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Data Center Generator Market - Global Outlook and Forecast 2018-2023
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SKU : ARZ181209
  • Published on : January 2019

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This market research report on the global data center generator market offers analysis on market size & forecast, market share, industry trends, growth drivers, and vendor analysis. The market study also includes insights on segmentation by generator capacity (Less than 1 MW, 1-2 MW, Greater than 2MW), by systems (diesel generators and DRUPS systems), by tier standards (Tier I & II, Tier III, and Tier IV), and by geography (APAC, Americas, and EMEA).

Data Center Generator Market - Overview

The increasing focus on offering high availability services and resolving power reliability issues are contributing to the growth of the global data center generator market. The emergence of edge computing is leading to the development of facilities in secondary data center markets is leading to the adoption of generators in areas with poor reliability in power grids. Rising electricity prices and electricity taxes is encouraging operators to select countries where government agencies are reducing electricity costs and promoting the use of renewable energy sources to power facillities. The market is witnessing the procurement of renewable energy among Tier I and Tier II colocation providers, with most hyperscale facilities expected to operate with renewable energy resources by 2023. Generators are installed across facilities to ensure that it operates at 100% availability irrespectively of incoming power from utility grids in the global market. The increase in innovations and adoption of fuel cell technology will reduce the demand for generator systems in the global market over the next few years. These systems are procured to supply power backup in MWs and are designed with N+1 or N+N redundancy in Tier II and Tier III data centers in the global market. The recent development and implementation of diesel rotary uninterruptible power supply (DRUPS) systems that combine both battery and flywheel UPS topology and a diesel generator to provide backup power during outages will transform the global data center market. DRUPS systems are highly reliable, efficient, and it requires less maintenance compared to VRAL-based UPS systems and standalone diesel generators that are available in the market. The adoption of natural gas and bi-fuel generators will promote sustainability in the global data center generator market.

The installation of generators with intelligent control systems with real-time monitoring software that can predict maintenance requirements, component failures, and automatic switchovers for uninterrupted operations is driving the global market. The increasing  mega data center construction facilities with higher power capacities will lead to the adoption of high-capacity systems in the market.  The global data center generator market is estimated to reach revenues of around $5 billion by 2023, growing at a CAGR of more than 5% during 2017-2023. The market research report also offers market share analysis in terms of power capacity (MW) during the forecast period.

Global data center generator market overview and forecast 2023

Data Center Generator Market –Dynamics

The increasing demand for edge data centers will contribute to the growing revenues in the global data center generator market. Some of the most popular urban locations of facilities in the global market include Texas, New York, Virginia, London, Stockholm, Frankfurt, Paris, Dubai, Mumbai, Osaka, Sydney, Melbourne, and Auckland. The growing use of connected devices across the business and consumer segments is leading to the development of the concept of edge computing in the market. Some of the leading edge facilities operators in the market are vXchnge, EdgeConneX, and 365 Data Centers. Such developments are leading to the rapid deployment of modular, containerized, and POD facilities across the global market. POD facilities are single-rack data center systems with integrated rack-level power,  cooling, security, and management. The influx of these deployments will boost the demand forlow-capacity generators in the market.  Some of these facilities consume 50 MW of power capacity requiring over 20 gensets of over 2 MW capacityto provide backup power, thereby, creating lucrative opportunities for leading vendors in the global data center generator market.

Data Center Generator Market – Segmentation

This market research report includes a detailed segmentation of the market by generator capacity, systems, tier standards, and geography.

Global Data Center Generator Market Segments, Share 2023

 

Data Center Generator Market – By Generator Capacity

Deployment of 100 facilities with a power capacity of 10 MW will drive revenues of >2 MW systems in the global data center generator market

The global data center generator market by generator capacity is classified into 2MW. >2MW dominated more than half of the total market share in 2017, growing at a CAGR of around 6% during the forecast period. The multiple installations of 2.25 MW and 2.5 MW capacity generators identified across the globe in 2017 are driving the growth of this segment in the global market. The increasing deployment of mega facilities by hyperscale facilities operators is contributing to the growing revenues in this market segment. The market also witnessed the deployment of 100 facilities with a power capacity of over 10 MW that includes  IT load capacity and cooling capacity. The countries that face frequent power outages install systems in N+N or 2N redundant configurations in the global market. The deployment of large facilities will boost the demand for high capacity systems in the global data center generator market.

Small-scale facility operators are adopting

Data Center Generator Market – By Systems

DRUPS systems are gaining traction in the global data center generator market across selected countries and operators

The systems segment in the global data center generator market is divided into generators and DRUPS systems. DRUPS systems are the fastest growing segment in the global market, at a CAGR of approximately 7% during the forecast period. The increasing use of DRUPS systems eliminates the use of separate data center UPS and generator systems and increases the overall efficiency of the facilities by 96% in the global market. These systems use flywheel UPS technology overcoming the issues incurred for using VRLA batteries in UPS systems in the market. Running multiple DRUPS systems in 2N redundant configuration will be a key for the successful operations for these systems in the global market. The leading vendors are focusing on continuous innovations in systems to create a perfect alternative to UPS and generators in the market. The four prominent vendors offering DRUPS systems in the global data center generator market are Euro-Diesel, Piller Group, Hitzinger, and Hitech Power Protection.

The most commonly available generators in the market are diesel generators, natural gas or liquid propane generators, and bi-fuel generators and diesel generators contribute to over 90% of the total revenue in the market. The vendors are investing in the development of systems that can be installed facilities that operate high-performance computing (HPC) infrastructure in the global data center generator market.

Data Center Generator Market – By Tier Standards

Tier III facilities will add revenue through the adoption of 2N redundant systems in the global data center generator market

The global data center generator market by tier standards is segmented into Tier I & II, Tier III, and Tier IV. Tier III segment occupied the largest market share in 2017, growing at a CAGR of around 5% during the forecast period. The new facilities of Tier III standards are designed with a minimum of N+1 redundancy and can be reconfigured with up to 2N+1 redundancy. The changes in the redundancy are done as per consumer requirements and allow flexibility in designs in the global market. The 80% occupancy rate of facilities with Tier III standards will encourage operators to invest in these designs in the market over the next few years. It is estimated that most of the Tier III facilities will be designed with a minimum of 2N redundancy across  power infrastructures by the end of the forecast period. The growing demand for cost-effective infrastructure will reduce the cost of Tier III facilities to around $715 and boost revenues in the global data center generator market over the next few years.

The growing requirement of high-performance computing (HPC) infrastructure to process big data and IoT is driving the need for Tier IV facilities in the global market. In 2017, Switch came up with Tier V facilities design, which covers the entire data center design and development, including the use of renewable energy sources as a parameter in the global data center generator market.

Data Center Generator Market – By Geography

Investments by AWS, Microsoft, Google, Baidu, Alibaba, and Apple is boosting revenues across the APAC region in the global data center generator market

The geographical segment in the global data center generator market is divided into APAC, Americas, and EMEA. The APAC is the fastest growing region in the global market, at a CAGR of more than 8% during the forecast period. The increasing investments by international and regional facility operators and the growing adoption of public cloud and hybrid cloud services are the major factors attributing to the growth of the APAC region in the global market. AWS, Microsoft, Google, Baidu, Alibaba, and Apple are the largest investors in the APAC market. The deployment of edge computing locations across multiple countries, especially China and India will boost the growth of the APAC market during the forecast period. The increasing investment in renewable projects namely solar, hydroelectric, and wind farms to power facilities operations will lead to  data center construction in the APAC region over the next few years. Power reliability is among the major challenges in the APAC market, where the need for the generator will be a strong driving force for market revenue growth. China and Hong Kong, Singapore, Australia, India, and Japan are the largest revenue generators across the APAC region in the global data center generator market.

Latin America witness entry of DRUPS vendor in the region and are contributing to the revenues in the global market. AWS and Microsoft invested in opening cloud region in France, Apple and Facebook are investing in Denmark, Facebook is investing in Ireland and Google in Belgium, Denmark, the Netherlands, and Sweden will boost demand in the European region and attribute to sales in the global data center generator market. For instance, Microsoft is likely to install 72 generator sets for its upcoming Washington, US facility.

The key countries profiled in the report are:

  • US
  • Canada
  • Latin America
  • Western Europe
  • Nordic
  • Eastern Europe
  • Middle East & Africa
  • China & Hong Kong
  • Singapore
  • Australia
  • Rest of APAC

Key Vendor Analysis

The global data center generator market is witnessing intense competition due to the presence of multiple pure-play vendors offering diesel, gas and DRUPS systems with a capacity of up to 3.5 MW. The leading players are offering their engines to build a strong consumer base in the global market. The companies are selling their systems through local resellers and diverse distribution networks to gain a larger market share. The vendors are focusing on efficiency, cost, and emission certifications to sustain the competition in the market. The players are offering high capacity engines to increase their profitability in the global data center generator market.

The major vendors in the global data center generator market are:

  • Caterpillar
  • Cummins
  • Euro-Diesel
  • Generac Power System
  • Hitec Power Protection
  • KOHLER (SDMO)
  • Rolls Royce Power Systems AG (MTU On Site Energy)
  • Yanmar Group (HIMOINSA)

Other prominent vendors in the global data center generator market include Aggreko, Atlas Copco, DEUTZ, Hitzinger, Inmesol, Innio, KOEL (Kirloskar Group), Mitsubishi, Perkins, The Piller Group, Onis Visa, and Pramac.

Key market insights include

  1. The analysis of the global data center generator market provides market size and growth rate for the forecast period 2018-2023.
  2. It offers comprehensive insights into current industry trends, trend forecast, and growth drivers about the global data center generator market.
  3. The report provides the latest analysis of market share, growth drivers, challenges, and investment opportunities.
  4. It offers a complete overview of market segments and the regional outlook of the global data center generator market.
  5. The report offers a detailed overview of the vendor landscape, competitive analysis, and key market strategies to gain a competitive advantage.

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