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The Metallurgical Coal Market size is forecast to increase by USD 95.27 billion, at a CAGR of 4.77% between 2023 and 2028.
Metallurgical coal, also known as coking coal, is a type of coal used in the production of steel. The market is witnessing a growing demand for an increase in the number of smart city projects, the introduction of advanced technologies in the mining industry, and the usage of 3D mine visualizers to get real-time digital models. This market research and analysis report also includes an in-depth analysis of the rapid expansion of urbanization globally, the introduction of advanced technologies in the mining industry, and the volatility in prices.
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One of the key factors driving the market growth is the rapid expansion of urbanization globally. Rapid urbanization continues to influence the global economy as more people migrate toward urban regions in search of growth opportunities and better standards of living. In addition, urbanization is on the rise globally, owing to the improvements in the standard of living, population growth, and the availability of improved facilities and infrastructure in urban areas.
Moreover, more than two-thirds of the global population is expected to reside in urban areas by 2050. In addition, countries such as China, India, and Nigeria are estimated to account for more than one-third of the global urban population growth during 2018-2050. Hence, such factors are positively impacting the market. Therefore, it is expected to drive the market growth during the forecast period.
A key factor shaping the market growth is the introduction of advanced technologies in the mining industry. The mining industry emphasizes enhancing the production output and safety of workers by employing automation technologies to perform tough tasks. In addition, ground-level mining jobs are considered some of the most dangerous jobs as miners face multiple risks, such as becoming trapped inside the mine, falling rocks, fire, and the inhalation of toxic substances.
Moreover, automation is enabling technological developments in machine learning, artificial intelligence, and robotics, which allow mining activities to be carried out safely in unconventional locations, such as ocean beds. In addition, the advent of advanced machines, such as self-driving ore trucks and robotic drills, has brought a new measure of automation and safety to mining activities while simultaneously increasing production efficiency. Hence, such factors are driving the market growth during the forecast period.
Volatility in prices of metallurgical coal is one of the key challenges hindering market growth. It is used to manufacture coke, which is used in smelting iron ore to make steel. Thus, the cost is highly dependent on the global demand for iron and steel. In addition, owing to its criticality in these industries and the low availability of substitutes, the cost is significantly higher than that of thermal coal, which is experiencing a slow demand due to the phasing out of coal-fired power plants across the globe.
However, metallurgical coal prices are volatile due to several macroeconomic factors, including the global demand for steel and the trading policies of major metallurgical coal-consuming nations, such as China. In addition, the fluctuations in the prices make the market unreliable. Hence, such factors are negatively impacting the market. Therefore, it is expected to hinder the market growth 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.
The steel making segment is estimated to witness significant growth during the forecast period. It is extensively used for steelmaking applications. In addition, steel is produced via the BF-BOF route and EAF route. Both these processes require metallurgical coal for coke production to be used in the steelmaking process. Furthermore, while the BF-BOF process requires large volumes, the EAF process requires lower volumes. However, the BF-BOF process was the dominant steel production method employed in 2020.
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Moreover, steel consumption is considered an indicator of economic development. In addition, the growth of the steelmaking segment was led by the rising global demand for steel in 2023, especially in emerging economies such as China and India. Furthermore, these countries are among the largest producers of steel, and thus, the demand in these countries is also high. In addition, other factors that support the growth of the segment are growing urbanization and the increasing number of smart city projects across the globe. Moreover, the byproducts of the coking process, such as coal tar and benzol, have stable demand as these are used as raw materials in the production of a number of products, such as pharmaceuticals, adhesives, sealants, and household cleaners. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
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APAC is estimated to contribute 85% 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. The market in APAC is expected to grow at a rapid rate than other regions fuelled by the high demand from the steel industry. In addition, factors including rapid industrialization and booming infrastructure growth in developing countries such as China and India have fueled the demand for steel, which needs metallurgical coal as a major raw material for its production. In addition, Asian countries are witnessing rapid urbanization of their cities; therefore, the demand for steel is high for infrastructure growth. Hence, such factors are driving the market growth in APAC during the forecast period.
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.
Alpha Metallurgical Resources Inc: The company offers metallurgical coal such as high quality metallurgical coal to international and domestic customers, with a wide variety of blending and tailoring capabilities.
The research report also includes detailed analyses of the competitive landscape of the market and information about 19 market companies, including:
Qualitative and quantitative market growth 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 Metallurgical Coal Market plays a pivotal role in the metallurgy industry, supplying metals essential for various end-users worldwide. With increasing steel demand, the market witnesses steady growth driven by robust metallurgical coal demand. Metallurgical coal exports and met coal markets thrive as metallurgical coal becomes a crucial component in coal trading. Coking coal prices and metallurgical coke prices influence the dynamics of the coal industry, impacting coal production and coal demand. As met coal exports and met coal markets expand, the industry's focus on marketing intensifies, catering to the global metallurgy sector's supply and demand needs.
The 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 2023 for the following segments.
Market Scope |
|
Report Coverage |
Details |
Page number |
168 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.77% |
Market Growth 2024-2028 |
USD 95.27 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.35 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 85% |
Key countries |
US, China, India, Germany, and Russia |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alpha Metallurgical Resources Inc., Anglo American plc, Arch Resources Inc., ARLP, Bharat Coking Coal Ltd., BHP Group plc, China Shenhua Energy Co. Ltd., Coal India Ltd., CONSOL Energy Inc., Coronado Global Resources Inc., EVRAZ Plc, Glencore Plc, Harman Fuels LLC, Peabody Energy Corp., Prairie State Energy Campus, Teck Resources Ltd., and Whitehaven Coal Ltd. |
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 |
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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 Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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