Global Green Steel Market Research Report: Forecast (2025-30)

Market Definition

Green Steel is expected to act as a key tool to reduce carbon footprints and meet the sustainable development goals of various countries in the future. Green steel is made using green hydrogen derived from renewable sources without fossil fuels. The consumer's & producers' propensity toward sustainable products and increasing government initiatives globally have contributed significantly toward bolstering the growth of the Global Green Steel Market.

Market Insights

In 2022, the Global Green Steel Market is in its embryonic stage. The stakeholders in the market are progressively investing in setting up greenfield projects and establishing partnerships & strategic alliances to transform their businesses. The global market is likely to be driven primarily by the mounting inclination of governments in the US, Canada, Germany, France, the UK, etc., toward lowering carbon emissions and adopting sustainable products & manufacturing practices in verticals, such as construction, electronic, industrial equipment, etc.

According to World Steel Association, in 2020, 1,860 MT (Million Tons) of steel was produced globally, which contributed to an average of 1.851 tons of CO2 into the atmosphere. Growing industrial emissions from steel products have compelled organizations to launch strategies and partnerships with private steel-making entities to boost the production of green steel globally.

• In August 2020, SAAB, a Swedish steelmaker, announced a joint venture with LKAB & Utility Vattenfall to develop a hydrogen-based primary steel plant in Lulea, Sweden.
• Later, in July 2021, ArcelorMittal announced to sign a USD 1 Billion worth Memorandum of Understanding (MOU) with the Spanish Government to develop decarbonization technologies at ArcelorMittal Asturias' plant in Gijon, Spain.

As a result, various initiatives by the governments across Europe, North America, & APAC are expected to boost the Green Steel Market in the coming years.

Impact of Covid-19 on the Global Green Steel Market

There has not been much impact of the Covid-19 pandemic on the Global Green Steel Market since it is still in the nascent stage and undergoing research & development, with just the pilot projects & orders delivered to consumers. With the ease of Covid-19 restrictions, the usage of green steel is predicted to surge in the upcoming years. Since automotive manufacturers have commitments towards reducing their carbon footprints on the earth, the demand for green steel among them is expected to rise in the coming years. Hence, automobile companies are likely to switch to fossil-free steel for manufacturing vehicles & their spare parts.

The Automotive industry is heavily reliant on steel for the vehicle body parts, including the roof, body, door panels, & beams between doors. According to the World Steel Association, on average, 900 kg of steel is used per vehicle and accounts for around 2.0-2.5 kg of carbon emissions when producing 1 kg of steel material for automobiles. The Green Steel Industry is also expecting to receive ample growth opportunities with various initiatives and growing investments from governments & industrial units in using green steel worldwide. For instance:

• In 2021, the Government of India announced the National Hydrogen Mission to support the country's energy transition goals across all industries. Furthermore, automotive units, such as BMW, in October 2021, announced to use green steel (to be procured from a Swedish steel manufacturer, H2 Green Group) in their automobiles, with an intent to reduce up to 95% Green House Gas (GHG) emissions by 2025.