Green Steel Market Size to Reach Around USD 6,24.4 Bn by 2032

The global green steel market size is projected to reach around USD 6,24.414 billion by 2032 and it is registering at a strongest CAGR of 123.94% from 2023 to 2032, as per new study by Precedence Research.

Ottawa, March 16, 2023 (GLOBE NEWSWIRE) -- The global green steel market size accounted for USD 196.84 million in 2022. The industry is anticipated to grow due to steel manufacturers' increasing shift to sustainable steel production to attain net-zero emissions. Furthermore, with their goals to use sustainable products, various end-user sectors, such as building & construction, automotive, and so on, are predicted to boost their need for low-carbon steel. The worldwide market is likely to be influenced primarily by governments in Canada, the United States, Germany, the United Kingdom, and France, among others, towards adopting sustainable products, lowering carbon emissions, and manufacturing practices in verticals such as electronics, industrial equipment, and construction.

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Production Technology Landscape

The electric arc furnace sector is anticipated to grow at the highest CAGR from 2023 to 2032. The sector is anticipated to expand due to the well-established base for the production of green steel. Moreover, the rise in the cost of carbon dioxide certificates for steelmakers has aided the use of technology for the manufacturing of green steel. For instance, according to EU Emissions Trading System (EUETS), the price of CO2 emission per ton rises from USD 30.3 in 2020 to USD 80.84 in 2021.

MOE is a coal-free power generation process that uses 3,500 units of fuel to generate one ton of steel, a process that requires a lot of electricity. It emits 0.09 kg of CO2 per unit of energy produced and there is no carbon introduced into the process. The steel produced will contain non-carbon elements, possibly chromium, and MOE has no control over the steel composition.

Energy Source Landscape

Solar energy is the most popular and affordable source of energy, with a 30-year lifespan and constant prices. Furthermore, solar energy is expected to grow the fastest. The Earth intercepts solar energy at a rate that is approximately 10,000 times faster than the rate at which humans consume energy. Various government initiatives are further fueling the use of solar energy in the green steel industry. For instance, Tata Power and Tata Steel are collaborating on a 41MW solar project in India's Odisha and Jharkhand. Using floating, ground-mounted, and rooftop solar panels, the initiative produces solar power for steel-producing facilities in Jamshedpur and Kalinga Nagar, saving 45,210 tons of carbon dioxide per year.

End-user Landscape

Due to automakers' raising awareness of their greenhouse emissions and increased interest in green steel applications, the Automotive & Transportation sector is expected to acquire a significant share of the Global Green Steel market.

The building and construction sector is anticipated to expand at a remarkable pace from 2023 to 2032. Building energy efficacy is a critical component of incorporating a strategy for sustainable development. It promotes the development of national economies, the efficient use of resources, the reduction of atmospheric pollution, the decline of the greenhouse effect, as well as the improvement of the environment. As a result, countries worldwide are encouraging green buildings and constructing steel structure buildings.

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Scope of this Report

Report CoverageDetails
Market Size in 20326,24.4 Billion
By Production Technology
  • Molten Oxide Electrolysis
  • Electric Arc Furnace
By Energy Source
  • Wind Energy
  • Solar Energy
By End-User
  • Automotive & Transportation
  • Building And Construction
  • Electronic Industrial Equipment
By Region
  • North America
  • Europe
  • Asia-Pacific
  • Latin America
  • The Middle East and Africa

Regional Landscape

Due to the increasing prevalence of electric furnaces and the widespread construction industry in developed countries such as the United Kingdom and Germany, the European region is the largest market and will grow at the fastest rate during the forecast period. Germany is a lucrative region for green hydrogen because of high CO2 emissions and the widespread use of blast oxygen furnaces.

Asia Pacific is anticipated to expand at a remarkable rate from 2023 to 2032. Increasing investment in green steel production and rising investments in environmentally friendly building materials are key factors driving the market growth. Furthermore, rising investment in green steel manufacturing is propelling the market. For example, in January 2022, India's Adani Group, as well as South Korean steel company Posco, announced a USD 5 billion investment to build a green, environmentally friendly integrated steel plant in Mundra, Gujarat, India.

Key Market Players

  • Deutsche Edelstahlwerke
  • SSAB
  • Salzgitter AG
  • JSW Steel
  • ArcelorMittal
  • H2GreenSteel
  • Hesteel Group
  • Liberty Steel Group
  • Nucor
  • Voestalpine

Market Dynamics


Reusing steel led to a decrease in CO2 emission

Steel is produced in blast furnaces, which use fossil fuels such as coal, oil, and natural gas to reach the high temperatures needed to start the necessary chemical reactions. This process is responsible for approximately 7% of all CO2 emissions generated by humans worldwide. In an entirely electric process that emits few emissions, steel is vastly recycled without losing any of its properties. This is one remedy for minimizing its environmental impact while fighting climate change. Reusing already meets 26% of global demand, and efforts are being made to increase that figure.

Increase in employment

The Indian steel industry employs around 2.5 million people across the supply chain, and this figure is expected to rise to approximately 3.5 million by 2030, based on the level of automation. Engineers and metallurgists are among the most highly skilled jobs, as they are critical to the efficient activity of plants and the timely introduction of new technologies. This is influenced by perceptions of salary, working conditions, and the company's mission and culture.


Technology availability and decarbonization

Decarbonizing the entire steel industry is a significant challenge in the face of climate change. Conventional steel-making accounts for approximately 7% of global greenhouse gas emissions, which is roughly equivalent to the annual emissions of all cars on the planet's roads. While steel is needed to produce automobiles, so the influence is overlapping.

Recent developments:

  • In 2022, Tata Steel Ltd initiated an agreement with McDermott, Hatch, and Danieli for technological expertise in Green Steel production at the IJmuiden facility in Amsterdam.
  • Iberdrola and H2 Green Steel signed a USD2.59 billion green hydrogen deal in 2021. The new facility has 2 million tons of pig iron capacity and is powered by green hydrogen. It aids in manufacturing green steel by reducing CO2 emissions by 95%.

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