Green Steel

Global Green Steel Market to Reach US$937.7 Billion by 2030

The global market for Green Steel estimated at US$696.9 Billion in the year 2024, is expected to reach US$937.7 Billion by 2030, growing at a CAGR of 5.1% over the analysis period 2024-2030. Natural Gas DR, one of the segments analyzed in the report, is expected to record a 5.8% CAGR and reach US$558.5 Billion by the end of the analysis period. Growth in the Electric Arc Furnace segment is estimated at 4.3% CAGR over the analysis period.

The U.S. Market is Estimated at US$189.9 Billion While China is Forecast to Grow at 9.3% CAGR

The Green Steel market in the U.S. is estimated at US$189.9 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$199.2 Billion by the year 2030 trailing a CAGR of 9.3% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 2.1% and 4.0% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 3.0% CAGR.

Global Green Steel Market – Key Trends & Drivers Summarized

The green steel market is gaining momentum as the steel industry undergoes a paradigm shift toward carbon-neutral and environmentally responsible production methods. Traditional steelmaking is one of the most carbon-intensive industries, contributing nearly 8% of global CO2 emissions. Green steel, produced using low-carbon and renewable energy technologies, presents a transformative solution to decarbonizing the steel sector. Companies are increasingly adopting hydrogen-based direct reduced iron (DRI), electric arc furnace (EAF) technology, and carbon capture utilization and storage (CCUS) to minimize emissions and transition toward fossil-free steel production.

A major trend influencing the green steel market is the rise of hydrogen-based steelmaking, where green hydrogen replaces coal in the reduction process. Leading steel manufacturers in Europe, Japan, and North America are investing in hydrogen DRI technology to achieve carbon neutrality. Additionally, the integration of renewable energy sources, such as wind and solar power, into electric arc furnace operations is reducing reliance on fossil fuels and improving sustainability in secondary steel production. The demand for green steel is also being propelled by regulatory pressure, corporate sustainability targets, and the increasing adoption of environmentally friendly materials across industries.

How Is Green Steel Reshaping Key Industries?

The automotive and construction sectors are at the forefront of green steel adoption, driven by stringent emissions targets and sustainability commitments. Automakers are increasingly sourcing low-carbon steel for vehicle production, aligning with the industry’s transition to electric and hybrid vehicles. Companies such as Tesla, Volvo, and BMW are actively integrating green steel into their supply chains to minimize their environmental footprint and appeal to eco-conscious consumers.

The construction industry is also witnessing a growing demand for green steel in sustainable infrastructure projects, green buildings, and energy-efficient structures. Developers and architects are prioritizing low-carbon materials to meet sustainability certifications such as LEED (Leadership in Energy and Environmental Design) and BREEAM (Building Research Establishment Environmental Assessment Method). Moreover, industries such as shipbuilding, consumer electronics, and renewable energy are incorporating green steel into turbines, structural components, and appliances to achieve their carbon reduction goals.

What Are the Latest Innovations & Technological Advancements in Green Steel?

Technological advancements in green steel production are revolutionizing the industry, with hydrogen-based reduction and renewable energy integration emerging as key enablers. One of the most promising innovations is the use of green hydrogen in direct reduction iron (DRI) processes, eliminating the need for coal and significantly reducing CO2 emissions. Major steel manufacturers are investing in pilot projects and large-scale hydrogen steel plants to accelerate this transition.

Another major breakthrough is the development of carbon capture utilization and storage (CCUS) technology in traditional steel plants. By capturing and repurposing CO2 emissions, steelmakers can reduce their environmental impact while maintaining efficiency. Additionally, advancements in electric arc furnace (EAF) technology, powered by renewable energy, are making steel recycling more sustainable. The shift toward circular economy models, where scrap steel is efficiently reused and repurposed, is further enhancing the sustainability profile of green steel.

What Is Driving the Growth of the Green Steel Market?

The growth in the green steel market is driven by several factors, including stringent global emissions regulations, rising demand for sustainable construction materials, and increasing investments in hydrogen-based steel production. Governments worldwide are implementing policies and carbon pricing mechanisms to encourage the decarbonization of the steel industry. The European Union’s Carbon Border Adjustment Mechanism (CBAM) and the U.S. Inflation Reduction Act are examples of initiatives promoting the transition to low-emission steel.

Another critical growth driver is the commitment of major corporations to reduce their carbon footprint. Automotive, construction, and consumer goods manufacturers are setting ambitious net-zero targets, driving the demand for green steel in supply chains. Furthermore, the expansion of renewable energy projects, including wind and solar farms, is increasing the need for low-carbon steel in infrastructure development. With continued technological advancements, government incentives, and corporate sustainability initiatives, the green steel market is poised for substantial growth, reshaping the future of steel manufacturing.

SCOPE OF STUDY:

The report analyzes the Green Steel market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Production Technology (Natural Gas DR, Electric Arc Furnace, Hydrogen-based DR); End-Use (Building & Construction End-Use, Automotive & Transportation End-Use, Electronics End-Use, Other End-Uses)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 42 Featured) -

• ArcelorMittal
• Boston Metal
• CELSA Group
• China Baowu Steel Group Corporation Limited
• Emirates Steel Arkan
• H2 Green Steel
• JFE Steel Corporation
• JSW Steel
• Klöckner & Co
• Nippon Steel Corporation
• Nucor Corporation
• Outokumpu
• Ovako
• POSCO
• Salzgitter AG
• SSAB
• Tata Steel
• thyssenkrupp AG
• United States Steel Corporation
• voestalpine AG

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