Coal power generation market to reach 2,057 GW by 2027

Coal generation resources may be steadily shrinking in the USA and Western Europe. But worldwide, the picture is quite different as the global coal-fired generation market is estimated to account for 2,057 GW in volume by the end of 2027, according to report from Coherent Market Insights. Due to increasingly stringent emissions standards, demand for coal gasification and fluidized bed combustions is expected to increase.

The commercial segment dominated the global coal-fired generation market in 2019, accounting for 56.7% share in terms of volume, followed by residential segment. Pulverized coal system segment dominated the global coal fired generation market in 2019, accounting for 50.1% share in terms of volume, cyclone furnaces and others, respectively.

The report found that pulverized coal systems, which uses powdered coal to generate thermal energy, are gaining traction in the market and may augment the broader coal-fired power generation market. The rate of combustion in pulverized coal can be controlled easily. Also, it offers faster results to load changes.

Rapid industrialization across developing regions will help drive the use of coal-fired power generation in commercial applications. Growth in the manufacturing industries, along with upcoming power plant projects across developing regions, is expected to bolster market growth.

Market restraints

The COVID-19 outbreak has impacted the coal sector. The hospitality aviation industry is some of the worst-hit industries, while power generation is also critically impacted due to lower demand for energy overall. Travel restrictions have resulted in significant reduction in transportation, resulting in decreased demand for fuel. The report also cites forms of environmental degradation as potentially hindering market growth through 2027. Coal mining can render land unusable and creates non-recyclable and unusable waste.