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.
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.
The leading competitors in the global coal-to-liquid fuel market are:
Shanxi Lu'an Co. Ltd
Envidity Energy Inc
Yitai Coal Oil Manufacturing Co. Ltd
Jincheng Anthracite Mining Co., Ltd
Clean Carbon Industries
The global coal-to liquid-fuel market segmentation focuses on Technology, Application, and Region.
Segmentation based on Technology
Segmentation based on Application
Segmentation based on Region
Rest of Western Europe
Rest of Europe
Australia & New Zealand
Rest of Asia Pacific
Middle East & Africa (MEA)
Rest of MEA
Rest of South America