Growing demand for colocation facilities to accelerate growth in the global generator market in data centers through 2020

Renewable energy

 

This market analysis presents a detailed segmentation of the global generator market in data centers by power output capacity (<500 kW, 501-1,000 1,001-3,000 and>3,000 kW), by fuel source (diesel and natural gas generators), and by geography (the Americas, APAC, and EMEA). The leading vendors analyzed in this research report includes Caterpillar, Generac, MTU Onsite Energy, and SDMO.

Technavio’s market research analysts estimate the global generator market in data centers to grow at a CAGR of almost 11% between 2016 and 2020. The rise in the construction of data centers fueled by the development of advanced technologies such as cloud-based services and big data analytics is the primary driver for the market growth. Furthermore, the growing demand for colocation facilities among small and medium-sized enterprises (SMEs) is also expected to contribute to the growth of this market. At present, the Americas dominate the global generator market in data centers by accounting for almost 43% of the overall market share. The presence of an increasing number of data centers, most of them operating high-performance infrastructure, is expected to fuel the generator market in data centers in this region in the coming years.

The new market research report from Technavio presents a breakdown and analysis of the generator segments by fuel source.

“One of the lest trends gaining traction in the market is the increasing preference for green data center facilities. Several organizations are opting for such data centers due to increasing awareness about carbon emissions and high electricity consumption by data centers. To comply with stringent regulations and environmental concerns, advanced technologies and strategies are being implemented across numerous data centers. For instance, Google, Amazon, Microsoft, and Facebook are either operating or in the process of constructing green data center facilities,” says Anju Ajaykumar, Lead Analyst, Heavy Industry, Technavio Research.

The diesel segment dominated the global generator market in data centers by accounting for a market share of almost 82% in 2015. This segment of the market is thriving currently as diesel generators are safe, reliable, and easy to maintain.  The easy availability of diesel is another reason for its predominant use as a fuel source for generators in data centers. The need for uninterrupted power supply in times of power blackouts is expected to propel the diesel generator market in data centers across the globe during the forecast period.

The key vendors in the global generator market in data centers are Caterpillar, Generac, MTU Onsite Energy, and SDMO. The market is highly fragmented with the presence of both international and regional vendors. Though the market is dominated by global players, the local vendors pose a tough challenge for them by offering products at low prices. Also, the vendors are striving to provide generators that aid in the reduction of carbon emission in data centers. The key vendors are developing higher power output capacity generators owing to the growing trend of mega data centers and data center consolidation.

A more detailed analysis is available on the Technavio report, Global Generator Market in Data Centers 2016-2020.

We can customize reports by other regions and specific segments upon request.

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