Philippines DG Set Market Growth, Development and Demand Forecast Report 2030

Published Jan 25 

The Philippines diesel generator market was $152.9 million in 2021, and it is set to reach $245.2 million by 2030, growing at a CAGR of 5.4% through 2021−2030. The main reason for this is the developing industrial sector, which, in turn, is increasing the demand for electricity, and the frequent power outages. The market is also expected to grow with the growth in the urban population, which is leading to the mass-scale construction of commercial spaces, such as hotels, shopping malls, stadia, and transport hubs.

The Philippines diesel generator set market revenue is also snowballing at a faster pace because the government is trying to attract FDI. The country has established monetary zones to entice foreign companies and aid them set up production facilities. For example, the net FDI flow into the Philippines augmented by 96% year on year, to $1.1 billion in November 2021, in the sixth successive month of development among constant economic improvement.

There is a massive need for backup electricity in the nation because of the frequent power cuts, often because of natural disasters such as floods, typhoons, and droughts. Generally, typhoons and storms hit the Philippines every year, apart from heavy rains. For example, in December 2021, Typhoon Odette struck Manila, hindering the electric supply, which created a lot of hassle for residents. These events continue to fuel the demand for diesel gensets, thus offering a lot of opportunities to the manufacturers and distributors of this equipment.

There is also a strong need to develop the transportation infrastructure in the Philippines to decrease the traveling time. In January 2020, the Philippines’ Department of Transportation confirmed a joint venture with three Chinese firms for the expansion of the first package of the Philippine National Railways South Long-Haul project (PNR Bicol). The design, construction, and electromechanical works on the initial 380-km stretch from Banlic, Calamba to Daraga, Albay, are to cost $2.76 billion under this project.

Therefore, the market is growing in the Philippines because of the constant power outages and natural disasters hitting the country.