Market Size of India Coal Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR (2024 - 2029) | 7.57 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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India Coal Market Analysis
The India Coal Market size is estimated at 0.97 Billion tons in 2024, and is expected to reach 1.40 Billion tons by 2029, growing at a CAGR of 7.57% during the forecast period (2024-2029).
- Over the medium term, factors such as increasing power generation capacity plans and increasing electricity demand and rapidly growing industrial and infrastructural development activities, are expected to be one of the most significant drivers for the India coal market during the forecast period.
- On the other hand, supportive government policies to increase renewable energy generation is expected to restrain the growth of the Indian coal market during the forecast period.
- Nevertheless, availability of lignite resources in three states: Tamil Nadu, which accounts for 79% of lignite resources, Rajasthan, and Gujarat. Most of the resources are untapped, and the mining of lignite sources is expected to create several opportunities for the market players.
India Coal Industry Segmentation
Coal is a combustible black or brownish-black sedimentary rock that forms rock strata known as coal seams. Coal is mostly carbon, with trace amounts of additional elements such as hydrogen, sulfur, oxygen, and nitrogen.
The India coal market is segmented by application. By application, the market is segmented into power generation (Thermal Coal), coking feedstock (Coking Coal), and others. For each segment, the market sizing and forecasts have been done in volume.
| Application | |
| Power Generation (Thermal Coal) | |
| Coking Feedstock (Coking Coal) | |
| Others |
India Coal Market Size Summary
The Indian coal market is poised for significant growth over the forecast period, driven by increasing power generation capacity and rising electricity demand. The country's rapid industrial and infrastructural development activities further bolster this growth. Coal remains a critical component of India's energy mix, primarily used to fuel thermal power stations that cater to various sectors, including industry, transport, and residential services. Despite the push towards renewable energy, coal-fired power plants continue to dominate the market, supported by plans to add more coal-fired plants. The availability of untapped lignite resources in states like Tamil Nadu, Rajasthan, and Gujarat presents additional opportunities for market players, although government policies promoting renewable energy could pose challenges to coal market expansion.
The Indian government's commitment to enhancing renewable energy capacity is a significant factor influencing the coal market's trajectory. With ambitious targets set under the Paris Climate Agreement, India aims to increase its renewable energy capacity substantially, which could lead to a reduction in coal usage. Initiatives such as the Solar Park Scheme and other viability gap funding schemes are part of the government's strategy to achieve these goals. Despite these challenges, coal remains an abundant and economical energy source for India, with major players like Coal India Limited, JSW Energy Ltd, and NTPC Ltd continuing to invest in coal-based power projects. The semi-consolidated nature of the market, with key players actively expanding their coal-fired power generation capacities, underscores the ongoing importance of coal in India's energy landscape.
India Coal Market Size - Table of Contents
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1. MARKET OVERVIEW
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1.1 Introduction
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1.2 Market Size and Demand Forecast, until 2028
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1.3 Energy Mix, 2022
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1.4 Coal Prices, 2011-2022
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1.5 Coal Porduction in India, in Tonnes, 2011-2022
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1.6 Coal Imports, 2015-2022
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1.7 Statewise Coal Production, India, 2022
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1.8 Recent Trends and Developments
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1.9 Government Policies and Regulations
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1.10 Market Dynamics
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1.10.1 Drivers
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1.10.1.1 Increasing Power Generation Capacity Plans and Increasing Electricity Demand
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1.10.1.2 Rapidly Growing Industrial and Infrastructural Development Activities
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1.10.2 Restraints
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1.10.2.1 Coal Substituted with Clean Energy Sources
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1.11 Supply Chain Analysis
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1.12 PESTLE Analysis
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2. MARKET SEGMENTATION
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2.1 Application
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2.1.1 Power Generation (Thermal Coal)
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2.1.2 Coking Feedstock (Coking Coal)
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2.1.3 Others
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India Coal Market Size FAQs
How big is the India Coal Market?
The India Coal Market size is expected to reach 0.97 billion tons in 2024 and grow at a CAGR of 7.57% to reach 1.40 billion tons by 2029.
What is the current India Coal Market size?
In 2024, the India Coal Market size is expected to reach 0.97 billion tons.
