Global Data Center Generators Market by Product Type (Diesel, Gas), by Capacity (<1 MW, >2MW, 1 - 2MW), by Tier Standards (Tier IV, Tier I & II, Tier III) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

Global data center generators market was worth USD 6.7 billion in 2019. It is projected to grow at a compound annual rate (CAGR of 6.5%) between 2020 and 2027. Generators provide power backup for data centers in the event of power outages. A complete power outage could cause a system to be restarted. This can lead to system downtime and start-up problems. Data centers must always be backed up with backup power supplies through generators to avoid errors and anomalies.

The market's key driver is the fact that these generators don't require an existing power supply in order to work. Due to customer demands, generators are being developed by major manufacturers with customized capacities. These systems can be scaled up or down according to the data center's power requirements. This flexibility will also increase the market's demand and thereby boost growth.

Market growth is expected to be driven by the increasing importance of power reliability for data centers. Edge computing is also contributing to the development of facilities in secondary data centers. Power backup equipment is crucial because secondary data centers are not reliable in terms of power. This will have a positive effect on the adoption rate of data center generators.

Due to increasing demand for edge data center services around the world, several colocation service providers have increased their production. Google, for example, invested USD 3.3 Billion in 2019 to increase its European data center presence. The market is expected to grow due to the increasing construction of hyperscale facilities as well as the increased adoption of Diesel Rotary Uninterruptible Energy Supply (DRUPS).

The market will be affected by rising power costs. Market growth may be impeded by the rising use of fuel cells as an alternative power source due to the high cost of generators. The Adani Group, for instance, announced a USD 9.8 billion investment in 2019 to establish solar-powered data centers in India.

Insights on Product Types

The product type segment can be divided into diesel, gasoline, and other. In 2019, the largest market share was held by diesel products. This segment is expected to grow further in the future due to its high adoption. These products are often paired with flywheel UPS topology or battery to provide back-up power supply.

The fastest projected CAGR for gas products is 8.1% over the forecast period. Customers prefer gas product types because they are long-lasting. While gas-based systems are expensive initially, they offer long-term benefits and are environmentally friendly.

Capacity Insights

The segment with a capacity of 1MW led the market in 2019, and will continue to be the leader for the forecast period. This is due to the widespread usage of edge data centres around the world. The segment will be supported by the widespread use of on-premise data centres in developing countries that generally need generators with less than 500 kW.

This segment has seen significant growth due to the presence of Tier I and II data centres in developing regions such as Asia Pacific and Latin America. It is expected that the 1 MW-2MW capacity segment will continue to grow.

This capacity can be adopted in conjunction with N+1 configuration redundant systems, which are typically installed in large data centres. These systems can provide up to 48 hours of continuous operation. This segment is expected to grow due to increased investments in mega data centers and long-term back up capabilities.

Tier Standards Insights

The tier standards segment can be divided into tiers I & II (tier III), III, and IV (tier IV). The type of infrastructure on which the generators are installed determines the tier standards. Tier I & II are the most profitable segments in terms of revenue. Tier I & II have better UPS to protect against power spikes, IT systems, and brief outages. The tier I and II types also offer power generation on-site with dedicated cooling equipment. This increases market growth by providing greater safety against IT systems.

The fastest CAGR is expected for Tier IV over the forecast period. It is expected that fault tolerance technology will be adopted in the future. The European Tier IV adoption rate is notable, with 25% of all Tier IV verified data centers located in Luxembourg.

Regional Insights

North America is a major market sharer. The growth of the market has been positively influenced by the presence of large companies like Cummins, Inc., Caterpillar Inc., and Generac Holdings Inc. The market will also benefit from advanced technological developments and increased awareness.

Asia Pacific is expected to grow at 9.0% CAGR over the forecast period. The regional market will be driven by investments from market leaders in emerging countries such as India and China. Atlas Copco, for instance, is focusing on Asia Pacific to generate its revenue. Industry experts estimate that in 2018, 35% of total company revenue was generated by Asia Pacific.

Latin America is expected to see significant growth over the next few years. Many key companies will be focusing on M&A as a way to increase their presence and expand in the region. Generac Power Systems, for example, announced in June 2018 the acquisition Selmec Equipos Industriales S.A. de C.V. in order to expand its industrial generators business in Latin America.

Market Share Insights & Key Companies

All established companies want to maintain their market position in a moderately competitive market. There are many strategies and initiatives that can be taken, including investments, strategic partnerships and mergers and acquisitions. Cummins Inc., for example, announced in July 2018 the acquisition of Efficient Drivetrains, Inc., a company that designs and manufactures hybrid and fully-electric power products. This acquisition was done to expand the company's expertise in electrification and its products.

Companies also develop new products and services. Caterpillar, for example, announced in March 2019 the Cat G3512 natural-gas generator. This generator is optimized for maximum operation on low-pressure energy supply. This generator can be used in data centers, schools and retail complexes, universities and government offices, as well as research facilities. The market leader in data center generators is:

• Caterpillar, Inc.

• Cummins, Inc.

• KOHLER (SDMO).

• Atlas Copco

• Langley Holdings plc

• Euro-Diesel

• Generac Power System, Inc.

• Power Systems AG (MTU On-Site Energy).

• Himoinsa

Up Market Research published a new report titled “Data Center Generators Market research report which is segmented by Product Type (Diesel, Gas), by Capacity (<1 MW, >2MW, 1 - 2MW), by Tier Standards (Tier IV, Tier I & II, Tier III), By Players/Companies Power Systems AG (MTU On-Site Energy), Himoinsa , Generac Power System Inc, Caterpillar Inc, Cummins Inc, Euro-Diesel, Langley Holdings plc, Atlas Copco, KOHLER (SDMO)”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Data Center Generators Market Report Segments:

The market is segmented by Product Type (Diesel, Gas), by Capacity (<1 MW, >2MW, 1 - 2MW), by Tier Standards (Tier IV, Tier I & II, Tier III).

Data Center Generators Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Data Center Generators Market

Overview of the regional outlook of the Data Center Generators Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Data Center Generators Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Data Center Generators Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Diesel

                2. Gas

                1. <1 MW

                2. >2MW

                3. 1 - 2MW

                1. Tier IV

                2. Tier I & II

                3. Tier III

9. Market scenario by region, sub-region, and country.
10. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
11. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
12. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Data Center Generators Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

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Reasons to Purchase the Data Center Generators Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.