by Data center liquid immersion cooling includes submerging servers, networking switches, and other data center equipment in engineered fluids like oil, dielectric liquids, or fluorocarbons to remove heat from electronic devices in data centers. This method results in reduced power consumption and smaller physical footprint of data centers as compared to traditional air-based cooling systems. As data center operators continue to face challenges around limited space, rising energy demand, and increased computing needs, liquid immersion cooling solutions provide an effective alternative to conventional air cooling. The global data center liquid immersion cooling market facilitates thermal management solutions with lower energy consumption and high computing densities.
The market is estimated to be valued at US$ 167.07 Mn in 2023 and is expected to exhibit a CAGR of 11% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends in the data center liquid immersion cooling market is the growing adoption of edge computing infrastructure. Edge computing refers to the concept of processing data at the source of data collection and requires distributed data centers to be closer to the site of data origination. With increasing generation of data from IoT devices and growing demand for low latency applications, liquid immersion cooling is emerging as a favorable solution for edge data centers as it offers reduced footprint and higher density capabilities. As more organizations look to deploy edge servers, the use of liquid immersion cooling solutions is expected to steadily rise. Another trend includes continuous technological innovation focused on improving the cooling capacity and performance of liquids while simplifying maintenance cycles. Ongoing R&D around developing non-toxic and less corrosive dielectric cooling fluids is also fueling the market growth.
Porter’s Analysis
Threat of new entrants: The barriers for new entrants in the data center liquid immersion cooling market are moderately high. Established players have strong brand recognition and economies of scale.
Bargaining power of buyers: The bargaining power of buyers is high due to the presence of multiple solution providers. Buyers can negotiate on price and demand customized solutions.
Bargaining power of suppliers: Suppliers have low bargaining power due to the availability of substitute components. Switching costs are also low for buyers.
Threat of new substitutes: Alternatives such as air cooling pose a moderate threat. However, liquid immersion cooling offers better efficiency and density, reducing its threat.
Competitive rivalry: The market experiences high competitive rivalry due to the presence of global and regional players offering low-cost products. Players differentiate based on design, performance and support.
Key Takeaways
The Global Data Center Liquid Immersion Cooling Market Demad is expected to witness high growth over the forecast period. North America dominates the market currently due to high technology adoption and the presence of major players. The Asia Pacific region is expected to grow at the fastest pace due to growing data centers and cloud infrastructure.
Regional analysis: The North American region dominates the market currently due to developed economies, favorable government policies for data centers and the presence of key players. The Asia Pacific region is expected to grow at the fastest pace during the forecast period due to increasing investments in data center capacities by hyperscalers and cloud providers in countries like China, India and Japan.
Key players: Key players operating in the data center liquid immersion cooling market are Novo Nordisk A/S, Eli Lilly and Company, Sanofi S.A., Julphar Gulf Pharmaceutical Industries, Biocon Limited, Bioton S.A., Gan & Lee Pharmaceuticals, Ltd., Zhuhai United Laboratories Co., Ltd., Wanbang Biopharmaceuticals Co., Ltd., and Dongbao Enterprise Group Co., Ltd.
