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

The North America immersion cooling for EV batteries market size is expected to reach US$ 85,901.71 Thousand by 2031 from US$ 762.75 Thousand in 2023. The market is estimated to record a CAGR of 84.6% from 2026-2031.

Executive Summary and North America Immersion Cooling for EV Batteries Market Analysis:

The North America immersion cooling for EV batteries market is segmented into the US and the Rest of North America. 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 raising 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 continuous focus on producing EVs and EV batteries is expected to create opportunities for companies to develop more efficient immersion cooling batteries. The region also has the presence of most of the world's largest automotive OEMs, who have their established manufacturing plants in North America. Most of these OEMs have undertaken various electrification initiatives. For instance, in July 2021, Stellantis planned to invest ~US$ 35.5 billion in vehicle electrification and new software/technologies by 2025. Furthermore, Stellantis joined automakers such as General Motors, Volkswagen, and Ford Motor in announcing investments of tens of billions of dollars in EVs. Moreover, the governments of the North American countries are taking various initiatives to increase EV production in the region. California, one of the largest automotive manufacturing hubs in the world, started providing incentives and mandates to the automotive OEMs for zero-emission vehicles.

North America Immersion Cooling for EV Batteries Market Strategic Insights

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North America 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.

North America Immersion Cooling for EV Batteries Market Outlook

With the surging adoption of electric vehicles (EVs), the demand for high-capacity EV batteries is increasing worldwide. To cater to this demand, the original equipment manufacturers (OEMs) are continually working on the improvement of EV batteries, with an aim to achieve high energy density and rapid charging rates. For instance, in March 2023, researchers from POSTECH and Sogang University announced that they had developed a functional polymeric binder for stable, high-capacity anode material, which can help to increase the current EV range by at least 10-fold. In this product, the researchers have replaced graphite with Si anode and combined it with layering-charged polymers while maintaining stability and reliability. Also, in November 2021, General Motors (GM) announced that they are moving from lithium-ion to the new lithium-metal technology as its next-generation battery pack. The company partnered with SolidEnergy Systems (SES) to develop a new battery platform. This new lithium-metal chemistry offered greater energy density, providing smaller and lighter battery packs and significantly greater range. The predicted range on a single charge is expected to be from 500 to 600 miles, i.e., an 80% charge, which will take less than 15 minutes. In November 2024, Epsilon Advanced Materials (EAM) from India and South Korea’s Daejoo Electronic Materials announced a partnership to develop a next-generation Silicon-Graphite composite anode for lithium-ion batteries (LiB). The collaboration aims to create a high-capacity anode material that enhances battery discharge capacity by over 50%. This development could have a significant impact on the electric vehicle (EV) industry. However, the development of high-capacity batteries for EVs can cause thermal runaway, which can result in extremely high temperatures; ejection of harmful gaseous, liquid, or solid products; and smoke and fire explosion. Such overheating of the batteries can lead to their degradation, further limiting power availability and reducing usable capacity. To cater to the above problems, the need for immersion cooling is increasing in the market, where highly specialized dielectric heat transfer fluid is used to submerge the entire battery pack. The fluid can help in effectively managing the increased heat from high-speed charging while also preventing the propagation of thermal runaway. Also, the immersion cooling technique can help enhance heat transfer and offer a more uniform cooling effect across the entire battery pack, further expanding the capacity of the battery. Market players are focused on catering to the demand for high-capacity batteries for electric vehicles and introducing solutions in the market, which contributes to the market growth. For example, in September 2024, Xing Mobility (a battery immersion cooling company) unveiled its latest product, the Immersio XM28, at IAA Transportation 2024. The Immersio system includes active thermal runaway suppression, which can cool battery cells from thousands of degrees to below 100°C in 30 seconds. This technology prevents thermal propagation and maintains a consistent temperature throughout high-voltage batteries, modules, and systems. Thus, the growing demand for high-capacity batteries to increase EV driving range is fueling the growth of the immersion cooling for EV batteries market.

North America Immersion Cooling for EV Batteries Market Country Insights

Based on country, the North America immersion cooling for EV batteries market comprises the US and the Rest of North America. The US held the largest share in 2023.

The immersion cooling technique is used to cool the EV batteries, which can help in faster charging, extended battery life, and safer operations. Increasing adoption of EVs in the US will raise the need for efficient cooling systems, such as immersion cooling, fueling the market growth. The automotive sector in the US is witnessing tremendous growth due to the increasing capital growth and rising exports of automobiles. The government of the US announced several investment plans for electric vehicles (EVs) to support the plan of net-zero emissions by 2050. In February 2023, under the Bipartisan Infrastructure Law, the government of the US announced an investment of US$ 7.5 billion in EV charging, US$ 10 billion in clean transportation, and over US$ 7 billion in EV battery components, materials, and critical minerals. Such government initiatives are boosting the adoption of EVs in the country. According to the report by Cox Automotive, ~300,000 new full battery-electric vehicles were sold in the US in Q2 2023, which was an increase of 48.4% compared to Q2 2022. Thus, the rising sales of EVs and growing government support for the same is expected to fuel the growth of the immersion cooling for EV batteries market in the US during the forecast period.

North America Immersion Cooling for EV Batteries Market Report Highlights

North America 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.

North America 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

North America Immersion Cooling for EV Batteries Market Country and Regional Insights