The global coal briquettes market is estimated to garner a revenue of ~USD 4 Billion by the end of 2035 by growing at a CAGR of ~5% over the forecast period, i.e., 2023 – 2035. Further, the market generated a revenue of ~USD 2 Billion in the year 2022. The growth of the market can be attributed to the increasing adoption of clean energy. Further, the growing concern about the environment across the globe is also expected to add to the market growth. Clean energy comes from existing replenished natural processes or sources. For instance, since charcoal briquettes are made from agricultural and forestry waste, they don't harm the environment. Lately, over 30% of India's primary energy consumption comes from renewable sources.
In addition to these, factors that are believed to fuel the market growth of coal briquettes include the rising demand in the manufacturing industry. For instance, they are used in industrial boilers and kilns in manufacturing industries. Since coal briquettes have a high thermal calorific value, they emit fewer pollutants compared to other fuels.
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~5% |
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Base Year Market Size (2022) |
~ USD 2 Billion |
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Forecast Year Market Size (2035) |
~ USD 4 Billion |
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Regional Scope |
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Growth Drivers
Growing Environment Degradation – On account of the increasing population, the market is expected to expand more in the upcoming years. Further, urbanization, intensification of agriculture, and others factors may contribute to environmental changes which in turn is encouraging the majority of the population to use sustainable energy methods and heavily invest in environmentally friendly power-generation technology. According to data, more than 5% percent of tropical forest species will go extinct every ten years at the current rate of destruction.
Rising Demand for Alternate Fuel Resources – The growing energy problem and the deteriorating environment has resulted in the need for alternative energy fuels. In terms of alternative fuels used by alternative fuel cars, natural gas made for more than 50% of total consumption.
Surging Demand in Metallurgy Industry – According to the most recent data, approximately 90% of all metal produced each year in the United States and across the world are made up of iron and steel.
Growing Investments in Coal Briquettes by Several Asian and African Countries– On the account of growing demand for renewable energy many developing regions are heavily investing in coal briquettes. According to studies by 2030, it is anticipated that Asia may account for over 80% of the world's coal demand.
Challenges
The global coal briquettes market is segmented and analyzed for demand and supply by composition into wood charcoal, coal dust, peat & paper, sawdust, and wood chips. Out of the five types, the wood charcoal segment is estimated to gain the largest market share over the projected time frame. The growth of the segment can be attributed to the increasing pollution in urban areas. There is an increasing focus on wood charcoal briquettes since they are more environmentally friendly, may ease the strain on forests, and can minimize pollution in metropolitan areas. Further compared to conventional logs, wood briquettes burn cleaner, hotter, longer, and more cheaply. They burn longer than firewood and provide greater actual thermal value and far less ash content. Properties such as low moisture content contribute to their higher efficiency, all these factors in turn are predicted to boost the growth of the market segment in the future. According to estimates, over 1 million fatalities are brought on by urban outdoor air pollution each year.
The global coal briquettes market is also segmented and analyzed for demand and supply by application into metallurgy, food processing, and others. Amongst these three segments, the metallurgy segment is expected to garner a significant share. The growth can be attributed to growing construction activities across the globe. To construct buildings, steel is the most common engineering material used to provide support, huge strength, and high durability to the building. Further, to manufacture steel one essential ingredient is needed which is metallurgical coal, which is utilized to create coke. For instance, metal is heated at a temperature of around 1100 °C to purge it of water and other chemicals before being used to produce steel. This, as a result, is anticipated to create numerous opportunities for the growth of the segment in the coming years.
Our in-depth analysis of the global coal briquettes market includes the following segments:
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By Composition |
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By Application |
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The European coal briquettes market, amongst the market in all the other regions, is projected to hold the largest market share of about ~21% by the end of 2035. The growth of the market can be attributed majorly to the increasing consumption of barbequed food. Cookouts and barbeque activities are becoming more and more popular in the region, especially on weekends and throughout the summer. Further, the rising need for a more genuine flavor offered by traditional grilling techniques is also anticipated to contribute to the market growth in the region. Additionally, the meal is also barbecued using coal briquettes since they give it a genuine flavor and are seen to be an innovative method of cooking. According to a survey, more than 10% of Germans have a monthly BBQ.
The North American coal briquettes market, amongst the market in all the other regions, is projected to hold the largest market share of about ~18% by the end of 2035. The growth of the market can be attributed majorly to the increasing use of coal briquettes for recreational cooking in the region. American culture has always valued barbecue. One of the most traditional dishes in the US is still barbecue. Most American find barbecue as an entertaining cooking method. Side dishes such as potato salad, cole slaw, baked beans, or macaroni and cheese are frequently served at a classic American barbecue. Since they provide meals with a smoky taste and a caramelized appearance, coal briquettes are frequently used for outdoor grilling for barbecue in the United States. In addition, the increasing customer preference for barbecue is also anticipated to boost the market growth during the forecast period. According to data, more than 90% of Americans say they enjoy a barbeque.
Further, the market in the Asia Pacific, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2035. The growth of the market can be attributed majorly to the growing industrial sector in emerging countries. Owing to the fact that coal briquettes provide a significant quantity of heat for the production process, there is a large demand for them as a result of the rising steel production in China and India. For instance, coal is used to generate 70% of the steel that is produced globally. As of 2020, the industrial sector in Bangladesh expanded by more than 6%.
DURAFLAME, INC. introduced new OUTDOOR firelogs, made from 100% recycled and renewable wood, agricultural fibers, and bio-derived waxes. These firelogs will create a campfire that is crackling, emits less smoke, and enables users to roast marshmallows, hot dogs, and other campfire delicacies.
Vale S.A. introduced a green briquette, which can withstand high blast furnace temperatures without dissolving as it is made of iron ore and an agglomerate technical solution. Further, it will increase the possibility for steelmakers to rely less on sintering, which can reduce greenhouse gas emissions (GHG) during production operations by as much as 10%.
Author Credits: Payel Roy, Dhruv Bhatia
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