PUBLISHER: The Business Research Company | PRODUCT CODE: 1929373
PUBLISHER: The Business Research Company | PRODUCT CODE: 1929373
Lignite mining involves the extraction of bituminous coal, anthracite, and lignite coal utilizing diverse underground mining techniques. This process encompasses the development of lignite mine sites and the refinement of lignite, which includes cleaning, washing, screening, and sizing the coal. Lignite finds primary usage in pulverized coal or cyclone-fired electric power plants.
The main categories within lignite mining pertain to electricity generation, fertilizer-based production, and synthetic natural gas generation. Electricity generation refers to power produced from fossil fuels, nuclear power plants, hydropower plants (excluding pumped storage), geothermal systems, solar panels, biofuels, wind energy, among others. This electricity can originate from electricity-only plants or combined heat and power plants. The energy sources involved encompass both non-renewable and renewable sources, utilized across commercial, industrial, and residential applications.
Tariffs are influencing the lignite market by increasing costs of imported mining machinery, power plant equipment, emission control systems, and processing technologies used in electricity and fertilizer production. Power generation operators in Europe and Asia-Pacific are most affected due to cross-border equipment sourcing, while developing regions face higher project costs. These tariffs are increasing operational expenses and slowing capacity expansion. However, they are also supporting local equipment manufacturing, regional technology development, and increased focus on improving domestic lignite utilization efficiency.
The lignite market research report is one of a series of new reports from The Business Research Company that provides lignite market statistics, including lignite industry global market size, regional shares, competitors with a lignite market share, detailed lignite market segments, market trends and opportunities, and any further data you may need to thrive in the lignite industry. This lignite market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The lignite market size has grown strongly in recent years. It will grow from $118.91 billion in 2025 to $129.95 billion in 2026 at a compound annual growth rate (CAGR) of 9.3%. The growth in the historic period can be attributed to expansion of lignite-based power plants, growth in electricity demand, development of mining infrastructure, use of lignite in fertilizer production, availability of large lignite reserves.
The lignite market size is expected to see strong growth in the next few years. It will grow to $186.95 billion in 2030 at a compound annual growth rate (CAGR) of 9.5%. The growth in the forecast period can be attributed to increasing transition toward cleaner coal technologies, rising investments in emission reduction systems, expansion of combined heat and power plants, growing focus on energy security, gradual diversification into alternative energy sources. Major trends in the forecast period include increasing optimization of lignite-fired power generation, rising integration of emission control technologies, growing automation in mining and processing operations, expansion of lignite-based fertilizer production, enhanced focus on resource efficiency.
The increasing demand for electricity and power generation is anticipated to drive the growth of the lignite mining market in the coming years. Lignite mining involves the extraction of low-rank coal that is mainly used for steam-electric power generation. Demand for lignite is rising as many power plants favor it as a cost-effective and easily accessible fuel source that supports uninterrupted electricity supply. Lignite mining contributes to the energy sector by supplying fuel for thermal power plants, enabling large-scale electricity generation, and enhancing energy security. Its use in steam-electric power generation allows efficient conversion of heat energy into electricity, helping to meet growing energy consumption requirements. For example, in July 2025, RenewableUK, a UK-based non-profit organization, reported that renewable energy sources accounted for 50.4% of the UK's electricity generation in 2024, up from 46.4% in 2023. Therefore, the growing demand for electricity and power generation is fueling the expansion of the lignite mining market.
Government policies aimed at supporting the mining industry are expected to drive the growth of the lignite mining market in the coming years. Governments are offering subsidies and promoting foreign direct investment (FDI) in the mining sector. Such support includes financing through public financial institutions such as bilateral development banks and export credit agencies investing in mining projects, fiscal assistance through budget allocations and tax incentives, and investments by majority state-owned mining and utility companies, including those involved in lignite mining. For example, in April 2024, the Biden-Harris Administration in the United States announced an investment of up to $475 million to support clean energy initiatives at active and former mining sites across five states-Arizona, Kentucky, Nevada, Pennsylvania, and West Virginia. Funded under the Bipartisan Infrastructure Law, the initiative seeks to accelerate the deployment of clean energy technologies in mining communities while promoting job creation and economic development. Therefore, increasing government support policies for the mining industry are expected to fuel the growth of the lignite mining market during the forecast period.
In December 2024, Sembcorp Industries, a Singapore-based energy and infrastructure company, acquired Alinta Energy for approximately AUD 6.5 billion. With this acquisition, Sembcorp seeks to broaden its renewable energy portfolio, reinforce its position in Australia's power and gas market, and advance its long-term energy transition strategy across the Asia-Pacific region. Alinta Energy is an Australia-based integrated energy company involved in electricity generation and retail, with a diverse asset portfolio that includes gas-fired power plants, wind and solar projects, as well as a substantial residential and commercial customer base across several Australian states.
Major companies operating in the lignite market are NLC India Limited, Turkish Coal Operations Authority, RB Kolubara, RWE AG, Vattenfall AB, LEAG (Lausitz Energie AG), CEZ Group, Polska Grupa Energetyczna, Complexul Energetic Oltenia, Basin Electric Power Cooperative, Minnkota Power Cooperative, North American Coal Corporation, Great River Energy, MVM Matra Energia Zrt, Gujarat Mineral Development Corporation Limited, Neyveli Lignite Corporation Limited, Gujarat Industries Power Company Ltd, Public Power Corporation S.A., Rajasthan Rajya Vidyut Utpadan Nigam Limited, Turkcell Enerji (lignite power)
Asia-Pacific was the largest region in the lignite mining market in 2025. The regions covered in the lignite market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the lignite market report are China, India, Japan, Australia, Indonesia, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, Taiwan, New Zealand, UK, Germany, France, Italy, Spain, Austria, Belgium, Denmark, Finland, Ireland, Netherlands, Norway, Portugal, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa.
The lignite mining market includes revenues earned by entities by providing mining services such as underground mining, strip mining, and culm bank mining. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Lignite Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses lignite market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for lignite ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The lignite market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
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