Coal Market Size, Share and Growth Analysis Report - Forecast Trends and Outlook (2025-2034)

The global coal market size reached around 8672.58 MMT in 2024. The market is projected to grow at a CAGR of 1.60% between 2025 and 2034 to reach nearly 10164.49 MMT by 2034.

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Global Coal Market Growth

The global increase in gas prices and the declining levels of power production from hydropower and nuclear energy resources led to a 4% year-on-year increase in global coal demand, which reached 8.42 billion tons in 2022. Coal-based power generation rose to 5.687 Mt, while its usage for non-power applications surged to 2728 Mt.

As per the coal market analysis, China accounts for around 50% of the world’s coal production and consumption. In 2022, rising electricity demand led to a 4.6% year-on-year increase in coal demand, which accounted for over 60% of the power production. Furthermore, India also witnessed a 9% year-on-year increase in coal demand, which reached 1.162 Mt. In 2022, Europe also witnessed a 4.3% increase in coal consumption.

In 2023, global coal production surged by around 1.8%, with rapid economic growth in India, China and other Asia Pacific countries offsetting declines registered in Western nations like the United States and European Union. Lignite and steam coal accounted for nearly 87% of coal production worldwide, while coking coal fuelled growth in Mongolia. The coal market value is contingent on China’s economic activities and hydropower production, as it is used as an alternative fuel in times of need.

Key Trends and Developments

Growing nickel smelting in Indonesia; rising steel demand; increasing global cement production; and surging energy security concerns are the major factors favouring the coal market growth

October 2024

The Finance Minister of Mongolia presented a draft State Budget for FY 2025, which included a range of measures to increase the nation’s copper and coal exports to 83 million tons and 1.8 million tons, respectively.

August 2024

Due to the increasing cost competitiveness of Mongolia’s coal exports and its rising demand from China, Mongolia recorded a 12.4% year-on-year increase in coal exports. This surpassed its target of exporting 60 million tons of coal by 25%. This is expected to fuel the coal market development.

January 2022

The Brazilian government implemented the “just energy transition” law to continue the purchase and usage of coal at subsidised rates up till 2040. This is expected to ensure that the benefits of energy transition do not put vulnerable groups at a disadvantage and promote balanced economic growth.

August 2021

The Mines and Energy Ministry of Brazil announced its decision to invest USD 3.9 billion over the decade to increase national coal production and support southern coal-based industries up till 2050.

Increasing nickel smelting in Indonesia

The increasing focus on nickel smelting and production in Indonesia led to a 32% growth in coal demand, which reached 49 Mt in 2022. This is expected to fuel the coal market expansion over the forecast period.

Rising steel demand

In 2023, global steel production reached 1.850 billion tons. The World Steel Association reported a 4.5% production in steel production in commonwealth countries and Ukraine. Coking coal is used to produce coke, the major source of carbon used in steelmaking.

Increasing global cement production

Rapid infrastructure development and growth of construction activities are expected to increase the demand for cement by 77% in sub-Saharan Africa, 42% in India, and 20% in North America by 2030. This is creating a favourable coal market outlook.

Growing energy security concerns

Ongoing geopolitical tensions and the slow expansion of renewable energy have prompted many countries to use coal for generating electricity.

Global Coal Market Trends

Despite the anticipated reduction in global demand, the cement industry is expected to record sustained growth in margin expansion, driven by reducing fuel prices and higher cement prices. In India, major cement manufacturers are expected to increase their capacity by 1 billion tons by 2030. This is in line with the production expansion trends witnessed in emerging markets. Over the forecast period, the coal market development is expected to be driven by the exponential surge in cement demand in emerging markets.

Global Coal Industry Segmentation

The EMR’s report titled “Global Coal Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type:

• Hard Coking Coals (HCC)
• Medium Coking Coals (MCC)
• Semi-Soft Coking Coals (SCC)

Market Breakup by Application:

• Steel Making
• Non-Steel making

Market Breakup by End Use Industry:

• Construction
• Transportation
• Health Care
• Agriculture
• Others

Market Breakup by Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Global Coal Market Share

Based on region, the market is segmented into North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa. Over the forecast period of 2024-32, the Asia Pacific is estimated to grow at a CAGR of 1.8% due to the increasing coal demand from countries such as China, India, Vietnam, Indonesia, and the Philippines. These countries are collectively responsible for 70% of the global coal demand for fuelling strong economic growth.

Leading Companies in the Global Coal Market

Major players are expected to benefit from the expansion of the global construction sector, which can fuel the coal market revenue over the forecast period.

Peabody Energy Corp.

Peabody Energy Corp. was founded in 1883 and is headquartered in Missouri, United States. It is a mining company which is engaged in the production of reliable and affordable products for steel.

Coal India Ltd.

Coal India Ltd. was founded in 1975 and is headquartered in West Bengal, India. It is the world’s single largest coal producer, with 7 wholly owned subsidiaries across 8 provincial states of India. It commands 74% coal market share in India.

CHINA SHENHUA

CHINA SHENHUA was incorporated in November 2004 and is headquartered in Beijing. It is a leading mining and metal manufacturing company which was awarded the fifth position in the China Brand Value Evaluation list of 2024 for the energy and chemical industry.

BHP Group Limited

BHP Group Limited was incorporated in 1885 and is headquartered in Victoria, Australia. It is engaged in exploring, mining, processing, and transporting essential earth minerals, including coal.

Other players included in the coal market report are Arch Resources, Inc., China Coal Energy Group Co., Anglo American plc, Glencore plc, and Whitehaven Coal Limited, among others.