Coal Power Generation Market Volume, Share & Trends Analysis Report By Technology (Pulverized Coal Systems, Cyclone Furnaces), By Application (Residential, Commercial & Industrial), By Region, And Segment Forecasts, 2024 - 2030

Coal Power Generation Market Trends

The global coal power generation market volume was 2,056.95 GW in 2023 and is projected to grow at a CAGR of 1.1% from 2024 to 2030. The high energy demand is expected to drive the coal industry to generate electricity. Coal is a key product for electricity generation owing to its abundant availability and low cost compared to other electricity generation technologies. These factors are expected to propel the growth of the market during the forecast period. The supply chain of the coal power generation model was majorly affected in 2020 due to the shutdown of production facilities owing to lockdowns imposed in most of the countries around the globe.

The International Energy Agency (IEA) stated that coal is still responsible for more than a third of the world's electricity production. Moreover, worldwide, there are more than 2,400 coal-fired power stations with a total capacity exceeding 2,000 gigawatts (GW). Roughly 33% of the world's electricity is produced by them. Coal is the most widely utilized energy source globally due to its abundant availability and low cost.

The availability of raw material is a key factor that affects any production process, controls its setup, and helps drive market growth. In the case of coal power generation, coal is utilized as energy technology and is a major raw material used for power production. In the Asia Pacific region, countries such as China, India, Indonesia, and Australia are the major producers of coal. The Asia Pacific region alone contributed to around two-thirds of the global coal production in 2020. This ready availability of raw material makes the production process cheaper and helps in making coal the most reliable technology for power production even in a peak-demand situation.

Increasing focus on generating electricity through cleaner technologies and the degradation of coal reserves are the factors anticipated to increase the share of gas turbines in the global energy mix, thereby providing a positive environment for the growth of the gas turbine service sector. Hence, these factors are expected to have a negative impact on the growth of the market during the forecast period.

Technology Insights

Pulverized coal (PC) systems dominated the market in 2023. PC is commonly used in big power plants due to its adaptable regulation. Coal is pulverized in this method, allowing 70%-80% of it to pass through a 200-mesh sieve. Particles in the combustion air are mixed with the powder causing it to ignite in the combustion chamber. Due to its smaller particle size, this finely ground coal has a greater surface area per unit weight, leading to a quicker combustion process. Additionally, pulverized coal combustion has traditionally been the outperforming cyclone furnaces, most common technology type, and other options due to its higher thermal efficiency and reduced emission of pollutants.

Cyclone furnaces are expected to grow at the fastest CAGR over the forecast period. These furnaces are capable of combusting low-grade coals with increased levels of moisture & ash reaching up to 25%. Moreover, the capacity to collect ash is a major advantage of cyclone furnace technology in power generation. While 80% of ash remains in the exhaust gases with pulverized coal combustion, only 40% is present with coal furnace technology, which is expected to significantly increase in popularity in the forecast period.

Application Insights

The residential segment dominated the market in 2023 and can be attributed to rapid industrial growth, particularly in developing countries. Residential structures include apartments, multiple-family systems, co-op communities, individual houses, and organized neighborhoods. It is expected that the increase in construction spending for residential development, fueled by population growth and rising disposable income, will lead to an uptick in energy usage in the coming period. Furthermore, due to urbanization, national power grids are increasing, causing a growing gap between power supply and demand. This trend is driving the demand for the coal power generation market.

The commercial & industrial segment is projected to grow at the fastest CAGR over the forecast period, fueled by economic growth in the commercial industries of developing nations. Hospitality, IT, retail, telecom, and healthcare sectors are rapidly expanding, leading to an increased need for coal power in these business establishments. Moreover, specialty chemical manufacturing, heavy industries, pharmaceutical, cement and glass manufacturing, and sugar mills are all part of the industrial application segment. The demand for coal power in emerging economies like India, Bangladesh and China has been greatly influenced by the industrial sector.

Regional Insights

The North America coal power generation market is anticipated to grow during the forecast period. The U.S. coal power generation market was identified as a lucrative region in 2023. The general direction for coal is still declining. The ongoing growth of cleaner and more efficient natural gas and renewable energy sources, as well as stricter environmental regulations and an increasing emphasis on lowering carbon emissions are some of the factors impacting the market.

Asia Pacific Coal Power Generation Market Trends

Asia Pacific coal power generation market is dominated in the 2023. This region includes of various countries, consisting of both developed and developing countries. Coal power generation projects and increasing industrialization in the area are the primary drivers fueling the growth. The rise in energy needs, particularly in emerging markets, is projected to have a beneficial effect on market growth as electricity consumption increases.

The China coal power generation market held majority share in 2023. According to International Energy Agency, China is the biggest coal consumer in the world, accounting for over 50% of global coal demand. In 2022, the total coal demand of the country increased by 4.6% to reach 4 520 Mt, with coal accounting for over 60% of power generation. Moreover, China plans to reduce carbon emissions from its coal-fired power sector by implementing low-carbon upgrades and utilizing new power generation technologies, as stated in a plan released by the NDRC and National Energy Administration.

The coal power generation market in India is expected to grow rapidly in the coming years. India is the second-largest importer of coal in the world, following China, and brings in a significant amount of coal from nations such as Australia and Indonesia. Kandla, Krishnapatnam, and Mundra are among the key ports in India that manage imported coal. The government puts a strong emphasis on improving infrastructure to facilitate the transportation of coal in larger amounts using advanced technology to increase efficiency.

Europe Coal Power Generation Market Trends

The Europe coal power generation market was identified as a lucrative region in 2023. Though there is increasing attention on renewable energy efficiency, energy sources, and decreasing carbon emissions in the region, however some Eastern European countries, like Poland, continue to heavily depend on coal for generating power, thus contributing the growth.

Key Coal Power Generation Company Insights

Some of the key companies in the Coal Power Generation market include American Electric Power Company, Inc., China Huadian Corporation Ltd. (CHD), China Huaneng Groupand and others.

• Duke Energy Corporation operates in the coal power generation sector and has traditionally depended on coal for a large portion of its power generation.

Recent Developments

• In June 2024, Adani Power Ltd (APL) announced that Mahan Energen Ltd (its subsidiary) approved a plan to merge coal mining company Stratatech Mineral Resources with itself in order to enhance fuel security.

Coal Power Generation Market Report Scope

Global Coal Power Generation Market Report Segmentation

This report forecasts volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global coal power generation market report based on technology, application, and region.

• Technology Outlook (Volume GW, 2018 - 2030)

  • Pulverized Coal Systems

  • Cyclone Furnaces

  • Others

• Application Outlook (Volume GW, 2018 - 2030)

  • Residential

  • Commercial & Industrial

• Regional Outlook (Volume GW , 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

    • Australia

    • Thailand

    • Indonesia

    • Malaysia

  • Latin America

    • Brazil

    • Argentina

  • Middle East and Africa (MEA)

    • South Arabia

    • South Africa