Data Center Liquid Immersion Cooling Market Evaluation of Recent Developments, Size & Trends For 2018-2026

Data center liquid immersion cooling market is expected to exhibit CAGR of 37% in the forecast period. Increasing demand for data centers to store large volume of data is one of the key driving factors for growth of the market. Increasing number of companies are investing in data centers to store their data. Data center immersion cooling system includes direct immersing IT hardware in a non-conductive liquid. The heat produced by electronic components directly transferred to the fluid, which reduced the demand for active cooling components such as fans, heat sinks, interface materials.

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Global data center liquid immersion cooling market is projected to exhibit a CAGR of 37% in the forecast period (2018-2025). Increasing number of hyper scale data centers is one of the major driving factors for growth of the data center liquid immersion cooling market. According to Coherent Market Insights, in 2016, there were 338 hyper scale data centers up from 259 in 2015 and is projected to reach 628 hyper scale data centers by 2021. In addition to this, hyper scale data centers accounted for 39% of the total data center traffic in 2016 and is projected to reach 55% by 2021.

Liquid cooling segment is expected to exhibit the highest CAGR over the forecast period, owing to integration of advanced engineered coolants. The liquid cooling solutions provide cooling with low carbon footprint, which is propelling demand for direct liquid cooling solution in the data center liquid immersion cooling market. Furthermore, advantages offered by these system such as efficient cooling for high performance computing is also expected to drive market growth.

Data center liquid immersion cooling market in Asia Pacific is projected to exhibit the highest CAGR over the forecast period. Increasing adoption of cloud computing technology in emerging economies such as China, India, and Japan have accelerated demand for data centers in Asia Pacific, which is expected to favor market growth. According to Coherent Market Insights, an estimated cloud traffic in Asia Pacific region is projected to exhibit a CAGR of 30.7% over the forecast period (2016 - 2017).

North America region held the dominant position in the global market in 2017 and is projected to retain its dominance throughout the forecast period. The U.S. and Canada are the major growth engines in this region. High presence of hyper scale data centers in North America is a major driving factor for growth of this market. According to Coherent Market Insights, it is estimated that North America accounts for 48% of the total hyper scale data centers in 2016, globally. In addition to this, trend of early adoption of advanced technology is also expected to aid in growth of the data center liquid immersion cooling market.

Major players operating in the global data centre liquid immersion cooling market include Alfalava, Asetek, CoolIT Systems, Green Data Center LLP, Green Revolution Cooling Inc., Horizon Computing Solutions, IBM Corporation, Midas Green Technologies, LLC, Rittal GmbH & Co. Kg., and Schneider Electric SE. Acquisitions, mergers, collaborations, and new product launches are some of the strategies adopted by key players to increase their market share.

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Collaboration is one of the key strategies of organizations to increase their market share. For instance, in 2017, CoolIT Systems, Inc.—a Canada-based energy efficient liquid cooling solutions providing company— announced collaboration with Dell EMC—a U.S.-based company. The company announced to provide factory installed direct contact liquid cooling solution for HPC, Cloud and Enterprise markets to solve power or cooling challenges to a wide range of customers, especially in verticals such as high performance computing and high frequency trading.

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