Coal Power Generation Market (By Technology: Pulverized Coal Systems, Cyclone Furnaces, and Others; By Application: Residential, Commercial And Industrial) - Global Industry Analysis, Market Size, Opportunities and Forecast 2021-2028

The global coal power generation market was 1,961 Gw in 2020 and is anticipated to register a CAGR of 1.7% from 2021-2028.

Market Dynamics

Energy demand across the globe is increasing. Rapid industrialization and urbanization in countries is resulting in high demand for power. Coal being easily available is used as the primary source for energy generation for decades. Being cost-effective for energy generation, preference from the governments for coal was and is currently driving coal demand. The rising population and strong economic growth are shaping the energy demand for any given country. Countries such as China, the US, India, etc. are major energy-consuming countries. In 2020, the primary energy consumption of China, the US, and India stood at 145, 87, and 31 exajoules respectively. According to International Energy Agency, the energy demand on a global level is expected to increase by 5% in 2021. Fossil fuel-based energy generation is expected to account for 45% share in demand. The abundant availability of coal and relaxed regulations related to the environment, along with policies related to increasing coal production are fueling the coal power generation market growth. Countries such as Russia, China, the US, and India are major countries holding proven coal reserves. The US holds 23% share in the proven coal reserves on a global level with a reserve of 249 billion tons in 2019. This is followed by countries such as Russia, Australia, and China having reserves of 162, 149, and 142 billion tons. Countries such as Russia, China, and India are highly reliant on coal for energy. The policymakers are implementing various projects and rules to encourage coal likewise energy production. In 2019, the Russian government announced its plans to boost domestic coal production. They have targeted to raise the production to 670 million tons by 2035. The Indian government in 2020 has opened up the coal serves to the private sector with the focus to encourage coal products and lower their dependency on coal imports. These cumulative aspects are exponentially driving the global market growth.

Report coverage

Rapid urbanization in emerging economies and increasing construction projects are resulting in high demand for electricity. With the advent of new advanced devices, the introduction of smart homes demand for energy in order to run these devices is increasing. In Europe, the residential sector accounted for 26% share in energy consumption in 2019. The average consumption of the residential sector in India in the year 2017-2018 was 7,236 kWh and in 2018-2019 the consumption increased to 8,101 kWh. This high demand and availability of cost-effective energy-producing material is impacting the market growth. The government is implementing strict regulations related to CO2 emission, environmental pollution but coal production and energy generation is one of the major reasons for pollution. Approach towards adoption of green energy and implementation of new wind and solar energy projects are indications to shift the energy dependency from coal to other sources. These aspects are some major hurdles that hamper market growth. In addition, supply chain issues impacting the import of coal is creating challenges for the government for energy generation. Lockdown and import bans due to the Covid-19 situation have lowered the reserve. This factor is expected to limit coal power generation market growth. However, changing government regulations related to import and favorable business policies are factors encouraging domestic production which is expected to create new opportunities for players. In 2020, the government of India auctioned off its present 40 coal mines to increase coal production. In addition, increasing investment in the energy sector is expected to support the growth of target market.

Coal Power Generation Market Region Analysis, 2020

Asia Pacific region is expected to dominate the global coal power generation market due to high coal production and consumption. The flourishing economic situation, presence of major chemical and metal manufacturers operating in the country is resulting in high demand for power.

Coal Power Generation Market Segment Analysis, 2020

The global coal power generation market is segmented into technology and application. The technology segment is bifurcated into pulverized coal systems, cyclone furnaces, and others. Among technology, the pulverized coal systems segment is expected to account for major share in the target market. The application segment is bifurcated into residential and commercial & industrial. Among applications, the residential sector is expected to account for dominating share in the market. This can be attributed to rapid urbanization in emerging economies and increasing construction activities.

Competitive Landscape                                                                                                                   

Players operating in the target market are Uniper SE, NTPC Ltd., KEPCO Engineering & Construction Company, Inc., China Shenhua, China Huadian Corporation Ltd. (CHD), Dominion Energy, Steag GmbH, and Duke Energy Corp.

Market Segmentation

Market By Technology

• Pulverized Coal Systems
• Cyclone Furnaces
• Others

Market By Application

• Residential
• Commercial And Industrial

Market By Geography

• North America
  • U.S.
  • Canada
• Europe
  • U.K.
  • Germany
  • France
  • Spain
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Rest of Asia-Pacific
• Latin America
  • Brazil 
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa