USD 3.4 billion
Green Steel Market Size, Share, and Growth Analysis
Green Steel Market By Production Technology (Molten Oxide Electrolysis, Electric Arc Furnace), By Energy Source (Wind Energy, Solar Energy), By End-User (Automotive & Transportation, Building And Construction), By Region - Industry Forecast 2025-2032
Report ID:
SQMIG15O2032 |
Region:
Global |
Published Date: March, 2025
Pages:
186
|Tables:
93
|Figures:
69
Format -
Green Steel Market Insights
Green Steel Market size was valued at USD 3.4 billion in 2023 and is poised to grow from USD 5.78 billion in 2024 to USD 403.2 billion by 2032, growing at a CAGR of 70.0% during the forecast period (2025-2032).
Growing pressure on steel industry for decarbonization, imposition of government regulations for carbon pricing, high investments in hydrogen-based steel production plants, expansion of renewable infrastructure, and growing demand from automotive industry are slated to drive the sales of green steel in the future.
Conventional steel manufacturing and production processes have a high carbon footprint and as the world focuses on sustainability, phasing out these processes becomes a priority. Governments around the world are setting ambitious net-zero emission targets to combat climate change, making decarbonization of the steel sector a major step in attaining sustainability goals.
Implementation of carbon pricing, emission trading schemes, and border adjustment taxes from governments and regulatory bodies is also expected to favor the adoption of sustainable practices in steel business thereby boosting green steel sales. Rising use of hydrogen as a clean energy source and efforts to develop hydrogen-based steelmaking plants are also anticipated to create new opportunities for green steel vendors in the long run. Growing automotive manufacturing activity and commitments of vehicle makers to use fossil-free steel in vehicle production are also favoring the global green steel market growth.
Expansion of renewable energy infrastructure, adoption of circular economy practices, and high consumer preference for sustainably sourced materials are estimated to favor the adoption of green steel. On the contrary, high costs of production, limited availability of green hydrogen, technological challenges in scaling up green steel production, absence of standardization, dependence on renewable energy infrastructure, and slow transition of traditional steel plants are estimated to hamper the sales of green steel across the study period and beyond.
Key Market Attributes
In December 2024, India became the first country in the world to unveil Taxonomy of Green Steel to set a benchmark in decarbonization of the steel industry. The new taxonomy establishes a framework to measure and classify green steel on various characteristics such as emission intensity, etc. Steel produced with emission levels below 2.2 tonnes of CO2 per tonne of finished steel is certified as green steel as per this new taxonomy. The launch of this taxonomy is part of the country’s broader efforts to attain its net-zero emission targets by the year 2070. Adoption of this taxonomy is optional but a mandate to reduce emissions in the country.
In October 2024, the Union Government of India announced that it had approved three pilot projects under the National Green Hydrogen Mission to explore the use of hydrogen in steel production. Matrix Gas and Renewables Ltd., Simplex Castings Ltd., and Steel Authority of India Ltd. Are expected to lead these three pilot projects. The government of India is providing total financial support amounting to INR 347 crore for these three projects as India aims to reduce emissions and enhance its clean energy production potential. The pilot projects are expected to be completed over the next three years and then these technologies will have the potential to be scaled across the country.
India is making significant advances in green steel production as it is one of the most prominent steel manufacturing countries in the world. Supportive government funding and adoption of sustainable practices by steel manufacturers are also widening the business scope for green steel providers focusing on India.
In October 2024, Masdar, a leading renewable energy pioneer from the United Arab Emirates announced the completion of pilot project for green steel in collaboration with Emsteel. The effort demonstrated how green hydrogen could be used to decarbonize the production of green steel. The new project is in accordance with Abu Dhabi’s Low Carbon Hydrogen Policy and the UAE’s national hydrogen strategy, as the country focuses on leading low carbon hydrogen production by 2031. Located at Emsteel’s manufacturing site in the Industrial City of Abu Dhabi, the plant uses green hydrogen instead of natural gas in iron extraction from iron ore.
Market snapshot - 2025-2032
Global Market Size
Largest Segment
Electric Arc Furnace
Fastest Growth
Hydrogen-Based DR
Growth Rate
70.0% CAGR
Global Green Steel Market ($ Bn)
Country Share for North America Region (%)
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Green Steel Market Segments Analysis
Global Green Steel Market is segmented by Production Technology, Energy Source, End-User and region. Based on Production Technology, the market is segmented into Molten Oxide Electrolysis and Electric Arc Furnace. Based on Energy Source, the market is segmented into Wind Energy and Solar Energy. Based on End-User, the market is segmented into Automotive & Transportation, Building And Construction and Electronic Industrial Equipment. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Analysis by Application
The automotive and transportation segment is estimated to hold the highest global green steel market share in the future. Rising number of automotive manufacturers committing to use green steel in their vehicle manufacturing are helping this segment bring in the most revenue over the coming years. Launch of new collaborations between vehicle manufacturers and green steel manufacturers is also expected to create new business scope for market players focusing on this application segment. Growing use of sustainable materials in development of transportation infrastructure could also favor the sales of green steel in the long run.
On the other hand, the demand for green steel in building and construction applications is slated to rise at an impressive CAGR through 2032 and beyond. Increasing adoption of green construction practices and rising investments in the development of sustainable construction materials are helping boost revenue generation via this segment. High investments in infrastructure development around the world to support industrialization and urbanization are also forecasted to promote the demand for green steel in the future. Europe is estimated to witness high use of green steel in the construction industry as consumer preference for sustainable construction material rises.
Analysis by Production Technology
The electric arc furnace segment is forecasted to account for a significant share of the global green steel industry. High energy efficiency of electric arc furnaces as compared to conventional blast furnaces is promoting its popularity in steelmaking. Improved productivity and safety offered by electric arc furnace through its greater control is also expected to help this segment bring in the most revenue over the coming years. Low carbon emissions from this production technology are also driving its popularity among green steel manufacturers around the world.
Meanwhile, the demand for green steel produced through Hydrogen-Based DR (direct reduction) technology is estimated to increase rapidly in the long run. Growing investments in hydrogen-based steel manufacturing and rising demand for hydrogen generation are expected to create new opportunities via this segment. The launch of multiple new decarbonization efforts for the steel industry and incentivization of hydrogen-based technologies are also slated to boost revenue generation for green steel companies focusing on this segment over the coming years.
Global Green Steel Market By Production Technology
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Green Steel Market Regional Insights
North America is estimated to account for the largest share of the global green steel demand going forward. Quick adoption of advanced green steel technologies, high investments in hydrogen production, and launch of new efforts to reduce emissions from steel manufacturing are cementing the dominance of this region.
The United States is slated to lead the demand for green steel in this region on the back of rising automotive production, high demand for sustainable materials, and high investments in renewable energy infrastructure development. Canada is also slated to emerge as an opportune country by the end of the study period.
Asia Pacific is estimated to emerge as the fastest-growing region in the global green steel industry in the future. The presence of leading steel manufacturers, growing industrialization, and presence of multiple automotive manufacturers are helping boost adoption of green steel production technologies in this region.
China and India are the top countries for green steel suppliers looking to make a mark in the region. Launch of new government initiatives to promote decarbonization of steel industry, adoption of advanced steel manufacturing technologies, and growing emphasis on emission reduction are helping create new business scope for green steel vendors in this region.
Europe is forecasted to witness a substantial increase in the demand for green steel in the future. High emphasis on sustainability, stringent regulations to ban use of traditional steelmaking technologies, and availability of abundant resources for green steel production are offering new opportunities in European countries.
Sweden and Germany are estimated to emerge as the top countries for green steel companies looking to make a mark in this region. Significant investments in renewable energy infrastructure, the launch of novel pilot green steel production projects, and presence of leading green steel technology innovators are helping these countries offer new revenue generation potential.
Latin America is projected to emerge as a highly rewarding region for green steel manufacturers in the long run. Presence of robust iron ore reserves, availability of developed industrial infrastructure, and growing infrastructure development activity are helping promote sales of green steel in this region. While the full potential of green steel production is not yet realized in this region it is expected to come into its potential by the end of the forecast period. Mexico and Brazil are projected to emerge as the key countries for green steel suppliers in Latin America through 2032 and beyond.
Global Green Steel Market By Region
- Largest
- Fastest
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Green Steel Market Dynamics
Green Steel Market Drivers
Rising Consumer and Investor Interest in Sustainable Materials
- Growing emphasis on sustainability around the world has led to more aware consumers and investors. Adoption of new corporate sustainability initiatives and advanced eco-friendly manufacturing technologies by steel manufacturers around the world are expected favor the global green steel market outlook as interest in sustainably produced materials rises.
Expansion of Renewable Energy Infrastructure
- As the name suggests, green steel production involves the use of clean energy from renewable energy sources. Launch of multiple new renewable energy projects around the world and use of clean energy top power hydrogen electrolysis and electric arc furnaces (EAFs) in steel manufacturing are also expected to create new opportunities for green steel providers in the long run.
Green Steel Market Restraints
Technological Challenges in Scaling Up Production
- Scaling up green steel production requires is not an easy feat as it requires green steel companies to overcome major technological challenges. For instance, the transition from blast furnace-based steelmaking to EAF and hydrogen-based steelmaking processes are time-consuming and require highly advanced technologies to be successful thereby limiting sales of green steel.
Lack of Standardization
- Green steel manufacturing is still a relatively new concept and is not as widely accepted in the world yet. This nascent nature of green steel technologies equates to the absence of standardized regulations and certification frameworks to validate the output from green steel companies. Lapses in validation and absence of standardization are predicted to hamper the adoption of green steel through 2032.
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Green Steel Market Competitive Landscape
Green steel companies should focus on increasing the production capacity of their facilities to meet the rising demand. Collaborations with end-use industries such as automotive and construction can also help widen the scope of application for green steel suppliers. Taking advantage of government initiatives and incentives can maximize profits for companies as per this global green steel market analysis.
Top Player’s Company Profiles
- China BaoWu Steel Group Corporation Limited (China)
- Emirates Steel Arkan (United Arab Emirates)
- Nippon Steel Corporation (Japan)
- Nucor Corporation (United States)
- Liberty Steel Group (United Kingdom)
- Outokumpu (Finland)
- Deutsche Edelstahlwerke (Germany)
- Salzgitter AG (Germany)
- SSAB (Sweden)
- Tata Steel (India)
- Thyssenkrupp AG (Germany)
- Voestalpine AG (Austria)
Recent Developments
- In September 2024, H2 Green Steel, a top green steel manufacturer from Sweden announced its rebranding to Stegra ahead of plant launch in 2026. The company had raised €6.5 billion to develop the world’s first large-scale green steel manufacturing plant using green hydrogen and renewable electricity.
- In September 2024, JFE Steel Corporation, the second-largest steel manufacturer in Japan announced that the world’s first ship with a hull made entirely of green steel entered service. Higaki Shipbuilding Co. Ltd. Built the ship and accounted for all JFE Steel’s JGreeX™ green steel materials used in the shipmaking processes.
- In September 2024, Mycron Steel Bhd, a renowned steel manufacturer from Malaysia revealed its plants to develop and launch its own green steel products by 2025. The company aims to capitalize on the growing demand for sustainable materials and attract end users who are willing to pay a premium price for low-carbon products designed for various high-end applications.
Green Steel Key Market Trends
- Adoption in Electric Vehicles: Green steel companies should target electric vehicle manufacturing to maximize their business scope in the long run. Green steel is being used for its lightweight and high corrosion resistance properties in the manufacturing of battery enclosures and structural electric vehicles components thereby making this a prominent green steel market trend for the future.
- Emphasis on Sustainable Manufacturing: Green steel manufacturers should focus on the adoption of sustainable manufacturing practices to reduce the carbon footprint associated with steel manufacturing. Use of electric arc furnaces and recycled scrap to reduce environmental impact is helping green steel manufacturers to achieve sustainability and provide low-carbon stainless steel.
Green Steel Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, growing interest in sustainable materials and expansion of renewable energy infrastructure are projected to primarily drive the sales of green steel over the coming years. However, lack of standardization and challenges in scaling up production of steel are expected to slow down the adoption of green steel going forward. North America is estimated to bring in the most revenue owing to quick adoption of advanced manufacturing technologies in countries such as the United States. Adoption of sustainable manufacturing technologies and focus on electric vehicle manufacturing can help offer new revenue generation opportunities for market players in the long run.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 3.4 billion |
| Market size value in 2032 | USD 403.2 billion |
| Growth Rate | 70.0% |
| Base year | 2024 |
| Forecast period | 2025-2032 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Green Steel Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Green Steel Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Green Steel Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Green Steel Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Green Steel Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Green Steel Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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