Data Center Generators Market 2020 and Forecast 2021-2027

  • TBI536798
  • November 05, 2020
  • Global
  • 135 pages
  • IFF Market Research

Report Overview: Data Center Generators Market

The global data center generators market size was valued at USD 5.6 billion in 2020 and looks set to grow at a compound annual growth rate (CAGR) of 5.4% from 2021 to 2027. Generators are the backup power supply source for the data centers during power interruption. Entire power cut off from a data center might require a total restart for the system, this might lead to start-up issues, system downtime, and loss of current/on-going information. Thus, to avoid such anomalies and errors, data centers are always backed with a backup power supply through the generators. A key driving factor for the market is that these generators do not require an existing power supply to function. In addition, major manufacturers are developing generators with customized capacity due to changing customer requirements. Such systems are equipped with a feature to scale up and down as per the power required by the data center. This flexibility is also expected to escalate the demand, thereby augmenting the market growth. Increasing importance of overcoming the reliability on power for the functioning of the data centers is also expected to drive the market growth. In addition, the advent of edge computing is contributing to facility development in the market of secondary data centers. The secondary data centers have low power reliability; thus, the significance of power backup equipment is high. This is expected to have a positive impact on the adoption of data center generators. Several colocation service providers have increased the production of data centers owing to the rising demand for edge data centers across the globe. For instance, in 2019, Google invested USD 3.3 billion to expand its data center presence in Europe. Moreover, the growing construction of hyperscale facilities and increasing adoption of Diesel Rotary Uninterruptible Power Supply (DRUPS) is expected to increase the market. However, increasing power costs is projected to have a negative impact on the market. Rising trend of using fuel cells as a power backup due to the high costs of generators might also cause hindrance in the market growth. For Instance, in 2019, the Adani Group announced an investment of USD 9.8 billion to set up solar-powered data parks in India.

Product Type Insights: Data Center Generators Market

Product type segment is categorized into diesel, gas, and others. The diesel product type held the largest market share in 2019. The segment will expand further during the forecast period due to the high adoption of these products as they are coupled with flywheel UPS topology and battery to provide backup power supply. The gas product type is projected to register the highest CAGR of 8.1% during the forecast period. Gas product type is highly preferred by the customers owing to long-term usage. Although the initial investment cost associated with gas-based systems is high, they are eco-friendly and offer long-term cost benefits.

Capacity Insights: Data Center Generators Market

<1MW capacity segment led the market in 2019 and is estimated to retain its leading position throughout the forecast period. This growth is attributable to the extensive usage of edge data centers across the globe. Moreover, wide usage of on-premise data centers in developing countries, which generally require generators of less than 500 kW capacity, will also support the segment growth. The extensive presence of tier I and II data centers in developing regions like Asia Pacific and Latin America has contributed to the growth of this segment. The 1 MW - 2MW capacity segment is likely to witness steady growth. The adoption of this capacity is normally along with N+1 configuration redundant systems that are installed in large data centers. These systems are designed for providing 48+ hours of runtime. Growing investments in the construction of mega data centers and back up capabilities of long hours are the factors anticipated to drive the market growth of this segment.

Tier Standards Insights: Data Center Generators Market

The tier standards segment is divided into tier I & II, III, and IV. The tier standards are based on the type of site infrastructure where the generators are used. In terms of revenue, tier I & II is the dominant segment. Tier I & II provide improved UPS to filter power spiked, IT systems, and momentary outages. Moreover, the tier I & II type also have dedicated cooling equipment and offer on-site production of power. This provides increased margin of safety against the IT systems, thereby resulting in market growth. Tier IV is expected to witness the fastest CAGR over the forecast period 2021-2027. The introduction of fault tolerance technology in the infrastructure topology is expected to bolster its adoption in the coming years. Tier IV adoption is observed to have a significant growth rate in Europe, as 25% of all tier IV verified data centers are situated in Luxembourg.

Regional Insights: Data Center Generators Market

North America is a major shareholder of the market. The presence of major companies, such as Cummins, Inc.; Caterpillar Inc.; and Generac Holdings Inc., has positively affected the growth of the regional market. Factors, such as advanced technological development and awareness about the same, are also expected to have a positive impact on the market. Asia Pacific is projected to be the fastest-growing region at a CAGR of 9.0% over the forecast period. Investments by market leaders in developing countries like China and India are expected to drive the regional market. For instance, Atlas Copco is focused on generating its revenue from Asia Pacific region. According to the industry experts, in 2018, Asia Pacific contributed to 35% of the company’s total revenue. Latin America has considerable growth opportunities in the forecast period as several key companies are focusing on M&A to expand and mark their presence in the region. For instance, in June 2018, Generac Power Systems announced the acquisition of Selmec Equipos Industriales, S.A. de C.V. to expand its business of industrial generators in Latin America.

Key Companies & Market Share Insights: Data Center Generators Market

In a moderately consolidated market, all established companies are trying to sustain their market position. Initiatives and strategies adopted include striking strategic partnerships, investments, and mergers and acquisitions. For instance, in July 2018, Cummins Inc. announced the acquisition of Efficient Drivetrains, Inc., which is engaged in designing and manufacturing of both hybrid and fully electric power products. The acquisition was made to broaden the former company’s electrification expertise and products. Other strategies undertaken by companies include the development of new products and service lines. For instance, in March 2019, Caterpillar announced the launch of Cat G3512 natural gas generator. The generator is designed for performing maximum operations on low-pressure energy supply. This newly launched generator is suitable for data centers, schools, retail complexes, universities, government offices, and research facilities. Some of the prominent players in the data center generators market include:

Key companies Profiled: Data Center Generators Market Report

  • Caterpillar, Inc.
  • Cummins, Inc.
  • Atlas Copco
  • Langley Holdings plc
  • Euro-Diesel
  • Generac Power System, Inc.
  • Power Systems AG (MTU On-Site Energy)
  •  Himoinsa
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this report, Trusted Business Insights has segmented the global data center generators market report based on product type, capacity, tier standards, and region:

Product Type Outlook (Revenue, USD Million, 2016 - 2027)

  • Diesel
  • Gas
  • Others

Capacity Outlook (Revenue, USD Million, 2016 - 2027)

  • < 1 MW 1 MW-2MW >2MW

Tier Standards Outlook (Revenue, USD Million, 2016 - 2027)

  • Tier I & II
  • Tier III
  • Tier IV

Table of Contents
Chapter 1. Methodology and Scope
   1.1. Research Methodology
   1.2. Research Scope and Assumptions
   1.3. List of Data SourcesChapter 2. Executive Summary
   2.1. Data Center Generators- Industry Snapshot & Key Buying Criteria, 2016 - 2027Chapter 3. Data Center Generators Industry Outlook
   3.1. Market Segmentation
   3.2. Market Size and Growth Prospects, 2016 - 2027
   3.3. Value Chain Analysis

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