Coal Mining Market Analysis APAC, South America, North America, Middle East and Africa, Europe - China, India, US, Indonesia, Australia - Size and Forecast 2024-2028

Coal Mining Market Size 2024-2028

The coal mining market size is estimated to increase by USD 66.7 billion and grow at a CAGR of 2.09% between 2024 and 2028. Market growth hinges on various factors, including advancements in electricity generation technology, widespread adoption of mine planning software, and the integration of robotics and driverless technology in the mining sector. However, challenges persist, such as the increasing adoption of renewable energy sources, the gradual phase-out of coal-fired power plants, and stringent regulations concerning environmental safety and public health. These dynamics shape the trajectory of the mining industry, driving innovation while necessitating adaptation to evolving regulatory landscapes and market demands.

What will be the  Coal Mining Market Size During the Forecast Period?

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Market Segmentation

Market Method Analysis 

The underground mining segment is estimated to witness significant growth during the forecast period. The extraction of coal from beneath the Earth's surface using underground mining methods is termed underground mining. This method is widely used when coal reserves are located at significant depths under the Earth's surface or when environmental and geological conditions are favoring underground coal extraction. This method comprises building shafts and tunnels that are vertical or at an incline to access coal seams, which are difficult to be extracted using surface mining methods.

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The underground mining segment was the largest segment and was valued at USD 431.70 billion in 2018. There is an increasing preference for underground mining due to safety and environmental reasons. Furthermore, underground mining can help limit environmental concerns related to surface coal mining, such as deforestation and habitat destruction. It reduces surface disturbances minimizes the risk of accidents related to surface mining activities, and prevents the destruction of the landscape on the surface. Additionally, underground mining is an ideal option for regions with complex geological structures or challenging topography. Hence, such factors are expected to fuel the growth of this segment which in turn will drive the growth of the market during the forecast period.

Market End-user Analysis 

Based on the end-user, the thermal power generation segment holds the largest market share. In the projected timeframe, the thermal power generation sector holds the most substantial portion of the global industry. Coal remains a prominent and cost-effective energy source for electricity production in numerous nations. Power plants employ thermal coal, or steam coal, to generate power. Countries are directing efforts toward enhancing power station thermal efficiency through the adoption of high-efficiency, low-emission (HELE) coal-fired plants.

Emerging combustion technologies include Ultra-supercritical (USC) and advanced ultra-supercritical (AUSC) methods. This anticipates a rise in coal usage due to its affordability and the potential emission reduction from novel technologies. Nonetheless, this segment's coal demand is projected to wane, as global governments commit to emission reduction in response to environmental anxieties. Stricter regulations on carbon emissions impede thermal power plants' revenue sustainability. Consequently, these influences are set to impede the expansion of the thermal power generation sector in the global market throughout the forecast period.

Market Region Analysis

APAC is estimated to contribute 81% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The APAC region has wielded significant influence in coal production, notably led by China and India as the world's primary coal producers. Indonesia and Australia also hold prominent positions, exporting a considerable share of their output regionally and globally. This area has witnessed substantial economic advancement and industrialization, resulting in escalated energy requirements. Historically, coal's abundance and affordability have made it an appealing energy source, catering to mounting electricity demands from industries and households. It has stood as a vital power source across many APAC nations, responding to the necessity for reliable and cost-effective electricity to sustain economic progress. Coal's role is pivotal in steel manufacturing, especially coking coal. Amid the APAC region's swift construction and infrastructure expansion, steel demand has surged, further propelling coal consumption. Coupled with population growth intensifying energy usage, the need for coal to meet escalating household and business energy demands is projected to steer the regional market's growth in the foreseeable future.

Market Dynamics and Customer Landscape

The market encompasses various facets, including coal reserves, prices, and mining activities across different countries. It caters to diverse applications, from power generation to steel manufacturing, and serves as a vital component in energy production. Despite the increasing adoption of renewable energy sources, coal remains integral to power generation, especially in regions with high electricity demand. However, environmental concerns persist due to coal's role in pollution. The market dynamics are influenced by factors like industrial development, electricity demand, and exploration projects. As the industry navigates challenges such as regulatory changes and environmental considerations, it continues to play a significant role in global energy and industrial sectors. Our researchers analyzed the data with 2022 as the base year and the key drivers, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage. Undersea mining presents opportunities in the global coal mining market by supporting coke production and generating heat energy. Supportive government policies facilitate transport to power stations, boosting the commercial viability of undersea mining operations.

Key Market Driver

The industry is driven on a global scale, with numerous countries boasting substantial coal reserves and active mines. Coal remains a vital energy source for power generation, industrial processes like steel production, and fluid fuel applications. However, environmental concerns persist due to pollution from coal usage and mining activities. To address operational challenges and optimize efficiency, the sector increasingly relies on mine planning software.

Moreover, leading consultancy firms like SRK Consulting leverage advanced geological modeling tools to streamline processes from exploration to closure, contributing to the industry's growth. As technology evolves, coal mining continues to adapt, ensuring its relevance amidst changing energy landscapes and environmental imperatives.

Significant Market Trends

The advantage of using byproducts of coal combustion is a major trend influencing the growth of the market. Coal combustion products (CCPs) emerge as coal-fired power plants burn coal, encompassing fly ash, bottom ash, boiler slag, flue gas desulphurization gypsum, and additional materials like fluidized bed combustion ash, cenospheres, and scrubber residues. Notably, fly ash is employed to enhance cement in concrete, with over 50% of US concrete containing it. Fly ash engenders robust, enduring, corrosion-resistant, and chemically sturdy concrete, aiding in curbing greenhouse gas emissions compared to standard cement.

In addition, in the realm of Portland cement, a prevalent global variant, each ton of fly ash curtails carbon dioxide release by a corresponding ton. Consequently, CCPs will prominently shape construction, aligning with escalating demand for sustainable practices, and potentially steering the growth of the global sector.

Major Market Challenge

Phasing out of coal-fired power plants is a major challenge hindering market growth. Nations prioritizing environmental safety and pollution control are progressively phasing out coal-based power plants. Notably, Canada, France, Germany, the Netherlands, Austria, and Finland are actively transitioning away from coal-fired plants. The prime impetus for this shift stems from the 2016 Paris Agreement, which strives to cap global temperature rise below 2 degrees Celsius from pre-industrial levels, with an even more ambitious goal of 1.5 degrees Celsius.

However, countries have set interim targets for a substantial reduction by 2030 and complete elimination of coal-powered plants by 2050. Instances like BHP Group's divestment due to environmental protests and EDF's closure of the West Burton power station underscore the mounting challenge faced by the coal industry. These trends are anticipated to impede the growth of the global sector in the foreseeable future.

Key Coal Mining Market Companies

Companies are implementing various strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches, to enhance their presence in the market.

Alpha Metallurgical Resources Inc. - The company offers coal mining operations such as underground and surface mining.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including: 

Adani Group, Alpha Metallurgical Resources Inc., Anglo American plc, Arch Resources Inc., BHP Group plc, CEF Group, CEZ a. s, CHN ENERGY Investment Group Co. Ltd., Coal India Ltd., Coronado Global Resources Inc., Glencore Plc, Joint Stock Co. Siberian Coal Energy Co., NACCO Industries Inc., NTPC Ltd., Peabody Energy Corp., PT Adaro Energy Tbk, Sasol Ltd., Shaanxi Coal and Chemical Industry Group Co. Ltd., and Teck Resources Ltd.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments. 

• Method Outlook
  • Underground mining
  • Surface mining
• End-user Outlook
  • Thermal power generation
  • Cement manufacturing
  • Steel manufacturing
  • Manufacturing plants others
• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

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Market Analyst Overview

Mining technology spans various methods like strip mining, auger mining, open-pit mining, mountain removal mining, room and pillar mining, and longwall mining, impacting environmental pollution and air pollution. These techniques support coking feedstock for power generation capacity plans and industrial and infrastructural development activities, often involving thermal power stations and coal producer efforts. As the focus shifts towards renewable energy generation and solar power, initiatives such as the Solar Park Scheme and Viability Gap Funding Scheme promote non-fossil fuels and reduce megawatts dependent on coal imports. Addressing health disorders associated with air pollution, organizations like the International Renewable Energy Agency advocate for sustainable energy sources like hydrogen and manage emissions of sulfur, oxygen, and nitrogen. The evolution towards cleaner energy sources underscores global efforts to mitigate environmental impacts while advancing energy security and public health globally.

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What are the Key Data Covered in this Market Forecast Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2024 and 2028
• Precise estimation of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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