The Green Steel Market refers to the emerging sector within the steel industry that focuses on producing steel using environmentally friendly and sustainable methods. Traditional steel production is known to be energy-intensive and produces significant greenhouse gas emissions, particularly through the blast furnace-basic oxygen furnace (BF-BOF) route, which uses coke and coal as inputs.

Green steel aims to reduce its carbon footprint and overall environmental impact by adopting innovative technologies and processes that utilize renewable energy sources, low-carbon fuels, and carbon capture and storage (CCS) technologies. The transition to green steel is driven by the urgent need to combat climate change and reduce global carbon emissions.

According to a new report published by Allied Market Research, titled, “Green steel Market," The green steel market size was $83.40 million in 2021, and is estimated to reach $386.1 billion by 2031, growing at a CAGR of 131.8% from 2022 to 2031. Further, in 2021, North America dominated the global green steel industry.

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Green steel is produced without the usage of fossil fuels. Instead of the conventional carbon-intensive manufacturing method of coal-fired plants, this may be accomplished by employing low-carbon energy sources such as electricity, hydrogen, or coal gasification. Increasing awareness of environmentally friendly steel manufacturing in key market players is driving the market. The industry is being driven by market participants' increased investments in greenfield ventures, collaborations, and strategic alliances to change their companies. The demand for green steel is being driven by government assistance and investment in green steel manufacturing. According to the World Steel Association, 1,860 MT (million tons) of steel were produced worldwide in 2020, releasing an average of 1.851 tons of CO2 into the environment per day. In order to increase the worldwide production of green steel, organizations have been forced to implement strategies and form alliances with commercial steel-making companies.

The high production costs of green hydrogen, which are influenced by the price of renewable energy & electrolyzes, product efficiency may be a hurdle for the green steel market growth  in the coming years due to lack of infrastructure globally. The cost of electrolysis is 5 times higher, or around USD 10.3 per kg, compared to traditional hydrogen generation methods, which costs between USD 1.5 and 2.3 per kg. Furthermore, the Rocky Mountain Institute claims that the cost of producing full-scale hydrogen-based steel is 20% to 30% higher than that of conventional technologies, which might further restrain the expansion of the worldwide market's revenue.

In addition, the outbreak of COVID-19 has led to halt in logistic and manufacturing activities across the globe, which, in turn, has led to interruption of supply chain, thereby hindering growth of the green steel market. However, this situation is expected to improve as government is relaxing norms around the world for resuming business activities.

Increasing government investment and cooperation among major market players are expected to bring lucrativ green steel market opportunities. 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 toward a green economic growth strategy. Later, in July 2020, the European Commission 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. Growing partnerships across Europe show that the green steel market offers a bright future for the region in the coming years.

The green steel market is segmented on the basis of energy source, type, end user, and region. By energy source, the market is divided into hydrogen, coal gasification, and electricity. By type, the market is bifurcated into electric arc furnaces (EAF) and molten oxide electrolysis (MOE). By end user, the market is divided into construction, automotive, electronics, and others. 

Region wise, the global green steel market analysis is conducted across North America (the U.S., Canada, and Mexico), Europe (the UK, France, Germany, Italy, and the rest of Europe), Asia-Pacific (China, Japan, India, South Korea, and rest of Asia-Pacific), and LAMEA (Latin America, the Middle East, and Africa). In 2021, Asia-Pacific was the highest contributor to the global green steel market share, and LAMEA is anticipated to secure a leading position during the forecast period. 

The major players profiled in the green steel market include Arcelor Mittal, Deutsche Edelstahlwerke Services, Emirates Steel, Green, Steel Group, H2 Green Steel, Jindal Steel and Power, Tata Steel, Tenaris, Thyssenkrupp, and United States Steel Corp (USSC). 

 KEY FINDINGS OF THE STUDY

• The report provides an extensive analysis of the current and emerging global green steel market trends and dynamics. 
• Depending on energy source, the hydrogen segment was the largest revenue generator in 2021.
• By type, the molten oxide electrolysis segment generated the highest revenue in 2021.
• Based on end user, the automotive segment dominated the market in 2021.
• Region wise, Europe is anticipated to dominate the global green steel market throughout the study period.
• The report provides an extensive analysis of the global green steel market trends and emerging opportunities of the market. 
• The global green steel market forecast analysis from 2022 to 2031 is included in the report.

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Allied Market Research (AMR) is a full-service market research and business-consulting wing of Allied Analytics LLP based in Portland, Oregon. Allied Market Research provides global enterprises as well as medium and small businesses with unmatched quality of "Market Research Reports" and "Business Intelligence Solutions." AMR has a targeted view to provide business insights and consulting to assist its clients to make strategic business decisions and achieve sustainable growth in their respective market domain.

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