Coal to Liquid Market size was over USD 4.46 billion in 2024 and is projected to reach USD 13.19 billion by 2037, growing at around 8.7% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of coal to liquid is assessed at USD 5.1 billion.
The reason behind the growth is impelled by the growing number of automobiles. It is expected that the rising demand for fuel for running the transportation sectors is likely to augment the market growth. It is believed that over 1 billion passenger automobiles cruise the world's streets and roadways today. Moreover, as of April 2023, around 27 million cars have been produced in the world.
The increasing need to lower the carbon footprint is believed to fuel market growth. In comparison to other fossil fuels, coal has much lower carbon emissions thus making it a source of better fuel. Presently the globe emits approximately 50 billion tons of CO2e every year. This is more than 40% more than 1990 emissions, which were estimated to be roughly 35 billion tons.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
8.7% |
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Base Year Market Size (2024) |
USD 4.46 billion |
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Forecast Year Market Size (2037) |
USD 13.19 billion |
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Regional Scope |
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Product (Diesel, Gasoline)
The diesel segment is estimated to account for 65% share of the global coal to liquid market in the coming years. The process of turning coal into liquids, such as diesel or petrol, is known as coal-to-liquids (CTL), which is regarded as one of the technological solutions to lower petroleum usage in on-road transportation as a diesel alternative. In conventional engines with compression, CTL diesel fuel can be utilized in pure form or as a useful addition to a mixture to improve intermediate distillate streams which has the highest quality in all of these areas. Diesel presently has around 30% market share. In addition to this, every day, nearly 2 million buses travel on Indian highways, and the majority of them are powered by diesel.
Liquefaction (Direct Coal Liquefaction, Indirect Coal Liquefaction)
Coal to liquid market from the indirect coal liquefaction electronics segment is set to garner a notable share of 60% shortly. 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 market includes the following segments:
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Liquefaction |
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Product |
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APAC Market Forecast
Asia Pacific industry is predicted to account for largest revenue share of 35% by 2037, impelled by huge presence of coal reserves in the region.China possesses proven reserves that are more than 34 times as much as its yearly usage, ranking second in the world after the United States. This, as a result, may lead to a higher supply of coal in the region and make coal an attractive option as a source of fuel for various purposes. In 2020, China's proven coal reserves were estimated to be over 143 billion metric tonnes.
European Market Statistics
The Europe coal to liquid market is estimated to be the second largest, during the forecast timeframe led by 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. As a result, there is a huge availability of coal which would attract more investment in coal to liquid technology in the region.
Author Credits: Dhruv Bhatia
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