Coal Power Generation Market - Current Analysis by Market Share

Global Coal Power Generation Market Overview

Coal Power Generation Market Size Was Valued at USD 368.80 Billion in 2023 and is Projected to Reach USD 468.73 Billion by 2032, Growing at a CAGR of 2.7% From 2024-2032.

Coal is an important source of energy for the world, particularly for power generation. Demand for coal has grown rapidly over the last decade, outstripping that for gas, oil, nuclear, and renewable energy sources. This comes at a cost. Coal contributes to over 40% of global anthropomorphic CO2 emissions and more than 70% of CO2 emissions that arise from power generation are attributed to coal. To play its role in a sustainable energy future, its environmental footprint needs to be reduced; using coal more efficiently is an important first step. Beyond efficiency improvement, carbon capture and storage (CCS) must be deployed to make deep cuts in CO2 emissions. Coal-fired power generation is a thermal power station plant that burns coal to generate electricity. Gasification, pulverized coal firing, coal cyclone furnace, and fluidized bed combustion are some of the technologies used in the generation of power. Coal is a major source of power generation plants. The global coal power generation market was estimated to account for 2,057.6 Giga Watts in terms of volume by the end of 2019. The escalating demand for energy on account of rapid industrialization and the increasing dependence on electrification across the globe represents one of the key factors bolstering market growth.

COVID-19 Impact on the Coal Power Generation Market

The COVID-19 pandemic has become a major threat across the globe. The hospitality aviation industry is some of the worst-hit industries, the power generation is also critically influenced owing to the pandemic situation. Travel restrictions have meant that there has been a significant depletion in the application of public and private transport. Consequently, fuel demand for transport has declined significantly. These major factors are key reasons anticipated to hinder the growth of the coal power generation market during the forecast period. The EU imports of coal for thermal power plants thrust by almost two-thirds in recent months to reach lows not seen in 30 years. Furthermore, in April 2020 coal exports from Indonesia impact their lowest level since October 2010 amid the COVID-19 crisis. Comparing exports levels from 2015 to 2020, exports already declined below average in February and March 2020, to reduce further in April 2020.

Market Dynamics And Factors For Coal Power Generation Market

Drivers:

Coal power is still the major source of energy generation on a global level. In the US coal records about 19% of the energy generation in 2020. Growing energy demand from different end-use industries is increasing the global market growth. Furthermore, the easy availability of raw materials over the Asia Pacific region is primarily accelerating the market growth of coal power generation. Indonesia, China, India, and Australia are the major manufacturers of coal. Therefore, the ready availability of the coal in Asia Pacific region is stimulating the market growth of coal power generation. Growing demand for electricity is anticipated to increase the market growth of coal power generation. This is attributed to the rising population which is generating demand for the residential sector. Significant industrialization and urbanization along with the requirements for energy in heavy industries are again anticipated to hasten the market growth of coal power generation. Hence, the augmenting demand for electricity is estimated to drive market growth.

Restraints:

Stringent regulations about greenhouse gas emissions are motivating manufacturers to introduce green technologies. This is anticipated to hamper the market growth of coal power generation. Moreover, the availability of natural gas in large quantities, coupled with its relatively cheap prices, primarily in regions, such as North America, China, and Thailand, has led to a rise in power generation using natural gas. Growing focus on creating electricity through cleaner technologies and the degradation of coal reserves are the factors expected to raise the share of gas turbines in the global energy mix, thereby offering a positive environment for the growth of the gas turbine service sector. Therefore, these factors are anticipated to have a poor impact on the growth of the coal power generation market over the forecast period. In addition, the health problems related with the coal-fired power generation as they release harmful gases which lead to different respiratory problems such as asthma. This is anticipated to hinder the market growth of coal power generation.

Opportunities:

Pulverized coal technology is gaining propulsion in the market as they use powdered coal to produce thermal energy. Furthermore, in pulverized coal, the rate of combustion can be managed easily. In addition, it provides faster results to load changes. The trend of using pulverized coal systems over both residential as well as commercial applications wing to rising consciousness about the environmental benefits is further anticipated to increase the market growth of the coal power generation.

Growing in the number of coal power generation units over the world is anticipated to provide lucrative market opportunities in the upcoming years. For instance, in February 2020, Japan declared that it is planning to build up to 22 new coal power plants at 17 different sites in the upcoming five years. Therefore, a growing number of coal power generation plants is anticipated to trigger the market growth of coal power generation.

According to Statista, global installed coal power capacity has increased to over 2.1 terawatts and is estimated to peak by 2030. Many governments have launched phase-out dates to be reached before mid-century to overcome their carbon footprint and diminish climate change. However, as of 2020, there was around 500 gigawatts worth of coal power plants in the pipeline. Russia, Malaysia, and India have recorded the greatest share of public support for coal expansion. More than half of the respective economies' residents were in favor of furthering coal application, despite concerns over its environmental impact. Furthermore, Chinese banks such as ICBC are the highest investment banks for coal organizations. Of the five banks having funded the largest amount in the past years, four were China-based companies.

Market Segmentation

Segmentation Analysis of Coal Power Generation Market:

Based on the technology, the pulverized segment is expected to hold the maximum market share during the forecast period. The pulverized coal system is extensively accepted in energy production owing to its huge efficiency and fewer pollution benefits as compared to other segments. By pulverizing the coal, the surface area for combustion rises much hence thermal efficiency increases. It results in a faster combustion rate and however declines the requirement of secondary air to complete combustion. The burden of the air intake fans also decreases. Moreover, another essential feature of the pulverized firing system is that it does not have any moving parts inside the combustion chamber which gives it a long trouble-free life. In addition, ash handling is simpler in this technology.

Based on the application, the commercial and industrial segment is expected to hold the maximum market share during the forecast period. Rapid industrialization over the emerging regions will help turn the application of coal power generation into commercial applications. An increase in the manufacturing industries, along with upcoming power plant projects over the developing areas, is anticipated to trigger the segment growth.

Regional Analysis of Coal Power Generation Market:

Asia Pacific region is expected to dominate the coal power generation market over the projected period. The power utilization has been augmenting at a significant rate in the region turn by industrialization, population growth, and rising urbanization, particularly in developing economies, such as India and China. China led the Asia Pacific regional market with a volume share of 71% in 2020. The market in the region is primarily driven by the upcoming power generation projects and rising industrialization in the region. Furthermore, the accessibility of low cost of the labor, as well as proximity to raw material suppliers, is further attracting investors to the region. Hence, rising power needs in the region are anticipated to grow the demand for the coal power generation market during the forecast period in the region.

North America region is expected to hold the significant market growth for the coal power generation during the forecast period.  The market is majorly driven by the US country owing to for over a century coal has been among the major sources of electricity generation in the United States. Even though it lost its position as the highest contributor to the power mix to natural gas in 2016, coal energy is still extensively utilized over the nation. There is a large number of U.S. utilities utilizing coal not committed to retiring by 2030 despite greater efforts and incentives by the government to overcome reliance on this heavily polluting fossil fuel.

In Europe, the steady growth rate for the coal power generation market over the forecast period. The demand for electricity from coal during the COVID-19 pandemic lockdown has declined in the majority of countries in Europe. Between March 28 and April 30, the demand for coal in Germany's energy mix fell from 30 percent in this period in 2019 to 16 percent in 2020. In comparison, Portugal went completely coal-free for more than a month during this period.

Players Covered in Coal Power Generation Market are :

• Jindal India Thermal Power ltd.
•  Southern Company
•  Duke Energy Corporation
•  Uniper SE
•  CHINA SHENHUA
•  China Huadian Corporation LTD. (CHD)
•  China Huaneng Group Co. Ltd.
•  American Electric Power Company Inc.
•  Dominion Energy
•  YONDEN Shikoku Electric Power CO. Inc.
•  RWE
•  NTPC Ltd.
•  TENAGA NASIONAL BERHAD
•  STEAG GMBH
•  KEPCO Engineering & Construction Company Inc
•  and others major Players.