The global data center power generators market is projected to generate $8,572.6 million revenue in 2030, advancing at a CAGR of 5.9% during 2021–2030. This growth will be mainly due to the increasing investments for the establishment of data centers and expansion of existing ones by colocation, telecommunication, and cloud service provider.
Moreover, the proliferating number of internet users, enhancing use of social media, augmenting smartphone penetration, adoption of cloud services, and need of enterprises to migrate from server room environments to data centers are the significant drivers for the data center market, which, in turn, has a positive impact on the use of generators.
While several national economies on the verge of unprecedented destruction during the COVID-19 pandemic, the data center power generators market was affected to a certain extent, with several data center construction projects temporarily halted, globally. However, the massive growth in data consumption and creation led to the extensive use of data centers, which, in turn, led to a limited impact of the pandemic on the market growth.
Generators with a power capacity of 0–1.5 MW are expected to be adopted at the highest rate, of 7.6%, during 2021–2030. This is attributed to the growing adoption rate of these generators by small-scale data centers operators, as they are cost-effective. Moreover, modular as well as on-premise data centers in underdeveloped as well as developing countries are focusing on adopting this equipment with this power capacity in the coming years.
Moreover, the tier III classification is expected to exhibit the highest CAGR over the forecast timeframe. This is due to the escalating rate of the construction of data centers of tier III standards. The infrastructure components in tier III facilities are concurrently maintainable, and in developing countries, facility operators are keen to attain the tier III certification from the Uptime Institute, to attract customers and increase their occupancy rates, which, in turn, is expected to fuel the production of generators fit for tier III data centers.
Geographically, North America accounted for the largest share, of 39%, in the data center power generators market in 2021. This was majorly because of the escalating adoption of public cloud and hybrid cloud services and the presence of major market players, such as Cummins Inc., Caterpillar Inc., and Generac Holdings Inc., in the region. Colocation and telecommunication service providers, along with hyperscale cloud data center developers, act as significant contributors to the generator sales in the region.
Players operating in the data center power generators industry have been extensively involved in client win strategies to stay ahead of their competitors. For instance, in June 2020, HITEC Power Protection BV successfully secured a contract to supply a large number of PowerPRO2700 units to a new high-spec data center industrial facility in the U.S. Moreover, the company is expected to provide its associated auxiliary equipment and medium-voltage switchgear.
Some of the key enterprises in the data center power generators market are Atlas Copco Group, Caterpillar Inc., Cummins Inc., HITEC Power Protection BV, Himoinsa S.L., KOHLER Group, Mitsubishi Heavy Industries Ltd., Generac Power Systems Inc., Rolls Royce Power Systems AG, and Piller UK Limited.