Data Center Generator Market Size & Industry Growth by 2028

Data Center Generator Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Product Type (Diesel, Natural Gas, and Others), Capacity (Below 1 MW, 1-2 MW, and Greater than 2 MW), and Tier (Tier 1 and 2, Tier 3, and Tier 4)

  • Report Code : TIPRE00012410
  • Category : Electronics and Semiconductor
  • Status : Published
  • No. of Pages : 189
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[Research Report] The data center generator market was valued at US$ 4,693.00 million in 2021 and is expected to reach US$ 6,729.53 million by 2028; it is estimated to register a CAGR of 5.3% from 2021 to 2028.

Generators serve as a backup power supply reservoir for data centers during a power outage. A total power outage in a data center may need a system restart, resulting in system downtime, startup challenges, and data loss. Hence, data centers are always backed by a backup power supply provided by generators to avoid such abnormalities and failures. Such benefits are driving the data center generator market growth .

These generators do not require an existing power supply to operate, which is a significant driving element for the market. In addition, prominent manufacturers manufacture generators with customized capacity in response to changing customer demands. Such systems can scale up and down by the power requirements of the data center. This adaptability is likely to increase the demand for data center generators, thereby boosting the market growth. Several cloud service providers have increased their output because of the rise in demand for edge data centers worldwide. Google, for example, spent US$ 3.3 billion in 2019 to expand its data center presence in Europe. Furthermore, the market is likely to benefit from the increased development of hyper-scale facilities and the rise in implementing diesel rotary uninterruptible power supply (DRUPS).

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Data Center Generator Market: Strategic Insights

data-center-generators-market
Market Size Value inUS$ 4,693.00 million in 2021
Market Size Value byUS$ 6,729.53 million by 2028
Growth rateCAGR of 5.3% from 2021 to 2028.
Forecast Period2021- 2028
Base Year2021
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Lucrative Regions for Data Center Generator Market Growth

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Data Center Generator Market Insights

Increase in Number of Data Centers

There are already around seven billion internet-connected devices in this age of data, and that figure is growing. Many of them produce huge amounts of data, which must be recorded, routed, stored, assessed, and retrieved. Manufacturers rely on big data and data analytics to improve the efficiency, productivity, security, and cost-effectiveness of their operations as the Internet of Things (IoT) and Industry 4.0 take hold. On the other hand, data management in-house is becoming increasingly complicated, time-consuming, and costly. To save energy and infrastructure costs, even huge firms like Cisco consider shutting down portions of their own internal data centers.

The rise in penetration of connected devices and easy access to the internet, coupled with the reduced cost of internet services, are propelling the demand for data storage globally. The need for data storage is also surging due to the increasing demand for big data analytics and cloud-based services, such as online content comprising movies, apps, videos, and social media. Therefore, cloud-based companies deploy IT space in their data centers. Several industries are exploring the cloud offerings and discovering the benefits of data center services to support their needs related to the cloud. These developments are directly influencing the increase in the use of the Internet of Things (IoT), thereby resulting in the construction of a large number of data centers across the world. For instance, Colt has announced the development of its hyperscale data centers in Europe and Asia-Pacific, following the sale of 12 edge colocation centers across Europe. The corporation has purchased ten new plots of land in London, Frankfurt, Paris, and undisclosed locations in Japan that will allow it to create roughly 100 MW of IT power. Therefore, the increasing number of data centers boosts the need for data center generators to get sufficient power supplies, which is driving the data center generator market growth.

Product Type-Based Market Insights

Data center generators have been experiencing a rise in demand from across the globe in recent years. Companies provide three types of data center generators – diesel, natural gas, and bi-fuel. In January 2022, Cummins Power Generation announced that it had been awarded for its power solutions by the China data center industry. The company manufactures diesel data center generators. In January 2021, TRG Datacenters announced the upgrade of its Texas data center. The company is planning to install a bi-fuel option for power backup

Capacity-Based Market Insights

In terms of capacity, the data center generator market size is segmented into below 1 MW, 1–2 MW, and greater than 2 MW. Below 1 MW is the most prominent capacity in data center generators. The facilities with a capacity of more than 10 MW are adopting generators of greater than 2 MW. Generators below 1 MW power capacity are usually adopted in modular data center deployments. The adoption of generators with below 1 MW power capacity is expected to increase the deployment of data centers. They are being adopted by small-scale data center operators in developing economies as they are less costly. The rise in manufacturing of hyper scale facilities in emerging economies would decline the dependency on generators having low capacity in the coming years.

 

The data center generator market players adopt strategies such as mergers, acquisitions, and market initiatives to maintain their positions in the market. A few developments by key data center generator market players are listed below:

  • ABB LTD has introduced new shaft generator technology. This new generator brings flexibility and ease of installation to many vessels, including bulk carriers and container carriers. The AMZ 1400 permanent magnet shaft generator is optimized for converter control and enables better efficiency than induction.
  • Caterpillar to Launch Demonstration Project Using Hydrogen Fuel Cell Technology for Backup Power at Microsoft Data Center. This project enables Caterpillar to collaborate with industry leaders to take a large step toward commercially viable power solutions that also support the customers in making their operations more sustainable.

The global data center generator market is segmented based on product type, capacity, and tier. Based on product type, the data center generator market is segmented into diesel, natural gas, and others. In terms of capacity, the data center generator market is segmented into less than 1 MW, 1–2 MW, and greater than 2 MW. Further, based on tier, the data center generator market is segmented into tier 1 & 2, tier 3, and tier 4.  

ABB; Atlas Copco AB; Caterpillar; Cummins Inc.; DEUTZ AG; Generac Power Systems, Inc.; HITEC Power Protection; Kirloskar; Kohler Co.; and MITSUBISHI MOTORS CORPORATION are the key data center generator market players considered for the research study. In addition, several other significant data center generator market players have been studied and analyzed in this research report to get a holistic view of the global data center generator market size and its ecosystem.

Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

Product Type, Capacity, and Tier

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
Country Scope

Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Malaysia, Mexico, Russian Federation, Saudi Arabia, Singapore, South Africa, South Korea, Thailand, United Arab Emirates, United Kingdom, United States

Frequently Asked Questions


Which product type segment is expected to dominate the market in terms of 2020 market share?

The diesel segment led the data center generator market with a market share of 69.7% in 2020. It is expected to account for 68.7% of the total market in 2028.

What are the reasons behind data center generator market growth?

Most data centers maintain enough fuel on hand to run the generator for 24-48 hours. To preserve sensitive data, data centers require dependable backup power. Thus, the global data center generator market is primarily driven by the increase in number of data centers and in backup power supply requirements in data centers.

Which capacity segment is expected to dominate the market in terms of 2020 market share?

The less than 1MW segment led the data center generator market with a market share of 44.4% in 2020. It is expected to account for 46.1% of the total market in 2028.

Which region has dominated the data center generator market in terms of 2020 market share?

North America dominated the data center generator market in 2020 with a share of 37.25%; it would continue to dominate the market during the forecast period and account for 31.67% share by 2028. Europe is the second-largest contributor to the global data center generator market, followed by Asia Pacific.

Which are the major companies in the data center generator market?

ABB; Atlas Copco AB; Caterpillar; Cummins Inc.; DEUTZ AG; Generac Power Systems, Inc.; HITEC Power Protection; Kirloskar; Kohler Co.; and MITSUBISHI MOTORS CORPORATION.

What are market opportunities for data center generator market?

The rising inclination towards renewables are environmental sustainability and energy savings is positively impacting the data center generator market. When rising and unpredictable energy costs and levies linked with pending carbon emission regulations are considered, it is easy to see why operators are becoming more interested in renewables' role in lowering and stabilizing energy costs. Google's hyper-scale data centers have been pioneers in renewable energy programs, researching their inherent financial, environmental, and social value. Google chooses locations for its data centers based on various considerations, including the availability of reliable service and the opportunity for renewable energy. Thus, these initiatives are further expected to contribute to the growth of the data center generator market over the forecast period.

The List of Companies - Data Center Generator Market

  1. ABB
  2. Atlas Copco AB
  3. Caterpillar
  4. Cummins Inc.
  5. DEUTZ AG
  6. Generac Power Systems, Inc.
  7. HITEC Power Protection
  8. Kirloskar
  9. Kohler Co.
  10. MITSUBISHI MOTORS CORPORATION

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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