| Study Period | 2019 - 2030 |
| 2024 Market Size | USD 181.2 Million |
| 2025 Market Size | USD 190.5 Million |
| 2030 Forecast | USD 249.9 Million |
| Growth Rate (CAGR) | 5.5% |
| Largest Application Category | Industrial |
| Largest Power Rating Category | 76–375 kVA |
| Nature of the Market | Consolidated |
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The Philippines diesel generator set market will generate an estimated revenue of USD 181.2 million in 2024 and witness a CAGR of 5.5% during 2024–2030, reaching USD 249.9 million by 2030. This is due to the growing industrial and construction sectors, which are pushing up the demand for electricity.
Over the next 10 years, it is expected that this market will expand due to increases in both supply and demand.
Additionally, government initiatives for the promotion of the telecom sector and the frequent power outages in the country are helping the 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.
Moreover, 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.
The market is also growing 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 February 2024, net inflows of foreign direct investment (FDI) continued their upward trend, with a 29.3% year-over-year increase, to USD 1.4 billion from USD 1.1 billion in February 2023.
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.
The constant innovation in diesel genset can improve their efficiency as well as the performance, in order to cater to industrial and commercial needs with less cost. The major market players are launching advanced higher-power-rating variants of diesel gensets to meet the demand of the growing commercial and industrial sectors in the Philippines.
Moreover, companies are also investing in developing fuel-efficient diesel gensets. For instance, Yanmar’s portable diesel generator YDG series offers longer runtime with ultra-low fuel consumption. It offers various models under the YDG series like YDG3700N, YDG3700V, YDG5500N, and YDG5500V.
The major reason for power outages in the Philippines is the demand and supply gap of electricity. As compared to the high demand for electricity in residential and commercial spaces, the supply is not adequate, which creates excessive workload and power outages very often in the country. This generates a high demand for diesel gensets to supplement the power outages.
For instance, in June 2024, due to a shortage of supplies, around two million people in Luzon suffered power outages.
Moreover, frequent natural calamity like tycoons, flooding, and drought also causes power outages in the Philippines. Usually, 20 typhoons and storms batter the Philippines each year, besides from seasonal monsoon rains.
The growing awareness among consumers to opt for solar power, which is a natural and renewable energy and does not harm the environment. Thus, the government and private organizations focus on building infrastructure to support that vision in long run.
Through the Department of Energy Renewables Portfolio Standard, the Philippine government actively promotes renewable energy. Electricity suppliers are required by this policy to purchase a specific portion of their power generation from renewable sources, such as solar. The RPS goal was set at 35% of the whole energy mix in 2023, and by 2040, it is expected to reach 50%. This encourages companies and households to switch to solar energy, therefore lowering their dependency on diesel generators.
The 76–375 kVA category is expected to hold the largest market share, of 35%, in 2024 due 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 these Western Pacific countries.
These diesel generators are widely deployed in housing projects to serve prime and auxiliary power requirements.
The power ratings covered in the report are:
Based on application, industrial is expected to be the largest and fastest-growing category in the market, with the market share of around 50% in 2024 and CAGR of 5.8% in the forecast period, respectively. To run machinery, equipment, and processes, industries such as manufacturing, mining, construction, and oil and gas operations need a consistent and dependable power supply.
Diesel gensets are favoured in these industries due to its capacity to deliver strong and consistent power, particularly in isolated or off-grid areas where grid electricity may be unavailable.
The applications included in this report are:
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The Philippines diesel genset market is consolidated in nature. The leading players in the market include Caterpillar Inc., Cummins Inc., Mitsubishi Heavy Industries Ltd., and Rolls-Royce plc (under the brand mtu). Mitsubishi Heavy Industries Ltd. has strong brand identity in the low-power-rating genset segment, along with the regular investments in improving the performance and efficiency of these gensets, aids the company in maintaining its position in the market.
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