Immersion Cooling for EV Batteries Market Growth Report | 2026-2030

Immersion Cooling for EV Batteries Market Size and Forecasts (2020 - 2030), Global and Regional Share, Trends, and Growth Opportunity Analysis Report Coverage: By Type (Single-Phase Immersion Cooling and Two-Phase Immersion Cooling) and Cooling Fluid Type (Mineral Oil, Synthetic Oil, and Others)

  • Report Code : TIPRE00030054
  • Category : Electronics and Semiconductor
  • Status : Published
  • No. of Pages : 116
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Immersion Cooling for EV Batteries Market Growth Report | 2026-2030

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[Research Report] The immersion cooling for EV batteries market size was valued at US$ 1.23 million in 2022 and is expected to reach US$ 156.90 million by 2030; it is estimated to record a CAGR of 91.1% from 2026 to 2030.

Analyst Perspective:

One of the key factors driving the immersion cooling for EV batteries market in APAC is the rising adoption of EVs in the region. The rise in concerns regarding pollution and preference for environment-friendly modes of transport are a few factors creating demand for EVs in APAC. Further, to raise the adoption of EVs, governments of different countries are developing several policies. The Association of Southeast Asian Nations (ASEAN) developed a favorable policy to encourage EV adoption. According to the International Renewable Energy Agency (IRENA), approximately 20% of vehicles in Southeast Asia will be EVs by 2025, including 59 million two-wheelers and three-wheelers and 8.9 million cars. In addition, India, South Korea, Taiwan, Vietnam, and other APAC countries are constantly working on attracting several businesses that want to relocate their car manufacturing facilities to the abovementioned countries because of low labor costs. Hence, these countries are offering tax rebates, funds, and subsidies, thereby attracting more manufacturing companies to set up their plants. In 2021, the Government of India allocated US$ 450 million for the electrification of public and shared transportation, adopting 7,090 e-buses. Also, in April 2021, the Indonesian government announced its plan for EVs to account for 20% of all domestic cars manufactured, equal to 400,000 e-cars, by 2025. In addition, in March 2023, BYD, a Chinese EV manufacturer, announced that it had started the construction of its new EV manufacturing facility in Thailand, which will be producing 150,000 passenger cars per year from 2024. Thus, the increase in initiatives and supportive regulations by governments for the production of EVs is expected to surge the sale of EVs in the region, which will also raise the demand for immersion cooling batteries as they can help increase the driving range of EVs and keep the batteries safe from thermal runaway. This factor is propelling the immersion cooling for EV batteries market growth in APAC.

Immersion Cooling for EV Batteries Market Overview:

Immersion cooling for electric vehicle batteries might offer a better approach to heat management and enable benefits ranging from extended battery life, faster charging, and safer operation to lighter batteries in EVs and hybrid vehicles. The EV battery generates a high quantity of heat during the charging and discharging. The heat generation rate can range from 20% to 80%, particularly during charging. The performance of an EV’s battery is highly thermally coupled and is raising the need for more efficient thermal management systems, such as immersion cooling for EV batteries. Immersion cooling is a process where battery cells and components are cooled more effectively by submerging them in a dielectric coolant fluid. It also enables cells to be packaged more closely, increasing energy density while removing the extensive coolant channels and cold plates. In comparison to passive air cooling, immersion cooling can improve the heat transfer rate by ~10,000 times. In two-phase immersion cooling systems, the high heat transfer performance is achieved through the latent heat of evaporation of the dielectric fluid’s liquid-to-gas phase transition and the resulting turbulent dual-phase fluid flow. Two-phase immersion cooling systems require added mechanical complexity and have concerns pertaining to the safety levels of fluids used. However, single-phase immersion cooling systems can offer up to 1,000 times better heat transfer than air-cooled systems; they also have a simpler build. These systems are yet to be commercially available on a large scale. Most of these systems are still in the research phase, which, once commercialized, is expected to witness fast adoption rates.

The immersion cooling for EV batteries market is mostly consolidated, with very few players present in the market. Market players are expanding their business by partnering with various automotive manufacturers and coolant fluid providers. For instance, in July 2023, TotalEnergies announced that they had incorporated an immersion-cooled battery into a Volvo XC90 plug-in hybrid. Thus, such developments by the companies are expected to fuel the growth of the immersion cooling for EV batteries market during the forecast period. As the demand for high-capacity batteries is increasing in EVs in order to expand the driving range of vehicles, the need for efficient thermal management solutions such as immersion cooling is also anticipated to witness higher demand across the globe. This is mainly because the immersion cooling process helps to manage increased heat from high-speed charging, thus preventing the propagation of thermal runaway. Furthermore, as immersion cooling can help extend the life of battery packs, the need to incorporate the system in road-going vehicles is increasing tremendously.

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Immersion Cooling for EV Batteries Market: Strategic Insights

Immersion Cooling for EV Batteries Market

  • CAGR (2022 - 2030)
    91.1%
  • Market Size 2022
    US$ 1.23 Million
  • Market Size 2030
    US$ 156.90 Million

Market Dynamics

GROWTH DRIVERS
  • Increase in Demand for High- Capacity Batteries to Extend EV Driving Range
  • Growing Demand for Electric Vehicles
FUTURE TRENDS
  • Growing Incorporation of Immersion- cooled Battery into Road-Going Vehicles
OPPORTUNITIES
  • Advantages of Immersion Cooling

Key Players

  • Ricardo Plc
  • Mahle GmbH
  • EXOES SAS
  • XING Mobility Inc
  • The Lubrizol Corp
  • SAE International
  • Rimac Technology Ltd
  • Cargill Inc
  • Engineered Fluids Inc

Regional Overview

  • North America
  • Europe
  • Asia-Pacific
  • South and Central America
  • Middle East and Africa

Market Segmentation

Type
  • Single-Phase Immersion Cooling and Two-Phase Immersion Cooling
Cooling Fluid Type
  • Mineral Oil
  • Synthetic Oil
  • Others
  • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.

Immersion Cooling for EV Batteries Market Driver:

Increase in Demand for High-Capacity Batteries to Extend EV Driving Range to Fuel Immersion Cooling for EV Batteries Market Growth During Forecast Period

With the surging adoption of electric vehicles (EVs), the demand for high-capacity EV batteries is increasing worldwide. To cater to this demand, the original equipment manufacturers (OEMs) are continually working on the improvement of EV batteries, with an aim to achieve high energy density and rapid charging rates. For instance, in March 2023, researchers from POSTECH and Sogang University announced that they had developed a functional polymeric binder for stable, high-capacity anode material, which can help to increase the current EV range by at least 10-fold. In this product, the researchers have replaced graphite with Si anode and combined it with layering-charged polymers while maintaining stability and reliability. Also, in November 2021, General Motors (GM) announced that they are moving from lithium-ion to the new lithium-metal technology as its next-generation battery pack. The company partnered with SolidEnergy Systems (SES) to develop a new battery platform. This new lithium-metal chemistry offered greater energy density, providing smaller and lighter battery packs and significantly greater range. The predicted range on a single charge is expected to be from 500 to 600 miles, i.e., an 80% charge, which will take less than 15 minutes. However, the development of high-capacity batteries for EVs can cause thermal runaway, which can result in extremely high temperatures; ejection of harmful gaseous, liquid, or solid products; and smoke and fire explosion. Such overheating of the batteries can lead to their degradation, further limiting power availability and reducing usable capacity. To cater to the above challenges, the need for immersion cooling is increasing in the market, where highly specialized dielectric heat transfer fluid is used to submerge the entire battery pack. The fluid can help in effectively managing the increased heat from high-speed charging while also preventing the propagation of thermal runaway. Also, the immersion cooling technique can help enhance heat transfer and offer a more uniform cooling effect across the entire battery pack, further expanding the capacity of the battery. Thus, the growing demand for high-capacity batteries to increase EV driving range is fueling the growth of the immersion cooling for EV batteries market.

Immersion Cooling for EV Batteries Market Segmental Analysis:

The immersion cooling for EV batteries market is bifurcated on the basis of type and cooling fluid type. Based on type, the immersion cooling for EV batteries market is divided into single-phase immersion cooling and two-phase immersion cooling. The single-phase immersion cooling segment held a larger immersion cooling for EV batteries market share in 2022 and is anticipated to register a higher CAGR in the immersion cooling for EV batteries market during the forecast period. Based on cooling fluid type, the immersion cooling for EV batteries market is segmented into mineral oil, synthetic oil, and others. The synthetic oil segment held the largest immersion cooling for EV batteries market share in 2022 and is also anticipated to register the highest CAGR in the immersion cooling for EV batteries market during the forecast period.

The single-phase immersion cooling technique is also known as in-direct liquid immersion cooling of the battery. The fluid remains in a liquid state during the entire cooling technique. In this process, the equipment is immersed in a thermally conductive dielectric liquid that typically consists of synthetic hydrocarbon. The available coolant can be used to dissipate heat from the battery pack of EVs. The single-phase immersion cooling technique does not require a complex cooling infrastructure, which reduces the additional infrastructure cost by increasing their adoption among EV battery users. Moreover, single-phase immersion cooling can directly contact all device components for cooling technique without causing cell thermal runaway. The increasing adoption of electric vehicles among consumers across the globe increases the adoption of immersion cooling for EV batteries.

Immersion Cooling for EV Batteries Market Regional Analysis:

The North America immersion cooling for EV batteries market size was valued at US$ 0.48 million in 2022 and is projected to reach US$ 61.10 million by 2030; it is expected to record a CAGR of 89.9% from 2022 to 2030. The expected rise in the adoption of immersion cooling for EV batteries in this region can be credited to the growing EV sales and production in the region. The North America immersion cooling for EV batteries market is bifurcated into the US and the Rest of North America. The US held the largest share of the market in 2022. Increasing adoption of EVs in the US will raise the need for efficient cooling systems such as immersion cooling, fueling the market growth. The automotive sector in the US is witnessing tremendous growth due to the increasing capital growth and rising exports of automobiles. The government of the US announced several investment plans for electric vehicles (EVs) to support the plan of net-zero emissions by 2050. In February 2023, under the Bipartisan Infrastructure Law, the government of the US announced an investment of US$ 7.5 billion in EV charging; US$ 10 billion in clean transportation; and over US$ 7 billion in EV battery components, materials, and critical minerals. Such government initiatives are boosting the adoption of EVs in the country.

Immersion Cooling for EV Batteries Market Key Player Analysis:

The immersion cooling for EV batteries market consists of players such as Ricardo Plc, Mahle GmbH, Exoes SAS, Xing Mobility Inc, The Lubrizol Corp, SAE International, Rimac Technology Ltd, Cargill Inc, Engineered Fluids Inc, and M&I Materials Ltd. Several other major companies have been analyzed during this research study to get a holistic view of the immersion cooling for EV batteries market ecosystem.

Immersion Cooling for EV Batteries Market Report Scope

Report Attribute Details
Market size in 2022 US$ 1.23 Million
Market Size by 2030 US$ 156.90 Million
Global CAGR (2022 - 2030) 91.1%
Historical Data 2020-2021
Forecast period 2023-2030
Segments Covered By Type
  • Single-Phase Immersion Cooling and Two-Phase Immersion Cooling
By Cooling Fluid Type
  • Mineral Oil
  • Synthetic Oil
  • Others
Regions and Countries Covered North America
  • US
  • Canada
  • Mexico
Europe
  • UK
  • Germany
  • France
  • Russia
  • Italy
  • Rest of Europe
Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
South and Central America
  • Brazil
  • Argentina
  • Rest of South and Central America
Middle East and Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of Middle East and Africa
Market leaders and key company profiles
  • Ricardo Plc
  • Mahle GmbH
  • EXOES SAS
  • XING Mobility Inc
  • The Lubrizol Corp
  • SAE International
  • Rimac Technology Ltd
  • Cargill Inc
  • Engineered Fluids Inc
    • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.

    Recent Developments: 

    The immersion cooling for EV batteries market players highly adopt inorganic and organic strategies. A few recent key immersion cooling for EV batteries market developments are listed below:

    • In September 2023, XING Mobility Inc announced the official release of IMMERSIO Cell-to-Pack (CTP) product at the IAA Mobility show in Munich, Germany. The product is an innovative battery pack featuring high energy density and exceptional heat dissipation with safety features added to it. The solution offers a top-notch energy density of up to 200 watt-hour per kilogram (Wh/kg) and a fast charge capability of less than 15 minutes, ranging from 20% to 80% SoC (State of Charge). IMMERSIO Cell-to-Pack (CTP) is developed to meet the customized needs of various applications such as sedans, SUVs, commercial cars, trucks, and sports cars.
    • In September 2021, MAHLE GmbH, a specialist in the thermal management of electric vehicles, announced the development of a completely new cooling system for batteries. The new system relies on immersion cooling, wherein the cells are submerged in an electrically nonconductive coolant. The coolant ensures that the maximum temperature of the battery drops significantly during charging, along with a homogenous distribution of the overall temperature. The company expects immersion cooling to shorten the charging times in electric cars considerably and also pave the way for smaller, resource-efficient batteries.
    Report Coverage
    Report Coverage

    Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

    Segment Covered
    Segment Covered

    Type, and Cooling Fluid Type

    Regional Scope
    Regional Scope

    North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

    Country Scope
    Country Scope

    This text is related
    to country scope.

    Frequently Asked Questions


    What are the driving factors impacting the immersion cooling for EV batteries market?

    1. Increase in Demand for High-Capacity Batteries to Extend EV Driving Range
    2. Growing Demand for Electric Vehicles

    What is the future trend in the immersion cooling for EV batteries market?

    Growing Incorporation of Immersion-cooled Battery into Road-Going Vehicles

    Which country is holding the major market share of immersion cooling for EV batteries market?

    The US is expected to hold a major market share of immersion cooling for EV batteries market in 2022.

    What is the estimated global market size for the immersion cooling for EV batteries market in 2022?

    The estimated global market size for the immersion cooling for EV batteries market in 2022 is expected to be around US$ 1.23 million

    Which are the key players holding the major market share of immersion cooling for EV batteries market?

    Ricardo, Exoes, Xing Mobility, Rimac, and Kreisel are the key market players expected to hold a major market share of immersion cooling for EV batteries market in 2022.

    Which countries are registering a high growth rate during the forecast period?

    India, China, and South Korea are expected to register high growth rate during the forecast period

    Which is the fastest growing regional market?

    Asia Pacific is expected to register highest CAGR in the immersion cooling for EV batteries market during the forecast period.

    Which is the leading type segment in the immersion cooling for EV batteries market?

    Single-phase immersion cooling segment is expected to hold a major market share of immersion cooling for EV batteries market in 2022.

    What is the incremental growth of the immersion cooling for EV batteries market during the forecast period?

    The immersion cooling for EV batteries market is expected to register an incremental growth value of US$ 155.68 million during the forecast period.

    What will be the global market size of immersion cooling for EV batteries market by 2030?

    The global market size of immersion cooling for EV batteries market by 2030 will be around US$ 156.90 million

    The List of Companies - Immersion Cooling for EV Batteries Market

    1. Ricardo Plc
    2. Mahle GmbH
    3. EXOES SAS
    4. XING Mobility Inc
    5. The Lubrizol Corp
    6. SAE International
    7. Rimac Technology Ltd
    8. Cargill Inc
    9. Engineered Fluids Inc
    10. M&I Materials Ltd

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