Green Steel Market Set for Explosive Growth, Surging Over 100% to Reach $1302.58 Bn by 2032

Green Steel Market Poised for Rapid Growth Amid Global Sustainability Push

Date: March 10, 2025

Market Overview: Growth Drivers & Opportunities

The global Green Steel market is undergoing a significant transformation, driven by increasing sustainability mandates and growing awareness of carbon emissions in traditional steel production. As industries shift towards greener alternatives, the demand for low-carbon steel has surged. In 2024, the market size was valued at USD 4.83 Bn. in 2024. The total Green Steel Market revenue is expected to grow by 101.23% from 2025 to 2032, reaching nearly USD 1302.58 Bn.

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Key growth drivers include:

Decarbonization Initiatives: Governments worldwide are imposing strict carbon-neutral policies, encouraging industries to adopt hydrogen-based steelmaking processes.

Rising Investments in Hydrogen Technology: The transition from coal-based steel production to hydrogen-based direct reduced iron (DRI) is gaining momentum, reducing carbon emissions by up to 95%.

Corporate Sustainability Goals: Leading automotive, construction, and manufacturing firms are prioritizing green steel in their supply chains to meet net-zero targets.

Advancements in Electrolysis Technology: Breakthroughs in electrolyzers have reduced the cost of green hydrogen production, making green steel more economically viable.

US Market Trends & Investments

The U.S. green steel market is witnessing a surge in investments, primarily fueled by the Inflation Reduction Act (IRA), which provides tax credits and incentives for clean hydrogen and carbon-neutral steel production. In 2024, several steelmakers announced multi-billion-dollar plans to transition to electric arc furnaces (EAFs) powered by renewable energy. Additionally, partnerships between U.S. automakers and steel manufacturers are driving demand for eco-friendly steel in electric vehicles (EVs). The rise in public-private collaborations further strengthens the industry's commitment to achieving sustainability goals.

Market Segmentation: Leading Segment

The Electric Arc Furnace (EAF) segment holds the largest market share in the Green Steel industry. This method, which utilizes electricity instead of carbon-intensive blast furnaces, significantly reduces emissions and energy consumption. With increasing government incentives for recycling and circular economy practices, the EAF segment is expected to dominate market expansion.

By Production Technology
Hydrogen-Based Steel Production
Electric Arc Furnace (EAF)
Carbon Capture and Storage (CCS)
Biomass-Based Steel Production
Molten Oxide Electrolysis (MOE)

By End Use Industry
Construction
Automotive
Energy Sector
Manufacturing
Consumer Goods

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Competitive Analysis: Top 5 Companies Leading the Market
SSAB AB

SSAB has pioneered the world's first fossil-free steel through its HYBRIT project, replacing coking coal with hydrogen in steel production.

In 2024, the company announced its first large-scale commercial delivery of fossil-free steel to European automakers.

ArcelorMittal

The company is investing over $1 billion in developing DRI plants in Spain and Canada, aiming for net-zero carbon emissions by 2050.

Their XCarbTM innovation fund is accelerating research in hydrogen-based steelmaking.

Thyssenkrupp Steel

Thyssenkrupp launched its tkH2Steel project, which aims to replace conventional blast furnaces with hydrogen-powered steel plants by 2030.

In 2024, the company secured government funding to scale up its green steel production capacity.

Nippon Steel Corporation

Nippon Steel has developed Super-SINTER® technology, which enhances steel efficiency while cutting emissions.

The company recently partnered with Toyota to supply green steel for next-generation EVs.

Baowu Steel Group

China's Baowu Steel Group has committed to investing $4.5 billion in hydrogen-based steelmaking by 2035.

In 2024, the company began large-scale production of low-carbon steel for the construction sector.

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Regional Analysis: USA, UK, Germany, France, Japan, China

USA: The U.S. accounts for a significant share of the global green steel market, driven by strong government backing and corporate ESG initiatives. Policies under the Bipartisan Infrastructure Law are accelerating green steel adoption in construction and transportation sectors.

UK: The UK is committed to achieving net-zero industrial emissions by 2050. The government has provided £250 million in funding to support hydrogen-based steel production, particularly at Tata Steel's Port Talbot plant.

Germany: Germany leads Europe in green steel adoption, with Salzgitter AG and Thyssenkrupp spearheading hydrogen-based steel production projects. The country's "Hydrogen Strategy" aims to reduce emissions in industrial manufacturing.

France: France's ArcelorMittal Dunkirk project is a major driver in Europe's green steel expansion. The French government has also introduced carbon pricing mechanisms to encourage steelmakers to transition to clean energy.

Japan: Japan's Green Innovation Fund is accelerating research in hydrogen-based steelmaking. Nippon Steel is developing next-gen hydrogen plasma smelting reduction technology to further cut emissions.

China: China, the world's largest steel producer, is implementing strict carbon neutrality targets by 2060. The government has mandated that at least 15% of steel production must be green by 2030. Baowu Steel's major investments are positioning China as a leader in green steel innovation.

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Conclusion

The Green Steel market is on an exponential growth trajectory, driven by regulatory mandates, technological advancements, and increasing corporate sustainability commitments. As leading steelmakers ramp up investments in hydrogen-based and electric arc furnace steel production, the industry is moving closer to achieving a carbon-neutral future.

To capitalize on this momentum, stakeholders should focus on:

Scaling up green hydrogen production to lower costs.

Strengthening public-private collaborations to drive innovation.

Expanding circular economy initiatives to maximize metal recycling.

With governments, corporations, and consumers aligning towards sustainability, the Green Steel market is set to redefine the future of the global steel industry.

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