Market Overview:

The Global Data Center Generator Market size is expected to grow from USD 8.62 billion in 2022 to USD 13.64 billion by 2030, at a CAGR of 5.9% during the forecast period (2023-2030).

Generators act as the data center's backup power supply in the event of a power loss. A total power outage at a data center would necessitate a complete system restart, which could result in start-up issues, system downtime, and the loss of historical and ongoing information. To avoid these anomalies and errors, data centers are typically supported by a backup power source via generators. One of the key market-driving factors for these generators is the possibility of operation without an existing power supply.

Top Key Players in Data Center Generator Market:

ABB Ltd, Atlas Copco Ltd., Caterpillar Inc., Cummins Inc., Deutz AG, Generac Power Systems Inc., HITEC Power Protection, Kirloskar Oil Engines Limited, Kohler Co., Langley Holdings plc, Mitsubishi Motors Corporation, Rolls-Royce plc, Yanmar Holdings Co. Ltd And Other Major Key Players.

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Market Dynamics and Factors for Data Center Generator Market:

Drivers:

Rising Need for Effective Power Centers

The growing demand for efficient power solutions is a major growth driver of the Data Center Generator Market. Data centers require a consistent and reliable power supply for uninterrupted operations. As data processing needs increase, so does the necessity for backup power. Datacenter generators offer a dependable source during grid failures, ensuring business continuity. Additionally, with sustainability concerns, modern generators focus on energy efficiency and reduced emissions. The rising significance of reliable power centers to support critical operations in an increasingly digital landscape fuels the expansion of the Data Center Generator Market.

Opportunities:

Scope of Growth in Efficient Natural Gas Generator Solutions

The Data Center Generator Market holds promising opportunities with the scope for growth in efficient natural gas generator solutions. Natural gas generators offer lower emissions, cost-effective operation, and reduced environmental impact compared to traditional diesel generators. As sustainability gains importance, data centers seek greener power alternatives. Efficient natural gas generators align with this trend, catering to eco-conscious businesses while ensuring reliable backup power. This opportunity arises from the need to balance performance and environmental responsibility, making natural gas generators a compelling option for data center operators aiming to meet power demands while addressing sustainability goals.

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Segmentation Analysis of the Data Center Generator Market:

By Type, The diesel product type held the largest market share. The segment will expand further during the forecast period due to the high adoption of these products as they are coupled with flywheel UPS topology and battery to provide a backup power supply.

By Capacity, Less than 1MW capacity segment led the market and is estimated to retain its leading position throughout the forecast period. This growth is attributable to the extensive usage of edge data centers across the globe. Moreover, the wide usage of on-premise data centers in developing countries, which generally require generators of less than 500 kW capacity, will also support segment growth.

By Type

·       Diesel

·       Gas

By Capacity

·       Less than 1MW

·       1–2MW

·       Greater than 2MW

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Regional Analysis of the Data Center Generator Market:

North America is a major shareholder in the market. The presence of major companies, such as Cummins, Inc.; Caterpillar Inc.; and Generac Holdings Inc., has positively affected the growth of the regional market. Factors, such as advanced technology development and awareness about the same, are also expected to positively impact the market. The high revenue share of North America can be attributed to aggressive investments in hyperscale projects. The U.S. happens to be a developed economy and already boasts an established sophisticated network infrastructure. It is also home to major cloud service providers, such as Amazon.com, Google, Inc., and Facebook.

By Region     

·       North America (U.S., Canada, Mexico)

·       Eastern Europe (Bulgaria, The Czech Republic, Hungary, Poland, Romania, Rest of Eastern Europe)

·       Western Europe (Germany, U.K., France, Netherlands, Italy, Russia, Spain, Rest of Western Europe)

·       Asia-Pacific (China, India, Japan, South Korea, Malaysia, Thailand, Vietnam, The Philippines, Australia, New Zealand, Rest of APAC)

·       Middle East & Africa (Turkey, Saudi Arabia, Bahrain, Kuwait, Qatar, UAE, Israel, South Africa)

·       South America (Brazil, Argentina, Rest of SA

Key Industry Development:

In November 2022, Kohler Power Systems officially opened an advanced production expansion to its present North American generator manufacturing location in Wisconsin, United States. The manufacturing increase would help Kohler expand in critical strategic industries like data centers.

In February 2020, to increase Nikkiso's foothold in the APAC region, Takkisio Co. Ltd. and Nikkiso Cryogenic Industries are partnering to increase power generator capabilities

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