The green steel market has evolved rapidly in recent years owing to innovations in electric arc furnaces for steelmaking and increased focus on sustainability in developed economies. Green steel uses carbon-efficient processes and avoids reliance on coking coal by using hydrogen instead. Green steel production has significant advantages such as lower carbon emissions, ease of recycling scrap steel, and improved productivity during steel manufacturing.
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 Steel Group, Hesteel Group, and Posco. These players are investing heavily in carbon capture and storage technologies as well as hydrogen-based steelmaking processes to reduce carbon footprint.
The demand for Green Steel Market Demand is expected to surge over the coming years due to stringent emission norms in regions like Europe and favorable government policies supporting renewable energy projects. Nations are keen to replace coal with green energy sources to meet climate goals which will boost demand for green steel and green building materials.
Technological advancements such as electric-arc furnaces combined with carbon capture and storage, hydrogen direct reduction processes, and smelting reduction processes will disrupt the steel industry and help decarbonize the manufacturing process substantially over the coming years.
Market Trends
Growing focus on renewable energy projects worldwide is one of the key trends driving the Green Steel Market Analysis Many developed nations have set an aggressive target of achieving net-zero emissions by 2050 which will boost investments in solar, wind and hydro energy projects that use sustainable building materials.
Another major trend is the implementation of carbon pricing mechanisms to reduce pollution. Initiatives like European Union Emissions Trading System have made conventional steel production costlier. This is prompting manufacturers to invest in carbon-efficient technologies to lower operational costs and remain competitive.
Market Opportunities
Tightening emission norms globally present a big opportunity for Green Steel producers. Countries are rolling out several policy measures and incentives to cut industrial pollution. This is benefitting green steel players and will likely aid their global expansion over the coming decade.
Rise of green buildings concept also offers attractive prospects. Green building technologies adopt sustainable building designs, use eco-friendly materials and rely on renewable energy sources. This offers lucrative business opportunities for green steel manufacturers to partner with construction firms.
Impact of COVID-19 on Green Steel Market Growth
The COVID-19 pandemic has adversely impacted the green steel market globally. Governments imposed lockdowns and restrictions to curb the spread of the virus which disrupted the global supply chains. Steel production and consumption witnessed a major slowdown due to closure of manufacturing units and construction activities. The lockdowns delayed infrastructure projects and new investments in green steel manufacturing plants. Despite the high growth potential, developing clean production facilities was not a priority in 2020-21.
However, the long term prospects for green steel remain intact as countries accelerate climate actions to boost their economies post pandemic. Major steel producers are exploring ways to transition to low carbon operations. Investments in renewable energy, battery storage technologies and carbon capture, utilization and storage are expected to support green production pathways. Government stimulus packages are emphasizing sustainability and green infrastructure development. The rising carbon taxes and emission regulations will further drive investments in innovative clean steelmaking technologies. New partnerships and policies are anticipated to help achieve regional decarbonization targets through resource efficiency and circular business models in steel industry.
Geographical Regions with Highest Green Steel Concentration
The European Union accounts for the largest share of global green steel market in terms of value currently. Countries like Germany, Spain, France and Italy have strategic roadmaps for scaling up low-carbon steel manufacturing. The region possesses technical expertise and competitive supply chains to commercialize emerging green technologies like hydrogen direct reduction and electric arc furnaces on a large scale.
China is also heavily investing in green alternatives as it aims to fulfill its commitments under the Paris Agreement and reduce dependency on imported resources. Major steel hubs in regions like Shandong, Henan and Hebei are transitioning to renewable electricity powered electric arc furnaces and waste heat recovery systems. The country’s capacity additions and investments in renewables will support its decarbonization goals in the steel sector.
Fastest Growing Regions for Green Steel Market
The Asia Pacific region excluding China is anticipated to emerge as the fastest growing market for green steel during the forecast period. Countries like India, Indonesia, Vietnam and Malaysia are rapidly industrializing and adopting clean and efficient production methods to meet rising demand sustainably.
Governments are introducing green stimulus packages, production-linked incentives and subsidies to attract investments in low-carbon energy and resources. New manufacturing capacities will focus on reducing carbon footprint from the start by integrating renewable power and innovative recycling technologies. The dedicated approach towards sustainability makes Asia Pacific a lucrative market for green steel in the long run.
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About Author:
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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