The market for immersion cooling systems designed for electric vehicle (EV) batteries was valued at approximately US$ 1.23 million in 2022 and is projected to grow significantly, reaching around US$ 156.90 million by 2030. This growth translates to an impressive compound annual growth rate (CAGR) of 91.1% from 2026 to 2030.
The single-phase immersion cooling method stands out due to its simplicity, as it does not necessitate a complicated cooling infrastructure. This characteristic helps to lower the overall infrastructure costs, making it more appealing to users of EV batteries. This cooling technique allows direct contact with all components of the device, effectively managing heat without triggering thermal runaway in the cells. The rising popularity of electric vehicles globally is driving the demand for immersion cooling solutions for EV batteries. As consumers increasingly opt for electric cars, there is a growing need for high-performance batteries that can sustain longer ranges. To meet this demand, manufacturers are compelled to enhance battery density and range, which in turn necessitates efficient cooling and rapid charging systems. The single-phase immersion cooling technique offers significant advantages, such as reducing the likelihood of electronic failures and minimizing shock risks, which are crucial for market expansion. The shift in user preference towards this cooling method is largely due to its straightforward design, cost-effectiveness, low maintenance requirements, and facilitation of efficient cooling operations. These elements are expected to drive the demand for single-phase immersion cooling solutions among EV battery users throughout the forecast period.
In Europe, the immersion cooling market for EV batteries is divided into several key countries, including Germany, France, Spain, the UK, Italy, and other regions. The automotive industry is a major force propelling market growth in this area, accounting for over 7% of the region's GDP. Europe is home to numerous established automotive manufacturers who are actively enhancing the production and sales of electric vehicles. According to the European Automobile Manufacturers Association (ACEA), there was a notable 31.6% increase in new battery electric vehicle registrations in the fourth quarter of 2022, totaling 406,890 units sold. Germany led the way with 198,293 units, followed by France with 62,155 units, and Sweden with 37,013 units.
Governments across Europe are implementing various initiatives to promote the adoption of electric vehicles. For example, in 2020, the UK government allocated US$ 57.87 million to support several low-carbon automotive projects, including those focused on electric vehicle manufacturing. Additionally, in July 2021, the European Commission proposed a revised Regulation (EU) 2019/631 aimed at reducing carbon emissions from cars and vans to meet climate objectives set for 2030 and 2050. Such supportive governmental policies are expected to enhance the uptake of electric vehicles in the region, which will, in turn, increase the demand for high-capacity EV batteries and necessitate efficient cooling solutions, thereby fostering the growth of the immersion cooling market for EV batteries in Europe. Furthermore, various companies are aligning their efforts with these governmental initiatives to boost EV production in the region. For instance, in March 2022, Ford announced plans to launch three new passenger EV models and four commercial EVs in Europe by 2024, with a target of selling over 600,000 EVs in the region by 2026. This surge in initiatives from leading industry players regarding EV production and development is expected to significantly drive the immersion cooling market for EV batteries in Europe in the upcoming years.
Key players in the immersion cooling market for EV batteries include 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. Numerous other companies are also introducing innovative products to enhance the growth of the immersion cooling market for EV batteries. A comprehensive analysis of several major companies has been conducted in this research study to provide a well-rounded perspective on the immersion cooling market ecosystem for EV batteries. The report on immersion cooling for EV batteries offers in-depth market insights, enabling key stakeholders to formulate effective growth strategies.