In a report released this week, titled CHP Systems for Data Centers in the US 2017-2024, analysis firm Persistence Market Research (PMR) said the segment should see year-on-year growth of between 3.8 and 4 per cent.
The states of California, Washington, New York, Massachusetts and Texas are expected to account for the majority of revenues during this period, with new business created through growing adoption of co-location facilities, increasing demand for ‘green’ data centres, favourable policy incentives, falling natural gas prices and a recovering US economy.
Data centres with more than 6000 square metres of work space will continue to hold the largest market share over the forecast period, PMR said, reaching revenues of $150m by the end of 2026, while the 30 to 300 square metre data centre segment is expected to generate over $45m.
Institutional and commercial data centres are expected to account for 90 per cent of the market, with university laboratories taking a 35 per cent share and internet service providers (ISPs) taking 25 per cent.
Newly installed CHP systems will be the largest market segment, making up over 80 per cent of all systems to 2024. By contrast, growth in the retrofit segment is predicted to be “sluggish” due to higher costs and the complexities involved in realizing these projects.
Among the key market players, Caterpillar and GE will continue to occupy the top slots, while Dresser-Rand and Veolia Energy North America will capture “healthy” revenue shares. For the major players, advanced CHP product development and strategic acquisitions are the current focus.