Green steel refers to steel production through cleaner methods with lower carbon footprint. It involves usage of clean energy sources like renewable electricity, hydrogen and carbon capture technologies to minimize emissions. Green steel offers higher strength and lower heat expansion compared to conventional steel and finds applications in construction, transportation and packaging industries due to its lightweight and durable properties.
The Global Green Steel Market is estimated to be valued at US$ 117.13 Bn in 2024 and is expected to exhibit a CAGR of 60% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the Green Steel are Ansteel Group, ArcelorMittal, Boston Metal, China Baowu Steel Group and HBIS Group. Ansteel Group is one of the largest steel producers in China with an annual production of over 30 million tons of steel. ArcelorMittal is the world’s leading steel and mining company with a presence in over 60 countries.
The growing environmental concerns around the world are driving the demand for green steel. Strict environmental regulations regarding carbon emissions from steel production are encouraging Green Steel Market Demand manufacturers to adopt cleaner production processes. Additionally, the rising adoption of electric vehicles whose body and chassis use significantly higher quantities of green steel is also fueling the demand.
The market is witnessing increasing global expansion as major steel companies invest heavily in green hydrogen and carbon capture projects across regions. For instance, HBIS Group has partnered with Australian Fortescue to build a green steel plant in China using renewable energy. Similarly, SSAB has joined hands with Swedish energy companies to produce fossil-free steel in Scandinavia by 2026.
Market Key Trends
One of the major trends in the Green Steel Market Size And Trends is the increasing use of green hydrogen in steel production. Steel manufacturing involves usage of coal or natural gas that produces CO2 emissions. Green hydrogen produced from renewable energy sources through electrolysis can be used instead of fossil fuels to minimize carbon footprint of the process. Major players like SSAB, Voestalpine and ArcelorMittal are experimenting with hydrogen direct reduction technology for greener steelmaking. This trend is expected to gain traction in the coming years.
Porter’s Analysis
Threat of new entrants: The high capital requirement and economies of scale in production act as entry barriers for new players.
Bargaining power of buyers: Large buyers have more bargaining power due to the competitive nature of the market and availability of substitutes.
Bargaining power of suppliers: Few raw material suppliers exist for green steel production providing them more bargaining power in price negotiation.
Threat of new substitutes: Substitute materials like aluminium provide competition but lack functional advantages of steel in construction and manufacturing sectors.
Competitive rivalry: Market is consolidated with top players competing on factors like technology, quality, and pricing.
The geographical regions where the green steel market is concentrated in terms of value currently are North America and Europe. These regions have stringent environmental regulations supporting adoption of green steel. Countries like the US, Germany, and France account for over 50% of the global green steel demand.
The Asia Pacific region is anticipated to witness the fastest growth in the green steel market during the forecast period. This is attributed to the increasing steel production coupled with supportive government policies and investments towards sustainability in major economies like China and India. Greater focus on reducing carbon emissions makes Asia Pacific an emerging lucrative market for green steel producers.
*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)