Coal Bed Methane (CBM) Market Size, Share & Trends Report

Coal Bed Methane (CBM) Market Size, Share & Trends Analysis By Application (Industrial, Power Generation, Residential, Commercial and Transportation) And Segment Forecasts To 2020

  • Published Date: Apr, 2015
  • Base Year for Estimate: 2014
  • Report ID: 978-1-68038-028-6
  • Format: Electronic (PDF)
  • Historical Data: 2012-2014
  • Number of Pages: 64

Industry Insights

Natural gas is one of the fastest growing energy forms and has been gaining market share significantly in the global energy basket. Due to its cleaner existence, natural gas has been rapidly catching up to crude oil as a fuel alternative, with the latter not feasible for producing clean energy. Natural gas is slowly evolving as the primary global fuel with increasing penetration in transportation and domestic application markets.

By 2040, natural gas is expected to be on par with crude oil in the global energy landscape. However, depleting conventional natural gas reserves raise questions on its sustainable status, due to which there is an increased focus towards the use of unconventional gas sources such as CBM, shale gas, and tight gas.

U.S. Coal bed methane market

Moreover, it is estimated that recoverable unconventional sources of gas including CBM are much larger than the conventional natural gas resources, with a substantial chuck still unexplored. Increasing exploration and extraction on a global scale is expected to drive CBM production over the next six years. The cost of producing one cubic meter of CBM by the means of vertical drilling is estimated to be approximately USD 0.11 globally. Drilling cost incurred accounts for the maximum share of it. Drilling cost is estimated to account for approximately 74.3% of the total cost for the production of one cubic meter of CBM gas.

Electricity accounts for the next biggest segment sharing 8.1% of the total cost for producing CBM gas by the means of vertical drilling. Maintenance cost for machinery and equipment used for the production of CBM accounts for 6.8% of the total cost. Operational expenses shares approximately 5.4% of the total cost and other cost incurred for the production of CBM accounts for 5.4% of the cost. Global CBM (coal bed methane) market revenue is expected to reach USD 17.31 billion by 2020, growing at a CAGR of 5.9% from 2014 to 2020.

In U.S., CBM development has been and is expected to be more pronounced during the forecast period owing to generous tax incentives. Pure methane acquires the maximum percentage of the coal bed methane in the eastern coalfield of the U.S. and in order to get pipeline quality only gas dehydration is done to remove moisture. In western coalfields, to strip out nitrogen or carbon dioxide is sometimes a necessity. After the production, there is gathering, transportation, marketing and pricing in a manner similar to conventional natural gas.

Application insights

Power generation emerged as the leading application market for tight gas and accounted for 35.3% of total CBM produced globally in 2013. Power generation along with being the largest market is also expected to be the fastest growing application markets for CBM at an estimated CAGR of 8.5% from 2014 to 2020.

Global coal bed methane market

The increase power generation market share can be attributed to the fact that other applications, such as residential and commercial usage, are expected to decrease in share by 2020. Power generation from CBM is cheaper and hence preferred in developed as well as developing countries. The power generation process converts methane from coal mines into carbon dioxide and water and reduces greenhouse gases significantly. To earn carbon credits, developing countries are now shifting focus towards CBM for power generation. Companies such as Essar Oil and Caterpillar are investing in large CBM projects for power generation.

Regional insights

U.S. dominated CBM production, accounting for 61.8% of total CBM produced globally in 2013. Canada followed U.S. in the global market and accounted for 11.5% of total production in 2013. The growth of North American market is primarily driven by the growing demand for sustainable fuel in the country and to reduce reliance on conventional sources of natural gas. However, Asia Pacific on account of growing drilling activities mainly in coal-rich countries such as China, India, Indonesia and Australia is expected to be the fastest growing CBM market at an estimated CAGR of 14.9% from 2014 to 2020.

Asia Pacific is one region where GDP growth rates, due to growing disposable income of consumers are growing at rapid pace. Growing GDP is leading to growing demand for energy in the region. The growth of Asia Pacific energy is mainly driven by China, India, and Indonesia. Along with being a large demand centre, Asia Pacific is also emerging as a large supply centre for unconventional gas resources including CBM. Unproven reserves for coal bed methane in the countries such as India, China and Indonesia is the reason of new entrants and companies willing to invest in this region. In order to supplement significant proportions of the supply of natural gas, coal bed methane is increasing in China owing to increasing demand of natural gas as compared to the domestic production of the same. For unconventional gas resources, Asia Pacific region is a large demand center and due to increasing interest of companies, it is also expected to emerge as a great supply center.

Coal bed methane market share insights

Key market players in the global coal bed methane market include BG Group, Arrow Energy, Dart Energy, Santos, Origin Energy, Great Eastern Energy, PetroChina and Petronas. These companies offer a diverse portfolio in the coal bed methane market both in terms of products and services for the operator companies and are highly integrated across the value chain.

A major chunk of the global CBM market is captured by BG Group and Arrow Energy. The two companies together accounted for over half of the global market in 2013. There is stiff competition in the rest half of the market and is shared by companies such as Dart Energy, Santos, Origin Energy, Great Eastern Energy and PetroChina.

Report Scope



Base year for estimation


Actual estimates/Historical data


Forecast period

2014- 2020

Market representation                                    

Revenue in USD million and CAGR from 2014 to 2020

Regional scope

North America, Europe, Asia Pacific,

Country Scope

U.S., Canada, Russia, China, India, Indonesai, Australia

Report coverage        

Revenue forecast, company share, competitive landscape, and growth factors and trends

15% free customization scope (equivalent to 5 analysts working days)

If you need specific market information, which is not currently within the scope of the report, we will provide it to you as a part of customization

Segments covered in the report

This report forecasts revenue and revenue growth at global, regional & country levels and provides an analysis on the industry trends in each of the sub-segments from 2012 to 2020. For this study, Grand View Research has segmented the global coal bed methane market on the basis of application, and region.

  • Application Outlook (Revenue, USD Million; 2012 - 2020)

    • Power Generation

    • Residential

    • Commercial

    • Transportation

  • Regional Outlook (Revenue, USD Million; 2012 - 2020)

    • North America

      • U.S.

      • Canada

    • Europe

      • Russia

    • Asia Pacific

      • China

      • India

      • Australia

      • Indonesia

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