Global Market Size, Forecast, and Trend Highlights Over 2025-2037
Coal Power Generation Market size was USD 810.4 billion in 2024 and is estimated to reach USD 1.14 trillion by the end of 2037, expanding at a CAGR of 2.7% during the forecast period, i.e., 2025-2037. In 2025, the industry size of coal power generation is evaluated at USD 832.2 billion.
Coal is widely used as a source of energy in most regions across the world owing to its abundance. Even though the majority of countries have signed the Paris Agreement to mitigate their carbon footprint, fossil fuel production is still registering a stable growth. The vital need for coal in energy production is driving the operations of power plants. According to the World Nuclear Association report, around 26.0% of the primary energy needs are fulfilled by coal, and nearly 37.0% of power is produced from coal. Furthermore, the same source also estimates that around 2000 GWe of coal-fired generation capacity is in operation worldwide, and nearly 500 GWe is set to be online by 2030. Thus, the abundance of coal is making it the most widely distributed fossil fuel source across the world.
The International Energy Agency (IEA) analysis highlights that global coal use rose to 8.77 billion tonnes in 2024. Coal demand has reached a peak in advanced economies, while it is exhibiting a sharp demand in high-potential countries such as China, Indonesia, India, and Vietnam. The main factor contributing to this high demand is a swift rise in industrial and urban activities. In 2023, the coal demand touched a record of 8687 Mt, representing a year-on-year rise of 2.5%. Furthermore, the coal consumption in power generation is backed by low hydropower output, which reached 5855 Mt. The lower restriction, high presence of raw coal, and government subsidiaries’ investments in coal power generation are foreseen to back a stable coal power generation market growth in developing regions.
Coal Power Generation Market: Growth Drivers and Challenges
Growth Drivers
- Investments in clean coal technologies: The global shift towards decarbonization is driving opportunities in clean coal technologies for coal power generation market players. Innovations in carbon capture, utilization, and storage are expected to create opportunities for producers to capitalize on cleaner coal power generation. Carbon capture & storage (CCS) and integrated gasification technologies are gaining traction in coal power generation. For instance, the global coal gasification market is poised to expand at a CAGR of 6.4% and reach USD 31.5 billion by 2037.
|
Coal-fired Power Generation, Thermal Efficiency |
|||
|
Country |
Technology |
Efficiency |
Projected efficiency with CCS |
|
Australia |
Black ultra-supercritical WC |
43% |
33% |
|
|
Black supercritical WC |
41% |
|
|
|
Black supercritical AC |
39% |
|
|
|
own ultra-supercritical WC |
35% |
27% |
|
|
own supercritical WC |
33% |
|
|
|
own supercritical AC |
31% |
|
|
Belgium |
Black supercritical |
45% |
|
|
China |
Black supercritical |
46% |
|
|
Czech Republic |
own PCC |
43% |
38% |
|
|
own ICGG |
45% |
43% |
|
Germany |
Black PCC |
46% |
38% |
|
|
own PCC |
45% |
37% |
|
Japan, Korea |
Black PCC |
41% |
|
|
Russia |
Black ultra-supercritical PCC |
47% |
37% |
|
|
Black supercritical PCC |
42% |
|
|
South Africa |
Black supercritical PCC |
39% |
|
|
USA |
Black PCC & IGCC |
39% |
39% |
|
USA (EPRI) |
Black supercritical PCC |
41% |
|
Source: World Nuclear Association
- Coal power an employment-driving sector: The abundance of coal is a job-creating sector for millions of workers, such as miners, plant operators, supervisors, and engineers, worldwide. The reliance of many companies on the coal industry for employment and economic growth makes it a prime topic for investments and growth. The IEA study estimates that nearly 7.8 million people, including informal workers, were employed in coal-related activities globally in 2022, and nearly 3.1 million were engaged in coal mining. The major employment concentration is observed in Asia Pacific, around 3.9 million in China, followed by India (2.1 million) and Indonesia (0.4 million).
Challenges
- Increasing popularity of clean energy sources: The increasing popularity of clean energy sources such as wind, solar, and hydropower is emerging as a prime obstacle for coal power generators. These alternatives offer a more sustainable approach than coal-sourced electricity. Apart from this, the supportive government polices aiming at expanding the production of clean energy are set to backfire on the production of coal power. Overall, the increasing emergence of alternative energy sources is poised to hinder the revenues of coal power producers.
- Environmental commitments and regulations major drawbacks: The strict environmental regulations are likely to lower the production of coal-sourced power. The adoption of climate commitments and a strong focus on achieving net-zero carbon emissions by 2050 are lowering the production of fossil fuel electricity. These moves, coupled with the phase-out of funding, are expected to close some of the coal power plants, particularly in regions with stringent regulations, in the coming years.
Coal Power Generation Market: Key Insights
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
2.7% |
|
Base Year Market Size (2024) |
USD 810.4 billion |
|
Forecast Year Market Size (2037) |
USD 1.14 trillion |
|
Regional Scope |
|
Coal Power Generation Segmentation
Fuel Type (Anthracite, Bituminous, Subbituminous, Lignite)
Bituminous segment is set to hold coal power generation market share of over 49.2% by the end of 2037. The bituminous coal has prime applications in electricity generation and the steel industry, which boosts its market demand. The World Integrated Trade Solution (WITS) estimates that the top exporters of bituminous coal, not agglomerated in 2023, were Australia (353,030,000,000 Kg), the U.S. (87,649,300,000 Kg), Indonesia (69,676,100,000 Kg), Canada (38,571,800,000 Kg), and Colombia (56,540,400,000 Kg). Furthermore, the study by Observatory of Economic Complexity (OEC) reveals that the total trade of the bituminous coal, not agglomerated, stood at USD 135.0 billion in 2023 and captured the 17th position as the world’s most traded product.
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Bituminous Coal, Not Agglomerated |
|||
|
Country |
Export Value in USD Billion |
Country |
Import Value in USD Billion |
|
Australia |
55.9 |
Japan |
33.8 |
|
Russia |
17.2 |
China |
32.9 |
|
U.S. |
13.6 |
South Korea |
10.3 |
|
Indonesia |
11.5 |
Chinese Taipei |
9.75 |
|
Canada |
9.34 |
Turkey |
5.39 |
Source: OEC
End user (Utilities, Residential, Commercial, Industrial)
In coal power generation market, utilities segment is estimated to hold revenue share of more than 63.8% by 2037. The vital role of coal-fired power in utilities is to provide electricity to consumers. The utility companies' dependence on coal power plants to distribute energy to the users is uplifting the trade of various types of coal. Developing countries such as China, India, and Indonesia are heavily reliant on coal power plants for energy. This is creating a lucrative environment for utility companies to earn high profits. For instance, the Edison Electric Institute (EEI) estimates that the total electric utilities supplying energy in the U.S. amounted to 2,232,210 GWh in 2021. The same source also estimates that coal captures 15.9% of the electricity produced in the U.S. This highlights that coal is capturing a stable share in developed countries for energy production.
Our in-depth analysis of the global coal power generation market includes the following segments:
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Fuel Type |
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|
Capacity |
|
|
Technology |
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|
End user |
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Customize this ReportCoal Power Generation Industry - Regional Scope
Asia Pacific Market Forecast
Asia Pacific in coal power generation market is likely to hold more than 54.1% revenue share by 2037. The rapid growth in industrial and urban activities is fueling energy demand in the region. Coal-fired energy production is the most cost-effective way for countries in Asia Pacific owing to the abundance of raw materials. The supportive policies and easy availability of coal are backing the coal power plants from phasing out. China and India are the most lucrative marketplaces for investors, while Japan and South Korea are expected to drive innovations in clean coal technologies in the coming years.
China dominates the coal production and trade, and has the presence of massive coal-fired energy-generating capacities. The Centre for Research on Energy and Clean Air (CREA) study states that the coal power plant permits witnessed a boom in 2022. 50 GW of coal power capacity construction was started in 2022, registering a 50.0% rise from the previous year. This explains that two large coal power plants were permitted per week, with a total of 106 GW capacity. The construction of coal power plants is taking a boom with a total of 80 GW of new coal power projects in 2023, doubling from 40 GW in 2021. The coal power plants in large amounts in the country are justifying profitable trade in the coming years.
Similar to China, India is leading in coal production and trade, and its easy availability is backing power generation plants. The Ministry of Coal reveals that during the 2023-24 period, the total coal production in the country amounted to 997.826 MT, representing a growth of 11.7%. The Ministry also states that, till December 2024, the coal supplied reached 963.11 MT. The total coal production of the country is estimated to cross 1.5 BT by 2030. Coal accounts for nearly 55.0% of the total energy demand of the country and acts as a cost-effective fuel source for the domestic market. Thus, investing in India is estimated to offer lucrative gains during the assessed period.
North America Market Statistics
The North America coal power generation market is estimated to register a robust CAGR between 2025 to 2037. The stable use of coal in energy production is set to drive the overall coal power generation market growth in the coming years. The U.S. and Canada are prime exporters of coal to the world, as per the WITS analysis, export volume of bituminous coal, not agglomerated, of both countries amounted to 87,649,300,000 Kg and 38,571,800,000 Kg in 2023, respectively. This explains that coal has a vital role in energy production, as well as being the most traded product is driving economic growth.
The cold weather, technological advancements in coal production, and booming export trade are augmenting the coal power generation market growth in the U.S. As per the analysis by the U.S. Energy Information Administration (EIA), February 2025 witnessed much colder temperatures than expected, leading to high energy demand. In the first quarter of 2025, the total sales of electricity were estimated at 991 billion kilowatt-hours (kWh). A forecast of 39 billion kWh or a 6% rise is expected in coal production in 2025. Currently, the predictions are in favor of coal trade for energy production in 2025 and are estimated to witness a stable growth in the coming years.
Coal consumption for energy production is increasing at a steady pace owing to the clean energy transitions in Canada. The advancements in clean coal technologies are expected to uplift the coal power production in the coming years. The report by Natural Resources Canada explains that in 2022, nearly 47 million tonnes of coal were produced in the country, most from the mines located in British Columbia (59%), Alberta (28%), and Saskatchewan (13%). In 2021, 5.0% of energy was produced by consuming 18.4 Mt of coal. Out of 46.7 Mt of coal produced in 2022, the thermal coal captured a share of 41.0%, which was used for electricity production.
Companies Dominating the Coal Power Generation Market
- Bryden Wood
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Alstom SA
- China Huaneng Group
- China Datang Corporation
- NTPC Limited
- Korea Electric Power Corporation (KEPCO)
- American Electric Power (AEP)
- Duke Energy Corporation
- E. ON SE
- RWE AG
- Southern Company
- Eskom Holdings SOC Ltd.
- Bharat Heavy Electricals Limited (BHEL)
- Dominion Energy Solutions
The leading companies in the coal power generation market are strongly focusing on investing in research and development activities to develop clean coal technologies. The production of raw coal in both developed and developing countries is high; however, their use in energy production is stable, owing to environmental regulations and commitments. Thus, innovations are set to be game changers for coal power plants in the coming years. Supportive policies in the high-potential economies, owing to the abundance of raw materials, are likely to offer profitable returns to investors. Strategic collaborations and partnerships are further expected to boost the revenues and coal power generation market reach of technology providers in the years ahead.
Some of the key players include:
In the News
- In December 2024, the Centre for Research on Energy and Clean Air (CREA) revealed that in the first eight months of 2024, China increased its coal consumption by 18.0% Y-o-Y. This rise is mainly attributed to the country’s aim to expand its coal-to-chemicals industry.
- In January 2022, Bryden Wood introduced its digital platform, aiming for the decarbonization of electricity production by 2050. This platform is set to aid in replacing coal-fired boilers at existing power plants with Generation IV Advanced Modular Reactors (AMRs).
Author Credits: Dhruv Bhatia
- Report ID: 7434
- Published Date: Apr 01, 2025
- Report Format: PDF, PPT
