by Green steel refers to steel produced using low-carbon technologies and renewable energy sources to reduce carbon emissions during production. Green steel offers several advantages over traditionally produced steel such as lower carbon footprint, more sustainable production process, and higher recyclability. With growing environmental concerns, there is an increasing need for low-carbon alternatives to conventional steel production methods.
The global green steel market is estimated to be valued at US$ 117.13 billion in 2024 and is expected to exhibit a CAGR of 60% over the forecast period of 2024 to 2031.
Key Takeaways
Key players in the green steel market: Key players operating in the green steel market are Ansteel Group, ArcelorMittal, Boston Metal, China Baowu Steel Group, HBIS Group, JFE Steel, POSCO, Tata Steel, and SSAB.
Key opportunities: The rising demand for emission reduction in steel production from end-use industries and stringent environmental regulations present significant growth opportunities in the Green Steel Market Demand Adoption of green hydrogen in direct reduced iron and electric arc furnace production routes can further aid market expansion.
Global expansion: Leading steelmakers are investing heavily in developing green steel production facilities across major markets to cater to the growing worldwide demand and capture new customers. Collaboration with global renewable energy companies is helping green steel producers establish an international presence.
Market Drivers
The main driver contributing to the high growth of the Green Steel Market Size And Trends is the increasing demand for low carbon emission construction and industrial materials. Green steel produced using cleaner methods align well with sustainability goals of nations and reduces the carbon footprint of infrastructure and manufacturing sectors significantly. Growing emphasis on reducing greenhouse gas emissions through national climate action plans and international agreements is also fueling the adoption of green steel over the forecast period.
PEST Analysis
Political: Green steel production requires various approvals and permissions from environmental regulatory bodies. Favorable government policies to curb carbon emissions could boost adoption.
Economic: High capital expenditure for setting up green steel plants and transitioning existing ones may increase steel prices in the short term. But lower operating costs in the long run and incentives can offset initial costs.
Social: Growing awareness about sustainability and carbon footprint is driving consumer preference for green products. This favors green steel adoption across construction and automotive industries.
Technological: Emerging technologies like hydrogen direct reduction and electric arc furnaces enable lower carbon emission steelmaking. Further R&D is focusing on direct electrolysis of iron ores for carbon-free steel production.
Geographical regions of concentration:
Currently, green steel production is concentrated in regions with stringent environmental regulations like Europe and North America. Countries like Germany, Sweden and Canada are early adoptors. The European Union has implemented the world’s first carbon border adjustment mechanism to promote low-carbon steel imports.
Fastest growing region:
The Asia Pacific region excluding China and Japan is expected to exhibit highest growth in green steel demand over the forecast period driven by supportive policies in India, Indonesia, Vietnam and other southeast Asian countries. With growing infrastructure needs, these nations are investing in cleaner steel production capacities to meet domestic demand as well as capitalize on future export opportunities.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it.
About Author:
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)
