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Coal Mining in Germany - Market Research Report (2014-2029)

Nina Koefler Nina Koefler Frankfurt, Germany Last Updated: September 2024 WZ B05.00DE

Revenue

€1.8bn

2024

€1.8bn

Past 5-Year Growth

Profit

€XX.Xm

Employees

4,499

Businesses

4

Wages

€XXX.Xm

Coal Mining in Germany industry analysis

The coal mining industry has been experiencing a negative development for several decades. Germany's coal mines were partly responsible for the country's economic success in the 1950s and 1960s, but their economic importance declined noticeably in the 1990s and 2000s. Highly subsidised coal mining was finally discontinued completely in December 2018. While more than 100 million tonnes of hard coal were mined in Germany every year 60 years ago, the most recent production volume was just 2.6 million tonnes. The difficult mining conditions and low international prices made this industry unprofitable. Since 2019, only lignite has been mined in Germany.Since 2019, the industry's turnover has increased by an average of 0.6% per year. Although lignite mining will continue for the time being, it is also struggling with a number of problems. Environmentalists are increasingly denouncing the companies' extraction methods and are trying to force them to stop extraction by taking legal action. For 2024, industry turnover is expected to fall by 4% compared to the previous year to 1.8 billion euros. This is the result of a decline in the annual production volume and is due to the increasing use of low-cost energy from renewable sources. They now account for more than half of the German electricity mix.According to forecasts by IBISWorld, the downward trend in the industry will continue over the next few years. By 2029, total turnover is expected to fall by an average of 5.2% per year to 1.4 billion euros. As coal mining and the use of coal for energy generation are considered to be extremely harmful to the environment, Parliament passed a law in August 2020 to phase out coal-fired power generation by 2038, which will contribute to a reduction in industry activity. Nevertheless, lignite still plays a significant role in energy generation in Germany. Almost a fifth of the electricity generated in Germany is produced using lignite. This comes 100% from domestic lignite-fired power plants, which emphasises the importance of the industry in the context of energy independence.

Trends and Insights

  • Lignite mining is extremely controversial among the population and is criticised by environmental organisations. The main criticism of lignite mining is the destruction of nature and the natural groundwater balance.
  • The majority of the coal mined is lignite with a calorific value of 9,000 to 9,999 kJ/kg. Lignite with a calorific value of 10,000 kJ/kg or more only accounts for a very small proportion of sales, as this high level of quality is rarely achieved.
  • The eastern region is home to important coal deposits. The Lusatia (Brandenburg and Saxony) and Central German coalfields (Saxony-Anhalt) are located there. Around 42 million tonnes of coal are produced each year in Lusatia and around 12 million tonnes in the Central German coalfield.
  • Competition within the industry is very low. Most mine operators have concluded long-term contracts with customers or are part of an energy group and supply in-house power plants.

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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has grown at a CAGR of 0.6 % over the past five years, to reach an estimated €1.8bn in 2024.

Trends and Insights

The decision to phase out coal-fired power generation was taken in August 2020

  • Coal mining is more closely linked to Germany's economic success in the post-war period than almost any other industry. Coal fuelled the steel furnaces of the Ruhr region and thus contributed to the overall economic growth of the 1950s and 1960s.
  • Additional trends and insights available with purchase
Coal Mining in Germany
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to decline over the next five years.

Trends and Insights

Coal mining in Germany will continue to lose importance over the next five years

  • The foreseeable final end of lignite-fired power generation will have a fundamental impact on companies in the sector. Over a third of lignite-fired power plants are likely to be decommissioned in the 2030s.

Biggest companies in the Coal Mining in Germany

Company
Market Share (%)
2024
Revenue (€m)
2024
Lausitz Energie Bergbau AG
1,024.4
MIBRAG GmbH
331.6
RWE Power AG
271.0

To view the market share and analysis for all 5 top companies in this industry, view purchase options.

Products & Services Segmentation

Coal Mining in Germany
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Lignite with a calorific value below 9,000 kJ/kg, Lignite with a calorific value of 9,000 to 9,999 kJ/kg and Lignite with a calorific value of 10,000 kJ/kg or more. Lignite with a calorific value below 9,000 kJ/kg is the largest segment of the Coal Mining in Germany.

Trends and Insights

Lignite with a calorific value of less than 9,000 kJ/kg often comes from Lusatia and the Rhine

  • Lignite with a calorific value of less than 9,000 kJ/kg is lignite with a low energy content. It is primarily mined in the Lusatia and Rhine coalfields.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

The coal mining industry includes the extraction of both hard coal and lignite. Hard coal mining has been systematically reduced in Germany in recent years and the last hard coal mine closed in December 2018. In addition to mining the coal, the industry's activities also include preparing the coal for further processing and subsequent sorting, washing, grinding or compacting.

What's included in this industry?

Lignite with a calorific value below 9,000 kJ/kgLignite with a calorific value of 9,000 to 9,999 kJ/kgLignite with a calorific value of 10,000 kJ/kg or more

Companies

Lausitz Energie Bergbau AGMIBRAG GmbHRWE Power AG

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Related Terms

FLÖZZECHEHEATING VALUEWIRING

Industry Code

WZ 2008

WZ 05 - Coal Mining in Germany

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

Lignite mining is extremely controversial among the population and is criticised by environmental organisations. The main criticism of lignite mining is the destruction of na...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

The majority of the coal mined is lignite with a calorific value of 9,000 to 9,999 kJ/kg. Lignite with a calorific value of 10,000 kJ/kg or more only accounts for a very smal...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

The eastern region is home to important coal deposits. The Lusatia (Brandenburg and Saxony) and Central German coalfields (Saxony-Anhalt) are located there. Around 42 million...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

Detailed analysis

  • Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

Competition within the industry is very low. Most mine operators have concluded long-term contracts with customers or are part of an energy group and supply in-house power pl...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

There are currently only four companies still active in coal mining in Germany. The market concentration is correspondingly high. The largest industry players have a monopoly...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024
  • Overview of Lausitz Energie Bergbau AG's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of MIBRAG GmbH's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of RWE Power AG's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of revenue, market share and profit margin trend for 2 additional companies

Detailed analysis

  • Description and key data for Lausitz Energie Bergbau AG, and factors influencing its performance in the industry
  • Description and key data for MIBRAG GmbH, and factors influencing its performance in the industry
  • Description and key data for RWE Power AG, and factors influencing its performance in the industry
  • Description, key data and performance trends for 2 additional companies

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

The most important legal basis for the extraction of mineral resources in Germany is the Federal Mining Act. It regulates all mining activities in Germany and sets out the le...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2014-2029) 
  • Assistance historical data and forecast (2014-2029) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

The industry's profit margin is very low and depends heavily on world market prices for coal. Lignite companies say they are able to generate profits without subsidies. Howev...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Coal Mining industry in Germany in 2024?

The market size of the Coal Mining industry in Germany is €1.8bn in 2024.

How many businesses are there in the Coal Mining in Germany industry in 2024?

There are 4 businesses in the Coal Mining industry in Germany, which has declined at a CAGR of 0.0 % between 2019 and 2024.

Has the Coal Mining industry in Germany grown or declined over the past 5 years?

The market size of the Coal Mining industry in Germany has been growing at a CAGR of 0.6 % between 2019 and 2024.

What is the forecast growth of the Coal Mining industry in Germany over the next 5 years?

Over the next five years, the Coal Mining industry in Germany is expected to decline.

What are the biggest companies in the Coal Mining market in Germany?

The biggest companies operating in the Coal Mining market in Germany are Lausitz Energie Bergbau AG, MIBRAG GmbH and RWE Power AG

What does the Coal Mining in Germany include?

Lignite with a calorific value below 9,000 kJ/kg and Lignite with a calorific value of 9,000 to 9,999 kJ/kg are part of the Coal Mining industry.

Which companies have the highest market share in the Coal Mining in Germany?

The company holding the most market share in Germany is Lausitz Energie Bergbau AG.

How competitive is the Coal Mining industry in Germany?

The level of competition is low and steady in the Coal Mining industry in Germany.

Related Industries

Widen your competitive advantage with related industries

Competitors

  • Crude Petroleum & Natural Gas Extraction in Germany
  • Renewable Energy Generation in Germany

Complementors

  • Fluid Power Equipment Manufacturing in Germany
  • Mining, Quarrying & Construction Machinery Manufacturing in Germany
  • Water Collection, Treatment & Supply in Germany

International industries

  • Global Coal Mining
  • Coal Mining in the US
  • Coal Mining in Canada
  • Coal Mining in Australia
  • Coal Mining in New Zealand

View all industries in Germany

Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in Germany include:

  • German Federal Statistics Office (Destatis)
  • European Statistics Office (Eurostat)
  • United Nations Comtrade

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

Learn more about our methodology and data sourcing on the Help Center.