and long-term.

Others (Manufacturing, Retail, Industrial)

Other end users include manufacturing, retail analytics, and industrial automation environments where localized high-density compute is required. These deployments are smaller in scale but contribute to market diversification.

 

Segment Evolution Perspective

While single-phase immersion cooling continues to anchor near-term adoption, two-phase systems, advanced fluids, and modular architectures are reshaping the long-term technology mix.
At the same time, application demand is shifting from niche and experimental use cases toward mainstream data center and AI-driven deployments.

Together, these dynamics are expected to progressively redistribute value across technology types, applications, and end-user segments, defining the next phase of growth in the Global Immersion Cooling Market.

 

Market Drivers (Immersion Cooling: A Game-Changer for Data Center Thermal Management in the Big Data Era)

Data generation is growing rapidly on a global scale, with an annual increase of over 50%. This leads to a rise in the construction of data centers & rising need for efficient cooling solutions. Traditional air-cooling methods struggle to keep pace with the heat generated by high-performance computing systems. Data center development and expansion have surged due to the quick growth of big data, cloud computing, AI, and the Internet of Things. ?With the increasing demand for digital services, data centers are predicted to use one percent or more of the world's electricity. Compared to conventional air cooling techniques, immersion cooling can save energy use by 30–40%, making it an economical and environmentally friendly option for data centers. The immersion cooling market is growing as data centers seek to adopt this technology to meet their increasing cooling needs.

 

Immersion Cooling's Environmental Edge Drives Market Adoption

Immersion cooling offers a significant reduction in a data center's environmental footprint. Immersion cooling is a popular option for reducing the environmental effect of data centers as businesses promote environmentally friendly practices & governments set greater controls on energy usage and emissions. For example, Google has set an aim to run its data centers on carbon-free electricity around the clock by 2030, and Microsoft wants to be carbon-negative by the same year. Immersion cooling helps achieve these objectives by cutting emissions & increasing energy efficiency. Thus, the adoption of immersion cooling solutions is strongly driven by the market's focus on sustainability.

 

Furthermore, the application of immersion cooling (IC) technology in the electric vehicles (EV) market presents a significant future growth opportunity for the immersion cooling market.

 

Market Restraints (High Initial Costs Hinder Wider Adoption of Immersion Cooling)

Extremely high initial costs: Compared to conventional air cooling systems, immersion cooling systems require specialized equipment like tanks and cooling fluids, which can be rather expensive.
Concerns about leaks: If the immersion cooling system develops leaks and they are not promptly fixed, it could cause damage to the electronics. Due to the unique properties of the fluids used, such as fluorocarbons, additional safety measures may be required.

 

 

Deep Dive: Segmentation of the Immersion Cooling System Market

The market for immersion cooling is segmented on the basis of type, application, cooling liquid, end-user, and region.

By Type

• Single-phase Immersion Cooling

• Two-phase Immersion Cooling

 

By Application

• Data Centers

• High-Performance Computing (HPC)

• Edge Computing

• Cryptocurrency Mining

• Other Applications

 

By Cooling Liquid

• Fluorocarbon-based Fluids

• Hydrocarbon-based Fluids (e.g., Mineral Oil)

• Other Fluids (Deionized Water, Dielectric Fluids)

 

By End User

• IT & Telecom

• BFSI (Banking, Financial Services, Insurance)

• Healthcare

• Government

• Others (Manufacturing, Retail)

 

By Region

• North America

• Europe

• Asia Pacific

• Rest of the World (ROW)

 

 

Single-Phase Immersion Cooling Leads the Way in Energy-Efficient Data Centers

On the basis of type, the single phase immersion cooling segment held a dominant position in the market with 71% of revenue share. Unlike two-phase immersion cooling, which involves more complex systems and higher initial costs, single phase immersion cooling offers a simpler and more cost-effective solution.  Single-phase immersion cooling systems reduce energy consumption and greenhouse gas emissions in data centers. Some dielectric fluids used in single-phase cooling are biodegradable, further minimizing environmental impact.

 

Data Center Expansion Spurs Innovation in Immersion Cooling

On the basis of application, the data centers segment held maximum market positon with 46% of revenue share. In data centers, servers and other computing equipment can be cooled via immersion cooling. The data centers category currently occupies the largest share of the market because of the rapid expansion of digital data and cloud computing services. Data centers are essential for handling, transporting, & storing enormous volumes of information that consumers & organizations around the world need. In order to maintain ideal operating conditions within these facilities, there is an increasing need for effective and dependable cooling solutions due to the growing need for processing power and data storage. Cooling accounts for 40% of data center power consumption. The Department of Energy awarded 40 million in 2023 to develop ultra-efficient cooling solutions, aiming to reduce cooling energy to just 5% of total consumption.

 

Hydrocarbon Fluids Offer Superior Performance in Immersion Cooling

On the basis of cooling liquid, the hydrocarbon-based fluid segment held a commanding market share of 47%. Hydrocarbon-based fluids, such as mineral oil, are generally less expensive than other options like fluorocarbon-based fluids. Hydrocarbon-based fluids, such as mineral oils or synthetic oils, are preferred in immersion cooling due to their excellent thermal properties and compatibility with electronics and materials commonly used in cooling systems. Hydrocarbon-based fluids are non-conductive and non-corrosive, minimizing the risk of electrical shorts or damage to sensitive equipment. 

 

Growing IT & Telecom Infrastructure Fuels Immersion Cooling Market

On the basis of end-use, the IT & Telecom segment held a commanding market share of 41% because of the rapid expansion of digital infrastructure and the increasing demand for data processing and communication services globally. Immersion cooling offers benefits like higher energy efficiency, better thermal management capabilities, & reduced operational costs compared to traditional air-based cooling systems.

 

Soaring Data Center Demand Boosts North American Immersion Cooling

North America holds a market share of 35.8% of the global immersion cooling market. United States is home to some of the most advanced data centers in the world.  Data generation in North America is growing, with estimates suggesting a yearly increase exceeding 55%. California recently enacted a law requiring data centers to improve their energy efficiency by 20% by 2030. North American tech giants like Meta, Google, & Microsoft are actively deploying immersion cooling in their data centers.  The rising use of advanced technologies like big data, cloud computing, AI, & others generates heat within the data centers demanding the use of technologies like immersion cooling. This technology is mostly favoured because it can handle the thermal demand of a high-performance computing environment. Additionally, the growth of technologies like IoT, blockchain, and the rising demand for EVs in this region demands effective cooling solutions, this is where immersion cooling comes in action.

 

Navigating the Immersion Cooling Landscape: Identifying Key Players and Partnerships

• Dug Technology

• Fujitsu Limited

• Asperitas

• Green Revolution Cooling Inc.

• Liquid Stack

• DCX- The Liquid Cooling Company

• Submer

• LiquidCool Solutions

• Midas Green Technologies

• ExaScaler Inc

 

Immersion Cooling System Market Report Coverage

Report Attribute	Details
Forecast Period	2023 – 2030
Market size value in 2023	USD 0.83 Billion
Revenue Forecast in 2030	USD 4.48 Billion
Growth rate	CAGR of approximately 27.3%
Base year for estimation	2022
Historical data	2017 – 2021
Unit	USD Billion, CAGR (2023 - 2030)
Segmentation	By Type, By Application, By Cooling Liquid, By End User
By Type	Single-phase Immersion Cooling, Two-phase Immersion Cooling
By Application	Data Centers, High-Performance Computing (HPC), Edge Computing, Cryptocurrency Mining, Other Applications
By Cooling Liquid	Fluorocarbon-based Fluids, Hydrocarbon-based Fluids (e.g., Mineral Oil), Other Fluids (Deionized Water, Dielectric Fluids)
By End User	IT & Telecom, BFSI (Banking, Financial Services, Insurance), Healthcare, Government, Others (Manufacturing, Retail)
By Region	Asia Pacific, North America, Europe, LAMEA
Country Scope	U.S., Canada, France, Germany, U.K., China, Japan, India, South Korea, Mexico, Brazil, U.A.E. etc.
Company Usability Profiles	Dug Technology, Fujitsu Limited, Asperitas, Green Revolution Cooling Inc., Liquid Stack, DCX- The Liquid Cooling Company, Submer, LiquidCool Solutions, Midas Green Technologies, ExaScaler Inc.
Pricing and purchase options	Avail customized purchase options to meet your exact research needs.

 

 

 

Innovation at Work: Recent Developments Propelling Immersion Cooling Forward

• In June 2024, Asperitas, a thermal management firm launched The Direct Forced Convection solution. It is intended to facilitate scale, power, and dependability in various workloads, including as AI and HPC.  According to the manufacturer, DFC technology provides the most advanced performance levels in the immersion cooling industry. The Asperitas DFC is designed to ensure that high power density components at chip and chassis levels are precisely cooled with a minimum power overhead According to the manufacturer, the new product can provide cooling power greater than 3.6kW per unit and 2000W per socket.

 

• In June 2024, The manufacturer of ASIC Bitcoin miners, Canaan Inc., introduced its latest innovation at the esteemed Mining Disrupt 2024 conference: the Avalon Immersion Cooling Miner. This new miner, known as the Avalon Miner, has a hash rate of 249T, an energy efficiency of 19J/TH, and a power consumption of 4500W. The Avalon Miner epitomizes Canaan Inc.'s commitment to technological advancement and providing our clients with efficient and environmentally friendly mining solutions.

 

• In March 2024, US immersion cooling business Rosseau & German heat exchanger producer Kelvion established a partnership to provide improved immersion cooling solutions for the high performance computing (HPC) market. The partnership aims to solve the growing issues with heat management that arise in AI and bitcoin mining.