Philippines Diesel Generator Set Market Report: By Power Rating (15–75 kVA, 76–375 kVA, 376–750 kVA, 751–1,000 kVA, Above 1,000 kVA), Application (Commercial, Industrial, Residential) – Industry Analysis and Demand Forecast to 2030

Market Overview

The Philippines diesel generator set market size stood at $152.9 million in 2021, which is expected to reach $245.2 million by 2030, at a CAGR of 5.4% during 2021–2030. This will mainly be due to the growing industrial and construction sectors, which are pushing up the demand for electricity.

For instance, in 2021 The Marawi Rehabilitation and Development project involved the rehabilitation and development along the Marawi Trans Central Road in Mindanao, with an investment of $122 million. This project comprised the construction, rehabilitation, and improvement of 176.6km of roads, linking of the Bangsamoro Autonomous Region in Muslim Mindanao to the trade centers of Mindanao.

The Philippines diesel generator set market has a bright future ahead, with both the production and demand predicted to increase over the next ten years. Government initiatives for the promotion of the telecom sector and the frequent power outages in the country are helping the Philippines DG set market grow. For instance, Globe Telecom, a provider of telecommunication services in the Philippines, has expanded its 5G network. Moreover, it has completed the site upgradation of its 3G legacy network to 4G LTE in the key cities on the Visayas and Mindanao islands, while also expanding its 5G coverage in these areas.

With the help of government initiatives, it has deployed 5G services in 30 key locations across these cities. Additionally, Smart Communications (the mobile arm of Filipino Telco PLDT Inc.) has teamed up with South Korea’s Samsung Electronics to accelerate the deployment of 5G standalone (5G SA) technology in the Philippines. Since DG sets are essential for providing non-stop electricity at telecom towers, such initiatives are giving a push to the sale of these systems.

• The Philippines DG set market is also growing at a decent pace because the national government is making efforts to attract foreign direct investments (FDI). The country has developed economic zones to attract overseas companies and help them to set up production facilities. For instance, in November 2021, the net FDI flow into the Philippines increased by 96% year-on-year, to $1.1 billion, marking the sixth consecutive month of growth amid continued economic improvement.
• Additionally, the development of the transportation infrastructure is required in the Philippines in order to shorten the commuting hours. For this, in January 2020, the Philippines’ Department of Transportation finalized a joint venture with three Chinese firms for the development of the first package of the Philippine National Railways South Long-Haul project (PNR Bicol). Under this project, the design, construction, and electromechanical works on the initial 380km stretch from Banlic, Calamba to Daraga, Albay, have cost $2.76 billion.
• Additionally, there is a huge requirement for electricity in the country due to the frequent power outages, often due to natural calamities, including typhoons, floods, and droughts. Usually, 20 typhoons and storms batter the Philippines each year aside from the seasonal monsoon rains. For instance, in December 2021, Typhoon Odette hit Manila, affecting the electricity supply, which caused massive inconvenience to residents. Such events continue to drive the demand for diesel gensets in the country, thus offering numerous opportunities to those who manufacture and distribute such equipment.

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76–375kVA Variants Witnessed Highest Demand

In 2021, in terms of sales volume, the largest share in the market was held by the 76–375 kVA category, of more than 40%. This is mainly attributed to the high demand for these variants in small industries, telecom towers, restaurants, commercial complexes, and hotels.

Furthermore, construction projects for residential units account for a significant share in the net volume demand for these gensets in this Western Pacific nation. These diesel generators are widely deployed in housing projects to serve prime and auxiliary power requirements. For instance, the units at Basecommunity in Manila’s in-city horizontal public housing project in Baseco, Port Area, began to be leased out in July 2021. The project involved the construction of 229 two-story, 42-square-meter housing units, each with two bedrooms, a dining room, a kitchen, a bathroom, and a living room. These 229 units have been leased out to families that were affected by the fire that broke out in the area in February 2020.

Industrial Facilities Are Contributing Highest Revenue to Market

In 2021, industrial gensets contributed more than 40% revenue share in the application segment. This is attributed to the various industrial projects taken up by the government. For instance, in August 2021, DMCI Holdings announced plans to invest $70 million (PHP 3.5 billion) to develop two electricity plants. Of this, $54.8 million (PHP 2.7 billion) was invested in a thermal power plant project on Palawan Island, and the rest in a hybrid diesel–solar power plant in Cataingan, Masbate. Once operational, the cost of electricity for residents will reduce, and the total power production capacity of DMCI will rise to 164 MW.

Market Players Are Introducing New Products and Involving in Acquisitions

The major trend being observed in the market is of the major companies involving in product launches and acquisitions in order to stay ahead of their competitors. For instance:

• In March 2021, Mitsubishi Heavy Industries Ltd. launched a 2,000kVA diesel generator with the highest output among all of its packaged generators, for factories, hospitals, office buildings, and data centers.
• In December 2020, John Deere Power Systems and DEUTZ announced plans to jointly source components for a low-horsepower range engine offering up to 130 kW power. This collaboration closes a gap in the market by developing an engine that provides customers additional and exceptional value upon initial purchase, while retaining the reliability of John Deere and DEUTZ engines.
• In August 2020, Kohler Co. launched two KD Series Tier-2-compliant diesel generator sets with a rated power of 4 MW. The key engine feature is a high-pressure common rail fuel system designed to deliver injection pressures of up to 32,000 psi.

Key Players in Philippines Diesel Generator Set Market Are:

• Caterpillar Inc.
• Cummins Inc.
• Mitsubishi Heavy Industries Ltd.
• Rolls-Royce plc
• John Deere
• WÄRTSILÄ CORPORATION
• Kohler Co.
• Kirloskar Oil Engines Limited
• Denyo Co. Ltd.
• Yanmar Holdings Co. Ltd.

Market Size Breakdown by Segments

The Philippines diesel genset market report offers comprehensive market segmentation analysis along with market estimation for the period 2017–2030.

Based on Power Rating

• 15–75 ­kVA
• 76–375 kVA
• 376–750 kVA
• 751–1,000 kVA
• Above 1,000 kVA

Based on Application

• Commercial
  • Commercial applications, by power rating
    • 15–75 kVA
    • 76–375 kVA
    • 376–750 kVA
    • 751–1,000 kVA
    • Above 1,000 kVA
  • Commercial applications, by user
    • Retail establishments
    • Offices
    • Telecom towers
    • Hospitals
    • Hotels
• Industrial
  • Industrial applications, by power rating
    • 15–75 kVA
    • 76–375 kVA
    • 376–750 kVA
    • 751–1,000 kVA
    • Above 1,000 kVA
  • Industrial applications, by user
    • Manufacturing
    • Energy & power
• Residential