Coal Market Size, Share, and Industry Analysis, By Application (Power Generation, Cooking Feedstock, Steel Production, and Others), and Regional Forecast, 2024-2032

The steel production segment primarily drives the coal market. Steel production relies heavily on coal, both metallurgical coal and thermal coal. Metallurgical coal, also known as coking coal, is a crucial ingredient in coke production and is used as a fuel and reducing agent in blast furnaces. In addition to traditional blast furnace methods, coal is used in direct-reduced processes to produce direct-reduced iron.

During the steel-making process, coke is utilized in the blast furnace as a fuel to generate added heat. It also acts as a chemical-reducing agent, which helps to reduce iron oxides. Additionally, coke is used as a porous support in the molten material in the furnace. Furthermore, the by-products obtained from coke ovens are utilized in the chemical industry.

The cooking feedstock sector also drives the coal market. Coal gas is a gaseous mixture of hydrogen, methane, and carbon monoxide produced by the destructive distillation of bituminous coal. Coal is mainly made up of carbon, with varying proportions of additional elements such as hydrogen, oxygen, sulphur, and nitrogen. It is mainly used as a fuel in industries near coal processing units. Earlier, it was used as a source of light. Now, it is more commonly used to provide heat for domestic and industrial purposes.

• In February 2023, the 2600 megawatt Singareni Thermal Power Plant (STPP) at Pegadapalli in Mancherial district is all set to become South India's first public sector coal-based power generating station and the country's first among State Public Sector Undertakings (PSU).

Coal is the cheapest and most essential source of energy. Coal is significantly used in thermal power generation, which further helps produce electricity. Powdered coal is burnt at high temperatures, which turns water into steam. This steam turns turbines at high speed in a strong magnetic field. After this, electricity is finally generated. Coal is widely used in many industries, including the paper and aluminum industries. Coal provides numerous raw materials, such as benozle, coal tar, sulfate of ammonia, creosote, and others to chemical industries.

By region, the major coal market consumers are China, Japan, and India in Asia Pacific; the U.S. and Canada in North America; Germany and France in Europe; and Saudi Arabia and the UAE in the Middle East.

• In 2022, the Asia Pacific accounted for more than 77% of the total coal consumption.


• The total steel production in China was 67.4 Mt in the year 2023.


• In 2023, India was the second-largest steel-producing country, producing approximately 12.2 Mt of steel.

Key Insights

The report covers the following key insights:

• Key Emerging Trends – For Major Regions


• Key Developments: Mergers, Acquisitions, and Partnerships


• Latest Technological Advancement


• Insights on Sustainability


• Porters Five Forces Analysis


• Impact of COVID-19 on the Market

Segmentation

Analysis by Application

By application, the power generation segment holds a considerable share of the global coal market.

• Coal is extensively used to fire thermal power stations, which meet the demand for various sectors, including residential, commercial, transport, and public services. Coal power plants utilize steam turbines to convert the heat energy of combustion into mechanical energy, which is then used to operate an electric generator. In all power plants, the steam turbine harnesses the energy from the drop between the high pressure and temperature of the steam and the lower pressure of condensing vapour.


• Coal-fired power plants generate energy from the combustion of coal. These power plants burn coal to make steam and the steam turns turbines to generate electricity. Many industries and businesses have their own power plants; some use coal to generate electricity for their own use, mostly in combined heat and power plants.

Regional Analysis

The Asia Pacific region holds a considerable share of the coal market. Coal consumption in the Asia Pacific region is dominated by its use for power generation. Key consumers in this region are Japan, Korea, Australia, and Chinese Taipei, with a combined consumption of 468 Mt in 2022. In Japan, coal consumption was almost steady from 2021 to 2022, slightly increasing by 2 Mt to a total of 185 Mt. The Asia Pacific region is experiencing urbanization, which increases the demand for power generation, boosting the demand for coal in the Asia Pacific region.

Largest Coal Reserves Countries in the World

• U.S. – 255 billion tons


• Russia – 160 billion tons


• Australia – 147.4 billion tons


• China – 139 billion tons


• India – 101 billion tons

Key Players Covered

The report includes the profiles of key players such as JSW Energy Ltd., NTPC Ltd, Jindal Steel & Power Ltd., Coal India Limited and Adani Power Limited.

Key Industry Developments

• In February 2024, NTPC Ltd. announced that it had added another feather in its cap by surpassing a remarkable milestone of producing 100 MMT of coal.