Data Center Generator

MARKET ANALYSIS

This presentation provides a comprehensive analysis of the data center generator market, including
segmentation, market drivers and challenges, market size estimations for 2023 with forecasts through 2030
Table of Contents
MARKET SEGMENTATION AND SCOPE SOURCES

RESEARCH METHODOLOGY AND

ASSUMPTIONS

DATA CENTER GENERATOR

MARKET

MARKET DRIVERS AND CHALLENGES

COMPETITIVE ANALYSIS
 01
MARKET SEGMENTATION AND SCOPE
 Market Segmentation and Scope

Data Center Generator Market

Chapter/Section Information to be delivered

Chapter 1 Research Methodology, Research Scope & Assumptions and List of Data Sources

Chapter 2 Executive Summary

Chapter 3 Regional Scope (Revenue, USD Million)

3.1 Market Size & Forecasts and Trend Analysis, 2023 to 2030 for the following regions:

• North America (U.S., Canada)

• Europe (U.K., Germany, France, Spain, Italy)
• Asia Pacific (China, India, Japan, South Korea, Australia)
• Latin America (Brazil, Mexico, Argentina)
• MEA (UAE, Saudi Arabia, South Africa)
 Market Segmentation and Scope

Data Center Generator Market

Chapter/Section Information to be delivered
Chapter 4 Data Center Generator Market - Industry Outlook
4.1 Market Lineage Outlook
4.1.1 Parent Market Outlook

4.2 Data Center Generator Market Value Chain Analysis

Market Dynamics

4.3.1 Market driver's analysis

4.3
4.3.2 Market restraint/challenge analysis

4.3.3 Market opportunity analysis

4.4 Industry Analysis - Porter’s

4.5 Industry Analysis – PESTEL (Political & Legal, Economic, Ecological, Socio-culture and Technological)
 Market Segmentation and Scope
Data Center Generator Market
Chapter/Section Information to be delivered
Chapter 5 Data Center Generator Market Analysis, By Product Type, 2023 to 2030, (Revenue, USD Million)
5.1 Product Type Movement Analysis & Market Share, 2023 & 2030
• Diesel
• Gas
• Hybrid Generators
• Fuel Cell Generators
Chapter 6 Data Center Generator Market Analysis, By Capacity, 2023 to 2030, (Revenue, USD Million)
6.1 Capacity Movement Analysis & Market Share, 2023 & 2030
• < 1 MW
• 1MW-2MW
• >2MW
Chapter 7 Data Center Generator Market Analysis, By Data Center Type, 2023 to 2030, (Revenue, USD Million)
7.1 Data Center Type Movement Analysis & Market Share, 2023 & 2030
• Hyperscale
• Colocation
• Enterprise Data Centers
• Edge Data Centers
 Market Segmentation and Scope

Data Center Generator Market

Chapter/Section Information to be delivered
Chapter 8 Data Center Generator Market Analysis, By Tier Standards, 2023 to 2030, (Revenue, USD Million)
8.1 Tier Standards Movement Analysis & Market Share, 2023 & 2030
• Tier I & II
• Tier III
• Tier IV

Chapter 9 Data Center Generator Market Analysis, By End User, 2023 to 2030, (Revenue, USD Million)
9.1 End User Movement Analysis & Market Share, 2023 & 2030
• Data Center Operators
• Colocation Providers
• Enterprises
Chapter 10 Data Center Generator Market Competitive Landscape
10.1 Company Categorization (Mature Players, Emerging Players)
10.2 Company Share Analysis, 2023
10.3 Company Heat Map Analysis
 Market Segmentation and Scope

Data Center Generator Market

Strategy Mapping (Expansion, Mergers & Acquisitions, Partnerships & Collaborations, Product/Service
10.4
Launch, Investments)

10.5 Company Profiles (Overview, Financial Performance, Product Overview, Strategic Initiatives)
• Caterpillar Inc.
• Cummins Inc.
• Generac Power Systems
• Atlas Copco AB
• Discovery Energy, LLC dba Rehlko
• Rolls-Royce Holdings PLC (MTU Onsite Energy)
• Himoinsa SL/Yanmar
• HITEC Power Protection BV
• Mitsubishi Heavy Industries
• Schneider Electric
• ABB Group
• Pramac Group
• Volvo Penta
• Aggreko PLC
 02
RESEARCH METHODOLOGY AND
ASSUMPTIONS
 Research Methodology

Approach 1 Approach 2

Analyzing the key data center generator providers

Analyzing the volume of total number of data
through thorough secondary research that cater to
centers globally for the base year, 2023.
60-70% of the market.

Analyzing the total, segmental, and product level Analyzing the average number of generators used
revenues of data center generator providers in one data center based on data center type
through product mapping. (small, medium, and hyperscale).

Through product mapping, analyzing the product

Determining the average selling pricing of
level revenues of data center generator providers
generators by type to arrive at value market.
for the base year, 2023 and historic years.

Adding up the revenues of key data center Using the determined average selling price and
generator providers and scaling up to arrive at the volume of data centers, the market value is
final market size for the market. calculated in terms of USD Million.

Verifying the final market size from above stages Verifying the final market size from above stages
using various secondary sources. using various secondary sources.
 Data Triangulation

APPROACH 1 AND 2 FINAL MARKET SIZE PURCHASED DATABASE

Utilized two complementary approaches Taking the average of the best-case Access to paid databases like Capital IQ
to estimate the market size. The first assumptions derived from both and Factiva to gain access to company
approach involves a company revenue approaches to determine the final market financials, industry information, and
analysis, while the second approach uses size. This ensures market estimate by industry journal publications
data center volume. leveraging the strengths of each method.

SECONDARY SOURCES INTERNAL DATABASE THIRD PARTY PERSPECTIVE

Includes government statistics published Includes historic market databases, case Analysis of investor analyst reports,
published by organizations like studies, internal audit reports, & archives. competitors, broker reports, government
datacentermap, company filings, investor Pertinent data such as average selling quotes, key opinion leaders, research
documents, whitepapers and use cases price, manufacturing cost, shipments etc. institutes & academic centers
are also taken into account.
 Assumptions
• The selected key data center generator providers represent 60-70% of the total market and accurately reflect industry trends.

• Secondary research sources provide reliable and up-to-date information about market players, revenues, and data center volumes.

• The base year (2023) is assumed to be a stable reference point without extreme market disruptions.

• Currency conversion rates during the study period are considered for the year-end according to each company’s financial year.

• The market is sufficiently concentrated among the analyzed providers, allowing accurate scaling for the remaining 30-40% of the market.

• Product-level revenues of data center generator providers in historic years and the base year follow predictable trends without unexpected deviations.

• The average number of generators used per data center (by size and type) is consistent across regions and aligns with global norms.

• The average selling price of generators by type is based on average capacity ranges.

• The total volume of data centers globally in 2023 includes all operational centers.

• The forecast incorporates assumptions based on the projected growth in the number of data centers, as well as increasing data center capacity and power
requirements driven by market demand and technological advancements.
 03
DATA CENTER GENERATOR MARKET
 Data Center Generator Market Size Estimate And Forecast
Market Size, 2023-2030 (USD Million)
15,193.1
14,104.0
12,996.5
11,934.3
10,937.9
9,953.5
8,963.1
8,015.0

2023 2024 2025 2026 2027 2028 2029 2030

 The global data center generator market size was valued at USD 8,015.0 million in 2023 and is expected to grow at a compound annual growth rate (CAGR) of
9.2% from 2024 to 2030. The market growth is driven by the rising demand for reliable backup power solutions in the face of increasing power outages and
expanding data center infrastructures.
 The rise of hyperscale and colocation facilities, driven by the expansion of cloud computing, edge computing, and AI workloads, has greatly increased the need
for high-capacity generators. Moreover, improvements in generator technologies, including remote monitoring, predictive maintenance, and modular designs,
are improving operational efficiency and scalability for data centers.
 04
MARKET DRIVERS AND CHALLENGES
 Market Drivers

• Rising Data Center Construction

The rising demand for cloud services, edge computing, and AI workloads has resulted in substantial investments in hyperscale and colocation data centers
around the globe, increasing the need for backup power solutions.
• Power Outages and Grid Instability
Frequent power outages caused by grid instability and natural disasters are driving the adoption of generators to ensure uninterrupted data center
operations.
• Surging Power Requirements
The rising use of high-density computing systems for applications like AI and machine learning is driving up the power requirements of data centers,
making it essential to have dependable and scalable generator solutions.
• Focus on Sustainability
Strict environmental regulations are driving data centers to embrace cleaner energy options, such as generators that work with biofuels, natural gas, and
hydrogen technologies.
• Technological Advancements in Generators
The advancement of smart generators with remote monitoring capabilities, along with modular and scalable designs, is improving operational efficiency
and addressing the changing needs of data centers.
• Increasing Demand for Hybrid Power Systems
Hybrid systems that integrate generators with renewable energy sources are gaining traction as data centers prioritize sustainability and energy efficiency.
 Market Challenges

• Environmental Regulations
• Strict emission standards limit the use of traditional diesel generators.
• Noise pollution restrictions drive demand for alternative power solutions.
• High Costs
• Generators involve significant upfront capital investment.
• Ongoing maintenance and fuel storage add to operational expenses.
• Shift Toward Renewable Energy
• Preference for solar, wind, and battery systems reduces reliance on generators.
• Regulatory incentives favor renewable energy adoption over fossil-fuel-based systems.
• Technological Advancements in Alternatives
• Innovations in fuel cells and battery storage systems pose competitive threats.
• Quieter, cleaner alternatives challenge traditional generator adoption.
 05
COMPETITIVE ANALYSIS
 Business Overview (1/3)
Company Establishment Year Headquarters Description

Caterpillar is a prominent global manufacturer of heavy machinery, specializing in

diesel and gas-powered generators. The company caters to various industries such as
Caterpillar Inc. 1925 Irving, Texas, U.S.
construction, mining, and energy, offering dependable backup power solutions for data
centers and other essential infrastructure.
Vendor 9
Cummins is a global leader in power solutions, focusing on the production of engines,
power generation products, and associated technologies. The company provides a
Cummins Inc. 1919 Columbus, Indiana, U.S.
diverse selection of diesel and gas-powered generators designed for data centers,
highlighting their reliability and efficiency.

Generac is a manufacturer of backup power solutions, specializing in both residential

Generac Power
1959 Waukesha, Wisconsin, U.S. and commercial generator systems. Their portfolio includes both portable and standby
Systems Vendor F
generators for data centers, with a focus on energy efficiency and performance.

Atlas Copco is an industrial company that offers a diverse array of power solutions,
including energy-efficient generators. They emphasize delivering high-quality,
Atlas Copco AB 1873 Nacka, Sweden
dependable power systems for essential applications like data centers and
telecommunications infrastructure.

Rehlko (Discovery Energy) is a provider of backup power solutions, including

Discovery Energy, LLC 1920 (Previously
U.S. generators, for various industrial sectors. Their offerings are focused on ensuring
dba Rehlko Kohler Energy)
seamless power during outages for data centers and similar critical operations.
 Business Overview (2/3)

Company Establishment Year Headquarters Description

Rolls-Royce is a major player in power generation, offering MTU Onsite Energy

Rolls-Royce Holdings
1906 (Rolls-Royce), MTU products, including diesel and gas generators for data centers. Known for high
PLC (MTU Onsite London, U.K.
Onsite Energy in 2006 performance, these generators are designed for demanding applications requiring
Energy) Vendor 9
continuous and reliable power.

Himoinsa, now part of Yanmar, manufactures and sells backup power generators for
industrial use, including data centers. Known for offering flexible and scalable
Himoinsa SL/Yanmar 1982 (Himoinsa) Valencia, Spain
solutions, Himoinsa provides innovative power systems with a focus on efficiency and
sustainability.

HITEC specializes in uninterruptible power systems (UPS) and backup power solutions
Vendor F
HITEC Power Protection for critical infrastructure like data centers. Their products include flywheel energy
1987 Almelo, Netherlands
BV storage and other power protection systems designed to ensure data center uptime
during power interruptions.

Mitsubishi Heavy Industries manufactures a wide range of industrial products,

Mitsubishi Heavy including generators for power systems. Their offerings are often used in large-scale
1884 Tokyo, Japan
Industries applications, including data centers, focusing on high efficiency and environmental
sustainability.
 Business Overview (3/3)

Company Establishment Year Headquarters Description

Schneider Electric is a global leader in energy management and automation, offering

solutions including UPS systems and backup generators for data centers. Their systems
Schneider Electric 1836 Rueil-Malmaison, France
are designed to ensure energy efficiency and environmental sustainability while
Vendor 9
supporting critical infrastructure.

ABB is a global technology company specializing in power and automation technologies.

ABB Group 1883 Zürich, Switzerland It provides comprehensive power generation and backup systems, including generators
and UPS systems, for data centers and other critical operations.

Pramac is a leading manufacturer of energy solutions, including industrial backup

Pramac Group 1966 Siena, Italy generators. Their products are used in critical infrastructure applications, including data
Vendor F
centers, where reliability and continuous power are crucial.

Volvo Penta is part of the Volvo Group and manufactures high-quality industrial engines
Volvo Penta 1907 Gothenburg, Sweden and generators. It provides robust power solutions for industrial and commercial
applications, including data centers, with a focus on fuel efficiency and durability.

Aggreko specializes in temporary power generation and temperature control solutions,

Aggreko PLC 1962 Glasgow, Scotland, U.K. including generators for data centers. Their services are crucial for backup power,
supporting both emergency needs and planned upgrades for critical infrastructure.
 Market Share Analysis

Caterpillar Inc. (18.4%)

Market Share Analysis, 2023 (%) Caterpillar is the market leader, boasting the largest share due to its well-established reputation for
providing reliable and durable generator solutions. With a robust global distribution network and a
wide variety of products, including high-capacity generators designed for data centers, it remains a
dominant force in the industry.
18.4%
Cummins Inc. (15.0%) Vendor 9
34.0% Cummins ranks second, leveraging its extensive expertise in engine and power generation
technologies. Its focus on innovation and sustainability allows it to maintain a significant presence in
the data center generator market.

Generac Power Systems (9.3%)

Generac’s market share highlights its reputation for providing backup power solutions for
commercial and industrial applications. Its wide product portfolio and emphasis on energy-efficient
15.0%
systems position it as a key player.

MTU Onsite Energy (Rolls-Royce) (8.8%)

Vendorcaptures
MTU Onsite Energy, a division of Rolls-Royce, F a significant share by delivering high-
performance generator systems. Its solutions are tailored to meet the needs of large-scale data
centers and critical operations.
6.4%
9.3% Atlas Copco AB (8.0%)
8.0% Known for its energy-efficient power systems, Atlas Copco serves a wide range of industries,
8.8% including data centers. Its innovative approach and reliability contribute to its steady market
position.

Caterpillar Inc. Cummins Inc. Mitsubishi Heavy Industries (6.4%)

Mitsubishi Heavy Industries is recognized for its advanced technology and robust generator systems.
Generac Power Systems MTU Onsite Energy
Its global reach and focus on quality make it a trusted choice for data center backup power.
Atlas Copco AB Mitsubishi Heavy Industries
Others
 List of Sources

• https://www.cummins.com/news/2023/05/22/why-data-centers-are-thinking-differently-about-energy
• https://www.datamation.com/data-center/what-is-data-center/
• https://www.communicationstoday.co.in/global-data-center-generator-market-to-reach-us-11-8-billion-by-2032/
• https://www.deviantart.com/mararybliss/art/Data-Center-Generator-Market-Balancing-Cost-1113079468
• https://dataintelo.com/report/global-generator-in-data-center-market
• https://www.forbes.com/companies/kohler/
• https://www.mckinsey.com/industries/technology-media-and-telecommunications/our-insights/ai-power-expanding-data-center-capacity-to-
meet-growing-demand
• https://www.grandviewresearch.com/horizon/outlook/data-center-market-size/global
• https://www.industryarc.com/Report/19401/data-center-market.html
• https://www.marketsandmarkets.com/Market-Reports/data-center-power-market-262148719.html
• https://brightlio.com/data-center-stats/#:~:text=Global%20Data%20Center%20Statistics,worldwide%20as%20of%20December%202023.
• https://www.datacenterdynamics.com/en/news/hyperscale-data-center-capacity-to-double-every-four-years-
report/#:~:text=The%20number%20of%20active%20hyperscale,year%20over%20the%20next%20decade.
• https://www.fgcbuilds.com/data-center-ups-generator/data-center-generator-sizing/
Thank You