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Green Steel Market

Green Steel Market

Green Steel Market - Global Industry Assessment & Forecast

Number Of Pages # Pages:


Base Year:



May - 2023



Report Code:


Segments Covered
  • By Energy Source By Energy Source Hydrogen, Coal Gasification, Electricity
  • By Type By Type Electric Arc Furnace (EAF), Molten Oxide Electrolysis (MOE)
  • By End User By End User Construction, Automotive, Electronics, Other End Users
  • By Region By Region North America, Europe, Asia Pacific, Latin America, Middle East & Africa
Base YearBase Year: 2022
Forecast YearsForecast Years: 2023 - 2030
Historical YearsHistorical Years: 2017 - 2021
Revenue 2022Revenue 2022: USD 182.7 Million
Revenue 2030Revenue 2030: USD 120004.8 Million
Revenue CAGRRevenue CAGR (2023 - 2030): 125.1%
Fastest Growing Region Fastest Growing Region (2023 - 2030) Asia Pacific
Largest Region Largest Region (2022): Asia Pacific
Customization Offered
  • Cross-segment Market Size and Analysis for Mentioned Segments Cross-segment Market Size and Analysis for Mentioned Segments
  • Additional Company Profiles (Upto 5 With No Cost) Additional Company Profiles (Upto 5 With No Cost)
  • Additional Countries (Apart From Mentioned Countries) Additional Countries (Apart From Mentioned Countries)
  • Country/Region-specific Report Country/Region-specific Report
  • Go To Market Strategy Go To Market Strategy
  • Region Specific Market Dynamics Region Specific Market Dynamics
  • Region Level Market Share Region Level Market Share
  • Import Export Analysis Import Export Analysis
  • Production Analysis Production Analysis
  • Other Others Request Customization Speak To Analyst
Green Steel Market Share

The global Green Steel Market was valued at USD 182.7 Million in 2022 and is projected to reach a value of USD 120004.8 Million by 2030 at a CAGR (Compound Annual Growth Rate) of 125.1% between 2023 and 2030.

Premium Insights

Steel is the most widely used metal in almost everything, including domestic appliances, washing machines, ships, machinery, and buildings. However, coal-fired blast furnaces, which release significant quantities of carbon dioxide into the atmosphere, are used to produce about 75% of the steel produced worldwide.

Green Steel Market Size, 2022 To 2030 (USD Million)

AI (GPT) is here !!! Ask questions about Green Steel Market

Green Steel is regarded as "green" or ecologically friendly due to its smaller carbon footprint. A reduction in the carbon footprint is possible by implementing alternative technologies. The benchmark for a carbon footprint is usually based on producing steel from iron ore using a blast furnace. The hydrogen-based direct reduction of iron ore is the most powerful Green Steel manufacturing method. To create sponge iron, a byproduct of this process, solid iron rock is chemically reduced using hydrogen. After that, steel is created by melting the scrap iron in an electric arc furnace. The primary energy input during this process is electricity, lowering atmospheric emissions, as opposed to burning coking coal with a conventional blast furnace. Emissions decrease even more if the energy is produced using low-carbon or environmentally friendly methods.

It is expected that more political pressure in the upcoming years to push for greener steel production. The most likely result of this development will be tighter restrictions on significant industries that release large amounts of greenhouse gases. Governments worldwide are being urged to lessen their nations' environmental impact. We will undoubtedly see a new steel production technique that emits fewer greenhouse gases through carbon taxes, R&D support or rebates, or stricter environmental rules on new installations. As the demand for green electricity rises considerably, increasing the production of Green Steel also has broader effects on the energy industry.

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The Green Steel business's growth is driven by rising awareness of environmentally friendly steel production in well-known industries. The market is also driven by market players' growing investments in greenfield projects, partnerships, and strategic alliances to transform their companies into Green Steel. Government backing and investment in Green Steel manufacturing drive the demand for Green Steel.

Economic Insights

Due to the repercussions of the post-COVID rebound of 2022 (+8.4%), the output of steel-using sectors in the second quarter of 2022 (+5.7%) turned out to be more resilient than originally anticipated. Positive changes were seen in mechanical engineering, transportation, and especially the automotive industries. This should guarantee development in 2022 (+1.9%). The EU economies continued decline is causing an industrial sector-severe recession due to Russia's attack on Ukraine and the energy crisis. The steel market's prognosis has worsened for the second half of 2022 and 2023 due to steel demand declining more sharply than anticipated (-3.5% this year and -1.9% next year).

Top Market Trends

1. Growing Environment Awareness: Green Steel is less harmful to the ecosystem and has been produced using less carbon than conventional methods. This footprint is decreased by using alternative technologies not dependent on coal. Green hydrogen is typically used instead of coal or electricity from non-fossil sources to manufacture Green Steel.

2. R&D Activities: The development of fuel cell electric vehicles (FCEVs) and hydrogen-powered cars benefits Green Steel technology because Green Steel is produced exclusively from renewable resources like green hydrogen. In addition, some Asian nations, such as China, South Korea, New Zealand, and others, presently employ FCEVs made by Toyota, Hyundai, and other companies. In the upcoming years, they also plan to use green hydrogen in their cars, which will stimulate a global increase in the use of Green Steel.

3. Rising CO2 Emissions: Over the past ten years, the total carbon dioxide emissions from the steel and iron industry have increased, mainly due to increases in steel consumption and the energy needed for production. Significant reductions in CO2 emissions are required to accomplish the Net Zero Scenario. The two main ways to reduce carbon dioxide emissions in the short term are to increase energy efficiency and scrap collection, enabling more output based on scrap. New technologies like electricity-based manufacturing, hydrogen use, and CCUS will be necessary to reduce emissions intensity significantly. Initiatives to promote Green Steel are expected to lower carbon dioxide pollution.

4. Growing government Initiatives: It is anticipated that Green Steel will be crucial in helping countries all over the globe achieve their goals for sustainable development and lower their carbon footprints. Green Steel is essential to reduce nations' reliance on energy imports, safeguard the environment, and supply the world's expanding energy demands. Furthermore, a sizable amount of carbon dioxide is produced while manufacturing steel. Governments worldwide are implementing more decarbonization plans and supporting Green Steel, especially in industries like automotive and construction.

Market Segmentation

The global Green Steel market can be categorized on the following: Energy Source, Type, End User, and Regions. Based on the Energy Source, the market can be categorized into Hydrogen, Coal Gasification, and Electricity. Moreover, based on Type, the market can be further split into Electric Arc Furnace (EAF), Molten Oxide Electrolysis (MOE). Furthermore, based on the End User, the market can be fragmented into Construction, Automotive, Electronics, and Other End Users. Likewise, based on Region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Based on Energy Source

Hydrogen to Lead with the Largest Market Share Owing to Rising Awareness Among Consumers

Hydrogen will dominate the segment of the Green Steel market during the forecast period. Growing government initiatives and technological advancements are fuelling segmental growth. For instance, HYBRIT (Hydrogen Breakthrough Ironmaking Technology) uses electricity from renewable sources to make clean-burning gas and produced steel. With this method, hydrogen takes the place of fossil fuels in the production of iron pellets as well as the purifying of carbon.

Based on Type

Molten Oxide Electrolysis to Account for the Largest Market Share Owing to Increasing Use of MOE

During the forecast period, the segment of molten oxide electrolysis will dominate the global Green Steel market. By condensing several phases into one, MOE can produce approximately 15% less steel than current global coal-based steel at full production scale. MOE operates in modular reactors, much like aluminum smelting, and can be cheaply scaled in increments of fewer than 100,000 tonnes per year of manufacturing capacity. Thus, growing use is one of the key factors boosting segmental growth.

Based on the End User

The Automotive Segment Will Account for the Largest Market Share owing to the Growing Use of Manufacturing Vehicles

During the forecast period, the automotive segment will dominate the global Green Steel market. It is primarily attributable to manufacturers' raising awareness of their recently dramatically expanded carbon footprints, which has increased their propensity to use sustainable products, such as Green Steel, in producing cars and spare parts. Several businesses, including Daimler AG, Mercedes-Benz AG, and Volvo AB, are increasingly interested in using Green Steel. It is anticipated throughout the forecast period that changes in how automobile manufacturers acquire raw materials will spur demand for Green Steel and assist in expanding the market.

Based on Region

Asia Pacific to Lead Global Sales Owing to Rising Government Initiatives

The global Green Steel market is expected to be dominated by the region of Asia Pacific during the forecast period. The factors contributing to the growth of this segment include growing government initiatives and the presence of major companies. For instance, the Pradhan Mantri Urja Ganga Project was started in 2019 by the Petroleum and Natural Gas Ministry to supply gas to all the nearby steel plants. About 15% of China's total carbon emissions are attributable to the steel industry, compared to 14% for Japan and 12% for India. Governments must implement well-designed policies and regulations to hasten the industry's transition to cleaner infrastructure.

The Chinese government has set the target year of 2030 for the country's peak emissions 30 years before the intended time for achieving carbon neutrality. The nation has been purposefully reducing its steel production to combat carbon emissions. To create and implement strategies to reduce carbon emissions in the steel industry, Rio Tinto, a major Australian mining company, and China Baowu joined forces in 2020 to form an R&D partnership with Tsinghua University. A research and development center for low-carbon raw materials will be funded with a 13 million USD investment. Rio also plans to collaborate on developing related technologies with the Japanese company Nippon Steel. By 2050, the project wants to align with Japanese climate goals, including a net-zero emissions target. India, Japan, and South Korea supported the Glasgow Breakthrough protocol to decarbonize steel by accelerating the development and adoption of clean technologies and sustainable solutions at the COP26 climate conference in November 2021. The nations also established roadmaps for the national decarbonization of the industry.

Competitive Landscape

The key players in the global Green Steel market include - H2 Green Steel (Sweden), Tata Steel Ltd. (India), Tenaris (Luxembourg), ThyssenKrupp (Germany), Emirates Steel (UAE), Green Steel Group (Italy), Deutsche Edelstahlwerke Services (Germany), Arcelor Mittal (Luxembourg), Jindal Steel and Power (India), United States Steel Corp (USSC) (U.S.) among others.

Recent Market Developments

• April 2023: POSCO encourages proactive procurement of low-carbon steel raw materials in Australia. The company is working hard to secure low-carbon steel raw materials in Australia to become carbon neutral by 2050.

• March 2023: ThyssenKrupp Steel has planned to build the first hydrogen-powered direct reduction plant with the help of the SMS group, Düsseldorf. This marks the beginning of one of the largest industrial decarbonization initiatives ever undertaken, which will immediately prevent more than 3.5 million metric tons of CO2 from being released into the atmosphere every year.

• March 2023: Aperam South America obtained certification against the Responsible Steel Standard Version 1.1 following a demanding audit process by AFNOR that lasted roughly 12 months. The site decided to pursue certification against the Responsible Steel Standard, according to Frederico Ayres Lima, CEO of Aperam South America, to further solidify its commitment to sustainability and, strategically, to promote and increase awareness of corporate responsibility.

• January 2023: ArcelorMittal invested $36 million in Boston Metal, a Green Steel technology business that raised $120 million.

• January 2023: ArcelorMittal wants to invest $100 million yearly in Green Steel technologies to hasten the decarbonization of the steel industry. For its Green Steel facility in Hamburg, the business receives 131 million euros in governmental assistance from Germany.

Segmentation of the Global Green Steel Market

Parameter Details
Segments Covered

By Energy Source

  • Hydrogen
  • Coal Gasification
  • Electricity

By Type

  • Electric Arc Furnace (EAF)
  • Molten Oxide Electrolysis (MOE)

By End User

  • Construction
  • Automotive
  • Electronics
  • Other End Users

By Region

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa

Regions & Countries Covered
  • North America - (U.S., Canada, Mexico)
  • Europe - (U.K., France, Germany, Italy, Spain, Rest Of Europe)
  • Asia Pacific - (China, Japan, India, South Korea, South East Asia, Rest Of Asia Pacific)
  • Latin America - (Brazil, Argentina, Rest Of Latin America)
  • Middle East & Africa - (GCC Countries, South Africa, Rest Of Middle East & Africa)
Companies Covered
  • H2 Green Steel (Sweden)
  • Tata Steel Ltd. (India)
  • Tenaris (Luxembourg)
  • ThyssenKrupp (Germany)
  • Emirates Steel (UAE)
  • Green Steel Group (Italy)
  • Deutsche Edelstahlwerke Services (Germany)
  • Arcelor Mittal (Luxembourg)
  • Jindal Steel and Power (India)
  • United States Steel Corp (USSC) (U.S.)
Report Coverage Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, technology landscape, patent analysis, market attractiveness analysis by segments and North America, company market share analysis, and COVID-19 impact analysis
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Frequently Asked Question
  • The global Green Steel valued at USD 182.7 Million in 2022 and is expected to reach USD 120004.8 Million in 2030 growing at a CAGR of 125.1%.

  • The prominent players in the market are H2 Green Steel (Sweden), Tata Steel Ltd. (India), Tenaris (Luxembourg), ThyssenKrupp (Germany), Emirates Steel (UAE), Green Steel Group (Italy), Deutsche Edelstahlwerke Services (Germany), Arcelor Mittal (Luxembourg), Jindal Steel and Power (India), United States Steel Corp (USSC) (U.S.).

  • The market is project to grow at a CAGR of 125.1% between 2023 and 2030.

  • The driving factors of the Green Steel include

    • Rising CO2 emission

  • Asia Pacific was the leading regional segment of the Green Steel in 2022.