Green Steel Market Size, Share & Trend Analysis Report By Production Technology (Electric Arc Furnace), By End-use (Building & Construction), By Region, And Segment Forecasts, 2024 - 2030

Green Steel Market Size & Trends

“2030 green steel market value to reach USD 51.63 billion.”

The global green steel market size was estimated at USD 2.45 billion in 2023 and is projected to grow at a CAGR of 56.7% from 2024 to 2030. This growth is significantly driven by the increasing demand for sustainable manufacturing practices and the reduction of carbon footprints in the steel industry.

Drivers, Opportunities & Restraints

The demand for green steel is primarily driven by its environmental benefits, as it significantly reduces carbon dioxide emissions compared to traditional steel production methods. The rise in government regulations and corporate sustainability goals is propelling the adoption of green steel in various sectors such as construction, automotive, and electronics. The automotive industry's shift towards electric vehicles (EVs) is particularly notable, as green steel is increasingly used in manufacturing lightweight and durable EV components.

The market faces several challenges. High production costs due to advanced technologies, such as Electric Arc Furnaces (EAF) and Molten Oxide Electrolysis (MOE), and the limited availability of green hydrogen as a reducing agent pose significant barriers. In addition, supply chain complexities and the need for substantial infrastructure investment further constrain market growth. Despite these challenges, ongoing advancements in production technologies and increased investments in renewable energy sources present substantial opportunities for market expansion.

Price Trends of Green Steel

The market has seen notable price fluctuations, largely influenced by the availability and cost of raw materials and the adoption rate of new technologies. In 2022, prices surged due to heightened demand from environmentally conscious manufacturers and supply chain disruptions caused by geopolitical tensions. However, in 2023, prices began to stabilize as technological advancements improved production efficiency and new policies incentivized the use of green steel. By early 2024, the market observed a slight decline in prices, reflecting broader stabilization in the commodities market and increased production capacity.

Production Technology Insights

“Electric Arc Furnace held the largest revenue share of the green steel market in 2023.”

Based on production technology, the electric arc furnace segment led the market with the largest revenue share of 67.5% in 2023, due to its efficiency and lower carbon emissions compared to traditional blast furnaces. EAF is widely adopted in the building and construction industry, where there is a strong push for sustainable materials. The use of scrap steel in EAF further enhances its environmental benefits, making it a preferred choice for manufacturers aiming to meet stringent sustainability standards.

The molten oxide electrolysis (MOE) segment is anticipated to grow at the fastest CAGR during the forecast period. This growth is driven by its potential to produce steel with zero direct carbon dioxide emissions. MOE technology is gaining traction in the automotive and transportation sectors, where the demand for ultra-low carbon materials is rising. The scalability and efficiency of MOE in producing high-purity steel align with the increasing emphasis on green manufacturing processes in the industry.

End-use Insights

“Building & construction held the largest revenue share of green steel market in 2023.”

Based on end use, the building and construction segment led the market with the largest revenue share of 45.6% in 2023, driven by increasing regulatory pressures and the global shift towards sustainable urban development. Green steel is crucial in constructing energy-efficient buildings and infrastructure projects, where it contributes to achieving lower overall carbon footprints. The growing trend of green buildings and sustainable cities bolsters the demand for green steel in this segment.

The automotive and transportation segment is anticipated to grow at the fastest CAGR during the forecast period. This growth is fueled by the rising adoption of electric vehicles and the automotive industry's commitment to reducing emissions. Green steel is increasingly used in manufacturing lightweight vehicle components, enhancing fuel efficiency and reducing overall vehicle emissions. Innovations in vehicle design and the push for sustainable transportation solutions underscore the significant growth prospects for green steel in this sector.

Regional Insights

“Europe held largest revenue share of the global green steel market in 2023.”

The green steel market in North America is characterized by increasing investments in sustainable technologies and a strong focus on reducing industrial emissions. The construction and automotive sectors are pivotal consumers, with green steel being integral to infrastructure projects and EV manufacturing. Government incentives and corporate sustainability commitments further propel market growth in the region.

U.S. Green Steel Market Trends

The green steel market in U.S. is essential for industries such as construction and automotive, driven by stringent environmental regulations and the growing demand for sustainable materials. The push for green infrastructure and the automotive sector's transition to EVs are significant growth drivers. Technological innovations and investments in renewable energy sources enhance the market's outlook.

Europe Green Steel Market Trends

Europe dominated the green steel market with the revenue share of 54.0% in 2023, because of significant contributions from countries like Germany and Sweden. The region's dominance is underscored by robust regulatory frameworks promoting sustainable manufacturing and substantial investments in green steel production technologies. The European Union's Green Deal and other environmental initiatives are key drivers of market growth, fostering an ecosystem conducive to green steel adoption.

Asia Pacific Green Steel Market Trends

The green steel market in Asia Pacific is experiencing rapid growth, driven by significant investments in sustainable manufacturing practices and rising environmental consciousness. China, Japan, and South Korea are leading the region's green steel production, with robust demand from the automotive, construction, and electronics sectors.

Government policies promoting carbon neutrality, coupled with the increasing adoption of advanced production technologies such as EAF and hydrogen-based steelmaking, are key drivers. In addition, regional initiatives focusing on infrastructure development and technological advancements are further propelling market expansion, making Asia Pacific a pivotal hub for green steel innovation.

Key Green Steel Company Insights

Some of the key players operating in the market include ArcelorMittal, SSAB, and ThyssenKrupp AG.

• ArcelorMittal, headquartered in Luxembourg, is a prominent producer of green steel, with initiatives like the 'XCarb' program focusing on reducing carbon emissions in steel production. The company continues to expand its market presence through strategic partnerships and investments in green technologies

• SSAB, based in Sweden, is a leading producer of fossil-free steel, with its HYBRIT initiative aiming to revolutionize the steel industry by using hydrogen instead of coal. SSAB's commitment to sustainability and innovation underscores its role in meeting the global demand for green steel

• ThyssenKrupp AG, headquartered in Germany, focuses on producing green steel through its 'Steel for the Future' program. The company's emphasis on technological advancements and sustainable practices positions it as a key player in the global market

Recent Developments

• In February 2024, Salzgitter Flachstahl GmbH (Salzgitter), a subsidiary of Salzgitter AG and Octopus Energy’s generation arm, signed a long-term Power Purchase Agreement (PPA) to enable the future production of green steel

• In January 2024, ArcelorMittal launched the XCarb Program, which focuses on achieving carbon-neutral steel production by leveraging innovative technologies and increasing the use of renewable energy sources. The initiative includes investments in hydrogen-based steelmaking and partnerships with key industry stakeholders to advance sustainable steel production.

• In October 2023, Nippon Steel announced its Green Transformation Initiative, which aims to reduce carbon dioxide emissions by 30% by 2030 and achieve carbon neutrality by 2050. The strategy involves adopting new technologies, increasing the use of renewable energy, and enhancing energy efficiency across its production processes.

• In March 2023, the HYBRIT Initiative by SSAB, LKAB, and Vattenfall is a partnership that aims to revolutionize steel production by using hydrogen instead of coal, significantly reducing carbon emissions. The initiative represents a major step towards fossil-free steel production and highlights the potential for large-scale industrial decarbonization.

• In March 2023,Midrex Technologies, Inc., a subsidiary of Kobe Steel, is set to provide and erect the MIDREX Flex reduction facility for ThyssenKrupp Steel Europe AG at their Duisburg location in Germany. This installation is expected to boast an annual production capability of 2.5 million tons.

Green Steel Market Report Scope

Global Green Steel Market Report Segmentation

This report forecasts revenue and volume growth at global, country, and regional levels and provides an analysis of the latest trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global green steel market report based on production technology, end-use, and region.

• Production Technology Outlook (Volume, Kilotons; Revenue, USD Billion, 2018 - 2030)

  • Electric Arc Furnace

  • Molten Oxide Electrolysis

• End-use Outlook (Volume, Kilotons; Revenue, USD Billion, 2018 - 2030)

  • Building & Construction

  • Automotive & Transportation

  • Electronics

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • Spain

    • Russia

    • Sweden

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Central & South America

    • Brazil

  • Middle East & Africa

    • UAE