The global green steel market size was valued at USD 2.62 billion in 2023. The industry is expected to expand from USD 3.75 billion in 2024 to USD 129.08 billion by 2032, exhibiting a CAGR of 55.6% over the study period.
Green steel means the steel produced without utilizing any fossil fuel. The push toward low-CO2 steel is slated to provide green signal to the product, propelling the market growth. Natural gas, which includes LNG, accounts for the lowest emission of CO2 of all fossil fuels.
The COVID-19 pandemic resulted in halts in several industries, including mining and metal industries. Carbon-free steel was regarded as a suitable solution to handle the massive emissions generation by the production of traditional steel. Moreover, the market has the presence of only a few pilot plants in operation and is in the nascent development stage.
Fortune Business Insights™ provides this information in its research report, titled “Green Steel Market Size Report, 2024-2032”.
List of Key Players Mentioned in the Report:
Swiss Steel Group (Switzerland), ArcelorMittal (Luxembourg), Outokumpu Oyj (Finland), China Baowu Group(China), Salzgitter AG (Germany), H2 Green Steel (U.S.), Nippon Steel Corporation (Japan), Nucor Corporation (S.), SSAB (Sweden), Emirates Steel Arkan Group (UAE)
Green Steel Market Segmentation:
Green Property of Hydrogen Direct Reduced Iron – Electric Arc Furnace (H2 DRI – EAF) Method to Spur Segment Growth
In terms of production technology, the market is divided into Hydrogen Direct Reduced Iron – Electric Arc Furnace (H2 DRI – EAF), Moten Oxide Electrolysis (MOE), and Renewable – Electric Arc Furnace (R-EAF). The Hydrogen Direct Reduced Iron – Electric Arc Furnace (H2 DRI – EAF) segment is anticipated to register the largest share during the forecast period as the method has drawn a lot of attention from steel manufacturers due to its green properties.
Aggressive Investments by Companies in Eco-friendly Steel to Augment the Automotive Segment Expansion
By application, the market is segregated into home appliances, automotive, building & construction, renewable energy infrastructure, and others. The automotive segment secured the largest green steel market share in terms of revenue in 2023. The aggressive investments by players, including Volvo, Volkswagen, Mercedes, Jaguar Land Rover, and General Motors in ecofriendly steel to emerge as the first movers in the market are impelling the automotive segment growth.
On the basis of region, the market has been categorized into Europe, North America, the Asia Pacific, and the rest of the world.
Green Steel Market Report Coverage
The strategic measures deployed by prominent players to gain a competitive edge have been mentioned in the report. Besides this, the report encompasses various factors impacting the market growth. It further gives an in-depth insights into the COVID-19 pandemic impact, key segments, the top trends, and notable industry developments.
Source- https://www.fortunebusinessinsights.com/green-steel-market-108711
Drivers and Restraints:
Different Governments’ Dedication toward Emissionless Steel to Escalate the Market Growth
The market is witnessing the investments of millions of dollars by several governments and prominent steel manufacturing companies on making the steel as green as possible due to the emergence of sustainability as need of the hour and new norm. In addition, the limitation of global warming to 1.5°C is being highly focused on by the Paris Climate Agreement as crossing this limit may present critical climate issues, such as rainfall, heatwaves, and droughts. Hence, these factors are bolstering the green steel market growth.
Despite such growth opportunities, massive investment needed to make carbon-free steel may impede the market expansion.
Regional Insights:
North America Took the Leading Position Owing to Presence of Steel Manufacturing Companies
North America dominated with the valuation of USD 1.52 billion. H2 Green Steel, Boston Metal, and Nucor Corporation are the few steel manufacturing companies that are expected to bolster production in the U.S., escalating the market growth.
The Asia Pacific market growth is driven by the presence of few regional players such as Ansteel Group, Nippon Steel Corporation, HBIS Group, and China Baowu with concrete plans for the decarbonization of their steel production in the next 5 to 10 years.
Competitive Landscape:
Prominent Players Focus on Partnerships to Deliver Enhanced Solutions
Market players are engaged in establishing new manufacturing plants equipped with advanced technologies that can deploy modern technologies, hydrogen-based DRI production. In addition, they are joining forces with hydrogen producers and renewable electricity vendors to obtain their production lines as soon as possible.
Green Steel Industry Development:
February 2024- Salzgitter Flachstahl GmbH (Salzgitter), a Salzgitter AG subsidiary and Octopus Energy’s generation arm, unveiled that they have entered a long-term Power Purchase Agreement (PPA) to allow the future production of green steel.