Asia Pacific Immersion Cooling for EV Batteries Market Report (2021-2031) by Scope, Segmentation, Dynamics, and Competitive Analysis

The Asia Pacific immersion cooling for EV batteries market size is expected to reach US$ 77,631.12 Thousand by 2031 from US$ 472.43 Thousand in 2023. The market is estimated to record a CAGR of 93.8% from 2026-2031.

Executive Summary and Asia Pacific Immersion Cooling for EV Batteries Market Analysis:

The immersion cooling for EV batteries market in APAC is segmented into Australia, China, India, Japan, Australia, South Korea, and the Rest of APAC. One of the key factors driving the immersion cooling for EV batteries market is the rising adoption of EVs in the region. Increasing concerns regarding pollution and growing preference for environment-friendly modes of transport fuel the demand for EVs in APAC. Further, to raise the adoption of EVs, the governments of different countries are developing several policies. The Association of Southeast Asian Nations (ASEAN) developed a favorable policy to encourage EV adoption. According to the International Renewable Energy Agency (IRENA), approximately 20% of vehicles in Southeast Asia will be EVs by 2025, including 59 Thousand two-wheelers and three-wheelers and 8.9 Thousand cars. In addition, India, South Korea, Taiwan, Vietnam, and other APAC countries are constantly working on attracting several businesses that want to relocate their car manufacturing facilities to the above countries because of low labor costs. For this, the above countries are offering tax rebates, funds, and subsidies, attracting more manufacturing companies to set up their plants. In 2021, the Government of India allocated US$ 450 Thousand for the electrification of public and shared transportation, adopting 7,090 e-buses. Also, in April 2021, the Indonesian government announced its plan for EVs to make 20% of all domestic cars manufactured, equal to 400,000 e-cars, by 2025. In addition, in March 2023, Chinese EV manufacturer BYD announced that it had started the construction of its new EV manufacturing facility in Thailand, which will be producing 150,000 passenger cars per year from 2024. Thus, the increase in initiatives and supportive regulations by governments for the production of EVs is expected to surge the sale of EVs in the region, which will also raise the demand for immersion cooling batteries as they can help increase the driving range of EVs and keep the batteries safe from thermal runaway, propelling the immersion cooling for EV batteries market growth in APAC.

Asia Pacific Immersion Cooling for EV Batteries Market Strategic Insights

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Asia Pacific Immersion Cooling for EV Batteries Market 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.

• By type, the immersion cooling for EV batteries market is bifurcated into single-phase immersion cooling and double-phase immersion cooling. The single-phase immersion cooling held a larger share of the market in 2023.  
• By cooling fluid type, the immersion cooling for EV batteries market is segmented into mineral oil, synthetic oil, fluorocarbon-based fluid, and others. The synthetic oil held the largest share of the market in 2023.
• By vehicle type, the immersion cooling for EV batteries market is segmented into passenger vehicles, light commercial vehicles, and heavy commercial vehicles. The passenger vehicles held the largest share of the market in 2023.

Asia Pacific Immersion Cooling for EV Batteries Market Outlook

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

Asia Pacific Immersion Cooling for EV Batteries Market Country Insights

Based on country, the Asia Pacific immersion cooling for EV batteries market comprises China, Japan, South Korea, India, Australia, and the Rest of Asia Pacific. China held the largest share in 2023.

China is home to one of the largest EV manufacturers in the world. The country has a robust manufacturing base for EVs. The country has deployed more than 400,000 electric buses. Also, Shenzhen, China's industrial city, has fully electrified its bus fleet. In addition, an electric car is assembled every 90 seconds in the main manufacturing plant of BYD in China. In February 2022, Volkswagen planned to build 1 Thousand EVs a year in China from 2023. Thus, such growing adoption and production of EVs is expected to raise the need for an efficient thermal management system to cool the EV batteries, as this helps in increasing the driving range of EVs. According to the China Association of Automobile Manufacturers (CAAM), in September 2024, China's new energy vehicle sales reached 1.29 Thousand units, up 17% from the previous month and 42.3% year-on-year. Thus, such a rise in the sales of EVs fosters the demand for enhanced battery solutions to fuel EV safety, leading to the demand for immersion cooling technology.

Asia Pacific Immersion Cooling for EV Batteries Market Report Highlights

Asia Pacific Immersion Cooling for EV Batteries Market Company Profiles

Some of the key players operating in the market include 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. These players are adopting various strategies such as expansion, product innovation, and mergers and acquisitions to provide innovative products to their consumers and increase their market share.

Asia Pacific Immersion Cooling for EV Batteries Market Research Methodology :

The following methodology has been followed for the collection and analysis of data presented in this report:

• Secondary Research

The research process begins with comprehensive secondary research, utilizing both internal and external sources to gather qualitative and quantitative data for each market. Commonly referenced secondary research sources include, but are not limited to:

• Company websites, annual reports, financial statements, broker analyses, and investor presentations.
• Industry trade journals and other relevant publications.
• Government documents, statistical databases, and market reports.
• News articles, press releases, and webcasts specific to companies operating in the market.

Note: All financial data included in the Company Profiles section has been standardized to USD. For companies reporting in other currencies, figures have been converted to USD using the relevant exchange rates for the corresponding year.

• Primary Research

The Insight Partners’ conducts a significant number of primary interviews each year with industry stakeholders and experts to validate its data analysis, and gain valuable insights. These research interviews are designed to:

• Validate and refine findings from secondary research.
• Enhance the expertise and market understanding of the analysis team.
• Gain insights into market size, trends, growth patterns, competitive dynamics, and future prospects.

Primary research is conducted via email interactions and telephone interviews, encompassing various markets, categories, segments, and sub-segments across different regions. Participants typically include:

• Industry stakeholders: Vice Presidents, business development managers, market intelligence managers, and national sales managers
• External experts: Valuation specialists, research analysts, and key opinion leaders with industry-specific expertise

Asia Pacific Immersion Cooling for EV Batteries Market Country and Regional Insights