Immersion Cooling for EV Batteries Market Strategies, Top Players, Growth Opportunities, Analysis and Forecast by 2031

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

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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 Regional Insights

The regional trends and factors influencing the Immersion Cooling for EV Batteries Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Immersion Cooling for EV Batteries Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Immersion Cooling for EV Batteries Market Report Scope

Immersion Cooling for EV Batteries Market Players Density: Understanding Its Impact on Business Dynamics

The Immersion Cooling for EV Batteries Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Immersion Cooling for EV Batteries Market are:

1. Ricardo Plc
2. Mahle GmbH
3. Exoes SAS
4. Xing Mobility Inc
5. The Lubrizol Corp
6. Rimac Technology Ltd

Disclaimer: The companies listed above are not ranked in any particular order.

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