Production of Coal in Germany reached 123.62Million Tonnes in 2023
Production grew by a CAGR of 4.81% between 2020 to 2023,and is expected to decline by...
GlobalData projects the production to decline at a CAGR of...
The German coal market expanded over the past five years. This trend, with a minor overall deceleration, is expected to continue through to the end of the forecast period.
The coal market is defined as revenues due to the sale of coal for industry and power generation.
Germany coal market geography segmentation
Germany accounts for majority of share in the European coal market value.
United Kingdom accounts for a further position in the European market.
Five force analysis
The coal market will be analyzed taking coal mining companies as players. The key buyers will be taken as power generation companies, and mining equipment suppliers and landowners/regulators as the key suppliers.
Coal is Germany's most abundant indigenous energy resource. However, its consumption has been historically decreasing over time. Competition within the market is boosted by the presence of large corporations, i.e., Vattenfall and RWE Power.
Buyer power
Power generation companies are the key buyers of coal. Amongst buyers, there are also industrial and retail users, i.e., steel makers, who use coking coal in the manufacture of steel. The large scale of many of the buyers in this market enhances their power. However, coal is a vitally important product to buyers in this market and as a result buyer are highly reliant on market players, diluting this power somewhat.
Supplier power
Suppliers in this market include producers of mining and production equipment and landowners, amongst others. In general, supplier power is weakened by the fact that the mining market is important to suppliers’ revenues. Mining equipment is often highly specialized and manufacturers are restrained by this dependency on what constitutes a niche demand.
New entrants
Large multinational mining companies act as the dominant players within the coal market. These companies derive great advantage from economies of scale, with bulk coal production translating into a minimal per unit selling price for coal. Smaller companies within the market may therefore struggle to compete on an equal footing. This structural inequality pushes the market towards consolidation.
Threat of substitutes
Coal, in principle, faces several possible substitutes in the power generation market, including oil, gas, and nuclear fuels. Other substitutes include renewable sources, i.e., wind power and solar power, geothermal energy, etc. These can be seen as quite a strong threat with the current emphasis on utilizing more environmentally friendly fuels but involve high investment for traditional power generation companies in order to make the transition to renewable energy sources.
Degree of rivalry
The coal market is tending towards increased consolidation, with large, diversified energy companies, i.e., Vattenfall and RWE Power dominating the scene. The presence of such players boosts the competition within the market.
Key player
Mitteldeutsche Braunkohlengesellschaft mbH
Mitteldeutsche Braunkohlengesellschaft mbH (MIBRAG) engages in the extraction and sale of raw brown coal. The company was founded in 1994 and is based in Theißen, Germany.
RWE AG is the management holding company of the RWE group, which comprises various utility companies with core competencies in the energy and environmental sectors. It is one of Europe's leading electricity and gas companies. RWE's power generation, sales, and trading markets are in Germany, the UK, the Netherlands, Belgium, Poland, Hungary, the Czech Republic, Turkey, Croatia, and Slovakia.
Switzerland
China
Japan
Luxembourg
South Korea
Japan
United Kingdom
Australia
Japan
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