Coal Handling System Sales Set to Grow at 4.2% in 2021 as Automation Penetration Deepens Fact.MR Study
NEW YORK, Jan. 18, 2021 /PRNewswire/ -- Global coal handling system sales are set to grow at 4.2% y-o-y in 2021, and surpass US$ 6.5 billion in valuation. Demand from thermal power generation will continue to sustain momentum, however, long-term prospects of coal handling equipment industry will contract as a shift toward renewable energy sources is underway. Leading research and consulting firm, Fact.MR, in its latest study, opines market revenues to grow at over 4% during the period 2020-2030.
"While US and Europe are making a gradual exit from coal energy, cost-efficiency will continue to drive demand in China and India. To boost efficiency and mitigate energy losses, use of integrated coal handling management system is likely to grow in these countries. Especially, material handling and stockyard management will witness an increasing level of automation in the next decade", says Fact.MR in the latest 2020-2030 edition of the study.
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'Safety-first' Approach – How Evolving Standards Influence Coal Handling Equipment Design
Worker safety standards are influencing the design of coal handling systems. Fact.MR's surveys and interviews with stakeholders across the value chain revealed that equipment design is being driven by a 'safety-first approach'. Equipment manufacturers have responded positively to the evolving standards, and in the last couple of years, safer machines and components have been launched.
While implementing the design changes, manufacturers are taking a two-pronged approach – increased safety and reduced maintenance requirement. This two-pronged approach is most widely seen in conveyors, according to the Fact.MR study.
Conveyor Sales Account for 50% of Total Revenue Generation
Conveyors remain the top-selling category in the coal handling system market. In 2019, conveyors accounted for 50% of all coal handling equipment sales.
"Although conveyors are ubiquitous at a coal plant, they also remain one of the least maintained components. Conveyor maintenance requires a lucid understanding of the installed hardware and its working, which continues to be a challenge owing to the growing 'knowledge gap' in this industry", says Fact.MR.
Future coal handling equipment demand will be heavily influenced by broader developments in thermal power generation. The thermal power industry is likely to grow at nearly 3% through 2030; any major decline in growth can severely limit the prospects of equipment manufacturers.