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The lignite market size is forecast to increase by USD 4.57 billion and is estimated to grow at a CAGR of 2.05% between 2023 and 2028. The report includes historic market data from 2018-2022. The market is witnessing a growing demand for improvements in ash-handling technologies, the increasing adoption of advanced technology in the mining industry, and the increasing adoption of CTL.
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The increasing adoption of CTL is the primary trend shaping market growth. CTL, or coal liquefaction, is the process of converting coal into liquid hydrocarbons. Direct liquefaction and indirect liquefaction are the two different CTL conversion processes that exist. CTL results in the production of hydrocarbon liquids, such as diesel, naphtha, and kerosene, which can be used as a petrochemical feedstock or as transportation fuels. These products can be further used in the production of lubricants, synthetic waxes, and chemicals. The adoption of CTL-derived products has increased across various sectors around the world because of their environmental benefits over conventional liquid fuels, such as diesel and gasoline.
Moreover, the increasing demand for CTL is due to the rising need for liquid fuels across the globe. The growth in liquid fuel consumption in developing countries is driven by economic improvements and rising per capita income. Furthermore, coal (including lignite) contributes to fulfilling the demand for liquid fuels. Lignite can be converted into liquid fuels, such as diesel. Therefore, the rise in the consumption of liquid fuels is expected to drive the growth of the global lignite market during the forecast period.
The power generation segment is estimated to witness significant growth during the forecast period. Rapid urbanization and industrialization across the globe have led to a significant rise in global electricity demand. Coal-fired power generation is a method in which electricity is generated through the combustion of coal. Traditional coal-based power plants are being replaced by more efficient technologies like co-generation and combined heat and power (CHP) technologies, which are being adopted by coal-based power plants.
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Furthermore, clean coal technologies are employed to increase the efficiency of steam coal-based power plants and reduce the environmental impact of coal-based power generation by reducing carbon dioxide and other toxic emissions. Besides, as lignite is comparatively cheaper than sub-bituminous, bituminous, and anthracite, lignite has a high potential for use in coal-fired power generation. Hence, the rise in global demand for power and the low cost of lignite are likely to drive the power generation segment of the global lignite market during the forecast period.
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APAC is estimated to contribute 57% 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. Asian countries, such as China and India, rely extensively on coal to meet their energy demand. China accounted for the highest share in both global coal production and consumption. China holds the top position in the world in the production of lignite coal. As of 2020, the production of lignite coal in China was 235,724 thousand short tons, which accounts for 22.73% of the world production of lignite coal.
Moreover, coal (including lignite) is one of the most used fuels for power generation as it is considerably cheaper than natural gas and is also widely available in all the major Asian countries. Furthermore, lignite coal-fired power projects are easy to establish as, unlike natural gas, they do not require capital-intensive fuel delivery infrastructure. In addition, many Southeast Asian countries are developing new coal-fired power plants that deploy high-efficiency, low-emission (HELE) technologies. Hence, such factors are expected to drive market growth in this region during the forecast period.
Increasing demand for fertilizers is the primary trend shaping market growth. One of the applications of lignite is the production of fertilizer products. Lignite is oxidized by nitric acid in two stages (dilute nitric acid in the first stage and concentric nitric acid in the second stage). The oxidized product is then ammoniated to produce coal-based fertilizer. The consumption of lignite is expected to increase along with the increasing demand for fertilizers across the world. The major growth factor for fertilizers is the increasing demand for food from developing countries.
Furthermore, APAC is expected to witness high growth in demand for agricultural products, including fertilizers, in the coming years due to the rapid increase in population. The demand for fertilizers in the region is supported by the diverse food requirements in developing and heavily populated countries, such as China and India. Hence, the demand for fertilizers will increase the use of lignite for the production of fertilizers and drive the global lignite market during the forecast period.
Stringent regulations on carbon emissions are a challenge that affects market growth. Coal is one of the biggest contributors to GHGs and carbon pollution. Increased dependence on coal for power generation and in blast furnaces for various applications has resulted in significant amounts of hazardous pollutants being released into the environment. In addition, the combustion of coal also releases hazardous gases, such as polycyclic aromatic hydrocarbons, hydrogen fluoride, and hydrogen chloride. The combustion of lignite also results in hazardous emissions of air pollutants, including sulfur and ash.
Moreover, such factors have led to the global implementation of appropriate financial flows, enhanced capacity building, and new technology frameworks to reduce carbon emissions. Policies that are enforced to protect the environment often lay restrictions on the use of coal and, thereby, will harm global coal production as it is one of the major sources of carbon emissions. This will hurt the production of lignite. Therefore, the policies against carbon pollution will significantly impede the growth of the market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Lignite Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
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.
The lignite market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Lignite Market Scope |
|
Report Coverage |
Details |
Page number |
174 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 2.05% |
Market Growth 2024-2028 |
USD 4.57 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
1.45 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 57% |
Key countries |
US, China, India, Germany, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ALLETE Inc., Energeticky A Prumyslovy Holding a.s., Environmental Clean Technologies Ltd., JSW Group, Kiewit Corp., NACCO Industries Inc., PT Indonesia Asahan Aluminum Persero, China Shenhua Energy Co. Ltd., GHCL Ltd., Gujarat Mineral Development Corp. Ltd., Komatsu Ltd., Lanna Resources Public Co. Ltd., Mechel PAO, NLC India Ltd., Rajasthan State Mines and Minerals Ltd., and RWE AG |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Source
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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