The Data Center Generator Market Size was valued at USD 5.8 Bn in 2023 and is predicted to reach USD 13.4 Bn by 2031 at a 11.2% CAGR during the forecast period for 2024-2031.
A global data center generator supports data centers during outages. It ensures servers, networking, and storage systems run continuously, reducing downtime in critical infrastructure. The operators of data centers are increasingly investing in reliable backup systems to protect themselves from power outages as worries about energy security and reliability continue to rise. Furthermore, generator demand is being pushed by the worldwide expansion of data centers, particularly in developing nations. This is because these areas are undergoing fast digital transformation and necessitate dependable infrastructure to accommodate the growth of cloud computing, the IoT, and data-driven applications. Moreover, worries about energy security and reliability are growing, and data centers are investing in reliable backup power systems to keep running even when the main power goes out, so the demand in this market is growing. Furthermore, the data center generator market is seeing significant expansion due to the growing investment in data center infrastructure by large IT organizations.
However, the high cost of installation of a global data center generator, lack of qualified personnel, and rising environmental issues hinder market growth. The need for data centers was driven up by the COVID-19 pandemic, which had a beneficial effect on the data center generator industry. This was because of the boom in remote work, internet services, and cloud computing. Because of this, investments in data center generators were driven by the necessity for dependable backup power solutions to ensure continued operations. However, the market slowed down because of supply chain problems and project delays caused by lockdowns.
Additionally, a number of factors are creating opportunities in the global data center generator market. These include the developments in fuel-efficient, low-emission generators to satisfy environmental standards, the proliferation of data centers in developing economies, the use of renewable energy sources, and hybrid power systems on the rise.
The global data center generator market is segmented based on system capacity, system, and tier standards. Based on system capacity, the market is segmented into 0–1.5 MW, 1.5–3 MW, and >=3 MW. By system, the market is segmented into DRUPS systems, diesel, gas, and bi-fuel generators, HVO fuel, and fuel cells. The market is segmented by tier standard into tier I & II, tier III, and tier IV.
0–1.5 MW segment is expected to hold a major global market share in 2023 in the global data center generator market because it works well for small to medium-sized data centers, the number of which is growing very quickly. These generators provide dependable backup power at a low cost, meeting the energy needs of new data centers, especially in growing markets.
The Tier I & II segment is growing because there is a greater need for cheaper, smaller data centers in rural places and emerging markets. Tier I & II sites are cheaper because they are used by local businesses and groups that don’t need as much redundancy and dependability. They are also growing to meet the needs of edge computers and decentralized data processing, which is driving significant growth in the global data center generator market.
The North American global data center generator market is expected to register the highest market share in revenue in the near future. This can be attributed to because of strict rules about power reliability, the need for strong backup solutions, and the fast growth of data centers in the area. In addition, the Asia Pacific is expected to grow rapidly in the global data center generator market because digital changes are happening quickly, cloud services are growing, and 5G networks are being put in place. This growth creates a big need for backup power solutions, such as different kinds of generators, and helps the data center generator business grow.
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Report Attribute |
Specifications |
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Market Size Value In 2023 |
USD 5.8 Bn |
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Revenue Forecast In 2031 |
USD 13.4 Bn |
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Growth Rate CAGR |
CAGR of 11.2% from 2024 to 2031 |
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Quantitative Units |
Representation of revenue in US$ Bn and CAGR from 2024 to 2031 |
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Historic Year |
2019 to 2023 |
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Forecast Year |
2024-2031 |
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Report Coverage |
The forecast of revenue, the position of the company, the competitive market structure, growth prospects, and trends |
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Segments Covered |
By System Capacity, By System, By Tier Standard, and By Region |
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Regional Scope |
North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
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Country Scope |
U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico; France; Italy; Spain; South East Asia; South Korea |
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Competitive Landscape |
ABB, Caterpillar, Cummins, Generac Power Systems, HITEC Power Protection, KOHLER, Rolls-Royce, Yanmar (HIMOINSA), and others. |
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Customization Scope |
Free customization report with the procurement of the report and modifications to the regional and segment scope. Particular Geographic competitive landscape. |
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Pricing And Available Payment Methods |
Explore pricing alternatives that are customized to your particular study requirements. |
Global Data Center Generator Market- By System Capacity
Global Data Center Generator Market- By System
Global Data Center Generator Market- By Tier Standard
Global Data Center Generator Market- By Region
North America-
Europe-
Asia-Pacific-
Latin America-
Middle East & Africa-
InsightAce Analytic follows a standard and comprehensive market research methodology focused on offering the most accurate and precise market insights. The methods followed for all our market research studies include three significant steps – primary research, secondary research, and data modeling and analysis - to derive the current market size and forecast it over the forecast period. In this study, these three steps were used iteratively to generate valid data points (minimum deviation), which were cross-validated through multiple approaches mentioned below in the data modeling section.
Through secondary research methods, information on the market under study, its peer, and the parent market was collected. This information was then entered into data models. The resulted data points and insights were then validated by primary participants.
Based on additional insights from these primary participants, more directional efforts were put into doing secondary research and optimize data models. This process was repeated till all data models used in the study produced similar results (with minimum deviation). This way, this iterative process was able to generate the most accurate market numbers and qualitative insights.
Secondary research
The secondary research sources that are typically mentioned to include, but are not limited to:
The paid sources for secondary research like Factiva, OneSource, Hoovers, and Statista
Primary Research:
Primary research involves telephonic interviews, e-mail interactions, as well as face-to-face interviews for each market, category, segment, and subsegment across geographies
The contributors who typically take part in such a course include, but are not limited to:
Data Modeling and Analysis:
In the iterative process (mentioned above), data models received inputs from primary as well as secondary sources. But analysts working on these models were the key. They used their extensive knowledge and experience about industry and topic to make changes and fine-tuning these models as per the product/service under study.
The standard data models used while studying this market were the top-down and bottom-up approaches and the company shares analysis model. However, other methods were also used along with these – which were specific to the industry and product/service under study.
