Green steel Market Expected to Reach $364.5 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Green steel Market," The Green Steel Market Size was valued at $200.00 million in 2022, and is estimated to reach $364.5 billion by 2032, growing at a CAGR of 113.6% from 2023 to 2032. 

Green steel is made by forging steel without using fossil fuels. One way to lessen the carbon footprint of the steel sector is to use called green hydrogen. In the future, green steel is anticipated to contribute significantly to attaining various nations' sustainable development goals by lowering carbon emissions. Green hydrogen, which is produced without the use of fossil fuels from renewable sources, is used to make green steel. The need for sustainable goods among consumers and manufacturers and growing international government efforts have greatly boosted the growth of the global raw steel industry.

Increasing awareness of environmentally friendly steel manufacturing in various  sectors such as construction, automotive, and manufacturing is expected to boost the green steel market growth The industry is also driven by market participants' increased investments in greenfield ventures, collaborations, and strategic alliances to increase the production of low carbon emission green steel. . The demand for green steel is driven by government assistance and investment in green steel manufacturing. 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 of green steel (to be procured from a Swedish steel manufacturer, H2 Green Group) in their automobiles, with an intent to reduce up to 95% greenhouse gas (GHG) emissions by 2025. Hence, such government assistance can increase the demand for the green steel market.

In 2022, Europe accounted for the highest share of the green steel market share, in terms of revenue, accounting for around 40% share of the green steel market.

The high cost of green hydrogen production, influenced by renewable energy and electrolysis prices, product performance, etc., is expected to restrain the growth of the green steel market in the coming years due to a lack of infrastructure on a global scale. Electrolysis costs are five times higher, or about $10.3/kg, compared to traditional hydrogen production methods, which cost between $1.5 and $2.3/kg. In addition, the Rocky Mountain Institute said the cost of producing hydrogen-based steel at scale is 20-30% higher than conventional technology, which could further reduce the ability to expand market revenues globally.

The green steel market experiences slow-paced growth due to various global events such as the COVID-19 pandemic and inflation. Earlier, the global lockdowns resulted in reduced industrial activities, eventually leading to reduced demand for green steel from various sectors such as construction and industrial. However, the COVID-19 has subsided, and major manufacturers in 2023 are performing well. However, the rise in global inflation is a new major restraining factor for the entire industry. The inflation, which is a direct result of the Ukraine-Russia war, and few long-term impacts of the coronavirus pandemic, has introduced volatility in the prices of raw materials used for manufacturing green steel.

In addition, oil and gas prices have also increased significantly, and many countries, especially countries in Europe and developing economies in the Asia-Pacific region, are suffering serious negative impacts on their production such as industrial production, including green steel production. However, India and China are doing relatively well and demand for various industrial and non-industrial products is growing. Furthermore, inflation is expected to get even worse in the coming years due to the possibility of the war between Ukraine and Russia ending is less.. Moreover, the cost of construction has increased substantially, discouraging builders from initiating new projects, which is expected to negatively affect the green steel market growth. However, a peace agreement between Ukraine and Russia can be devised, with continued talks between different countries.

An increase in the number of government investment and a rise in cooperation among major market players are expected to bring lucrative opportunities for the growth of the green steel market. 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. 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 also show that the green steel market offers a bright future for the region in the coming years.

KEY BENEFITS FOR STAKEHOLDERS

• The report provides an extensive analysis of the current and emerging green steel market trends and dynamics. 
• In-depth green steel market analysis is conducted by constructing market estimations for the key market segments between 2022 and 2032.
• Extensive analysis of the green steel market is conducted by following key product positioning and monitoring of the top competitors within the market framework.
• A comprehensive analysis of all regions is provided to determine the prevailing opportunities.
• The Green Steel Market forecast analysis from 2023 to 2032 is included in the report.
• The key market players within the green steel market outlook are profiled in this report and their strategies are analyzed thoroughly, which helps understand the competitive outlook of the green steel industry.