Coal to Liquid Market Analysis by Liquefaction (Direct Coal Liquefaction, and Indirect Coal Liquefaction); and by Product (Diesel, Gasoline, Other Fuels) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2035
Buy Now Report ID: 4884 | Published Date: May 01, 2023
Coal to Liquid Market size is estimated to reach ~USD 7 Billion by the end of 2035 by growing at a CAGR of ~5% over the forecast period, i.e., 2023 – 2035. In addition to this, in the year 2022, the market size of coal to liquid was ~USD 5 Billion. The growth of the market can be attributed to the growing consumption of coal. High consumption of coal is likely to be used in producing fuels, such as petrol, diesel, and others. In accordance with current economic and market trends, global coal consumption climbed 0.7% to 8 billion tons in 2022, provided the Chinese economy recovers as expected in the second half of the year.
In addition to these, factors that are believed to fuel the market growth of coal to fuel include the rising need for cheaper fuel. With the increasing oil prices, coal-to-liquid (CTL) fuels can become more economically viable as an alternative liquid fuel source. CTL is used for producing the fuel for specific purposes, such as jet fuel or diesel fuel which creates more opportunities for niche markets. On the other hand, advancements in CTL technology, such as improvements in gasification processes, carbon capture, and catalyst, make CTL more efficient, cost-effective, and environmentally friendly. This technological development of coil to liquid is likely to augment the market growth.
|
Base Year |
2022 |
|
Forecast Year |
2023-2035 |
|
CAGR |
~5% |
|
Base Year Market Size (2022) |
~ USD 5 Billion |
|
Forecast Year Market Size (2035) |
~ USD 7 Billion |
|
Regional Scope |
|
Growth Drivers
Challenges
The global coal to liquid market is segmented and analyzed for demand and supply by product into diesel, gasoline, other fuels. Out of these types of product produced by coal to liquid process, the diesel segment is estimated to gain the largest market share of about ~58% in the year 2035. The growth of the segment can be attributed to the increasing demand for diesel in the transportation sector and increasing sales of diesel vehicles. In 2021, the transportation industry in the United States consumed 46.82 billion gallons (1.11 billion barrels) of distillate fuel, an average of 128 million gallons per day. This quantity accounted for approximately 77% of total US distillate usage and approximately 15% of overall US petroleum consumption. Moreover, the number of diesel cars registered in the European Union was around 740,000 in the first quarter of 2020. Diesel presently has around 30% market share. In addition to this, every day, nearly 2 million buses travel on Indian highways, the most majority of them are powered by diesel.
The global coal to liquid industry is also segmented and analyzed for demand and supply by liquefaction into direct coal liquefaction, and indirect coal liquefaction. Amongst these three segments, the indirect coal liquefaction segment is expected to garner a significant share of around ~46% in the year 2035. Liquid fuels generated from coal using indirect coal liquefaction technology have a higher energy density than coal. Therefore, it makes the fuel more convenient to transport and use, and it potentially improves the fuel efficiency in power plants and vehicles. On the other hand, the ICL has a lower impact on the environment as it produces lower greenhouse gas emissions and pollutants that direct coal liquefaction. Moreover, the operational cost of the indirect procedure is much lower than the direct procedure as they operate at low temperatures and pressures.
Our in-depth analysis of the global coal to liquid market includes the following segments:
|
By Liquefaction |
|
|
By Product |
|
The market share of coal to liquid in Asia Pacific, amongst the market in all the other regions, is projected to be the largest with a share of about ~35% by the end of 2035. The growth of the market can be attributed majorly to the rising production of coal. China has an abundance of coal, which accounts for 95 percent of the country's fossil fuel reserves. China's coal output grew 7.2 percent year on year in December 2021, reaching an all-time high of 384.67 million tons. In 2021, output reached 4.07 billion tons, a 4.7 percent increase over the previous year. As China's economy expanded, so did its demand for coal. Between 1990 and 2019, China's coal consumption almost quadrupled, rising from 1.06 billion million metric tons to 4.02 billion metric tons. Moreover, coal accounted for 56.8 percent of China's energy consumption in 2020.
The European coal to liquid industry is estimated to be the second largest, registering a share of about ~26% by the end of 2035. The growth of the market can be attributed majorly to the increasing production of coal. Germany is Europe's top coal producer. Germany extracted around 107 million metric tons of lignite in 2020. In comparison, Poland was the largest and one of the few producers of hard coal that year, with around 54 million metric tons
Further, the market in the North America, 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 increasing need for reducing the dependency of the country on foreign oil to suffice the energy and gas need in the country. CTL fuels can provide a domestic source of liquid fuels, that can be used to improve energy security and reduce the dependency on other countries for fuel. The United States imported around 8.32 million barrels per day (b/d) of petroleum from 80 nations in 2022. Crude oil, hydrocarbon petrol liquids (HGLs), refined petroleum products such as petrol and diesel fuel, and biofuels are all examples of petroleum. In the United States, crude oil imports of around 6.28 million b/d accounted for approximately 75% of total gross petroleum imports.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Payel Roy, Dhruv Bhatia
Ans: Rising demand for cleaner fuel and electricity, and higher production of coal are the major factors driving the market growth.
Ans: The market size of coal to liquid is anticipated to attain a CAGR of ~5% over the forecast period, i.e., 2023 – 2035.
Ans: Adverse effects on the environment and the high cost of coal in comparison to other fossil fuel are estimated to be the growth hindering factors for the market expansion.
Ans: The market in the Asia Pacific region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The major players in the market are Linc Energy Systems, Invinity Energy, Systems, DKRW Energy LLC, China Shenhua Energy Co. Ltd., Coal India Ltd., Altona Energy PLC, Siemens Energy, Sasol Ltd., Celanese Corporation, and TransGas Development Systems, LLC.
Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by liquefaction, product, and by region.
Ans: The diesel segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
Submit Your Request For Proposal (RFP)
