Green Steel Market Size & Growth, Forecast [2025-2034]

GREEN STEEL MARKET OVERVIEW

The global Green Steel Market size was valued approximately USD 23.95 Billion in 2025 and will touch USD 70.81 Billion by 2034, growing at a compound annual growth rate (CAGR) of 11.45% from 2025 to 2034.

Green Steel refers to steel produced using environmentally friendly methods that significantly reduce carbon emissions compared to traditional steelmaking processes. This is achieved through technologies like hydrogen-based direct reduction, electric arc furnaces powered by renewable energy, and carbon capture and storage (CCS). Green steel aims to minimize the environmental impact of steel production, which is one of the largest contributors to global CO2 emissions. It supports sustainability goals and helps industries transition to a low-carbon economy.

IMPACT OF KEY GLOBAL EVENTS

“Advancements in Artificial Intelligence Driving Efficiency in Green Steel Production”

AI is improving the green steel market by making production more efficient and sustainable. It helps reduce energy use, streamline processes, and cut waste, while also lowering carbon emissions. AI makes production more cost-effective and speeds up the shift to cleaner methods, driving competition among producers to innovate.

LATEST TREND

”Government Policies and Incentives”

Governments are helping green steel take off with policies like charging for carbon, funding renewable energy, and supporting low-carbon tech. Plans like the EU Green Deal and U.S. Inflation Reduction Act back green steel projects, pushing makers to be more sustainable. These steps give early users an advantage and line up economic rewards with eco-goals, moving the steel industry towards a greener future.

GREEN STEEL MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Renewable - Electric Arc Furnace (R-EAF), Hydrogen Direct Reduced Iron - Electric Arc Furnace (H2 DRI - EAF), and Molten Oxide Electrolysis (MOE).

Renewable - Electric Arc Furnace (R-EAF): The Renewable Electric Arc Furnace, or R - EAF, is a green steel - making method. It uses renewable electricity to power electric arc furnaces that melt scrap steel. It's more energy - efficient and produces less carbon compared to old - fashioned ways. Places with plenty of wind and solar power really like R - EAF. Since people are demanding more sustainable production, R - EAF will probably be used more often. But right now, it has problems. There aren't always enough scrap steel to use, and it needs a consistent supply of renewable energy.
Hydrogen Direct Reduced Iron - Electric Arc Furnace (H2 DRI - EAF): Making green steel by using hydrogen instead of coal to turn iron ore into iron, along with electric arc furnace tech, is a new approach. It can really slash carbon emissions, so it seems super promising. Even though it's new, people are eyeing it as a sustainable choice, especially as green hydrogen becomes more accessible. However, it's costly, requires building a lot of new infrastructure, and there are problems getting enough hydrogen. So, it may be a while before it catches on big - time.
Molten Oxide Electrolysis (MOE): Molten Oxide Electrolysis is a new technology. It makes iron from ore without carbon emissions, which is great for steel. Right now, it's still being tested. It looks promising for green steel, but it's not famous or used much yet. It's expensive to research and needs new setups. Plus, it's tricky to do on a big scale. But as MOE improves, it could become a big deal in green steel over time.

By Application

Based on application, the global market can be categorized into Construction, Automotive, Electronics and Others.

Construction: In construction, green steel is being used for buildings and infrastructure. It's getting popular because people want sustainable, low-carbon materials. Governments and groups are pushing green building rules and eco-friendly products. Green steel is great because it's strong and lasts long, and it's better for the planet. But it costs more to make and isn't as available as regular steel, so it's not everywhere yet. As construction gets more sustainable, green steel's demand will grow in the future.
Automotive: The automotive industry uses a lot of green steel. Carmakers want to cut carbon, so they use green steel in car frames, parts, and other bits. It's strong and safe like regular steel but emits way less. As electric cars become more popular and sustainable manufacturing is pushed, green steel is showing up more in cars. But it's expensive and hard to make in big amounts. But because people want greener cars, car companies are investing in green stuff like green steel.
Electronics: Green steel is used in phone cases, laptop parts, and home appliances. Since people and businesses care more about the environment, the electronics industry is using green steel to be more eco-friendly. Not many electronics have green steel now. But as sustainability becomes more important, more makers might start using it. High costs and supply problems could slow it down. But if green steel tech improves, it could become more popular later.
Others: Green steel is used in energy infrastructure, machinery, trains, and ships. These sectors are gradually using more green steel to be more sustainable and reduce carbon emissions. It's perfect for heavy machinery and large - scale projects because it's strong and durable. However, it's more expensive and requires better technology, so some industries don't use it much currently. As green steel becomes cheaper and easier to produce, it will probably be used more in these areas as the world pays more attention to sustainability.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

”Corporate Sustainability Commitments”

A lot of big companies have put high sustainability goals in their CSR plans. To reach these goals, companies in industries like cars, construction, and electronics are using green steel in their supply chains. They're not just doing it because customers demand it. Investors and other stakeholders also want them to reduce their environmental footprint. As more companies vow to cut carbon emissions, the demand for green steel will keep rising. This will drive the steel-making industry towards more environmentally friendly production methods.

Restraining Factor

”High Production Costs”

The main thing stopping the green steel market from growing is the high cost of making green steel. Methods like using hydrogen to reduce iron or powering electric arc furnaces with renewable energy need a ton of money at the start for building infrastructure and getting new tech. Also, green steel is costlier to produce because getting renewable energy or hydrogen is expensive. Right now, these aren't as cheap or easy to get as regular energy sources. These high costs mean green steel isn't used as much, especially in markets where price is really important.

Opportunity

”Growing Demand for Sustainable Construction Materials”

Now the demand for environmentally friendly building materials is growing, which is a great opportunity for the green steel market. Construction companies and governments are rushing to become more sustainable. Green steel is popular because it emits far less carbon than ordinary steel. Green building certifications, like LEED, also encourage the use of environmentally friendly materials in buildings and homes. This trend has led to rising demand for green steel in the construction sector. So steelmakers now have a much bigger market for people who care about the environment.

Challenge

”Limited Availability of Green Hydrogen and Renewable Energy”

Green steel producers have a major issue. There's a shortage of green hydrogen, which is crucial for making green steel in certain processes. Currently, green hydrogen is only just beginning to be used in business, so it's hard to obtain. The situation is similar with renewable energy like wind and solar. These aren't available everywhere, and even where they are, they can be inconsistent. Steel companies that rely on these resources struggle to get a stable, reasonably - priced supply. As a result, they can't produce large quantities of green steel, and the production cost ends up being higher.

GREEN STEEL MARKET REGIONAL INSIGHTS

North America

In North America, the green steel market is booming because people care more about the environment and want to cut carbon. The U.S. and Canada are leading the way, with big steel makers trying out new green technologies. Governments are helping by charging for carbon and setting stricter rules. Plus, industries like cars, buildings, and roads want greener products. But high costs and not enough green hydrogen are still problems. Even so, North America is a big player in green steel, with lots of money going into green tech.

Europe

Europe is leading the green steel charge. Sweden, Germany, and the Netherlands are putting big money into green steel tech. The EU wants to hit net-zero carbon by 2050, pushing green steel adoption. Sweden is a leader in hydrogen steel, and companies are scaling up. Auto and construction industries want green steel, and strict rules help too. Europe's focus on the environment, plus money for green tech, makes it a top player. But high start-up costs and tech scaling are still hurdles.

Asia

In Asia, green steel is still new, but people are getting more interested and investing in it. Big steel makers like China, Japan, and India want to cut carbon. China, the biggest steel producer, wants to hit carbon neutrality by 2060 and is working on green steel. But they face challenges like lack of renewable energy and green hydrogen, and too much coal use. Even so, green steel demand will grow as Asia aims for environmental goals. With a huge steel industry and more focus on eco-friendly ways, Asia will be key to green steel's future.

KEY INDUSTRY PLAYERS

”Key Industry Players Focus on Developing Innovative Technologies”

The green steel market is competetive, with companies racing to create new, low-carbon tech for sustainable steel. Both old steel makers switching to greener ways and new players focusing on green tech like hydrogen and electric furnaces are in the game. They’re all trying to boost production, cut costs, and deal with rules and sustainability goals. Working with renewable energy firms and investing in research is key to staying ahead. Tech progress, government rules, and strong, green supply chains drive competition.

List of Top Green Steel Market Companies

Swiss Steel Group
ArcelorMittal
Outokumpu Oyj
China Baowu Group
Salzgitter AG

KEY INDUSTRY DEVELOPMENTS

In February 2024, Salzgitter Flachstahl GmbH (Salzgitter), a subsidiary of Salzgitter AG and Octopus Energy’s generation arm, signed a long-term Power Purchase Agreement (PPA) to enable the future production of green steel.

In January 2024, ArcelorMittal launched the XCarb Program, which focuses on achieving carbon-neutral steel production by leveraging innovative technologies and increasing the use of renewable energy sources. The initiative includes investments in hydrogen-based steelmaking and partnerships with key industry stakeholders to advance sustainable steel production.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The green steel market is booming. Industries and governments are looking for more sustainable ways to make steel. Since more people want low-carbon steel, green steel technologies are getting hot, especially in Europe and North America where environmental rules are tough. Companies are putting a lot of money into hydrogen-based production and electric arc furnaces to cut down on their carbon emissions. However, there are some problems. Costs are high, there isn't enough renewable energy, and big changes to infrastructure are needed.

The green steel market's gonna keep growing in the future. Thanks to tech like AI and using more renewable energy, making green steel will get more efficient and cost less. Governments are lending a hand too, with incentives and policies to make green steel catch on faster. Since the world's demanding more sustainable materials for building and manufacturing, green steel's going to be huge. It'll make steel production better for the environment and easier on the wallet.