The Philippines diesel generator set market is driven by the growing industrial, transportation, telecom, and construction sectors and the high frequency of power outages in the country. Because of these factors, the industry is projected to generate $245.2 million revenue in 2030, advancing at a CAGR of 5.4% during 2021–2030.
During the COVID-19 pandemic, the Philippines diesel generator set market was ill-affected due to the lockdowns and closure of the industrial and commercial sectors by the government. This resulted in the temporary suspension of outdoor activities, shuttering of manufacturing facilities, and shutting down of retail stores, offices, hotels, and airports. The decreased demand for these systems resulted in a price drop, which ceased the market expansion by reducing the revenue for companies.
Industrial Category To Witness Fastest Growth
The industrial category is expected to witness the fastest growth till 2030, with a CAGR of 5.4% in terms of revenue, because the industrial sector is booming in the country. For instance, in August 2021, DMCI Holdings announced plans to develop two electricity plants with a combined value of $70 million (PHP 3.5 billion). Of this, DMCI Power Corporation invested $54.8 million (PHP 2.7 billion) in a thermal power plant project on Palawan Island, while the rest was spent on a hybrid diesel–solar power plant in Cataingan, Masbate. Once operational, it will lower the cost of electricity here. After the completion of the project, DMCI Power will have a total power capacity of 164 MW.
Further, a major project by San Miguel Corporation is focused on the expansion of a water supply facility in the Central Luzon region. San Miguel has signed supply agreements with seven water districts (locally owned organizations responsible for the region's water supply), and it is in the process of negotiating four more. The stage 3 expansion of the facility will provide service to 11 districts. Since a continuous power supply is imperative at such facilities, the demand for diesel gensets is burgeoning in the nation.
Product Launches and Partnerships & Collaborations Are Prime Strategies Adopted by Market Players
In recent years, players operating in the Philippines diesel genset industry have actively engaged in product launches to gain a competitive edge and expand their product portfolio. Additionally, many are focusing on partnerships and acquisitions to enhance their presence. For instance:
- In January 2021, Caterpillar Inc. launched 31 new models of Cat GC diesel generator sets. The company’s new range of value-engineered standby power solutions is targeted at the global electrical contractor market. They include 11 models with power ratings from 33 kVA to 400 kVA for 50Hz applications. Every Cat GC diesel generator set includes Caterpillar’s standard two-year warranty for standby power solutions, while a suite of additional extended service coverage options is also available.
- In November 2020, Kohler Co. launched the KD series of industrial diesel generators of 3,500 kW and 4,000 kW globally. This launch was in response to the increasing demand for power in mission-critical applications, such as data centers, hospitals, and water treatment facilities.
Some of the major players operating in the Philippines diesel generator set market include Cummins Inc., Rolls-Royce plc, Caterpillar Inc., John Deere, WÄRTSILÄ CORPORATION, Denyo Co. Ltd., Yanmar Holdings Co. Ltd., Kirloskar Oil Engines Limited, and Kohler Co.