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DATA CENTER GENERATOR MARKET SIZE TO REACH USD 5 BILLION BY 2023, GROWING AT A CAGR OF 5% DURING 2017-2023
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).
The increasing focus on offering high availability services and resolving power reliability issues are contributing to the growth of the 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 facilities.
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 global data center generator market size 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.
The increasing demand for edge data centers will contribute to the growing revenues in the 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 for low-capacity generators in the market.
This market research report includes a detailed segmentation of the market by generator capacity, systems, tier standards, and geography.
Insights by Generator Capacity
Deployment of 100 facilities with a power capacity of 10 MW will drive revenues of >2 MW systems.
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.
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. 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
Insights by Systems
DRUPS systems are gaining traction 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 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 key for the successful operations of these systems. The leading vendors are focusing on continuous innovations in systems to create a perfect alternative to UPS and generators. 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 market
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.
Data Center Generator Market – By Geography
Investments by AWS, Microsoft, Google, Baidu, Alibaba, and Apple is boosting revenues across the APAC
The APAC is the fastest-growing region for the data center generator 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. 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 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.
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 the 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.
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 and gain market share. The companies are selling their systems through local resellers and diverse distribution networks to gain a larger generator market share. The vendors are focusing on efficiency, cost, and emission certifications to sustain the competition in the market.
The major vendors in the global data center generator market are:
- Generac Power System
- Hitec Power Protection
- KOHLER (SDMO)
- Rolls Royce Power Systems AG (MTU On Site Energy)
- Yanmar Group (HIMOINSA)
The data center generator market research report includes in-depth coverage of the industry with estimates & forecast in terms of investment and power capacity from 2019 to 2025 for the following segments:
Segmentation by Generator Capacity
- 1MW – 2MW
Segmentation by Systems
- Diesel Generators
- DRUPS Systems
Segmentation by Tier Standards
- Tier I & II
- Tier III
- Tier IV
Segmentation by Geography
- Latin America
- Western Europe
- Eastern Europe
- Middle East & Africa
- China & Hong Kong
- Rest of APAC
KEY QUESTIONS ANSWERED
- What is the market size of the global data center generator market
- What is the industry outlook of data center generator market
- What is the growth rate of the generator in data centers
- What are the different types of generators used in a data center
- What is the market size and share of diesel generator in the data center market
- Who are the key vendors and their market share
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