Market Overview:

According to IMARC Group's latest research publication, "Coal Fired Power Generation Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2025-2033", The global coal fired power generation market size reached 2,218.2 GW in 2024. Looking forward, IMARC Group expects the market to reach 2,788.6 GW by 2033, exhibiting a growth rate (CAGR) of 2.37% during 2025-2033.

This detailed analysis primarily encompasses industry size, business trends, market share, key growth factors, and regional forecasts. The report offers a comprehensive overview and integrates research findings, market assessments, and data from different sources. It also includes pivotal market dynamics like drivers and challenges, while also highlighting growth opportunities, financial insights, technological improvements, emerging trends, and innovations. Besides this, the report provides regional market evaluation, along with a competitive landscape analysis.

How AI is Reshaping the Future of Coal Fired Power Generation Market

• AI data centers are driving increased electricity demand, prompting utilities to extend the operational life of existing coal plants rather than retiring them as originally planned.
• The surge in AI workloads has led to a 39% reduction in projected coal generation decline through 2032 in the US, compared to previous forecasts of 60% decline, as coal plants provide reliable baseload power for data centers.
• Utilities like Southern Company are prioritizing keeping coal plants operational longer to meet AI-driven demand, with some planned 2028-2035 retirements being reconsidered or delayed.
• AI-powered optimization systems are enabling coal plants to improve efficiency by 10-15%, reduce emissions, and enhance operational flexibility to compete in modern energy markets with variable renewable generation.
• Advanced AI control systems help coal-fired plants extend their operational stable zones, improve ramping rates, and reduce minimum load points, making them more dispatchable and competitive alongside renewable energy sources.

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Key Trends in the Coal Fired Power Generation Market

• AI-Driven Demand Extending Plant Lifespans: The explosive growth of AI data centers is reversing coal plant retirement trends across the United States. Major tech companies require round-the-clock reliable power, with individual data centers consuming up to 5 GW—equivalent to the entire state of Nevada. This has prompted utilities to delay planned closures and retrofit existing plants.
• Clean Coal Technology Advancement: Investment in carbon capture and storage is accelerating, with the technology holding 19.4% of the clean coal market share. Projects like Petra Nova capture 1.4 million tons of CO2 annually, while China launched pilot tests combining biomass with CCS to cut carbon intensity by 20% by 2025 and 50% by 2027.
• China and India Dominating New Capacity: China started construction on 94.5 GW of new coal power in 2024—the highest level since 2015—while India proposed a record 38.4 GW. Together, these nations accounted for 87% of new global coal capacity in H1 2025, contrasting sharply with Western phaseout commitments.
• Conversion to Clean Energy Hubs: Aging coal plant sites are being repurposed into diversified clean energy facilities. The Homer City coal plant in Pennsylvania is being converted into an AI data center campus powered by natural gas, while European sites feature renewables, hydrogen, and storage technologies.
• Enhanced Flexibility and Grid Stabilization: Coal plants are adopting flexible operation technologies to complement intermittent renewables. Ultra-supercritical and fluidized bed combustion systems improve thermal efficiency by 5-10%, while AI-based control systems enable better load following and reduced minimum stable generation levels.

Growth Factors in the Coal Fired Power Generation Market

• Surging Global Electricity Demand: Global electricity demand grew 2.2% in 2023 and is projected to rise 3.4% annually through 2026, driven by industrialization in emerging economies. Coal remains cost-effective and abundant, providing 33% of global electricity generation, with over 2,400 plants worldwide exceeding 2,000 GW capacity.
• Energy Security Concerns: Countries are prioritizing energy reliability amid geopolitical tensions and supply chain disruptions. In the first half of 2025, US coal consumption increased 15% year-over-year as higher natural gas prices made coal more competitive, with delivered gas averaging $4.17/MMBtu—46% higher than 2024.
• Government Support in Key Markets: India's government promotes coal gasification projects with policies encouraging investment, while China's 14th Five-Year Plan continues supporting coal infrastructure. West Virginia passed legislation requiring coal plants to maintain 30-day fuel supplies and operate at 69% capacity factors to ensure grid reliability.
• Infrastructure and Resource Availability: Asia Pacific region contributed two-thirds of global coal production in 2020, with ready access to reserves making coal the most reliable technology for peak demand. China accounts for over 50% of global coal demand, with consumption reaching 4,520 Mt in 2022, ensuring sustained market growth.
• Integration with Emerging Technologies: Coal plants are being retrofitted with advanced combustion systems, gasification technologies (IGCC), and carbon capture capabilities. The clean coal technology market is valued at $4.2 billion in 2025 and projected to reach $6.3 billion by 2035, with India recording the highest growth rate at 6.0% CAGR.

Leading Companies Operating in the Global Coal Fired Power Generation Industry:

• American Electric Power Company
• China Huaneng Group Co. Ltd.
• Dominion Energy Solutions Inc.
• Duke Energy Corporation
• Eskom Holdings SOC Ltd.
• Jindal India Thermal Power Limited
• NTPC Limited
• RWE Aktiengesellschaft
• STEAG GmbH (Ksbg Kommunale Beteiligungsgesellschaft Gmbh & Co. Kg)
• Tenaga Nasional Berhad

Coal Fired Power Generation Market Report Segmentation:

Breakup By Type:

• Pulverized Coal Systems
• Cyclone Furnace
• Others

Pulverized coal systems dominate the market, accounting for 59.2% share in 2024, due to their widespread use in large power stations where reliability and consistent combustion are critical for uninterrupted electricity supply.

Breakup By End User:

• Residential
• Commercial
• Industrial

The residential segment leads the market, driven by rapid industrial growth in developing countries, population expansion, and rising disposable income fueling increased energy consumption in housing developments.

Breakup By Region:

• North America (United States, Canada)
• Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
• Europe (Germany, France, United Kingdom, Italy, Spain, Russia, Others)
• Latin America (Brazil, Mexico, Others)
• Middle East and Africa

Asia Pacific dominates the market with 43.80% share (approximately $160.0 billion), driven by massive coal capacity additions in China and India, strong industrial growth, and continued reliance on coal for baseload power generation.

Recent News and Developments in Coal Fired Power Generation Market

• August 2025: Shenhua announced major asset acquisition plans to acquire coal mines, pit-head power generation units, and coal-to-oil/coal-chemical assets held by its parent company through issuing A-shares and cash transactions.
• February 2025: China's construction of new coal-power plants reached a 10-year high with 94.5 GW of capacity beginning construction in 2024, signaling continued momentum despite government pledges to strictly control coal use.
• December 2024: CASE Group unveiled a large-scale coal gasification pilot at Odisha's Rungta Mines, achieving over 80% conversion efficiency and 90% thermal efficiency in under four months, demonstrating scalable clean coal integration.
• July 2024: JERA, Japan's largest power generator, completed a three-month trial co-firing 20% ammonia with coal at the Hekinan thermal power station, achieving a 20% reduction in sulfur oxides with no increase in nitrogen oxides.

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