Green Steel Market: Current Analysis and Forecast (2023-2030)

Green steel, also known as sustainable or low-carbon steel, refers to the production of steel using processes that have minimal environmental impact and reduce carbon emissions. The demand for green steel has been on the rise globally as countries and industries strive to address climate change and achieve sustainability goals.

Traditionally, steel is a widely used material all over the world, but its production contributes about 8% of the CO2 emissions that humans generate globally. This has led to a growing sense of urgency to address climate change, prompting the entire steel industry to take steps toward decarbonization. Key players in the industry such as ArcelorMittal, Tata Steel, Scania, and financial groups are making commitments towards this goal.

In Europe, initiatives like Hybrit and H2 Green steel are already underway, aimed at replacing fossil fuels with green hydrogen. Meanwhile, Boston Metal, a company that emerged from MIT, is developing a process that uses direct electrolysis from iron ore, like the process used for aluminum. Both these methods use electricity from renewable sources, ensuring sustainability and zero emissions during the process.

Based on the technology, the green steel market is bifurcated into HDR (Hydrogen-Based Direct Reduction of Iron Ore), and EAF (Electric Arc Furnace). The HDR segment caters to significant demand in 2022. Hydrogen direct reduction (H-DR) technology is a promising way to reduce carbon emissions in the steel industry. Unlike conventional natural gas, it uses 100% green H2 in the process. By applying H-DR technology, it is possible to avoid 80-90% of carbon emissions in the long term. Therefore, the widespread application of this technology is expected to be a milestone in the transition of the steel industry towards cleaner production.

Based on application, the green steel market is categorized into construction, transportation, energy and power, consumers, and others. The construction segment holds a major share of this market. To reduce carbon emissions the demand for green steel is propelling in the construction sector. As 52% of steel is used in the construction sector which raises the need to decarbonize it which is accentuating the need for green steel adoption.

For a better understanding of the market adoption of the green steel industry, the market is analyzed based on its worldwide presence in countries such as North America (U.S., Canada, and the Rest of North America), Europe (Germany, U.K., France, Norway, Rest of Europe), Asia-Pacific (China, Australia, Rest of Asia-Pacific), Rest of World. The green steel market is expected to have significant growth in the Asia Pacific region, as many countries in the area have implemented policies and initiatives to promote eco-friendly steel production. For instance, China has set targets to reduce carbon emissions and increase the usage of recycled steel, while Japan has launched initiatives to advance carbon-neutral steel manufacturing. Asia Pacific has access to abundant renewable energy sources like solar and wind power, which can power steel plants and decrease carbon footprints. Additionally, many investors and steel manufacturers are recognizing the potential of sustainable steel production and making efforts to enter the market. The increased investment is expected to drive further growth and technological advancements in the industry.

Some of the major players operating in the market include: Tata Steel, Arcelor Mittal, Salzgitter, Thyssenkrupp, H2 Green Steel, Deutsche Edelstahlwerke Services, Jindal Steel and Power, United States Steel Corp, Tenaris

Hydnum Steel.