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Lignite Market Analysis APAC, Europe, North America, South America, Middle East and Africa - US, China, India, Germany, France - Size and Forecast 2024-2028

Lignite Market Analysis APAC, Europe, North America, South America, Middle East and Africa - US, China, India, Germany, France - Size and Forecast 2024-2028

Published: Dec 2023 174 Pages SKU: IRTNTR40066

Market Overview at a Glance

$4.57 B
Market Opportunity
2.05%
CAGR
1.45
YoY growth 2023-2024(%)

Lignite Market 2024-2028

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. 

Lignite Market Overview :

  • The market segmentation by Application is categorized as  (power generation, syngas generation, and others)
  • The market segmentation by Source is categorized as (non-renewable and renewable), and Geography (APAC, Europe, North America, South America, and Middle East and Africa)
  •  The power generation segment is fastest fastest-growing segment during the forecast year
  • The power generation was the largest segment and valued at  USD 32.81 billion in 2018
  • The Regional Analysis consists of APAC, Europe, North America, South America, and Middle East and Africa
  • APAC is is most dominating region during the forecast period
  •  It also includes an in-depth analysis of the increasing demand for fertilizers, the increasing adoption of CTL, and the stringent regulations on carbon emissions. 

Lignite Market Size

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Lignite Market Trends

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.

Lignite Market  Largest-Growing Segments 

The power generation Segment

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. 

Lignite Market Size

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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.

Lignite Market Regional Analysis

Lignite Market Share by Geography

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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.  

Lignite Market Dynamic

Key Driver of Lignite Market

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.

Significance Challenges of Lignite Market

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.

Lignite Market Customer Landscape

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.

Lignite Market Share by Geography

Global Lignite Market Customer Landscape

Major Lignite Market Companies

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.

  • ALLETE Inc.: The company offers lignite that is reliable and competitively priced in the upper Midwest, under the brand name of BNI Energy.

The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

  • 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.
  • RWE AG

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 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. 

  • Application Outlook
    • Power generation
    • Syngas generation
    • Others
  • Source Outlook
    • Non-renewable
    • Renewable
  • Region Outlook
    • North America
      • The U.S.
      • Canada
    • Europe
      • The U.K.
      • Germany
      • France
      • Rest of Europe
    • APAC
      • China
      • India
    • South America
      • Chile
      • Brazil 
      • Argentina
    • Middle East & Africa
      • Saudi Arabia
      • South Africa
      • Rest of the Middle East & Africa

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.

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What are the Key Data Covered in this Lignite Market Research Report?

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

We can help! Our analysts can customize this market research report to meet your requirements. 

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Table of Contents not available.

Research Methodology

Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.

INFORMATION SOURCES

Primary sources

  • Manufacturers and suppliers
  • Channel partners
  • Industry experts
  • Strategic decision makers

Secondary sources

  • Industry journals and periodicals
  • Government data
  • Financial reports of key industry players
  • Historical data
  • Press releases

DATA ANALYSIS

Data Synthesis

  • Collation of data
  • Estimation of key figures
  • Analysis of derived insights

Data Validation

  • Triangulation with data models
  • Reference against proprietary databases
  • Corroboration with industry experts

REPORT WRITING

Qualitative

  • Market drivers
  • Market challenges
  • Market trends
  • Five forces analysis

Quantitative

  • Market size and forecast
  • Market segmentation
  • Geographical insights
  • Competitive landscape

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Frequently Asked Questions

Lignite market growth will increase by $ 4.57 bn during 2024-2028.

The Lignite market is expected to grow at a CAGR of 2.05% during 2024-2028.

Lignite market is segmented by Application( Power generation, Syngas generation, Others) Source( Non-renewable, Renewable, North America, South America, Middle East and Africa)

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., RWE AG are a few of the key vendors in the Lignite market.

APAC will register the highest growth rate of 57% among the other regions. Therefore, the Lignite market in APAC is expected to garner significant business opportunities for the vendors during the forecast period.

US, China, India, Germany, France

  • Rise in global energy demandAccording to the IMF is the driving factor this market.
  • the global economy is expected to grow by 6% in 2021 is the driving factor this market.
  • more than compensating for the 3.5% drop in 2020. There was significant growth in global energy demand owing to the robust economic growth. The COVID-19 pandemic caused the greatest absolute reduction in energy demand in history-4%-and the biggest decline in global energy demand since World War II in 2020. As the pandemic restrictions were lifted and economies recovered is the driving factor this market.
  • the energy demand is expected to rebound by 4.6% is the driving factor this market.
  • pushing the global energy use to 0.5% above pre-COVID-19 levels in 2021. This growth in energy demand was primarily driven by countries such as China is the driving factor this market.
  • the US is the driving factor this market.
  • and India is the driving factor this market.
  • which accounted for approximately 70% of the growth in global energy demand. According to the IEA is the driving factor this market.
  • by 2040 is the driving factor this market.
  • global energy demand is expected to grow by more than 25% over that in 2017. For instance is the driving factor this market.
  • IEA has projected that the power demand in India is expected to grow at an annual rate of 6.5% between 2022 and 2024 is the driving factor this market.
  • backed by rising consumption from residential and industrial segments. Additionally is the driving factor this market.
  • the global population is expected to reach nearly ten billion by 2050. Hence is the driving factor this market.
  • with the growth in population and economic activities is the driving factor this market.
  • the demand for electricity is expected to grow significantly during the forecast period. Factors such as the electrification of transportation and demand from the heating sector is the driving factor this market.
  • the rise in the number of electronically connected devices is the driving factor this market.
  • and digitalization in many countries are also contributing to the demand for electricity. Also is the driving factor this market.
  • the demand for energy services like air conditioning is expected to grow is the driving factor this market.
  • particularly in the residential sector is the driving factor this market.
  • in tandem with the growth in the disposable income level. Moreover is the driving factor this market.
  • the use of electric motor systems in industries is also responsible for the growth in energy demand from the industrial sector. Lignite is used in thermal power plants as fuel to generate heat is the driving factor this market.
  • which is the driving factor this market.
  • again is the driving factor this market.
  • is used to generate steam. Also is the driving factor this market.
  • lignite can be converted to gas chemically through coal gasification. The synthetic natural gas that is obtained from the coal gasification process delivers high power and is easy to operate in commercial-scale electric generation plants. According to the IEA is the driving factor this market.
  • coal-fired power generation is set to increase by 2.8% in 2021 is the driving factor this market.
  • but this is lower than the 2019 level as its share of electricity production falls from 36.5% in 2019 to 35% in 2021. Thus is the driving factor this market.
  • with the growth in energy demand worldwide is the driving factor this market.
  • the global lignite market is expected to grow during the forecast period. is the driving factor this market.

The Lignite market vendors should focus on grabbing business opportunities from the Power generation segment as it accounted for the largest market share in the base year.