Why Natural Disasters Are Driving Philippines Diesel Generator Market?

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.

Industrial gensets held over 40% Philippines DG set market share in the application segment in 2021 due to the ongoing industrial projects. For example, DMCI Holdings, in August 2021, publicized plans to invest $70 million in developing of two electricity plants. Of this, $54.8 million was for a thermal power plant project on Palawan Island, and the rest for a hybrid diesel–solar power plant in Cataingan, Masbate. Upon operation, there will be a reduction in the cost of energy, and the r production capacity of DMCI will go up to 164 MW.

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.

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How Does Industrialisation Boost U.A.E. Diesel Generator Market?

In 2021, the U.A.E. diesel generator set market stood at $143.6 million; it is expected to hit the value of $204.5 million, growing at a rate of 4.0% from 2021 to 2030. It is attributed to the surge in demand for prime and backup power sources in central spaces such as retail stores, office spaces, hospitals and hotels. There is a massive demand for medium and large DG sets for power generation in the commercial sector, majorly in mining, oil & gas, energy & power, and manufacturing industries. 

The diesel generators are extensively utilized for global events in the country involving international participation or a vast number of visits. For instance, Expo 2020 conducted in 2021 was a recent global event in Dubai that increased the country's tourism and required an uninterrupted power supply, which was facilitated by the DG sets. Moreover, the rising power outages in the country have increased the demand for power backup sources resulting in the expansion of the market. 

The growing requirement of the gensets in the industrial sector leads to the U.A.E. diesel generator set market. The manufacturing, oil & gas production, and power generation industries massively require gensets for power supply reliability to carry out uninterrupted processes. For instance, construction sites having no or unreliable grid access depend on gensets for power supply. Similarly, the oil & gas industry depends on gensets for power supply to refineries, production sites, and distribution infrastructures such as gas stations and pipelines. 

The key players are focusing on launching new products to strengthen their presence and remain ahead of their competitors in the U.A.E. diesel generator set market. For instance, Kohler Co. launched diesel gensets named KD series diesel-powered generator sets with 4000 kVA and 4,500 kVA (50 Hz) or 3,500 kW and 4,000 kW (60Hz) capacity in November 2020. Similarly, Caterpillar Inc. launched Cat GC diesel gensets in October 2021. 

Thus, the increasing industrial development and construction activities with no reliable power supply in the region lead to market expansion.

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