The surge in electric vehicle (EV) sales, driven by environmental concerns and supportive government policies favoring low or zero-emission vehicles, has propelled the Immersion Cooling for EV Batteries Market. In 2022, the market revenue was estimated at $1.23 million and is anticipated to reach $156.90 million by 2030, with a remarkable CAGR of 91.1% from 2022 to 2030, as per a recent report from The Insight Partners.
Governments worldwide are incentivizing citizens through subsidies and tax rebates to promote the adoption of EVs. As the demand for EVs grows, there is a heightened necessity for batteries that can maintain optimal temperatures for peak performance throughout the vehicle’s lifespan. This need is a key driver behind the significant growth in the immersion cooling for EV batteries market.
The Immersion Cooling for EV Batteries Market is set to experience substantial growth during the forecast period, driven by the rapid adoption of Electric Vehicles (EVs) worldwide. Government authorities globally are taking proactive measures to encourage EV usage. In the United States, numerous states are offering financial incentives such as rebates, tax credits, and reduced registration fees, bolstering EV adoption. For instance, in 2021, Colorado’s government provided a $4,000 tax credit for light-duty EV purchases, and Connecticut reduced biyearly vehicle registration fees to $38 for EVs. These initiatives have stimulated a surge in EV demand, resulting in a significant rise in global EV sales.
According to the International Energy Agency’s Global Electric Vehicle Outlook, more than 10 million electric cars were sold globally in 2022, a figure expected to increase by 35% in 2023, reaching 14 million units. This growth signifies a substantial increase in the electric cars’ market share, rising from approximately 4% in 2020 to 14% in 2022 and projected to reach 18% in 2023. Notably, China dominated the global electric car market, accounting for 60% of sales in 2022. China experienced an 82% surge in new EV sales from 3.39 million in 2021 to 6.18 million in 2022, solidifying its position as the world’s largest EV producer, responsible for 64% of the global EV volume. Europe and the US also witnessed significant growth, with sales increasing by 15% and 55% respectively in 2022 compared to the previous year. These trends highlight the robust momentum driving the Immersion Cooling for EV Batteries Market.
Overview of Immersion Cooling for EV Batteries Market Segments:
The Immersion Cooling for EV Batteries Market is categorized based on type and cooling fluid type. Regarding type, it is segmented into single-phase immersion cooling and two-phase immersion cooling. In 2022, the single-phase immersion cooling segment dominated the market share and is projected to exhibit the highest Compound Annual Growth Rate (CAGR) throughout the forecast period. Concerning cooling fluid type, the market is divided into mineral oil, synthetic oil, and other fluids. The synthetic oil segment, leading the market share in 2022, is expected to maintain the highest CAGR during the forecast period. Geographically, the market is segmented into North America, Europe, Asia Pacific, and the Rest of the World.
Market Trends in Europe:
North America held the largest share of the global immersion cooling for EV batteries market in 2022, followed by Europe and the Asia Pacific region. Europe’s market includes key countries such as Germany, France, Spain, the UK, Italy, and others. The automotive sector in Europe, representing over 7% of the region’s GDP, is a significant driving force. Established car manufacturers are continuously ramping up electric vehicle production and sales. Notably, in Q4 2022, the region saw a 31.6% increase in new battery electric car registrations, totaling 406,890 units. Germany alone registered 198,293 battery electric vehicles, showcasing substantial growth.
Supportive government policies are pivotal in this momentum. For instance, the UK government allocated US$ 57.87 million in 2020 for low-carbon automotive projects, including electric vehicle manufacturing. Additionally, the European Commission proposed a revised regulation in July 2021 to reduce car and van carbon emissions, aligning with their 2030 and 2050 climate objectives. These policies are expected to boost EV adoption, consequently driving demand for high-capacity EV batteries and efficient battery cooling solutions.
Leading companies are aligning their efforts with these initiatives. Ford, for instance, announced plans in March 2022 to introduce three new passenger EVs and four commercial EVs in Europe by 2024. Their goal is to sell over 600,000 EVs in the region by 2026, indicating a significant push toward electric mobility. These collective efforts are anticipated to propel the Immersion Cooling for EV Batteries Market in Europe in the coming years.
Competitive Landscape and Key Developments in the Immersion Cooling for EV Batteries Market:
In the dynamic realm of immersion cooling for EV batteries, prominent 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 are driving innovation and market growth. Alongside these key stakeholders, numerous companies are introducing novel products, enhancing the market’s proliferation. A comprehensive research study has also analyzed several other major players, providing a holistic understanding of the immersion cooling for EV batteries market ecosystem.
1. XING Mobility Inc (September 2023): XING Mobility Inc made headlines by unveiling its innovative IMMERSIO Cell-to-Pack (CTP) product at the IAA Mobility show in Munich, Germany. This revolutionary battery pack boasts exceptional features, including high energy density and superior heat dissipation. The IMMERSIO CTP offers an impressive energy density of up to 200 watt-hour per kilogram (Wh/kg) and remarkable fast-charging capability, charging from 20% to 80% State of Charge (SoC) in less than 15 minutes. Designed to cater to diverse applications like sedans, SUVs, commercial cars, trucks, and sports cars, this product signifies a significant leap in EV battery technology.
2. MAHLE GmbH (September 2021): MAHLE GmbH, a leader in electric vehicle thermal management, introduced a groundbreaking battery cooling system based on immersion cooling. In this innovative approach, cells are submerged in an electrically nonconductive coolant. This immersion technique ensures a substantial reduction in the battery’s maximum temperature during charging and maintains a uniform temperature distribution. The implementation of immersion cooling is anticipated to significantly shorten charging times for electric vehicles while enabling the development of smaller, resource-efficient batteries.
These advancements underscore the industry’s commitment to pushing boundaries, offering more efficient, powerful, and environmentally friendly solutions, thereby shaping the future of electric vehicle technology.