DFZQ has released a research report stating that the core consumable for immersion liquid cooling, the cooling fluid, is divided into two main technological paths: fluorine-based and silicon-based. Fluorinated fluids offer superior performance and currently dominate the immersion cooling fluid market, while silicon-based fluids have a prominent cost advantage, with their application scenarios and market potential gradually expanding. The global market related to liquid cooling is vast. With the expansion of AI servers and increasing demands for cooling performance, the penetration rate of immersion liquid cooling is expected to continue rising. On the supply side, the gradual exit of international player 3M from the market presents a period of accelerated substitution for domestic companies. The report is optimistic about enterprises with relevant product layouts in immersion cooling fluids. The main viewpoints of DFZQ are as follows:
AI Computing Power Surge and Stricter PUE Constraints Make Liquid Cooling Essential for High-Density Scenarios
As the computing power of AI chips, centered on GPUs, continues to break through, the thermal design power of data center chips has also risen significantly. Coupled with national regulations limiting the Power Usage Effectiveness (PUE) of large data centers to below 1.3, cooling and power reduction have become critical. Liquid cooling technology, with its high thermal conductivity, excellent heat transfer characteristics, and superior PUE performance, is demonstrating economic advantages and accelerating the replacement of traditional air cooling, becoming the core technical choice for AI computing clusters. Liquid cooling is divided into two technical routes: cold plate and immersion. Currently, cold plate is mainstream, but immersion cooling, with its extremely high heat dissipation efficiency, absence of hot spots, and suitability for ultra-high-density computing, shows outstanding growth potential.
Fluorine and Silicon: The Two Main Paths for Immersion Cooling Fluids
The core consumable for immersion liquid cooling, the cooling fluid, is again divided into two main technological paths: fluorine-based and silicon-based. Fluorinated fluids offer superior performance and currently dominate the immersion cooling fluid market. Silicon-based cooling fluids have a prominent cost advantage, with their application scenarios and market potential gradually expanding.
Demand Side: AI Server Expansion Expected to Drive Cooling Fluid Demand
Vast Global Market Potential for Liquid Cooling
According to Polaris Market Research, the global data center liquid cooling market size is expected to reach $2.887 billion by 2025 and grow to $36.589 billion by 2034, representing a compound annual growth rate (CAGR) of 32.6% from 2025 to 2034. Immersion liquid cooling shows particularly strong potential, with broad incremental space for cooling fluids. According to Hengzhou Chengsi, the global electronic fluorinated fluid market size is projected to be approximately RMB 10.56 billion in 2025, reaching RMB 15.92 billion by 2032, with a CAGR of 6.1% from 2026 to 2032. According to QYResearch, the global silicone oil cooling fluid market size was about $63 million in 2024 and is expected to reach $110 million by 2031, with an average annual compound growth rate of 6.8% from 2025 to 2031.
Supply Side: International Giant's Exit Opens Market Space, Domestic Firms Accelerate Layout
The global electronic fluorinated fluid market has long been dominated by European and American companies such as 3M and Solvay. However, 3M has announced a complete exit from its PFAS product line by the end of 2025, releasing significant market space and opening a window for domestic substitution. With AI server expansion driving cooling fluid demand growth and the gradual exit of key supplier 3M from the coolant market, the domestic immersion cooling fluid market space is expected to open up, prompting domestic companies to accelerate their layout in the liquid cooling industry. Among them, representative fluorine-based cooling fluid companies like Juhua Co., Ltd., Capchem Technology Co., Ltd., and Yonghe Co., Ltd. are accelerating capacity deployment, forming ecosystems through diversified layouts. HEC has established a closed-loop, full-industry chain for liquid cooling computing power covering "materials-equipment-operations" through investments and mergers. Jinshi Resources Corp. has strategically invested in Zhejiang Nuoya, entering the fine fluorine chemical track. The domestic cooling fluid industry is entering a period of comprehensive acceleration.
For silicon-based cooling fluids, Runhe Materials has achieved differentiated competition through modified silicone oil solutions. Wynca Group leverages its full organic silicon industry chain to enter the silicon-based cooling fluid track. As a representative of hydrocarbon-based cooling fluids, Bohui Chemical Technology Co., Ltd. is deeply involved in hydrocarbon cooling fluids and has established a wholly-owned subsidiary focusing on liquid cooling business.
Risk Warnings
Liquid cooling penetration rate may fall short of expectations, global environmental policies may tighten further, the industry faces risks of overcapacity, raw material costs may fluctuate, and cooling fluid capacity release may not meet expectations.
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