Coal Power Generation Market Expected to Reach $440.5 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Coal Power Generation Market," The coal power generation market was valued at $361.1 billion in 2022 and is estimated to reach $440.5 billion by 2032 growing at a CAGR of 2.1% from 2023 to 2032.

Coal power generation refers to the process of producing electricity by burning coal as a fuel in power plants. Coal is one of the most widely used sources of energy for electricity generation worldwide. The process of coal power generation involves the following steps:

Coal mining: Coal is extracted from underground mines or surface mines through various mining techniques, depending on the geological characteristics of the coal deposit.

Transportation: Once mined, coal is transported to power plants by trucks, trains, barges, or conveyor belts.

Pulverization: Before being burned, coal is pulverized into a fine powder. This increases the surface area of the coal particles, allowing for better combustion efficiency.

Combustion: The pulverized coal is burned in a boiler or furnace. The combustion process produces heat, which is used to convert water into steam.

Steam generation: The high-pressure steam produced from the combustion of coal is used to drive a turbine connected to a generator. As the steam expands and flows over the turbine blades, it causes the turbine to spin, generating mechanical energy.

Electricity generation: The spinning turbine is coupled to a generator, which converts the mechanical energy into electrical energy. The electricity generated is then fed into the power grid for distribution to homes, businesses, and industries.

Coal power plants can provide a stable and consistent supply of electricity, as they can operate continuously and meet the demand for power consistently. Coal is a widely available and relatively inexpensive source of fuel, particularly in regions with large coal reserves. This accessibility contributes to energy security and helps maintain a steady supply of electricity. Coal power generation has been in use for many years, resulting in a well-developed infrastructure for mining, transportation, and power plant construction and operation. 

However, coal power generation has several drawbacks and environmental concerns. For instance, the combustion of coal releases large amount of carbon dioxide and other pollutants, contributing to air pollution, climate change, and negative health effects. On the contrary, efforts are being made to address these issues by improving the efficiency of coal power plants, implementing emission control technologies, and transitioning to cleaner and more sustainable energy sources. The abundance and accessibility of coal and its cost-effectiveness of coal drive the growth of the global Coal Power Generation Market trends.

Research and development efforts are focused on advancing coal technologies to improve efficiency and reduce emissions. Technologies such as high-efficiency, low-emission (HELE) power plants and carbon capture, utilization, and storage (CCUS) offer potential opportunities to make coal power generation cleaner and more sustainable. Carbon capture, utilization, and storage (CCUS) technologies possess the ability to capture carbon emissions from coal power plants and use or store them to mitigate their impact on climate change. Captured CO2 can be used for enhanced oil recovery (EOR) or in industrial processes, reducing emissions and creating value-added products. Thus, these factors together are expected to offer lucrative Coal Power Generation Market Opportunities for the expansion of the market during the forecast period.

The global coal power generation market is analyzed based on technology, application, and region. On the basis of technology, the market is divided into pulverized, cyclone furnaces, and others. The pulverized segment dominated the coal power generation market share for 2022 and is expected to maintain its domination throughout the forecast period. This is attributed to the fact that before subjecting coal to the furnace, it needs to be broken down into smaller pieces for uniformity and proper combustion. 

The circulating fluidized bed (CFB) technology for power generation from coal has been advancing steadily since the last decade. This technology can efficiently combust a wide range of coal types, including lower-quality coals such as sub-bituminous and lignite. In addition, it can handle other solid fuels such as biomass and waste coal, providing higher fuel flexibility. This capability allows power plants to utilize a variety of fuel sources, which can help optimize costs and reduce dependence on specific coal types.

By application, the coal power generation market is categorized into residential, commercial, and industrial. The industrial segment garnered the highest revenue and is expected to grow at a faster pace in the coming future, as the industrial segment requires a high amount of power to operate its machinery and furnaces to continue its operations. In addition, on-site coal power generation units are set up for generating the required power which augments the Coal Power Generation Market Growth.

Region-wise, the Coal Power Generation Market Analysis is done across North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific is the largest consumer of coal; thus, the region dominated the coal power generation market in 2022 and is expected to continue this trend during the projection year cycle. Coal power generation continues to play a prominent role in Asia-Pacific, particularly in China and India. However, there is a growing recognition of the need to address environmental concerns and transition toward cleaner and more sustainable energy sources, including renewable energy.

The key players operating in the coal power generation industry are Adani Power Limited, China Huadian Corporation LTD., Dominion Energy, NTPC Limited, KEPCO E&C, Jindal India Thermal Power Ltd., Uniper SE, China Shenhua Energy Company Limited, Saudi Electricity Company, China Huaneng Group Co., Ltd., American Electric Power Company, Inc., and Duke Energy Corporation. These players are adopting various strategies to gain a higher share and retain leading positions in the market. They are adopting carbon capture, storage, and utilization methods to reduce their carbon footprint. They are further investing in R&D activities for advancing present technologies of power generation through coal.

Key findings of the study

• By technology, the pulverized segment is projected to grow at the highest CAGR of approximately 2.1%, in terms of during the coal power generation market forecast period.
• The Asia-Pacific region dominated the coal power generation market share growing at a CAGR of 2.2% in 2021.
• By application, the industrial segment dominated the coal power generation market  during the forecast period.