PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1575019
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1575019
Sustainable (Recycled and Green) Steel Market size was valued at USD 335,271.82 Million in 2023, expanding at a CAGR of 7.80% from 2024 to 2032.
The Sustainable (Recycled and Green) Steel Market focuses on steel produced through environmentally friendly methods, incorporating recycled materials and innovative processes that reduce carbon emissions. As global awareness of sustainability increases, the demand for recycled steel is surging; in 2021, over 80 million tons of steel were recycled in the U.S. alone, showcasing its critical role in achieving circular economy goals. The rising pressure on industries to minimize their carbon footprints and adhere to stricter environmental regulations is propelling the growth of this market. Additionally, the construction and automotive sectors are increasingly opting for sustainable steel solutions, with companies reporting significant cost savings associated with using recycled materials. However, challenges such as fluctuating raw material prices and the need for advanced recycling technologies can restrain market growth. Opportunities lie in innovations like hydrogen-based steelmaking and the development of efficient recycling processes, positioning sustainable steel as a vital component in the transition towards a greener economy and meeting the demand for eco-friendly materials.
Sustainable (Recycled and Green) Steel Market- Market Dynamics
Rising Pressure on Industries to Minimize Carbon Footprints Fuels Growth in the Sustainable Steel Market
The rising pressure on industries to minimize their carbon footprints is significantly driving growth in the Sustainable Steel Market. According to the World Steel Association, the steel sector accounts for approximately 7% of global CO2 emissions, prompting many companies to adopt greener practices. For instance, the European Union's Green Deal aims to achieve carbon neutrality by 2050, incentivizing the use of recycled steel and low-carbon production methods. Major steel producers like ArcelorMittal are investing heavily in carbon capture technologies, with plans to reduce their emissions by 30% by 2030. Additionally, the demand for sustainable steel in construction projects is growing, with initiatives like the U.S. Green Building Council promoting the use of recycled materials. These developments not only align with regulatory requirements but also resonate with consumers who increasingly prefer environmentally friendly products, positioning sustainable steel as a crucial element in achieving a low-carbon future.
Sustainable (Recycled and Green) Steel Market- Key Insights
As per the analysis shared by our research analyst, the global market is estimated to grow annually at a CAGR of around 7.80% over the forecast period (2024-2032)
Based on Type segmentation, Recycled Steel was predicted to show maximum market share in the year 2023
Based on Production Process segmentation, Electric Arc Furnace (EAF) was the leading type in 2023
Based on Grade segmentation, Structural Steel was the leading type in 2023
On the basis of region, North America was the leading revenue generator in 2023
The Global Sustainable (Recycled and Green) Steel Market is segmented on the basis of Type, Production Process, Grade, End-User, and Region.
The market is divided into four categories based on Type: Recycled Steel, Low-Carbon Steel, Green Hydrogen Steel, and Electric Arc Furnace (EAF) Steel. Recycled Steel is prioritized due to its established production processes and lower carbon footprint. Following closely are Low-Carbon Steel, Electric Arc Furnace (EAF) Steel, and Green Hydrogen Steel, which are gaining traction in eco-friendly initiatives.
The market is divided into three categories based on the Production Process: Electric Arc Furnace, Hydrogen Reduction, Carbon Capture, Utilization, and Storage. Electric Arc Furnace (EAF) production is the leading method due to its efficiency and lower emissions. Hydrogen Reduction follows as an innovative approach, while Carbon Capture, Utilization, and Storage (CCUS) technology is increasingly recognized for its potential.
Sustainable (Recycled and Green) Steel Market- Geographical Insights
The Sustainable (Recycled and Green) Steel Market is witnessing significant growth across various regions, with North America leading the charge. The U.S. recycled over 80 million tons of steel in 2021, highlighting its commitment to sustainability. Europe follows closely, where the European Union aims for a 55% reduction in greenhouse gas emissions by 2030, driving initiatives like the EU Green Deal to promote low-carbon steel production. In Asia-Pacific, countries like Japan and South Korea are increasingly adopting recycled steel, supported by governmental policies that incentivize green manufacturing practices. Japan's Ministry of the Environment has set targets for increasing the use of recycled materials in steel production. Meanwhile, China, the world's largest steel producer, is also making strides; the government plans to have 30% of steel production sourced from recycled materials by 2025. These regional initiatives reflect a collective effort to transition towards sustainable steel practices, contributing to a more circular economy and a significant reduction in carbon emissions globally.
The Competitive Landscape of the Sustainable (Recycled and Green) Steel Market showcases key players across various regions, each contributing to the growth of eco-friendly steel production. In North America, Nucor Corporation leads the charge with its extensive use of electric arc furnaces, recycling millions of tons of scrap steel annually. In Europe, ArcelorMittal is at the forefront, committing to a 30% reduction in carbon emissions by 2030, leveraging carbon capture technologies in its production processes. The company's Smart Carbon strategy exemplifies innovation in sustainable practices. In Asia-Pacific, Baowu Steel Group in China has announced plans to have 30% of its production from recycled sources by 2025, reflecting a significant shift in its operational strategy. Additionally, Japan's Kawasaki Steel is investing in hydrogen-based steelmaking, emphasizing a long-term vision for low-emission steel production. These companies are not only responding to regulatory pressures but are also aligning with consumer demand for sustainable products, driving competition in the rapidly evolving green steel sector.
In June 2024, Tata Steel Nederland launched Zeremis(R) Recycled, a new steel product containing 30% recycled content, aimed at helping customers meet their circularity goals. This initiative addresses the demand for sustainable steel in various industries while supporting Tata's broader decarbonization efforts.
In March 2024, KEZAD Group and Green Metal Industries announced an AED 367 million ($100 million) special steel recycling and production facility in Abu Dhabi. The plant will utilize advanced recycling technologies, aiming for commercial production by Q1 2025 and promoting sustainability in the region.