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The immersion cooling for EV batteries market size is projected to reach US$ 278.45 million by 2031 from US$ 2.1 million in 2023. The market is expected to register a CAGR of 88.3% during 2026–2031. The growing incorporation of immersion-cooled batteries into road-going vehicles is likely to bring in new trends in the market.
Immersion Cooling for EV Batteries Market Analysis
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; also, they have a simpler build.
Immersion Cooling for EV Batteries Market Overview
As the demand for high-capacity batteries increases in EVs to expand the driving range of vehicles, the need for efficient thermal management solutions such as immersion cooling will also propel across the world. This is mainly because the immersion cooling process helps 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. To cater to this demand, various companies are working on the integration of technologies with EVs. 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 immersion cooling for EV batteries market growth during the forecast period.
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Immersion Cooling for EV Batteries Market: Strategic Insights
Market Size Value in US$ 1.23 million in 2022 Market Size Value by US$ 156.90 million by 2030 Growth rate CAGR of 91.1% from 2026 to 2030 Forecast Period 2022-2030 Base Year 2022
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Immersion Cooling for EV Batteries Market: Strategic Insights
| Market Size Value in | US$ 1.23 million in 2022 |
| Market Size Value by | US$ 156.90 million by 2030 |
| Growth rate | CAGR of 91.1% from 2026 to 2030 |
| Forecast Period | 2022-2030 |
| Base Year | 2022 |
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Immersion Cooling for EV Batteries Market Drivers and Opportunities
Growing Demand for Electric Vehicles
Electric vehicle sales are proliferating due to concerns regarding environmental protection and government policies favoring the adoption of low-emission or zero-emission vehicles. Also, governments of different countries are offering subsidies and tax rebates to citizens to increase the adoption of EVs. The government authorities are taking various initiatives to promote EVs globally. Several US states are taking initiatives by providing financial incentives, including rebates, tax credits, and registration fee reductions, thereby promoting EV adoption in the country. For instance, in 2021, the government of Colorado offered a tax credit of US$ 4,000 on the purchase of a light-duty EV. Similarly, the government of Connecticut accepts a reduced biyearly vehicle registration fee of US$ 38 for EVs. In August 2023, the Indian government reduced the electric vehicle subsidy per unit to 15% of the ex-factory price from 40% for e-2Ws under the FAME India Scheme Phase-II to increase the penetration of the EV market. Such government initiatives are propelling the demand for EVs, which has led to an increase in EV sales worldwide. According to IEA’s annual Global Electric Vehicle Outlook in 2024, almost 14 million new electric cars were registered globally in 2023. Electric vehicle sales in 2023 were 3.5 million higher than in 2022, representing a 35% year-on-year increase. This is more than six times higher than in 2018. Electric vehicles accounted for approximately 18% of all cars sold in 2023, up from 14% in 2022. In China, the number of new electric car registrations touched 8.1 million in 2023, increasing by 35% relative to 2022. Thus, the growing sales of EVs are boosting the need for batteries that remain cool to function at peak performance throughout the vehicle's life. This factor is driving the growth of the immersion cooling for EV batteries market.
Challenges Associated with Immersion Cooling
Battery thermal management is a critical component of an electric vehicle operation. Batteries need to be kept cool when under load from charging and driving or warm during cold ambient conditions. To create such favorable environments, the air-cooling process was mostly used in EVs, but even with this cooling process, batteries were failing to perform at their full potential. This challenge occurs because air cooling is limited and only effective in an environment where the temperature ranges from 20°C to 40°C. Thus, EV manufacturing companies have moved from air cooling to immersion cooling for EV batteries. However, in the current scenario, companies face various challenges in incorporating immersion cooling techniques. The initial concern regarding immersion cooling techniques is the weight of the fluids, equipped with heavy hydrofluoroether products with densities above 1.5g/cm3, thereby boosting the overall weight of the battery pack. Furthermore, the dielectric fluids used in this process offer lower thermal conductivity and specific heat capacity than water-glycol. This creates the need for a higher fluid flow rate coupled with fluids that are more viscous than water and have different chemical compatibility, simultaneously generating the demand for fluid pumps and coolant hoses/seals. Also, most of the battery modules are not designed to contain fluid, which led to the redesigning of the modules to avoid leakage and ensure no corrosion occurs. Such processes can increase the overall cost of the battery. Thus, a growing number of challenges associated with immersion cooling are hampering the growth of the immersion cooling for EV batteries market.
Immersion Cooling for EV Batteries Market Report Segmentation Analysis
Key segments that contributed to the derivation of the immersion cooling for EV batteries market analysis are type, cooling fluid type, and vehicle 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 market share in 2023.
- By cooling fluid type, the market is segmented into mineral oil, fluorocarbon-based fluid, synthetic oil, and others. The synthetic oil segment held the largest market share in 2023.
- In terms of vehicle type, the market is segmented into passenger vehicles, light commercial vehicles, and heavy commercial vehicles. The passenger vehicles segment dominated the market in 2023.
Immersion Cooling for EV Batteries Market Share Analysis by Geography
The geographic scope of the immersion cooling for EV batteries market report is mainly divided into five regions: North America, Asia Pacific, Europe, and the Rest of World.
North America held a significant market share in 2023. 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. According to the report by Cox Automotive in October 2024, an estimated 3,463,091 EVs were sold in Q3 2024, representing a 5% increase over Q2. The EV share of sales in Q3 reached 8.9%, the highest ever recorded and up from 7.8% in Q3 2023. Tesla is one of the largest sellers of EVs in the US, selling more than 16,000 Cybertrucks. Also, as per Alliance for Automotive Innovation, EV sales increased from about 300,000 in Q1 2023 to 375,000 in Q3 2023. This increase in EV sales and production is accelerating the demand for EV battery manufacturing in the region. For this, various automotive manufacturers are also continuously investing in the manufacturing of batteries and EVs. In October 2022, Energy Storage Firm ONE announced the investment of US$ 1.6 billion in EV battery manufacturing in Michigan, US. This new factory, ONE Circle, is expected to be operational by the end of 2027. It is expected that the factory will achieve a 45% reduction in carbon emissions by 2028 through a circular manufacturing approach. Such focus on producing EVs and EV batteries is expected to create opportunities for companies to develop more efficient immersion cooling batteries.
Immersion Cooling for EV Batteries Market Report Scope
Immersion Cooling for EV Batteries Market News and Recent Developments
The immersion cooling for EV batteries market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the immersion cooling for EV batteries market are listed below:
- Koenigsegg Regera is a hybrid hypercar with numerous specificities, such as 3D-printed parts. The battery pack used in Koenigsegg Regera is developed by RIMAC, containing 4.5 kWh battery pack made of 6 modules with 64 cells (384 cells). It has no gearbox (Koenigsegg Direct Drive) and combines a powerful 5L twin-turbo V8 with 3 electric motors, giving a power output of 1,500 hp. (Source: Rimac Technology Ltd, Press Release, February 2024)
- 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 Wh/kg and a fast charge capability of less than 15 minutes, i.e., from 20% to 80% SoC (State of Charge). MMERSIO Cell-to-Pack (CTP) is developed to meet the customized needs of various applications such as sedans, SUVs, commercial cars, trucks, and sports cars. (Source: XING Mobility Inc, Press Release, September 2023)
Immersion Cooling for EV Batteries Market Report Coverage and Deliverables
The "Immersion Cooling for EV Batteries Market Size and Forecast (2021–2031)" report provides a detailed analysis of the market covering below areas:
- Immersion cooling for EV batteries market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Immersion cooling for EV batteries market trends, as well as market dynamics such as drivers, restraints, and key opportunities
- Detailed PEST and SWOT analysis
- Immersion cooling for EV batteries market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the immersion cooling for EV batteries market
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Type, and Cooling Fluid Type
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
This text is related
to country scope.
Frequently Asked Questions
The immersion cooling for EV batteries market is expected to reach US$ 278.45 million by 2031.
The incremental growth expected to be recorded for the immersion cooling for EV batteries market during the forecast period is US$ 276.35 million.
Increase in demand for high-capacity batteries to extend EV driving range and growing demand for electric vehicles are the major factors that propel the immersion cooling for EV batteries market.
Growing incorporation of immersion-cooled battery into road-going vehicles is anticipated to play a significant role in the immersion cooling for EV batteries market in the coming years.
The key players holding majority shares in the immersion cooling for EV batteries market are Ricardo, Exoes, Xing Mobility, Rimac, and Shell.
The immersion cooling for EV batteries market was estimated to be US$ 2.10 million in 2023 and is expected to grow at a CAGR of 88.3 % during the forecast period 2026 – 2031.
The List of Companies - Immersion Cooling for EV Batteries Market
- Ricardo Plc
- Mahle GmbH
- EXOES SAS
- XING Mobility Inc
- The Lubrizol Corp
- Rimac Technology Ltd
- Cargill, Incorporated
- Engineered Fluids Inc
- GS Caltex Corporation
- Shell Plc
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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