Asia-Pacific Coal Market Size

APAC Coal Market Analysis

The Asia-Pacific coal market is expected to grow at a CAGR of more than 3% during the forecast period. Factors such as increasing power generation capacity plans and increasing electricity demand, particularly in China and India, owing to rapidly increasing industrial and infrastructural development activities, are expected to drive the market during the forecast period. However, the uses of coal are squeezed out of the energy mix in many developed nations, the reason being the generation of air pollutants due to coal combustion. Moreover, power from coal is getting mixed up with other alternative sources, like renewables and natural gas, which help to reduce the environmental impact as compared to coal. These factors, in turn, are expected to restrain the growth of the Asia-Pacific coal market.

• Coal is extensively used in the region to fire the thermal power stations and in turn meet the demand for various sectors, such as industry, transport, residential, commercial, and public services. The power stations segment is expected to dominate the market supported by China's extensive plan for adding additional coal-fired plants during the forecast period.
• With the growing demand for electricity, coal power plants in the Asia-Pacific region is expected to be a significant consumer of coal. The region is expected to have a demand of around 4,400 mega ton of coal equivalent by 2040, with majority of demand from the power sector. This demand for coal is expected to create an opportunity for the market players in upcoming years.
• China is expected to be the largest market and fastest growing market, owing to the country being the global leader in terms of total number of coal fired power plants. Further, China continues to advocate for a capacity target in the upcoming five-year plan that would make room for up to 200 new coal-fired generating units by 2025.