Green Steel Market Overview

“The Green Steel Market Predictable at $191.85 million in 2022, is estimated to increase at a CAGR of 119.8% from $85.10 billion in 2023 to $6,19,515.85 million by 2030.”

Green steel demand surges due to advanced European and US steel products, attracting construction, automotive, and metal product industries through public and private steel buyers, including First Movers Coalition and CEM Industrial Deep Decarbonization initiatives.

The World Steel Association reports that the production of 1860 million tons of steel contributed 1.85 tons of CO2 to the atmosphere. This has led to an increase in green steel production, prompting organizations to collaborate with private steelmakers.

The development of Fuel Cell Electric Vehicles (FCEVs) and hydrogen-powered cars is boosting technological advancements in green steel, which is produced entirely from renewable sources like green hydrogen. Asian nations like China, South Korea, and New Zealand are already using FCEVs from companies like Toyota and Hyundai, which could lead to a global increase in green steel usage.

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Key Takeaways

The highest CAGR is anticipated for the Europe area between 2023 and 2030.

Between 2023 and 2030, the North American region will be a very successful market.

Electric arc furnaces are expected to experience the highest CAGR of any production technology segment from 2023 to 2030.

Molten oxide electrolysis is anticipated to experience the largest CAGR growth between 2023 and 2030 among production technologies.

From 2023 to 2030, the solar energy source is predicted to have the fastest growth.

A significant portion of the global market is anticipated to be accounted for by the automotive & transportation end-user segment.

In 2022, the building and construction end-user segment will grow.

Market Dynamics

Growth Drivers

Increased CO2 emissions

Over the past decade, the steel and iron industry has experienced a rise in carbon dioxide emissions, primarily due to increased steel consumption and manufacturing energy demands. To achieve a Net Zero Scenario, significant reductions in CO2 emissions are needed, with short-term solutions being increased energy efficiency and scrap collection, enabling more production based on scrap.

New technologies like electricity-based production, hydrogen utilization, and CCUS are needed to significantly reduce emissions intensity, while initiatives promoting green steel are expected to lower carbon dioxide emissions.

Several government programs

Green steel is expected to aid countries in achieving sustainable development goals and reducing carbon footprints. It reduces energy imports, protects the environment, and meets global energy demands. Manufacturing steel produces significant carbon dioxide, and governments worldwide are implementing decarbonization plans and encouraging green steel, particularly in industries like automotive and construction.

Restraints

Complicated carbon accounting calculations will limit the market.

The global market for green steel faces challenges in understanding carbon accounting calculations due to the difficulty in predicting carbon tax amounts during production. This delay in identifying green steel, despite only a small portion of Northern European businesses aiming to produce steel without fossil fuels by 2022.

Businesses like SMS groups have developed digital tools, but estimating CO2 emissions from full manufacturing operations is challenging. This hinders market development as original equipment manufacturers cannot demonstrate emission-free products, affecting the production of emission-free products.

Trends

E-mobility's Growing Trend Will Drive Market Growth

The US electric vehicle market is expected to grow due to the increasing use of Advanced High-Strength Steel (AHSS) by automotive OEMs. This material is used to increase vehicle range, reduce body weight, and maintain safety. As governments tighten carbon emission regulations, AHSS will become the best way for manufacturers to meet their carbon emission targets, contributing to the growth of the electric vehicle market.

Competitive Landscape of the Green Steel Market

• Salzgitter AG
• JSW Steel
• ArcelorMittal
• H2GreenSteel
• Hesteel Group
• Liberty Steel Group
• Nucor
• Voestalpine
• Deutsche Edelstahlwerke
• SSAB

Recent Developments in Green Steel Market

In January 2023, ResponsibleSteel, as well as global banks, reached an agreement to accelerate steel decarbonization.

In January 2023, Boston Metal, a green steel technology company, raised $120 million, with ArcelorMittal investing $36 million.

Nucor Corporation, an American steel titan, announced the release of Econiq for General Motors in 2022.

In 2022, ArcelorMittal invested USD100 million in green steel technologies to accelerate the steel sector's decarbonization.

Regional Insights

Europe is set to experience the fastest CAGR growth from 2023 to 2030, with the steel industry responsible for 4.5% of regional and 7% of worldwide CO2 emissions. To achieve carbon emission objectives, the European Union is implementing a long-term plan to make Europe climate neutral by 2050, benefiting the green steel market.

Numerous steel producers in Germany, Sweden, the UK, and Norway are implementing efficient clean steel-making solutions to achieve carbon-neutral goals.

North America is a lucrative market for green steel, while the UK's green steel sector has expanded due to increased investments and off-take collaborations among new businesses.

Segments Covered in the Green Steel Market

Green Steel Market By Energy Source

• Wind Energy
• Solar Energy

Green Steel Market By Production Technology

• Molten Oxide Electrolysis
• Electric Arc Furnace

Green Steel Market By End-User

• Automotive & Transportation
• Building And Construction
• Electronic Industrial Equipment

Green Steel Market By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East and Africa

Frequently Asked Questions

What is the green steel market size?

Green Steel Market Predictable at $191.85 million in 2022, is estimated to increase at a CAGR of 119.8% from $85.10 billion in 2023 to $6,19,515.85 million by 2030.

What will be the CAGR of global green steel market?

The global green steel market is poised to grow at a CAGR of 119.8% from 2023 to 2030.

Who are the prominent players operating in the green steel market?

The major players operating in the green steel market are Deutsche Edelstahlwerke, SSAB, Salzgitter AG, JSW Steel, ArcelorMittal, H2GreenSteel, Hesteel Group, Liberty Steel Group, Nucor, Voestalpine and Others.

Which are the driving factors of the green steel market?

The driving factors of the green steel market are the rising CO2 emission and various government initiatives.