Coking Coal and Thermal Coal Market Size, Share, Growth, and Industry Analysis, By Type (Coking Coal, Thermal Coal) By Application (Power Generation, Steel Manufacturing, Cement Production, Industrial Applications) and Regional Forecast to 2034

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COKING COAL AND THERMAL COAL MARKET OVERVIEW

The global coking coal and thermal coal market size in 2025 is estimated to be USD  billion, with projections to grow to USD 9.7 billion by 2034 at a CAGR of 4.94%.

Coking coal and thermal coal market play key roles in global industries and provide energy. Steel cannot be made without coking coal which plays a vital role in the production process of a blast furnace. Power plants mainly count on thermal coal to generate electricity. Coking coal is valuable for steel, so its demand rises and falls with the industry’s performance, whereas thermal coal requires energy and its level of demand increases with energy consumption. Australia, Russia and the United States are important producers and more is mostly consumed in China and India. Emerging countries have started to buy more as part of recently noticed trends in trade. Yet, developments in environmental protection cause the market to focus on cleaner forms of energy which results in increased spending on alternative technologies and tighter regulations. In spite of these problems, both markets are still important for supporting industry and energy around the world.

COVID-19 IMPACT

Coking Coal and Thermal Coal Market Had a Negative Effect Due to Supply Chain Disruption During COVID-19 Pandemic

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The coking and thermal coal market share were seriously interrupted by the outbreak of COVID-19. Because of lockdowns and lower industrial activity, the energy used to power factories and produce steel decreased which also lowered coal demand. Interruptions in supply chains that came from COVID-19 restrictions caused issues in transporting coal. Collapsing prices made inventories higher which led to cutbacks or stoppages for many mining enterprises. Not enough electricity was being used in commercial industries, so that decreased demand for thermal coal, while steelmakers cut back their orders for coking coal. Investments in a coal business dropped and as a result, a lot of companies delayed or canceled plans to expand. Furthermore, governments and companies turned to renewable energy in a hurry because they wanted dependable and greener solutions during the pandemic. The result of this move pushed the coal industry to adjust and try new approaches as energy sources are shifting.

LATEST TRENDS

Digital Transformation in Coal Mining Operations Drives Market Growth

Digital technologies are now transforming the coal industry, making it operate in a more efficient way and reducing its impact on the environment. Mining operations are using more automation and robots, so there is less need for people and the work is safer. The use of drones and remote monitoring systems allows gathering real-time information which helps with predictive maintenance and improving operations. They support planning and managing resources by mirroring the operation of a mining site. These changes streamline business activities and at the same time help achieve environmental goals by decreasing waste and pollutants. By facing challenges to cut down on CO2 emissions, digital technologies help coal production become more responsible and more efficient. Those who build modern digital structures are better prepared to deal with changing markets and regulations which helps them last in the future energy sector.

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COKING COAL AND THERMAL COAL MARKET SEGMENTATION

By Type

Based on type, the global market can be categorized into Coking Coal, Thermal Coal

• Coking Coal: In steel production, coking coal helps by combining with iron ore and heat to form molten iron in blast furnaces. Because of its properties, it is turned into coke which helps maintain the furnace temperature. Making traditional steel without coking coal is not possible.

• Thermal Coal: In power plants, thermal coal is mainly used for the generation of electricity. When the fuel is burned, the resulting steam moves turbines that produce power. When there are many reserves to be had, natural gas becomes an affordable energy source.

By Application

Based on Downstream Industry’s, the global market can be categorized into Power Generation, Steel Manufacturing, Cement Production, Industrial Applications

• Power Generation: Heavy use of thermal coal is found mainly in creating electricity in developing countries. Base-load electricity is supplied by the reliable output from coal-fired power plants. Even with concerns about environmental damage, coal is still a main method of energy production internationally.

• Steel Manufacturing: Steel making relies on coking coal for making coke which is needed in blast furnaces. Steel quality and how fast it can be made are influenced by the quality of coking coal. Traditional steelmaking depends on it.

• Cement Production: Making cement requires thermal coal to be burned in kilns. High temperatures for clinker production are possible due to burning coal. Cement makers consider it a money-saving fuel option.

• Industrial Applications: There are many uses in industry for both coking coal and thermal coal. Chemical industries require coking coal and boilers and furnaces in manufacturing plants use thermal coal. Because they can handle many functions, pneumatic devices are essential in factories.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions. 

Driving Factors

Increasing Steel Production Across Emerging Economies Boost the Market

Coking coal and thermal coal market growth, emerging places such as India, Vietnam and Indonesia are experiencing more industrial growth and infrastructure development which is boosting the demand for coking coal. Developing nations are investing a lot in their roads, bridges, houses and factories which means they need a lot of steel. Indian projects such as the National Infrastructure Pipeline (NIP) and make in India are boosting domestic steel demand, creating a rise in coking coal usage. Given that blast furnaces are still the main method in steelmaking, coking coal is still very important even as electric arc furnaces have risen. In addition, increased urbanization and growth in the automotive industry in developing countries is increasing demand for steel. The rise in demand for steel means more steel is needed which boosts coking coal sales and makes producers and traders secure long-term coal supply, modernize logistics and look for new sources of coal.

Rising Global Electricity Demand and Thermal Power Reliance Expand the Market

Most thermal coal goes to power generation, but instead of renewables, many nations, mostly in Asia, Eastern Europe and Africa, depend on coal-fired plants. More people, larger cities and industrial progress are making electricity use rise. China, India and Indonesia continue to use a lot of coal to generate base electricity because it is affordable and there is an existing infrastructure for it. In some advanced countries, problems of supply with renewables sometimes drive the government to choose coal instead. Because of concerns about energy security, governments are keeping coal-fired power plants ready as an emergency resource. Because thermal coal is affordable and there is a lot of it, it provides a solid energy source for many countries. As a result, thermal coal demand is still strong which helps fund mine investments and trade with other nations.

Restraining Factor

Rising Environmental Regulations and Climate Goals Potentially Impede Market Growth

Coking and thermal coal markets are being strongly checked by growing concern about the environment and climate change policies. Stricter rules set by governments internationally for carbon emissions are causing coal companies to respond by changing their practices or closing their doors. Cutting dependence on fossil fuels was emphasized at the COP28 summit and nations are now using carbon taxes more often. It is becoming harder for coal projects to secure financing since banks are adopting ESG guidelines. Thermal coal which is the most polluting fossil fuel, makes the industry highly vulnerable. Pressure is growing for power plants to use cleaner technologies or opt for natural gas and renewable sources. Besides coal, steelmakers are examining green steel ideas involving hydrogen or electric arc furnaces. Because of growing focus on environmental issues, there may be trouble with permits, expenses and reputation for coal-based industries.

Technological Advancements in Clean Coal and Carbon Capture Create Opportunity for The Product in The Market

Opportunity

Rising environmental issues have opened a new chance for clean coal and CCS technologies. Because of these developments, coal can be better used and cause fewer pollutants which means it is more sustainable up to the medium term. The use of ultra-supercritical (USC) coal power plants by companies and governments greatly cuts the amount of CO₂ released during electricity production. China’s move toward low-emission coal plants proves that environmental harm can be lowered while coal remains an energy source. Steel producers are benefiting from new beneficiation ways and gas recycling approaches here which reduce the sector’s carbon pollution. More support and partnerships in R&D and low-carbon objectives open a likely option for coal to stay part of the energy mix during the shift to other energy sources.

Transition to Renewable Energy and Green Steel Could Be a Potential Challenge for Consumers

Challenge

A key problem for the coking and thermal coal industry is the fast increase in renewable energy use and the rise of green steel production. Because of government and private investments, solar, wind and hydro power are now able to compete and increase in scale. Because countries are working toward net-zero emissions, many coal-fired plants will be shut down and replaced with clean power generation. Direct reduced iron (DRI) furnaces using hydrogen and electric arc furnaces are being encouraged to replace blow furnaces that use coking coal. The shift could considerably reduce expected demand. As a result, people and investors are now shifting their views against fossil fuels which is giving banks hesitation when considering coal project loans. To overcome this, we need strong innovation, policies favoring cleaner technologies and possibly a shift in sales toward markets that depend on coal.

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COKING COAL AND THERMAL COAL MARKET REGIONAL INSIGHTS

• North America

North America, especially the United States coking coal and thermal coal market plays a significant role in the global. The region is important due to its large coal reserves and its status as a major supplier of metallurgical (coking) coal. While the use of thermal coal is declining, particularly in countries like Australia, as attention shifts toward cleaner energy sources, coking coal remains a vital export commodity. It continues to be essential for steel production, maintaining its demand despite the global energy transition. The United States exports metallurgical coal of superior quality to India, Brazil and Europe. As well, government agencies are offering support to new carbon capture and clean coal methods through programs like the U.S. Department of Energy’s CCS initiatives. Coal produced in Alberta and British Columbia in Canada adds to the global market and there is a strong focus on sustainability and quality coking coal. Even though the US and Canada use less domestic coal, they are still key players because of new technologies, available resources and their links to world market.

• Europe

The use of coal in Europe, mainly for generating electricity, is dropping due to tighter environmental rules and growing use of renewable energy. Still, coking coal is used in parts of Europe such as Germany, Poland and Eastern Europe, for steel production. There are green steel efforts, but the switch over will take time, so coking coal production will remain key for the time being. Europe buys metallurgical coal from places like the U.S., Australia and Russia for its industry. Even with the Green Deal, worrying about energy during geopolitical conflicts has raised coal-fired power generation for a short period. Altogether, Europe sees coking coal demand remain continuous, though not very high and thermal coal use fall as a result of efforts to decarbonize and hiked carbon prices.

• Asia

Asia plays a dominant role in the global coal market because it produces a lot of steel and depends heavily on coal for energy. Most of the coal is consumed in China and India and Indonesia, Australia and Mongolia are the main suppliers. As the world’s top coal producer and consumer, China still relies on coal for both making electricity and industrial activities. Demand for coal in India is increasing because of more infrastructure projects and an increased need for electricity. Vietnam, Thailand and the Philippines among other Southeast Asian countries are adding more coal power to keep up with energy requirements. The lead of Asia is propelled by government actions aimed at protecting energy security, reducing expenses and boosting industry. Although worldwide efforts pursue decarbonization, Asia’s rising economy and population mean short- to medium-term impact for both coking and thermal coal.

KEY INDUSTRY PLAYERS

Key Industry Players Shaping the Market Through Innovation and Market Expansion

Major mining corporations and commodity traders greatly affect supply, costs and trends in the global coking and thermal coal market. BHP (Australia) and Glencore (Switzerland) are some of the biggest companies, each with a wide range of coal assets and extensive logistical support. Peabody Energy (USA) continues to play an important role in the coal market, largely in metals production, for the domestic and overseas market. High-quality coking coal is mainly exported from British Columbia by Teck Resources (Canada). Firm assets in places such as Australia and South Africa allow Anglo American a continuing involvement in metallurgical coal. Coal India Limited is the key thermal coal company in the Indian subcontinent and China Shenhua Energy has a significant share of China’s coal sector. Energy businesses like Adaro Energy and PT Bukit Asam are starting to build their presence in Indonesia. Sustainability, clean coal technologies and changing regulations are the main areas these companies are working on as they try to remain ahead in a changing energy world.

List of Top Coking Coal And Thermal Coal Market Companies    

• China Shenhua Energy (China)
• Coal India (India)
• BHP (Australia)
• Glencore (Switzerland)

KEY INDUSTRY DEVELOPMENT

January 2025: BHP announced the completion of its divestment from two thermal coal assets in Australia, Mt Arthur and Cerrejón mines, marking its strategic exit from thermal coal to focus more on metallurgical coal and critical minerals. This shift aligns with its climate strategy and investor expectations for ESG compliance.

REPORT COVERAGE      

The coking coal and thermal coal market is experiencing changes because of industrial requirements, new regulations and technological progress. Coking coal is essential for steelmaking, mainly in countries growing at a fast pace and building new infrastructure. Thermal coal is less important in certain places, but it still provides major base-load energy in Asia and Africa. Because of greater global attention on sustainability and tougher climate rules, both sectors are beginning to adopt cleaner technologies and work more efficiently. Inventions in clean coal, carbon capture and cycle of combustion are helping considerably in solving the problem. Even as coal consumption falls in Europe and North America, Asia looks set to be the biggest user in the foreseeable years. Big companies are handling this by selling off parts of their businesses, investing in ESG projects and making partnerships to remain both profitable and lawful. In general, the market finds itself in a position where it needs to balance continuous demand with the demand for cutting emissions, so risk and growth opportunities are present for people in the chain.