Coal Mining Market by Method, End-user and Geography - Forecast and Analysis 2023-2027

Coal Mining Market Forecast 2023-2027

The coal mining market size is estimated to increase by USD 82.39 billion and grow at a CAGR of 2.62% between 2023 and 2027. 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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Segmentation

This market report extensively covers market segmentation by method (underground mining and surface mining), end-user (thermal power generation, cement manufacturing, steel manufacturing, and manufacturing plants and others), and geography (APAC, South America, North America, Middle East and Africa, and Europe). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

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 421.84 billion in 2017. 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 86% 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 Definition 

It is the process of extracting coal from the ground. Coal is the remains of ancient vegetation and other rock strata that have undergone modification under the effects of pressure and heat. It is a combustible, organic, and sedimentary rock, which is mostly composed of carbon, oxygen, and hydrogen.

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, along with 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. 

Key Market Driver

The industry operates 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. 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 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.

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.

Alphametresources- 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 report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• 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

Market Analyst Overview

The market encompasses a wide array of factors, from active mines and coal prices to environmental impact and health disorders. It involves various mining techniques such as auger mining, longwall mining, and strip mining, contributing to both industrial and infrastructural development activities. Despite concerns over adverse environmental impact and air pollution, coal remains a significant source of power generation capacity globally, particularly in countries with extensive coal resources. However, the market faces challenges due to the rise of renewable energy sources and regulations promoting environmental sustainability. Nevertheless, coal mining continues to play a crucial role in sectors like steel production and power generation.

The market remains a significant player in the global energy landscape, with coal-installed generation capacity driving power generation across numerous countries. Despite increasing focus on renewable energy, coal mining countries continue to rely on coal for electricity generation. Ongoing development and exploration projects sustain coal production and consumption, albeit amid concerns about environmental pollution. Methods like mountain removal mining and open-pit mining dominate the industry, while room & pillar mining techniques persist. However, the sector faces challenges from renewable energy sources and environmental regulations, impacting future power generation capacity plans and shaping the global coal industry's trajectory.

Also, the market continues to be influenced by various factors and trends. Coal remains a crucial energy source globally, with significant applications in thermal power stations and residential heating. Despite the rise of renewable energy generation and increasing usage of non-fossil fuels, coal continues to play a vital role in energy production. However, challenges such as environmental concerns and the phasing out of coal-fired power plants persist. To address these challenges, ongoing research and developments focus on mining technology advancements and sustainable coal usage. Additionally, coal imports, coking feedstock, and lignite resources contribute to shaping the dynamics of the coal mining industry.

Recent advancements in research and clinical developments have paved the way for innovative solutions in various fields, including renewable energy and public services. With a focus on sustainability, initiatives such as the Solar Park Scheme aim to expand renewable energy installed capacity, contributing to global efforts to combat climate change. However, challenges persist, particularly in the production and consumption of coal, which remain significant contributors to carbon emissions. To address this, the International Renewable Energy Agency promotes the adoption of clean energy technologies worldwide. In tandem, defense schemes are evolving to encompass cybersecurity and environmental security, reflecting the interconnected nature of modern threats. As governments prioritize public services, investments in renewable energy and defense schemes underscore a collective commitment to building a resilient and sustainable future for all.

Coal Mining Market Scope
Report Coverage	Details
Page number	169
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 2.62%
Market growth 2023-2027	USD 82.39 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	2.45
Regional analysis	APAC, South America, North America, Middle East and Africa, and Europe
Performing market contribution	APAC at 86%
Key countries	US, China, India, Indonesia, and Australia
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	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.
Market dynamics	Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period.
Customization purview	If our market research report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market 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 2023 and 2027
• Precise estimation of the size 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 industry 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 vendors
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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