The size of the global coal gasification market was worth USD 7.40 billion in 2023. The global market is anticipated to grow at a CAGR of 21.23% from 2024 to 2032 and be worth USD 41.85 billion by 2032 from USD 8.97 billion in 2024.
In recent years, the call for energy has escalated dramatically around the world. Fluctuations in natural gas prices are predicted to increase the worldwide market for underground coal gasification in the coming years. The research study offers an in-depth analysis of the worldwide underground coal gasification market. The expansion of the worldwide economy has dramatically escalated the call for energy. The call is driven by countries like the United States and other emerging economies like China and India. Coal gasification involves converting coal to a gaseous form, which is then burned as fuel. Coal gasification technology was popular before World War II, but lost popularity after the war, due to the low cost of oil and natural gas. In the 1970s, utility companies showed escalated interest in coal gasification technology due to escalated call for fuels and to meet environmental calls. Coal gasification can be considered a promising energy technology for the 21st century. In North America and Europe, leading energy research organizations and institutes are investing in R&D to develop coal gasification technology.
The global coal gasification market is predicted to witness expansion over the foreseen period. The growing call for clean and more efficient energy generation technology in industries as well as household applications is likely to fuel the market expansion.
The main market drivers in the worldwide coal gasification market are the escalated use of UCG and the flexibility of feedstock. Since a variety of feedstocks, such as petroleum coke, biomass, coal, and natural gas, can be employed for synthesis gas production, dependence on a particular feedstock decreases. Also, the latest gasifiers available on the market are highly advanced and have the ability to handle multiple feedstocks. The factor that could limit the expansion of the global coal gasification market is the increase in the cost of installing power plants. This technology anticipates a lower capital requirement and a reduction in the cost of plant installation are some of the main factors that are likely to encourage the expansion of the worldwide market for underground coal gasification in the coming years. Additionally, strict environmental obligations and a reduced need for road and rail infrastructure are predicted to accelerate market expansion in the near future. Also, the growing awareness of the benefits of these technologies is predicted to complement the market expansion in the coming years, being 35% more expensive than traditional coal technology. Another important factor, dominant over traditional combustion technology, is that biodegradable materials are raw materials for the process. The process is commonly employed in power generation industries. Furthermore, the escalating adoption of electric motor systems among end-user industries has escalated the call for energy in the industrial sector.
On the other hand, the negative impact of underground coal gasification on the environment, which is mainly due to drilling activities, is believed to slow the expansion of the worldwide market for coal gasification.
However, the growing number of coal deposits in several developing economies is predicted to provide promising opportunities for the major players in the global coal gasification market in the coming years. The escalating call for energy around the world is predicted to have a positive impact on the expansion of the worldwide coal gasification market.
A strong call for oil from the petrochemical sector is predicted to hamper the expansion in the size of the global coal gasification market.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2023 to 2032 |
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Base Year |
2023 |
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Forecast Period |
2024 to 2032 |
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CAGR |
21.23% |
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Segments Covered |
By Application, Process Type, and Region. |
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Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview of Investment Opportunities |
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Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
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Market Leaders Profiled |
General Electric Company, Royal Dutch Shell Plc, Mitsubishi Heavy Industries, Ltd., Sedin Engineering, McDermott International, Inc., KBR, Inc., Oil and Natural Gas Corporation Ltd., ThyssenKrupp AG, and Petrochemical Corporation of Singapore (Private) Limited, and Others |
North America is predicted to represent a key share of the worldwide market and is predicted to dominate in the coming years. A significant contribution from the United States is likely to complement expansion in this area during the foreseen period. Also, Asia-Pacific is predicted to see a strong expansion in the coming years, thanks to strong development in various industries. In this region, India, Australia, and China are seen as key markets driving the expansion of the coal gasification market in Asia-Pacific. Also, the untapped markets in this region are predicted to create lucrative opportunities for the major market players. The research study has highlighted the key factors that are predicted to spur market expansion in the near future.
In 2019, the largest market share was held by the Asia Pacific region, followed by Latin America. The coal gasification market in the Asia-Pacific region is predicted to present lucrative opportunities, due to a large number of gasification activities in the syngas and chemical industries in China, Japan, and India. The Asia Pacific is supposed to be the largest market for coal gasification over the next five years due to the impressive expansion of end-use industries ranging from energy to chemicals. China, India, and Australia are key markets for coal gasification projects. China is the largest producer and consumer of coal-based energy. It consumes almost half of the total coal production to satisfy its energy call. China has conducted 17 UCG trials since 1991 to verify the economic viability of UCG.
Companies playing a prominent role in the global coal gasification market include General Electric Company, Royal Dutch Shell Plc, Mitsubishi Heavy Industries, Ltd., Sedin Engineering, McDermott International, Inc., KBR, Inc., Oil and Natural Gas Corporation Ltd., ThyssenKrupp AG, and Petrochemical Corporation of Singapore (Private) Limited, and Others
By Application
By Process Type
By Region
Frequently Asked Questions
The primary drivers of growth in the coal gasification market include the increasing demand for cleaner energy alternatives, the need for energy security in coal-rich countries, and advancements in gasification technologies that enable better efficiency and carbon capture. Additionally, rising global energy demands and the push towards reducing CO2 emissions in industries like chemicals and fertilizers are supporting market expansion.
Despite its potential to reduce greenhouse gas emissions compared to traditional coal combustion, coal gasification is still associated with environmental concerns. These include the release of CO2, nitrogen oxides, and other pollutants, although modern gasification plants incorporate carbon capture and storage (CCS) technologies to mitigate these impacts. The disposal of byproducts like ash and sulfur also presents challenges in managing the environmental footprint of gasification plants.
Recent technological advancements in coal gasification focus on improving efficiency, reducing environmental impacts, and enhancing the economic viability of gasification plants. Innovations include integrated gasification combined cycle (IGCC) systems, which combine gasification with combined cycle power generation, and advancements in carbon capture and storage (CCS) that help reduce the carbon footprint of gasification plants. These technologies are particularly relevant in regions with stringent environmental regulations, such as the European Union and the U.S.
Coal gasification is a major pathway for large-scale hydrogen production, especially in regions where natural gas may be in short supply or prohibitively expensive. The process generates syngas, which can be further processed to produce hydrogen. Hydrogen produced through coal gasification is being explored as an alternative fuel source for industries like transportation and manufacturing, particularly in countries like China and the U.S., which are investing heavily in hydrogen infrastructure.
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