The green steel market is on an upward trajectory owing to the growing demand for eco-friendly and sustainable products among consumers globally. Green steel is produced using renewable energy sources and advanced manufacturing processes that reduce carbon footprint and emissions. Major advantages include lower pollution levels during production and higher recyclability compared to conventional steel. With rising environmental concerns, industries are shifting towards green alternatives to meet regulations and sustainability targets. Green steel offers an eco-friendly solution for construction, automotive, consumer goods and other industries.

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 market are Ansteel Group, ArcelorMittal, Boston Metal, China Baowu Group, Cleveland-Cliffs, H2 Green Steel, Nippon Steel Corporation, Nucor Corporation, Steel Dynamics, Inc., United States Steel Corporation, Jindal Stainless Limited, and Swiss Steel Group. Major players are investing in renewable energy plants, carbon capture facilities and partnerships with green hydrogen producers to meet their decarbonization goals.

The Green Steel Market Trends in developing renewable projects at steel plants in wind & solar energy, increasing scrap usage to reduce carbon emissions and exploring new production methods like direct reduced iron and electrolysis. Global expansion of green steel production capacity is also being seen across regions to meet the growing demand from key industries.

Market drivers

Adoption of green steel is expected to witness significant growth owing to stringent emission regulations and policies promoting clean energy. Countries have outlined decarbonization roadmaps with goals to cut carbon footprint from heavy industries. This is driving steel manufacturers to invest in renewable and low carbon technologies. Subsidies and incentives for producers adopting greener routes are also encouraging the shift towards sustainability. With technological advancements, costs of green steel production are declining rapidly making it viable for mass adoption.

PEST Analysis

Political: The governments across Green Steel Market Size And Trends various nations are implementing stringent environmental laws and regulations to curb carbon emissions and promote sustainable development. They are offering subsidies and tax benefits to manufacturing companies that adopt green technologies and materials.

Economic: Steel producers are investing heavily in research and development of green steel production methods to reduce operational costs in the long run. The high CAGR shows rising demand for eco-friendly steel from various end-use industries willing to pay premium prices for sustainable products.

Social: Growing environmental awareness among consumers is driving the demand for green and recycled products. People are increasingly focusing on purchasing goods manufactured through clean and responsible processes. Steel manufacturers need to adapt to changing social priorities and consumer preferences.

Technological: New production technologies like hydrogen direct reduction and electric arc furnaces allow significant reduction in carbon emissions compared to the traditional blast furnace basic oxygen furnace route. Further optimizations through automation, digitization and use of artificial intelligence can enhance yield, lower energy usage and boost efficiency of green steelmaking.

Geographical regions with high market concentration

The green steel market in terms of value is majorly concentrated in Europe, North America, and East Asia. Stringent environmental regulations and supportive government policies in countries like Germany, France, UK, US and China have led to early adoption of low-carbon steel production methods in these regions.

Fastest growing regional market

The market is expected to witness the highest CAGR in South Asia & Pacific led by countries like India, Indonesia and Australia. Considering the rising steel demand and ongoing industrialization, governments and manufacturers in the region are collaborating to build a sustainable steel ecosystem by investing in green projects and technologies. This makes South Asia & Pacific the fastest emerging market for green steel.
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