The global coal-to-liquid fuel market revenue was around US$ 3.9 billion in 2021 and is estimated to reach US$ 7.9 billion by 2031, growing at a compound annual growth rate (CAGR) of 8.7% during the forecast period from 2022 to 2031.

Coal is a crucial fuel used to create electricity around the world, while petroleum fuels are frequently used in vehicles. Additionally, since coal and petroleum fuels are primarily composed of carbon, turning coal into liquid fuels is easier to do. Coal-to-liquid technology or coal liquefaction via direct or indirect liquefaction are other names for the process of producing liquid fuel from coal.

Factors Influencing Market Growth

The depletion of fossil fuel supplies, particularly crude oil-related ones, has increased the need for alternative technologies to manufacture synthetic fuels. Thus, it is anticipated to fuel the market growth.

The demand for different industrial products and chemicals has increased due to the rapid growth in the global population. Such a factor propels market expansion.

Synthetic fuels used as raw materials in the chemical industries will create lucrative opportunities for the growth of the coal-to-liquid fuel market.

The high capital expenditure is required to build up liquefaction units and apply new technology. Thus, this factor restrains market growth.


Study of the COVID-19 Pandemic

The COVID-19 pandemic had a negative impact on the market. The pandemic has severely disrupted the world economy along with infections and fatalities. Due to the Government enacted a lockdown, mining, and building projects have been negatively impacted by global regulations to promote social estrangement, which has either slowed down or been placed on hold until further notice. The aforementioned reason had a significant impact on the coal-to-liquid fuel market. However, vaccination campaigns in both developing and developed nations have resulted in a progressive drop in social isolation-related restrictions.

Regional Insights

Asia Pacific dominated the market. India and China are the nations in this region with the fastest-growing economies. This region's lack of petroleum resources has boosted the demand for coal to liquid technology, a strategic response to China's and India's lack of oil and gas resources that would provide national energy security. China Energy, a Chinese corporation, has developed locally relevant, eco-friendly, and effective coal conversion technology. Such factors boost the market growth in this region.
Leading Competitors

The leading competitors in the global coal-to-liquid fuel market are:
Shanxi Lu'an Co. Ltd
Bumi Plc
Envidity Energy Inc
Sasol Energy
Yitai Coal Oil Manufacturing Co. Ltd
Cleanse Corporation
DKRW Energy
Altona Energy
Shenhua Group
Jincheng Anthracite Mining Co., Ltd
Monash Energy
Clean Carbon Industries
Rentech
Secure Energy
Hunton Energy
Siemens
Others
Segmentation Analysis
The global coal-to liquid-fuel market segmentation focuses on Technology, Application, and Region.
Segmentation based on Technology
Direct Liquefaction
Indirect Liquefaction
Segmentation based on Application
Transportation Fuel
Cooking Fuel
Others
Segmentation based on Region
North America
The U.S.
Canada
Mexico
Europe
Western Europe
The UK
Germany
France
Italy
Spain
Rest of Western Europe
Eastern Europe
Poland
Russia
Rest of Europe
Asia Pacific
China
India
Japan
Australia & New Zealand
ASEAN
Rest of Asia Pacific

Middle East & Africa (MEA)
UAE
Saudi Arabia
South Africa
Rest of MEA

South America
Brazil
Argentina
Rest of South America