At 87.9% CAGR, Europe Immersion Cooling for EV Batteries Market is Projected to be Worth US$ 1,11,474.78 Thousand by 2031 says Business Market Insights

According to Business Market Insights’ research, the Europe Immersion Cooling for EV batteries market was valued at US$ 866.48 Thousand in 2023 and is expected to reach US$ 1,11,474.78 Thousand by 2031, registering a CAGR of 87.9% from 2026 to 2031. Advantages of immersion cooling and growing incorporation of immersion-cooled battery into road-going vehicles are among the critical factors attributed to drive the Europe immersion cooling for EV batteries market.

The demand for reliable EVs is continuously increasing across the globe. EVs are witnessing increasing momentum as companies and governments worldwide are taking various initiatives to promote fossil fuel-free transportation. To achieve this goal, the batteries need to become more powerful, which creates the need for more intense cooling regimes. As a result, various market players are working on incorporating immersion cooling to enhance their EV battery systems. In immersion cooling, a battery is submerged in dielectric fluid, which enables a more direct cooling approach than a water-glycol system. As fluid surrounds the battery cells directly, the cooling process occurs rapidly. If a battery fire occurs, the immersion cooling technique immediately helps to prevent the spread of heat in the entire battery pack, thus stopping other cells from going into thermal runaway. The technique also helps prevent battery degradation due to unexpected cell aging by quickly cooling the cells, thereby reducing the thermal runaway chances through effective heat dissipation. Also, this dielectric fluid helps prevent heat from propagating to adjacent cells, avoiding a cascade effect spreading within the entire battery pack. Furthermore, the immersion cooling technique helps to address leak protection, preventing electrical shorts even if a fluid leak occurs due to damage. It also facilitates high-speed charging. Also, immersion cooling can help extend the life of battery packs by 8% compared to a water-glycol system. In addition, it can be more effective in controlling peak and average temperatures. It can reduce peak battery temperature by 5% compared to water-based systems and promote more uniform temperatures throughout the pack.

The market players are also launching whitepapers, which further create awareness regarding the potential benefits of immersion cooling solutions. In May 2023, Netscribes, Inc., a global data and insights provider to leading automotive companies, published a comprehensive whitepaper exploring the potential of immersion cooling technology for electric vehicle (EV) battery systems. The whitepaper, titled Immersion Cooling for Electric Vehicle Battery Systems: Enhancing Performance and Safety, highlights the key benefits of immersion cooling for EV battery systems, which include improved thermal management, longer battery life, increased safety, and the potential for fast charging. Thus, all the above advantages of immersion cooling for EV battery cooling are expected to create an opportunity for the growth of the immersion cooling for EV batteries market during the forecast period.

On the contrary, challenges associated with immersion cooling hampers the growth of Europe immersion cooling for EV batteries market.

Based on type, the Europe immersion cooling for EV batteries market is bifurcated into single-phase immersion cooling and double-phase immersion cooling. The single-phase immersion cooling segment held 100% market share in 2023, amassing US$ 866.48 Thousand. It is projected to garner US$ 1,09,126.35 Thousand by 2031 to register 87.9% CAGR during 2026–2031.

By cooling fluid type, the Europe immersion cooling for EV batteries market is segmented into mineral oil, synthetic oil, fluorocarbon-based fluid, and others. The synthetic segment held 53.3% share of Europe immersion cooling for EV batteries market in 2023, amassing US$ 461.55 Thousand. It is projected to garner US$ 72,376.49 Thousand by 2031 to expand at 92.6% CAGR from 2026 to 2031.

In terms of vehicle type, the Europe immersion cooling for EV batteries market is categorized into passenger vehicles, light commercial vehicles, and heavy commercial vehicles. The passenger vehicles segment held 94.0% share of Europe immersion cooling for EV batteries market in 2023, amassing US$ 814.55 Thousand. It is projected to garner US$ 1,05,598.21 Thousand by 2031 to expand at 88.1% CAGR from 2026 to 2031.

Based on country, the Europe immersion cooling for EV batteries market is categorized into Germany, Italy, France, the UK, Russia, and the Rest of Europe. Our regional analysis states that the Rest of Europe captured 36.7% share of Europe immersion cooling for EV batteries market in 2023. It was assessed at US$ 318.00 Thousand in 2023 and is likely to hit US$ 42,238.88 Thousand by 2031, registering a CAGR of 88.7% during 2026 to 2031.

Key players operating in the immersion cooling for EV batteries market are Shell Plc; GS Caltex Corporation; Engineered Fluids Inc; Cargill, Incorporated; Rimac Technology Ltd; The Lubrizol Corp; XING Mobility Inc; EXOES SAS; Mahle GmbH; and Ricardo Plc, among others.

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