The global coal power generation market recorded a total installed volume of 2,056.95 GW in 2023 and is projected to reach 2,266.14 GW by 2030, growing at a modest CAGR of 1.1% from 2024 to 2030. Despite the global push toward renewable energy, coal continues to play a central role in meeting energy demand, largely due to its abundant availability, established infrastructure, and comparatively low cost when measured against other electricity generation technologies. These factors are expected to sustain coal’s contribution to power generation during the forecast period.

The demand for electricity worldwide is rising rapidly, particularly in emerging economies where industrialization, urbanization, and population growth are increasing energy consumption. This trend is one of the primary reasons coal remains in the global energy mix. While renewable sources are expanding, coal provides a stable and reliable base-load power supply, making it crucial for countries that need to secure continuous electricity availability.

The industry, however, experienced a major disruption in 2020, when the COVID-19 pandemic and associated lockdowns led to widespread shutdowns of coal production and power facilities. These supply chain interruptions highlighted the vulnerability of the coal power generation model to external shocks but also reinforced its importance, as many countries turned back to coal once restrictions eased to stabilize their power grids.

The availability of raw material is a key determinant in any production process, and coal power generation is no exception. Coal itself is the primary raw material and energy resource, and its ready availability significantly influences cost-effectiveness and reliability. In the Asia Pacific region, countries such as China, India, Indonesia, and Australia are among the largest coal producers globally. Notably, the region accounted for around two-thirds of the world’s coal production in 2020, making it a central hub for coal supply. This abundant resource base keeps production costs lower and ensures coal remains a dependable option for meeting peak electricity demand.

At the same time, the global energy sector is undergoing a transformation, with increasing emphasis on cleaner energy technologies and a gradual depletion of coal reserves. These dynamics are contributing to a shift in the energy mix, with gas turbines and renewable energy technologies expected to gain greater prominence. As gas turbines become more widely adopted, they create growth opportunities in the gas turbine services sector. However, this trend also poses a negative impact on coal power generation growth, as governments and industries progressively align with decarbonization goals and environmental sustainability policies.

Key Market Trends & Insights:

• Regional Outlook: Asia Pacific dominated the coal power generation market in 2023, accounting for a 77.9% volume share, primarily due to the region’s vast coal reserves, large-scale consumption, and reliance on coal-fired plants to meet rising electricity demand. North America is anticipated to witness growth during the forecast period, supported by its existing coal infrastructure and regional demand, although the transition toward cleaner energy may limit expansion compared to Asia Pacific.
• By Technology: Pulverized coal (PC) systems were the dominant technology in 2023, widely adopted due to their efficiency in burning finely ground coal particles, which ensures stable combustion and large-scale electricity generation. Cyclone furnaces are expected to grow at the fastest CAGR during the forecast period, owing to their ability to handle lower-grade coal efficiently and their role in reducing certain types of emissions when compared with traditional systems.
• By Application: The residential segment held the largest share of the market in 2023, reflecting continued reliance on coal-generated electricity for household power supply in many countries. The commercial & industrial segment is projected to grow at the fastest CAGR, driven by increasing demand for uninterrupted power supply to support industrial operations, manufacturing processes, and commercial infrastructure.

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Market Size & Forecast:

• 2023 Market (by volume): 2,056.95 GW
• 2030 Projected Market (by volume): 2,266.14 GW
• CAGR (2024-2030): 1.1%
• Asia Pacific: Largest market in 2023

Key Players

The following are the leading companies in the coal power generation market. These companies collectively hold the largest market share and dictate industry trends.

• American Electric Power Company, Inc.
• China Huadian Corporation Ltd. (CHD)
• China Huaneng Group
• Dominion Energy Solutions
• Duke Energy Corporation
• Eskom Holdings SOC Ltd.
• Jindal India Thermal Power Ltd.
• KEPCO Engineering & Construction Company, Inc.
• National Thermal Power Corporation Limited (NTPC)
• Uniper SE
• RWE
• STEAG GMBH

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Conclusion:

The coal power generation market will continue to play a significant role in meeting global electricity demand, particularly in regions with abundant coal reserves and growing energy needs. Its cost-effectiveness and reliability ensure coal remains a key part of the energy mix, even as cleaner technologies gain traction. However, increasing environmental concerns, depletion of reserves, and the global shift toward sustainable alternatives are expected to gradually limit coal’s long-term growth potential.