Coal Power Generation Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Fuel Type (Anthracite, Bituminous, Subbituminous, Lignite), By Technology (Bubbling Fluidized Bed (B.F.B.), Circulating Fluidized Bed (C.F.B.), Pulverized Coal (P.C.), Integrated Gasification Combined Cycle (IGCC), Ultra-Supercritical (U.S.C.)), By End User (Utilities, Industries, Commercial, Residential, Others), By Region, By Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 1281.21 Billion
CAGR (2026-2031)	2.39%
Fastest Growing Segment	Utilities
Largest Market	North America
Market Size (2031)	USD 1476.27 Billion

Market Overview

The Global Coal Power Generation Market will grow from USD 1281.21 Billion in 2025 to USD 1476.27 Billion by 2031 at a 2.39% CAGR. Coal power generation constitutes the process of burning thermal coal to produce high-pressure steam that drives turbines for electricity production, functioning as a reliable source of baseload energy. The expansion of this market is fundamentally supported by the urgent requirement for energy security and surging electricity consumption in emerging economies, specifically for industrial operations and residential cooling. These drivers utilize established infrastructure to deliver affordable power at scale, maintaining high usage levels despite the growth of alternative energy sources. According to the International Energy Agency, in 2024, global coal power generation grew by nearly 1% to reach a record high of 10,700 TWh.

Nevertheless, the market encounters a significant challenge regarding stringent environmental mandates and global decarbonization commitments aimed at limiting climate change. Governments are progressively enforcing carbon pricing mechanisms and mandatory retirement policies that constrain new facility development and hasten the closure of operational plants. This regulatory environment creates a severe structural barrier to the long-term expansion of the sector as nations increasingly transition toward cleaner energy portfolios.

Key Market Drivers

Surging electricity demand in Asia-Pacific markets acts as the primary catalyst for the continued expansion of the coal power generation sector. As emerging economies like China and India undergo rapid industrialization and urbanization, the requirement for affordable, high-volume electricity has outpaced the deployment of renewable alternatives. This dynamic forces utility providers to expand their thermal power fleets to bridge supply deficits and support manufacturing sectors, ensuring that coal remains the dominant fuel source for electricity. According to Carbon Brief, February 2025, in the 'China's construction of new coal-power plants reached 10-year high in 2024' analysis, China began construction on 94.5 GW of new coal-power capacity in 2024, representing the highest level of such activity in the past decade. This aggressive infrastructure development underscores the region's heavy reliance on thermal energy to sustain its economic momentum.

Simultaneously, the strategic focus on national energy security and the necessity for reliable baseload power bolster the market's resilience against transition pressures. Governments in coal-rich nations are prioritizing the utilization of domestic reserves to insulate their grids from volatile global gas prices and the intermittency associated with solar and wind energy. By maintaining a robust baseload capacity, these nations ensure grid stability during peak load periods and minimize dependency on foreign fuel imports. According to the International Energy Agency, January 2025, in the 'Coal 2024' report, global coal production grew to a record 9.1 billion tonnes in 2024, driven primarily by these security mandates in major Asian economies. This focus on capacity retention is evident globally; according to Global Energy Monitor, April 2025, in the 'Boom and Bust Coal 2025' report, the world added 44 GW of newly operating coal power capacity in 2024.

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Key Market Challenges

Stringent environmental mandates and global decarbonization commitments present a substantial barrier to the growth of the coal power generation sector. Governments worldwide are increasingly enforcing rigorous carbon pricing mechanisms and mandatory phase-out policies, which fundamentally alter the economic viability of coal-fired facilities. These regulatory measures compel utility operators to accelerate the retirement of existing infrastructure while simultaneously preventing the financial approval of new development projects. As a result, the market faces a structural contraction where operational costs rise and investment capital is redirected toward compliant energy assets, effectively stranding long-term assets.

This regulatory environment directly impacts market performance by shrinking the active capacity in mature markets, which counteracts growth in developing regions. The immediate effect of these policies is a measurable reduction in output as major economies prioritize climate targets over baseload coal capacity. According to the International Energy Agency, in 2024, coal-fired electricity generation in advanced economies declined by approximately 15% due to these accelerated transition efforts. This downturn illustrates how policy-driven constraints are effectively decoupling economic activity from coal usage, thereby limiting the overall expansion of the global market.

Key Market Trends

Utility operators are increasingly implementing ammonia and biomass co-firing technologies to decarbonize existing thermal assets while maintaining baseload reliability. This trend is driven by the necessity to reduce greenhouse gas emissions without stranding valuable infrastructure or compromising grid stability, particularly in import-dependent Asian markets. By retrofitting boilers to burn low-carbon fuels alongside coal, power companies can extend the operational life of their fleets in alignment with net-zero targets. According to JERA, June 2024, in the 'Conclusion of Fuel Ammonia Substitution Demonstration Testing at Hekinan Thermal Power Station' announcement, the company successfully verified a 20% substitution rate of fuel ammonia at its 1 GW coal-fired unit, confirming that nitrogen oxide emissions were maintained at levels comparable to mono-fuel operations.

Simultaneously, the integration of Carbon Capture, Utilization, and Storage (CCUS) systems is emerging as a critical technological pathway for the sector's long-term viability. As regulatory frameworks tighten, facility owners are investing in post-combustion capture units to abate emissions directly at the source, allowing coal plants to operate compliant with strict environmental standards. This adoption is particularly evident in large-scale industrial bases where captured carbon can be utilized for enhanced oil recovery or chemical synthesis. According to the Global CCS Institute, October 2024, in the 'Global Status of CCS 2024' report, the Huaneng Longdong coal-fired facility in China is advancing toward completion with a capture capacity of 1.5 million tonnes per annum (Mtpa), positioning it to become the largest active coal-based CCUS project globally.

Segmental Insights

Based on data from the International Energy Agency (IEA), the Utilities segment is identified as the fastest-growing category in the Global Coal Power Generation Market, primarily driven by the escalating demand for reliable baseload electricity in developing nations. Rapid urbanization and aggressive industrialization in the Asia-Pacific region have compelled national utility providers to commission substantial new coal-fired capacity to ensure energy security and grid stability. Furthermore, the exponential rise in power consumption from data centers and electric vehicle infrastructure has necessitated that utility companies expand their coal-based output to mitigate the intermittency of renewable energy sources, thereby fueling the segment's rapid expansion.

Regional Insights

North America holds a leading position in the Global Coal Power Generation Market, driven by robust infrastructure resilience and a resurgence in industrial demand. The region dominates due to the strategic integration of advanced clean coal technologies, such as Carbon Capture and Storage (CCS), which align with stringent environmental standards while maintaining grid reliability. Data from the U.S. Energy Information Administration (EIA) indicates a renewed reliance on coal for baseload power to support the expanding energy needs of data centers and manufacturing sectors. This technological maturity and stabilized demand ensure North America remains a pivotal force in the global market.

Recent Developments

• In December 2024, Harbin Electric Corporation achieved a technological breakthrough with the commencement of operations for the world's first 660 MW ultra-supercritical circulating fluidized bed (CFB) power generation unit. Located at the Binchang Project in Shaanxi Province, China, this unit successfully completed its 168-hour trial run, demonstrating the viability of scaling up CFB technology to ultra-supercritical parameters. The system was designed to burn low-calorific value coal and waste fuels efficiently while significantly reducing pollutant emissions. This innovation represents a major advancement in the clean and efficient utilization of coal resources within the global power generation sector.
• In August 2024, Bharat Heavy Electricals Limited (BHEL) finalized significant agreements with Adani Power Limited and its subsidiary, Mahan Energen Limited, for the expansion of their thermal power capabilities. The orders involved the supply of main plant equipment, including steam generators and turbine generators, for three ultra-supercritical projects: Kawai Phase-II and Phase-III in Rajasthan, and Mahan Phase-III in Madhya Pradesh. Each project comprises 2x800 MW units, designed to deliver higher efficiency and reduced emissions. The aggregate value of these contracts exceeded Rs 11,000 crore, underscoring the continued demand for advanced coal-based power generation infrastructure in India.
• In April 2024, JERA Co., Inc. commenced a ground-breaking demonstration of co-firing ammonia with coal at Unit 4 of its Hekinan Thermal Power Station in Aichi Prefecture, Japan. Executed in collaboration with heavy-industry manufacturer IHI Corporation, this project marked the world's first trial to substitute approximately 20% of coal with fuel ammonia in a large-scale commercial unit with a 1 GW capacity. The initiative aimed to rigorously evaluate the combustion stability, nitrogen oxide emissions, and impact on boiler performance, serving as a critical milestone in the company's strategy to decarbonize its thermal power generation fleet.
• In March 2024, Bharat Heavy Electricals Limited (BHEL) secured a major Engineering, Procurement, and Construction (EPC) order from NTPC Limited for the Singrauli Super Thermal Power Project Stage-III. The project, situated in the Sonebhadra district of Uttar Pradesh, India, entails the establishment of a 2x800 MW power plant utilizing advanced supercritical technology to enhance efficiency. Under the contract, the company is responsible for the supply of critical equipment, including boilers, turbines, and generators, as well as the execution of civil works and commissioning. The total value of this significant mandate was estimated at over Rs 9,500 crore excluding taxes.

Key Market Players

• Doosan Heavy Industries Construction
• China Huaneng Group
• Mitsubishi Heavy Industries
• Shanghai Electric Group
• Harbin Electric Corporation
• Sumitomo Corporation
• Bharat Heavy Electricals
• E.S. Corporation

By Fuel Type	By Technology	By End User	By Region
Anthracite Bituminous Subbituminous Lignite	Bubbling Fluidized Bed (B.F.B.) Circulating Fluidized Bed (C.F.B.) Pulverized Coal (P.C.) Integrated Gasification Combined Cycle (IGCC) Ultra-Supercritical (U.S.C.)	Utilities Industries Commercial Residential Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Coal Power Generation Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Coal Power Generation Market, By Fuel Type:

• Anthracite
• Bituminous
• Subbituminous
• Lignite

• Coal Power Generation Market, By Technology:

• Bubbling Fluidized Bed (B.F.B.)
• Circulating Fluidized Bed (C.F.B.)
• Pulverized Coal (P.C.)
• Integrated Gasification Combined Cycle (IGCC)
• Ultra-Supercritical (U.S.C.)

• Coal Power Generation Market, By End User:

• Utilities
• Industries
• Commercial
• Residential
• Others

• Coal Power Generation Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE