The green steel market has seen immense growth in recent years owing to increased focus on sustainable steel production methods that help reduce CO2 emissions. Green steel utilizes cleaner production techniques such as hydrogen direct reduction which replaces coking coal with hydrogen to cut carbon emissions during iron ore smelting. It also relies more on electric arc furnaces that use scrap steel as raw material and have nearly 70% lower CO2 emissions compared to traditional blast furnaces. With growing climatic concerns, steel makers across the globe are making investments in green steel production capacities to transition to low-carbon operations.
The Global Green Steel Market is estimated to be valued at US$ 117.13 Billion 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 focusing on developing green hydrogen based steelmaking plants and increasing their electric arc furnace production capacities to reduce carbon footprint.
The Green Steel Market Trends is anticipated to surge considerably given the implementation of stringent environmental regulations worldwide and policies promoting use of low-carbon materials. Major economies are offering production linked incentives for investments in sustainable technologies like green hydrogen to encourage steel companies' transition towards cleaner production.
Key players are also expanding their green steel operations globally near major markets to ensure supply security and gain a competitive advantage. For instance, H2 Green Steel plans to set up a 5 million tons per annum capacity plant in Sweden by 2030-31 and ArcelorMittal is increasing scrap based electric arc furnace production in North America and Europe.
Market Key Trends
One Green Steel Market Size And Trends is the increasing focus on adopting cleaner hydrogen-based direct reduction technologies. Many large steel producers are partnering with green hydrogen companies and investing heavily to build pilot and commercial plants powered by hydrogen. For example, Ansteel Group and Fortescue Future Industries recently announced collaboration for a green hydrogen to steel project in China. This will significantly boost China's domestic green steel sector.
Porter’s Analysis
Threat of new entrants: The high level of capital requirements and technology needed to produce Green Steel acts as a deterrent for new players to enter this market.
Bargaining power of buyers: Individual buyers hold less power against producers of Green Steel compared to collective bargaining power of large buyers.
Bargaining power of suppliers: The availability of key raw materials like iron ore and scrap metal enables existing suppliers to negotiate better prices.
Threat of new substitutes: New advances in alternative materials may threaten Green Steel's market share if proven more sustainable and affordable over time.
Competitive rivalry: Market share is concentrated among top producers of Green Steel globally.
Geographical Regions
North America accounts for a majority of the global Green Steel market value currently owing to stringent emissions norms and government support for renewables. Europe and China also have growing demand centers due to initiatives supporting carbon neutral goals.
The Asia Pacific region excluding China is expected to witness the fastest growth in the Green Steel market during the forecast period. This is attributed to factors like increasing infrastructure development, urbanization and industrialization in countries such as India, Indonesia and Vietnam which will fuel demand. At the same time, supportive government policies focused on sustainability are attracting investors here.
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Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)
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