Immersion Cooling for EV Batteries Market in terms of revenue was estimated to be worth $1.23 Million in 2022 and is poised to reach $156.90 Million by 2030, growing at a CAGR of 91.1% from 2022 to 2030 according to a new report published by The Insight Partners.The growing sales of EVs are boosting the need for batteries that remain cool to function at peak performance throughout the vehicle’s life. This factor is driving the growth of the immersion cooling for EV batteries.
Growth During Forecast Period:
The government authorities are taking various initiatives to promote EVs globally. Several US states are taking initiatives by providing financial incentives, including rebates, tax credits, and registration fee reductions, thereby promoting EV adoption in the country. For instance, in 2021, the government of Colorado offered a tax credit of US$ 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.
Such government initiatives are increasing the demand for EVs, which has led to an increase in EV sales worldwide. According to IEA’s annual Global Electric Vehicle Outlook, in 2022, more than 10 million electric cars were sold worldwide, which is expected to grow by 35% in 2023 to reach 14 million units. This shows that the electric cars’ share of the overall car market has risen to 14% in 2022 from ~4% in 2020 and is projected to reach 18% in 2023. Overall, in 2022, 60% of global electric car sales occurred in China. Per the World Economic Forum, sales of new EVs increased by 82% in 2022 in China, from 3.39 million in 2021 to 6.18 million in 2022. Also, China is the world’s largest EV producer, producing 64% of global EV volume. In addition, Europe and the US witnessed significant sales growth, increasing by 15% and 55%, respectively, in 2022 compared to 2021.
Thus,Immersion Cooling for EV Batteries Market:
Segment OverviewThe 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 the largest immersion cooling for EV batteries market share in 2022 and is anticipated to register the highest 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.
By region, the immersion cooling for EV batteries is segmented into North America, Europe, Asia Pacific, and the Rest of the World.In 2022, North America held the largest global immersion cooling for EV batteries share, followed by Europe and APAC. The Europe immersion cooling for EV batteries market is segmented into Germany, France, Spain, the UK, Italy, and the Rest of Europe. The expanding automotive sector is driving the market in this region. It is one of Europe’s largest sectors, representing over 7% of the region’s GDP. The region consists of various established car manufacturers continuously working on increasing the production and sales of electric vehicles. According to the European Automobile Manufacturers Association (ACEA), in Q4 of 2022, the region witnessed an increase in the registrations of new battery electric cars by 31.6%, selling 406,890 total units.
Out of this, Germany registered 198,293 units of BEVs. France registered 62,155 units, and Sweden registered 37,013 unit sales. Governments of countries in the region are taking various initiatives for the adoption of EVs in the region.For instance, in 2020, the government of the UK awarded US$ 57.87 million for various low-carbon automotive projects, including electric vehicle manufacturing. Also, in July 2021, the European Commission proposed a revised Regulation (EU) 2019/631 to reduce carbon emissions by cars and vans to achieve its 2030 and 2050 climate objectives. Such supportive government policies for reducing carbon emissions are expected to increase the adoption of EVs in the region in the coming years.
This will propel the demand for high-capacity EV batteries, thereby raising the need for efficient battery cooling solutions and bolstering the growth of the immersion cooling for EV batteries market in Europe. Further, to support these government initiatives, various companies in the market are working on increasing EV production in the region. In March 2022, Ford planned to introduce three new passenger EVs and four new commercial EVs in Europe by 2024. The company also announced its plans to sell more than 600,000 EVs in the region by 2026. Thus, the increase in initiatives from leading players regarding EV production and development is anticipated to fuel the immersion cooling for EV batteries market in Europe in the coming years.
