ABB, Caterpillar, Cummins Inc., Kohler Co., and MITSUBISHI MOTORS CORPORATION - Prominent Market Participants in Data Ce

Posted by mahesh on October 17th, 2022

According to our latest market study on "Data Center Generator Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by Product Type, Capacity, and Tier," the market is expected to grow from US$ 4,693.00 million in 2021 to US$ 6,729.53 million by 2028; it is estimated to grow at a CAGR of 5.3% during 2021–2028.

Rise in Backup Power Supply Requirements in Data Centers Boosts Data Center Generator Market Growth

Generators serve as a backup power supply reservoir for data centers during a power outage. A total power outage in a data center may need a system restart, resulting in system downtime, startup challenges, and data loss. Hence, data centers are always backed by a backup power supply provided by generators to avoid such abnormalities and failures. These generators do not require an existing power supply to operate, which is a significant driving element for the market. In addition, prominent manufacturers manufacture generators with customized capacity in response to changing customer demands. Such systems can scale up and down by the power requirements of the data center. This adaptability is likely to increase demand for data center generators, hence boosting the data center generator market growth. Several cloud service providers have increased their output because of the rise in demand for edge data centers worldwide.

Every large data center's power supply begins with a link to the main grid, provided by a local utility provider. Data centers are often connected to at least one diesel or gas backup generator to ensure operations are running even during a large-scale power outage. Medium voltage electricity is delivered from both the local utility company and the backup generator. One or more transformers convert the medium-voltage electricity to low voltage for usage within the data center. Main distribution boards (MDBs)—which are panels or enclosures that house fuses, circuit breakers, and ground leakage protection units—take low-voltage electricity and distribute it to several endpoints such as uninterrupted power supply (UPS) systems or load banks. When a power outage is detected, MDBs also handle the incoming power from the main grid and can start the backup generator. Most data centers maintain enough fuel on hand to run the generator for 24–48 hours. To preserve sensitive data, data centers require dependable backup power. This is catalyzing the data center generator market growth.

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Datacenter outages can cause substantial access issues, resulting in significant revenue losses for businesses. Outages can potentially harm critical equipment, jeopardizing the ability to resume normal operations. To avoid these costly and damaging downtimes and boost efficiency, immediate, uninterruptible power supply (UPS) systems with backup power, power switching control, and generator synchronization management are required. Gas turbines and power modules and hybrid modules that combine gas with renewables and energy storage technologies are used in modular and containerized backup power systems to meet stable backup power requirements. These systems are simple to set up and provide enough backup power to keep data center operations going in the case of the main power outage. Thus, the availability of various generator systems and the rise in need for data centers are propelling the growth of the data center generator market size.

Key Findings of Study:

Based on product type, the data center generator market is segmented into diesel, natural gas, and others. In 2021, the diesel segment led the market with a larger share. Data center generators have been experiencing a rise in demand from across the globe in recent years. Companies provide three types of data center generators – diesel, natural gas, and bi-fuel. In January 2022, Cummins Power Generation announced that it had been awarded by China Data Center Industry for remarkable technical innovation in data center generation. The company manufactures diesel data center generators. In January 2021, TRG Datacenters announced the upgrade of its Texas data center. The company is planning to install a bi-fuel option for power backup. Such instances are fuelling the data center generator market size.


  •          Based on capacity, the data center generator market is segmented into below 1 MW, 1–2 MW, and greater than 2 MW. Below 1 MW is the most prominent capacity in data center generators. The facilities with a capacity of more than 10 MW are adopting generators of greater than 2 MW.
  •          Based on tier, the data center generator market is segmented into tier 1, tier 2, tier 3, and tier 4. In 2021, the tier 3 segment accounted for the largest share in the data center generator market. Tier 1 of data center is the worst-rated tier due to the lack of backup and longest downtime. Various underdeveloped projects worldwide fall under the tier 3 category. All the hyper-scale self-built units are termed tier 4 data centers. Operators such as Microsoft, Apple, Facebook, Google, and AWS are expected to fuel the growth of the data center generator market as they are investing massive amount of capital for developing data center generator product portfolio.
  •          Based on geography, the data center generator market is segmented primarily into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). In 2021, North America accounted for the largest share of the global data center generator market.

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Joined: September 20th, 2022
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