Global Green Steel

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

By Energy Source: (Solar Energy, Wind Energy), By Production Technology: (Electric Arc Furnace, Molten Oxide Electrolysis), By End User: (Buildings & Construction, Automotive & Transportation, Electro Read more

  • Energy
  • Oct 2022
  • 207
  • EN77031

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.

Report Coverage Details
Study Period 2020-30
Regions Covered Americas
Europe
Asia-Pacific
Middle East & Africa
Key Companies Profiled Green Steel Group, H2 Green Steel, Deutsche Edelstahlwerke, Tata Steel, HYBRIT, Arcelor Mittal, Emirates Steel, Others (Jindal Steel, Thyssenkrupp, Baowu Group, etc.)
Unit Denominations USD Million/Billion

 

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. 

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

Market Segmentation

By Production Technology:

  • Electric Arc Furnace
  • Molten Oxide Electrolysis

Of them all, the Electric Arc Furnace (EAF) technology is expected to gain a significant share in the Global Green Steel Market during the forecast period. Electric arc furnaces have witnessed extensive acceptance for carbon-free steel production. In 2020, Tata Steel announced its plan to produce green steel using the EAF technology. Besides Tata steel, ArcelorMittal, in the same year, announced its strategy of manufacturing fossil-free steel using EAF technology, thereby indicating the considerable hold of EAF in the overall market in the coming years and projecting a notable growth rate.

By End User:

  • Buildings & Construction
  • Automotive and Transportation
  • Electronics
  • Industrial Equipment
  • Others (FMCG, Defense, etc.)

Of them all, the Automotive & Transportation sector is expected to gain a considerable share of the Global Green Steel Market during 2022-27. The awareness amongst the automotive & transportation companies regarding their increasing carbon footprints, since the past, has been the key reason for them adopting greener products, such as green steel, while manufacturing automobiles & their spare parts. Companies like Daimler AG, Mercedes-Benz AG, & Volvo AB have shown great interest in green steel adoption.

  • In 2021, Mercedes-Benz AG purchased a stake in H2 Green Steel, a Swedish company, to integrate green steel into the company's automotive manufacturing line. This purchase is in line with Mercedes' Ambition 2039, i.e., to achieve an entirely CO2-neutral vehicle fleet by 2039. The company is a member of the Responsible Steel Initiative and has also cited the various steps it has been taking toward a sustainable steel supply chain.

Regional landscape

Geographically, the Global Green Steel Market bifurcates into:

  • Americas
  • Europe
  • Middle East & Africa
  • Asia-Pacific

Here, Europe is anticipated to hold a significant market share in the upcoming years on account of the steadily increasing efforts to reduce carbon emissions from steel production. In 2020, ArcelorMittal, which has some of its major sites in Europe, has been the second-largest steel producer globally. According to the European Union, in 2019, Europe produced nearly 150 million tons of steel and has been generating around 221 MT of GHG emissions annually, which roughly translates to 5.7% of the total carbon emissions of the EU. Hence, the decarbonization of the steel industry has been identified as a significant step toward a greener future. 

Although the Green Steel Market in Europe is still in its development phase, and the commercial availability of the steel is not expected until 2024, there still have been quite a few pilot projects testing the feasibility of manufacturing green steel. For instance:

  • HYBRIT, in 2021, successfully delivered its first batch of fossil-free steel to truck giant Volvo AB for a trial run of manufacturing prototype vehicles & spare parts.

Increasing collaborations across Europe also suggest the strong future of the Green Steel Market in the region over the forecast years. For instance:

  • Japan-based Mitsubishi Heavy Industries and Austria-based Voestalpine have joined hands to yield an annual capacity of about 250,000 MT of green steel since 2021, which is a crucial aspect expected to boost the Europe Green Steel Market.

Recent Developments by the Leading Companies:

H2 Green

H2 Green Steel, which has almost gathered a series A equity financing of approximately USD 61.1 million, is anticipated to start green steel production by 2024 and would attain 5 million tons of production capacity per year by 2030.

Market Dynamics:

Key Driver: Increasing Government Support for Green Production in Prominent Industries

Governments worldwide are developing key hydrogen strategies and taking necessary initiatives to drive economies toward using green hydrogen in industries, such as refineries, manufacturing units, automotive, building & construction, etc. Countries like Japan, Singapore, Korea, & China in the Asia-Pacific region promote global supply chains and progress pertinent technologies. They have gained the attention of scientists, investors, and government associations toward utilizing green hydrogen in steel-producing industries to limit global CO2 emissions, which are around 8% that steel contributes. For instance:

  • In 2019, the US launched the Green Hydrogen Coalition (GHC), one of the non-profit organizations dedicated to deploying green hydrogen at scale for multi-sectoral decarbonization. It intends to focus on policymaking & commercialization of green hydrogen across North America.
  • In 2021, India announced the National Hydrogen Mission to make the country a global green hydrogen production & export hub. Also, the ministry of New & Renewable Energy is working on a mission to develop ethical competencies and make optimum use of green hydrogen in potential industries by lowering its costs. 
  • Furthermore, in 2021, the European Commission implemented various intermediate proposals to decrease 55% of GHG emissions by 2030 as a part of the European Green Deal (EGD) Project. It is a long-term EU policy that focuses on the climate strategy to reach net zero emissions by 2050 and provide a roadmap towards a green economic growth strategy. Later, in July 2020, the European Commission also expanded its hydrogen strategy, underscoring green hydrogen to attain net-zero targets, and aimed to install about 6 GW of green hydrogen electrolyzers by 2024 & 40 GW by 2030.

Significant governments initiatives worldwide and a boost in partnerships between several public-private entities are expected to contribute to the global expansion of the Green Steel Industry during the forecast period.

Possible Restraint: High Costs Associated with Green Hydrogen Production

Due to the lack of infrastructure worldwide, the high production costs of green hydrogen, which are determined by the cost of renewable energy & electrolyzers, product efficiency, etc., might pose a challenge for the growth of the Global Green Steel Market in the coming years. Compared to conventional hydrogen production systems that cost around USD 1.5-2.3 per kg, the cost of electrolysis is 5 times costlier, i.e., around USD 10.3 per kg. Moreover, according to the Rocky Mountain Institute, the production price of full-scale hydrogen-based steel is 20%– 30% higher than conventional methods, which might also hamper the revenue growth of the global market.

Key Questions Answered in the Market Research Report:

  1. What are the overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares) of the Global Green Steel Market?
  2. What are the region-wise industry size, growth drivers, and challenges?
  3. What are the key innovations, opportunities, current & future trends, and regulations in the Global Green Steel Market?
  4. Who are the key competitors, their key strengths & weaknesses, and how do they perform in the Global Green Steel Market based on the competitive benchmarking matrix?
  5. What are the key results derived from surveys conducted during the Global Green Steel Market study?

Frequently Asked Questions

A. The Automotive & Transportation sector is anticipated to emerge as an area of lucrative opportunities for the leading players in the Global Green Steel Market during 2025-30.

A. Increasing government initiatives and partnerships with private entities to boost the production of sustainable products and lower CO2 emissions are expected to propel the growth of the Global Green Steel Market through 2030.

A. In the coming years, with various initiatives & massive investments from governments & industrial units, the Green Steel Market is expecting profitable growth opportunities worldwide.

  1. Market Segmentation
  2. Introduction
    1. Product Definition
    2. Research Process
    3. Assumptions
  3. Executive Summary
  4. Global Hydrogen Production Ecosystem
    1. Global Demand for Hydrogen
    2. Regional Production Targets
  5. Global Green Steel Market Dynamics
    1. Drivers
    2. Challenges
    3. Impact Analysis
  6. Global Green Steel Market Regulations & Policy
  7. Global Green Steel Market Timeline, 2020-2030
    1. Technological Development
    2. Production
    3. Patents
  8.  Global Green Steel Market Value Chain
    1. OEMs
    2. Production Technology & Equipment Developers
    3. Others
  9. Global Green Steel Market Consortium & Association, 2020-2030
  10. Global Green Steel Market Development, By Region, 2020-2030
    1. Americas
      1. Market Size & Analysis, 2025-2030
      2. Country Wise Readiness for Green Steel
        1. By Quantity Sold (in Tons)
    2. Europe
      1. Market Size & Analysis, 2025-2030
        1. Country Wise Readiness for Green Steel
        2. By Quantity Sold (in Tons)
        3. The UK Green Steel Market Developments
          1. Steel Manufacturer Wise Plan for Decarbonization of Steel Plants
          2. Government Initiatives towards Green Steel
          3. Policies & Their Current Status
    3. Middle East & Africa
      1. Market Size & Analysis, 2025-2030
        1. Country Wise Readiness for Green Steel
        2. By Quantity Sold (in Tons)
    4. Asia-Pacific
      1. Market Size & Analysis, 2025-2030
        1. Country Wise Readiness for Green Steel
        2. By Quantity Sold (in Tons)
      2. China Green Steel Market Developments
        1. Steel Manufacturer Wise Plan for Decarbonization of Steel Plants
        2. Government Initiatives towards Green Steel
        3. Policies & Their Current Status
      3. India Green Steel Market Developments
        1. Steel Manufacturer Wise Plan for Decarbonization of Steel Plants
        2. Government Initiatives towards Green Steel
        3. Policies & Their Current Status
  11. Global Green Steel Market Development, By Production Technology, 2020-2030
    1.  Electric Arc Furnace
    2.  Molten Oxide Electrolysis
  12. Global Green Steel Market Development, By Energy Source, 2020-2030
    1.  Solar
    2.  Wind
  13. Global Green Steel Market Development, By End User, 2020-2030
    1.  Buildings & Construction
    2.  Automotive & Transportation
    3.  Electronics
    4.  Industrial Equipment
    5.  Others (FMCG, Defence, etc.)
  14. Global Green Steel Market Development, By OEM, 2020-2030
    1.  Green Steel Group
      1. Technological Developments
      2. Investments
      3. Production Plans
      4. Future Roadmap
    2.  H2 Green Steel
      1. Technological Developments
      2. Investments
      3. Production Plans
      4. Future Roadmap
    3.  Deutsche Edelstahlwerke
      1. Technological Developments
      2. Investments
      3. Production Plans
      4. Future Roadmap
    4.  Tata Steel
      1. Technological Developments
      2. Investments
      3. Production Plans
      4. Future Roadmap
    5.  HYBRIT
      1. Technological Developments
      2. Investments
      3. Production Plans
      4. Future Roadmap
    6.  Arcelor Mittal
      1. Technological Developments
      2. Investments
      3. Production Plans
      4. Future Roadmap
    7.  Emirates Steel
      1.  Technological Developments
      2.  Investments
      3.  Production Plans
      4.  Future Roadmap
    8.  Sheffield Forgemasters
      1.  Technological Developments
      2.  Investments
      3.  Production Plans
      4.  Future Roadmap
    9.  Celsa Steel UK
      1.  Technological Developments
      2.  Investments
      3.  Production Plans
      4.  Future Roadmap
    10. Liberty Steel
      1.  Technological Developments
      2.  Investments
      3.  Production Plans
      4.  Future Roadmap
    11. British Steel
      1.  Technological Developments
      2.  Investments
      3.  Production Plans
      4.  Future Roadmap
    12. Outokumpu
      1.  Technological Developments
      2.  Investments
      3.  Production Plans
      4.  Future Roadmap
    13. Voestalpine
      1.  Technological Developments
      2.  Investments
      3.  Production Plans
      4.  Future Roadmap
    14. Other Potential Players
      1.  Jindal Steel
      2.  Thyssenkrupp
      3.  Baowu Group
      4.  Others
  15. Disclaimer
Green Steel Market Segmentation