Global Sustainable Steel Market
Description
MARKET SCOPE:
The global Sustainable Steel market is projected to grow significantly, registering a CAGR of 68.7% during the forecast period (2024 – 2032).
Sustainable steel refers to the production and use of steel in a manner that minimizes its environmental impact, reduces carbon emissions, and aligns with principles of social responsibility and economic viability. It encompasses practices and technologies aimed at addressing the environmental and social challenges associated with traditional steel production. Adoption of production methods that significantly reduce or eliminate carbon emissions, such as hydrogen-based steelmaking or other innovative technologies. Efficient use of raw materials, energy, and water throughout the entire steel production process, reducing waste and environmental impact. Emphasis on recycling scrap steel and integrating circular economy principles to minimize the reliance on virgin raw materials and reduce the environmental footprint. Increasingly stringent environmental regulations and emissions standards drive industries to seek sustainable steel options to comply with legal requirements. Growing consumer awareness of environmental issues prompts individuals and businesses to choose products with lower environmental footprints, including those made from sustainable steel. Investors are increasingly considering environmental, social, and governance (ESG) factors when making investment decisions. Companies with sustainable practices, including steel producers, may attract more investment. The adoption of sustainable steel is seen as a strategy to build a more resilient and responsible supply chain, reducing risks associated with resource scarcity and environmental impacts. Companies that position themselves as leaders in sustainability gain a competitive advantage, as consumers and businesses increasingly value products that align with environmental and ethical considerations.
MARKET OVERVIEW:
Driver: Increasing need for carbon reduction is driving the market growth.
The steel industry is a significant contributor to greenhouse gas emissions, primarily through the traditional blast furnace process. By adopting sustainable practices, including low-carbon and carbon-neutral methods, the industry aims to contribute to global efforts to mitigate climate change. Traditional steelmaking processes, especially those involving blast furnaces, release substantial amounts of carbon dioxide (CO2) into the atmosphere. Sustainable steel production seeks to address the carbon intensity of these processes to reduce their impact on climate change. Increasingly stringent environmental regulations and emissions targets set by governments and international agreements put pressure on industries, including steel, to adopt cleaner practices. Sustainable steel production aligns with regulatory requirements and supports compliance. Countries, businesses, and industries worldwide have committed to reducing carbon emissions to combat climate change. Sustainable steel production contributes to achieving these global commitments, such as those outlined in the Paris Agreement. Growing public awareness of environmental issues, coupled with advocacy and activism, has increased the demand for responsible and sustainable practices across industries. Steel producers are responding to consumer preferences for products with lower carbon footprints.
Opportunities: Rise in hydrogen-based steelmaking is anticipated for the market growth in the upcoming years.
The shift toward hydrogen-based steelmaking processes, particularly Direct Reduced Iron (DRI) using hydrogen, is a key driver in the steel industry's efforts to reduce carbon emissions and transition to more sustainable practices. Hydrogen-based steelmaking offers the potential to significantly reduce carbon emissions associated with traditional methods. The use of hydrogen as a reducing agent eliminates or minimizes carbon dioxide (CO2) emissions during the reduction of iron ore. Traditional steelmaking processes, such as blast furnace-based production, release large amounts of CO2 as a byproduct. Hydrogen-based DRI processes enable the industry to decarbonize by replacing carbon-intensive methods with a cleaner alternative. Hydrogen serves as a clean reductant in DRI processes, leading to the production of direct reduced iron without the use of carbon-based reductants. This results in lower carbon emissions and a more sustainable overall steel production process. The integration of renewable hydrogen produced from renewable energy sources further enhances the environmental benefits of hydrogen-based steelmaking. Using green hydrogen ensures that the overall process is powered by clean energy.
COVID IMPACT:
The anticipation of significant growth in the Hydrogen Direct Reduced Iron (H-DRI) segment during the forecast period aligns with the broader trends in the steel industry's transition toward sustainable and low-carbon practices. Here are key factors contributing to the expected growth of the H-DRI segment within the context of sustainable steel production. Hydrogen-based direct reductio n processes offer the potential for a significantly lower carbon footprint compared to traditional iron ore reduction methods using carbon-based reductants. H-DRI can contribute to achieving carbon reduction goals in the steel industry. Hydrogen used in the direct reduction of iron provides a clean energy source when produced using renewable energy or low-emission methods. This aligns with the broader industry goal of reducing reliance on fossil fuels. Steel manufacturers globally are under increasing pressure to decarbonize their production processes. The H-DRI segment addresses this challenge by offering a pathway to reduce greenhouse gas emissions associated with iron and steel production. The growth of renewable hydrogen production technologies contributes to the sustainability of the H-DRI process. Using hydrogen produced from renewable sources further enhances the environmental benefits of this steel production method. Government initiatives and incentives aimed at promoting sustainable practices in the steel industry can drive the adoption of H-DRI technologies. Supportive policies may include subsidies, tax incentives, or regulatory requirements favoring low-carbon steel production.
SEGMENTATION ANALYSIS:
Hydrogen Direct Reduced Iron segment is anticipated to grow significantly during the forecast period
The anticipation of significant growth in the Hydrogen Direct Reduced Iron (H-DRI) segment during the forecast period aligns with the broader trends in the steel industry's transition toward sustainable and low-carbon practices. Hydrogen-based direct reduction processes offer the potential for a significantly lower carbon footprint compared to traditional iron ore reduction methods using carbon-based reductants. H-DRI can contribute to achieving carbon reduction goals in the steel industry. Hydrogen used in the direct reduction of iron provides a clean energy source when produced using renewable energy or low-emission methods. This aligns with the broader industry goal of reducing reliance on fossil fuels. Steel manufacturers globally are under increasing pressure to decarbonize their production processes. The H-DRI segment addresses this challenge by offering a pathway to reduce greenhouse gas emissions associated with iron and steel production. The growth of renewable hydrogen production technologies contributes to the sustainability of the H-DRI process. Using hydrogen produced from renewable sources further enhances the environmental benefits of this steel production method.
The Building and Construction segment is anticipated to grow significantly during the forecast period
The anticipation of significant growth in the Building and Construction segment during the forecast period for sustainable steel aligns with broader trends in the construction industry. Increasing emphasis on green building practices and sustainable construction materials is driving the demand for steel produced with environmentally responsible methods. Projects seeking certifications like LEED (Leadership in Energy and Environmental Design) often prioritize the use of sustainable materials, including steel. Sustainable steel aligns with the requirements of such certifications. Growing awareness of environmental issues among architects, builders, and project owners is influencing material choices. Sustainable steel, with its lower environmental impact, is becoming a preferred choice. Stringent environmental regulations and building codes may require or incentivize the use of sustainable materials in construction projects, contributing to the growth of sustainable steel.
REGIONAL ANALYSIS:
The Asia Pacific region is set to witness significant growth during the forecast period.
Sustainable steel often involves adherence to certification standards that emphasize environmental responsibility. Certification programs like the Responsible Steel Standard and others guide steel manufacturers in adopting sustainable practices. The promotion of recycling and the circular economy principles play a vital role in the sustainability of steel. The Asia Pacific region has been increasingly focusing on recycling processes and minimizing waste in various industries, including steel production. The steel industry has been working on improving energy efficiency to reduce carbon emissions. Efforts to adopt cleaner and more energy-efficient technologies contribute to the sustainability of steel production. Government policies and regulations in the Asia Pacific region may influence the adoption of sustainable practices in the steel industry. Policies supporting carbon reduction, environmental protection, and sustainable development can impact the market. Collaborative efforts within the steel industry to adopt sustainable practices are significant. Companies participating in industry initiatives and partnerships contribute to the overall sustainability goals. Advancements in eco-friendly steel production technologies, such as hydrogen-based steelmaking, are areas of interest. These technologies aim to reduce the carbon footprint associated with traditional steel production methods.
COMPETITIVE ANALYSIS
The global Sustainable Steel market is reasonably competitive with mergers, acquisitions, and product launches. See some of the major key players in the market.
H2 Green Steel
Arcelor Mittal
Green Steel Group
JFE Steel
Nippon Steel
Posco
U.S. Steel
Nucor
SCOPE OF THE REPORT
By Production Technology
It provides a technological development map over time to understand the industry’s growth rate and indicates how the Sustainable Steel market is evolving.
The report offers a dynamic method to various factors that drive or restrain the growth of the market and specifies which Sustainable Steel submarket will be the main driver of the overall market from 2024 to 2032.
It renders a definite analysis of changing competitive dynamics and stipulates the leading players and what are their prospects over the forecast period.
It builds a nine-year estimate based on how the market is predicted to grow and shows what will market shares of the global region change by 2032 and which country will lead the market in 2032.
The global Sustainable Steel market is projected to grow significantly, registering a CAGR of 68.7% during the forecast period (2024 – 2032).
Sustainable steel refers to the production and use of steel in a manner that minimizes its environmental impact, reduces carbon emissions, and aligns with principles of social responsibility and economic viability. It encompasses practices and technologies aimed at addressing the environmental and social challenges associated with traditional steel production. Adoption of production methods that significantly reduce or eliminate carbon emissions, such as hydrogen-based steelmaking or other innovative technologies. Efficient use of raw materials, energy, and water throughout the entire steel production process, reducing waste and environmental impact. Emphasis on recycling scrap steel and integrating circular economy principles to minimize the reliance on virgin raw materials and reduce the environmental footprint. Increasingly stringent environmental regulations and emissions standards drive industries to seek sustainable steel options to comply with legal requirements. Growing consumer awareness of environmental issues prompts individuals and businesses to choose products with lower environmental footprints, including those made from sustainable steel. Investors are increasingly considering environmental, social, and governance (ESG) factors when making investment decisions. Companies with sustainable practices, including steel producers, may attract more investment. The adoption of sustainable steel is seen as a strategy to build a more resilient and responsible supply chain, reducing risks associated with resource scarcity and environmental impacts. Companies that position themselves as leaders in sustainability gain a competitive advantage, as consumers and businesses increasingly value products that align with environmental and ethical considerations.
MARKET OVERVIEW:
Driver: Increasing need for carbon reduction is driving the market growth.
The steel industry is a significant contributor to greenhouse gas emissions, primarily through the traditional blast furnace process. By adopting sustainable practices, including low-carbon and carbon-neutral methods, the industry aims to contribute to global efforts to mitigate climate change. Traditional steelmaking processes, especially those involving blast furnaces, release substantial amounts of carbon dioxide (CO2) into the atmosphere. Sustainable steel production seeks to address the carbon intensity of these processes to reduce their impact on climate change. Increasingly stringent environmental regulations and emissions targets set by governments and international agreements put pressure on industries, including steel, to adopt cleaner practices. Sustainable steel production aligns with regulatory requirements and supports compliance. Countries, businesses, and industries worldwide have committed to reducing carbon emissions to combat climate change. Sustainable steel production contributes to achieving these global commitments, such as those outlined in the Paris Agreement. Growing public awareness of environmental issues, coupled with advocacy and activism, has increased the demand for responsible and sustainable practices across industries. Steel producers are responding to consumer preferences for products with lower carbon footprints.
Opportunities: Rise in hydrogen-based steelmaking is anticipated for the market growth in the upcoming years.
The shift toward hydrogen-based steelmaking processes, particularly Direct Reduced Iron (DRI) using hydrogen, is a key driver in the steel industry's efforts to reduce carbon emissions and transition to more sustainable practices. Hydrogen-based steelmaking offers the potential to significantly reduce carbon emissions associated with traditional methods. The use of hydrogen as a reducing agent eliminates or minimizes carbon dioxide (CO2) emissions during the reduction of iron ore. Traditional steelmaking processes, such as blast furnace-based production, release large amounts of CO2 as a byproduct. Hydrogen-based DRI processes enable the industry to decarbonize by replacing carbon-intensive methods with a cleaner alternative. Hydrogen serves as a clean reductant in DRI processes, leading to the production of direct reduced iron without the use of carbon-based reductants. This results in lower carbon emissions and a more sustainable overall steel production process. The integration of renewable hydrogen produced from renewable energy sources further enhances the environmental benefits of hydrogen-based steelmaking. Using green hydrogen ensures that the overall process is powered by clean energy.
COVID IMPACT:
The anticipation of significant growth in the Hydrogen Direct Reduced Iron (H-DRI) segment during the forecast period aligns with the broader trends in the steel industry's transition toward sustainable and low-carbon practices. Here are key factors contributing to the expected growth of the H-DRI segment within the context of sustainable steel production. Hydrogen-based direct reductio n processes offer the potential for a significantly lower carbon footprint compared to traditional iron ore reduction methods using carbon-based reductants. H-DRI can contribute to achieving carbon reduction goals in the steel industry. Hydrogen used in the direct reduction of iron provides a clean energy source when produced using renewable energy or low-emission methods. This aligns with the broader industry goal of reducing reliance on fossil fuels. Steel manufacturers globally are under increasing pressure to decarbonize their production processes. The H-DRI segment addresses this challenge by offering a pathway to reduce greenhouse gas emissions associated with iron and steel production. The growth of renewable hydrogen production technologies contributes to the sustainability of the H-DRI process. Using hydrogen produced from renewable sources further enhances the environmental benefits of this steel production method. Government initiatives and incentives aimed at promoting sustainable practices in the steel industry can drive the adoption of H-DRI technologies. Supportive policies may include subsidies, tax incentives, or regulatory requirements favoring low-carbon steel production.
SEGMENTATION ANALYSIS:
Hydrogen Direct Reduced Iron segment is anticipated to grow significantly during the forecast period
The anticipation of significant growth in the Hydrogen Direct Reduced Iron (H-DRI) segment during the forecast period aligns with the broader trends in the steel industry's transition toward sustainable and low-carbon practices. Hydrogen-based direct reduction processes offer the potential for a significantly lower carbon footprint compared to traditional iron ore reduction methods using carbon-based reductants. H-DRI can contribute to achieving carbon reduction goals in the steel industry. Hydrogen used in the direct reduction of iron provides a clean energy source when produced using renewable energy or low-emission methods. This aligns with the broader industry goal of reducing reliance on fossil fuels. Steel manufacturers globally are under increasing pressure to decarbonize their production processes. The H-DRI segment addresses this challenge by offering a pathway to reduce greenhouse gas emissions associated with iron and steel production. The growth of renewable hydrogen production technologies contributes to the sustainability of the H-DRI process. Using hydrogen produced from renewable sources further enhances the environmental benefits of this steel production method.
The Building and Construction segment is anticipated to grow significantly during the forecast period
The anticipation of significant growth in the Building and Construction segment during the forecast period for sustainable steel aligns with broader trends in the construction industry. Increasing emphasis on green building practices and sustainable construction materials is driving the demand for steel produced with environmentally responsible methods. Projects seeking certifications like LEED (Leadership in Energy and Environmental Design) often prioritize the use of sustainable materials, including steel. Sustainable steel aligns with the requirements of such certifications. Growing awareness of environmental issues among architects, builders, and project owners is influencing material choices. Sustainable steel, with its lower environmental impact, is becoming a preferred choice. Stringent environmental regulations and building codes may require or incentivize the use of sustainable materials in construction projects, contributing to the growth of sustainable steel.
REGIONAL ANALYSIS:
The Asia Pacific region is set to witness significant growth during the forecast period.
Sustainable steel often involves adherence to certification standards that emphasize environmental responsibility. Certification programs like the Responsible Steel Standard and others guide steel manufacturers in adopting sustainable practices. The promotion of recycling and the circular economy principles play a vital role in the sustainability of steel. The Asia Pacific region has been increasingly focusing on recycling processes and minimizing waste in various industries, including steel production. The steel industry has been working on improving energy efficiency to reduce carbon emissions. Efforts to adopt cleaner and more energy-efficient technologies contribute to the sustainability of steel production. Government policies and regulations in the Asia Pacific region may influence the adoption of sustainable practices in the steel industry. Policies supporting carbon reduction, environmental protection, and sustainable development can impact the market. Collaborative efforts within the steel industry to adopt sustainable practices are significant. Companies participating in industry initiatives and partnerships contribute to the overall sustainability goals. Advancements in eco-friendly steel production technologies, such as hydrogen-based steelmaking, are areas of interest. These technologies aim to reduce the carbon footprint associated with traditional steel production methods.
COMPETITIVE ANALYSIS
The global Sustainable Steel market is reasonably competitive with mergers, acquisitions, and product launches. See some of the major key players in the market.
H2 Green Steel
- In 2023, a formal agreement regarding the delivery of CO2-reduced steel has been signed by BMW Group and H2 Green Steel. The agreement covers recycling and end-of-life management strategies in addition to the upstream scope 3 emissions of the BMW Group. BMW Group and H2 Green Steel have also reached a legally binding agreement on technical cooperation, which will involve a number of actions that satisfy the BMW Group's aggressive CO2 reduction timeframe and achieve its Science Based Targets.
- Jindal Steel and Power (JSP) on Wednesday signed an agreement with clean energy player Greenko for the supply of 1,000 MW green power.
Arcelor Mittal
Green Steel Group
JFE Steel
Nippon Steel
Posco
U.S. Steel
Nucor
SCOPE OF THE REPORT
By Production Technology
- Renewable
- Hydrogen Direct Reduced Iron
- Molten Oxide Electrolysis
- Building and Construction
- Automotive
- Renewable Energy Infrastructure
- Home Appliances
- Others
- North America (the United States & Canada)
- Europe (Germany, UK, France, Spain, Italy, and the Rest of Europe)
- Asia Pacific (China, Japan, India, and Rest of Asia Pacific)
- Rest of the World (the Middle East & Africa, and Latin America)
It provides a technological development map over time to understand the industry’s growth rate and indicates how the Sustainable Steel market is evolving.
The report offers a dynamic method to various factors that drive or restrain the growth of the market and specifies which Sustainable Steel submarket will be the main driver of the overall market from 2024 to 2032.
It renders a definite analysis of changing competitive dynamics and stipulates the leading players and what are their prospects over the forecast period.
It builds a nine-year estimate based on how the market is predicted to grow and shows what will market shares of the global region change by 2032 and which country will lead the market in 2032.
Table of Contents
152 Pages
- 1. Executive Summary
- 1.1. Market Snapshot
- 1.2. Regional Analysis
- 1.3. Segment Analysis
- 2. Overview And Scope
- 2.1. Market Vision
- 2.1.1. Market Definition
- 2.2. Market Segmentation
- 3. Global Sustainable Steel Market Overview By Region: 2019 Vs 2023 Vs 2032
- 3.1. Global Sustainable Steel Market Size By Regions (2019-2023) (Usd Million)
- 3.1.1. North America Sustainable Steel Market Size By Country (2019-2023) (Usd Million)
- 3.1.2. Europe Sustainable Steel Market Size By Country (2019-2023) (Usd Million)
- 3.1.3. Asia Pacific America Sustainable Steel Market Size By Country (2019-2023) (Usd Million)
- 3.1.4. Rest Of The World Sustainable Steel Market Size By Country (2019-2023) (Usd Million)
- 3.2. Global Sustainable Steel Market Size By Regions (2024-2032) (Usd Million)
- 3.2.1. North America Sustainable Steel Market Size By Country (2024-2032) (Usd Million)
- 3.2.2. Europe Sustainable Steel Market Size By Country (2024-2032) (Usd Million)
- 3.2.3. Asia Pacific Sustainable Steel Market Size By Country (2024-2032) (Usd Million)
- 3.2.4. Rest Of The World Sustainable Steel Market Size By Country (2024-2032) (Usd Million)
- 4. Global Sustainable Steel Market Dynamics
- 4.1. Market Overview
- 4.1.1. Market Drivers
- 4.1.2. Market Restraints/ Challenges Analysis
- 4.1.3. Market Opportunities
- 4.2. Pestle Analysis
- 4.3. Porter’s Five Forces Model
- 4.3.1. Bargaining Power Of Suppliers
- 4.3.2. Bargaining Power Of Buyers
- 4.3.3. The Threat Of New Entrants
- 4.3.4. Threat Of Substitutes
- 4.3.5. Intensity Of Rivalry
- 4.4. Value Chain Analysis/Supply Chain Analysis
- 4.5. Covid-19 Impact Analysis On Global Sustainable Steel Market
- ** In – Depth Qualitative Analysis Will Be Provided In The Final Report Subject To Market
- 5. Global Sustainable Steel Market, By Production Technology
- 5.1. Overview
- 5.2. Global Sustainable Steel Market Size By Production Technology (2019 - 2032) (Usd Million)
- 5.3. Key Findings For Sustainable Steel Market - By Production Technology
- 5.3.1. Renewable
- 5.3.2. Hydrogen Direct Reduced Iron
- 5.3.3. Molten Oxide Electrolysis
- 6. Global Sustainable Steel Market, By Applications
- 6.1. Overview
- 6.2. Key Findings For Sustainable Steel Market - By Applications
- 6.2.1. Building And Construction
- 6.2.2. Automotive
- 6.2.3. Renewable Energy Infrastructure
- 6.2.4. Home Appliances
- 6.2.5. Others
- 7. Global Sustainable Steel Market, By Region
- 7.1. Overview
- 7.2. Key Findings For Sustainable Steel Market- By Region
- 7.3. Global Sustainable Steel Market, By Production Technology
- 7.4. Global Sustainable Steel Market, By Application
- 8. Global Sustainable Steel Market- North America
- 8.1. Overview
- 8.2. North America Sustainable Steel Market Size (2019 - 2032) (Usd Million)
- 8.3. North America Sustainable Steel Market, By Production Technology
- 8.4. North America Sustainable Steel Market, By Application
- 8.5. North America Sustainable Steel Market Size By Countries
- 8.5.1. United States
- 8.5.2. Canada
- 9. Global Sustainable Steel Market- Europe
- 9.1. Overview
- 9.2. Europe Sustainable Steel Market Size (2019 - 2032) (Usd Million)
- 9.3. Europe Sustainable Steel Market, By Production Technology
- 9.4. Europe Sustainable Steel Market, By Application
- 9.5. Europe Sustainable Steel Market Size By Countries
- 9.5.1. Germany
- 9.5.2. Uk
- 9.5.3. France
- 9.5.4. Spain
- 9.5.5. Italy
- 9.5.6. Rest Of Europe
- 10. Global Sustainable Steel Market - Asia Pacific
- 10.1. Overview
- 10.2. Asia Pacific Sustainable Steel Market Size (2019 - 2032) (Usd Million)
- 10.3. Asia Pacific Sustainable Steel Market, By Production Technology
- 10.4. Asia Pacific Sustainable Steel Market, By Applications
- 10.5. Asia Pacific Sustainable Steel Market Size By Countries
- 10.5.1. China
- 10.5.2. Japan
- 10.5.3. India
- 10.5.4. Rest Of Asia Pacific
- 11. Global Sustainable Steel Market- Rest Of World
- 11.1. Overview
- 11.2. Rest Of World Sustainable Steel Market Size (2019 - 2032) (Usd Million)
- 11.3. Rest Of World Sustainable Steel Market, By Production Technology
- 11.4. Rest Of World Sustainable Steel Market, By Applications
- 11.5. Rest Of World Sustainable Steel Market Size By Regions
- 11.5.1. Middle East & Africa
- 11.5.2. Latin America
- 12. Global Sustainable Steel Market- Competitive Landscape
- 12.1. Key Strategies Adopted By The Leading Players
- 12.2. Recent Developments
- 12.2.1. Investments & Expansions
- 12.2.2. New End-user Launches
- 12.2.3. Mergers & Acquisitions
- 12.2.4. Agreements, Joint Ventures, And Partnerships
- 13. Global Sustainable Steel Market- Company Profiles
- 13.1. Arcelor Mittal
- 13.1.1. Company Overview
- 13.1.2. Financial Overview
- 13.1.3. Product Offered
- 13.1.4. Key Developments
- 13.2. Green Steel Group
- 13.3. H2 Green Steel
- 13.4. Emirates Steel
- 13.5. Jindal Steel And Power
- 13.6. Jfe Steel
- 13.7. Nippon Steel
- 13.8. Posco
- 13.9. U.S. Steel
- 13.10. Nucor
- 14. Our Research Methodology
- 14.1. Data Triangulation
- 14.2. Data Sources
- 14.2.1. Secondary Sources
- 14.2.2. Primary Sources
- 14.3. Assumptions/ Limitations For The Study
- 14.4. Research & Forecasting Methodology
- 15. Appendix
- 15.1. Disclaimer
- 15.2. Contact Us
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