Green steel Market Size

Name: Green Steel Market Research Report - Global Forecast 2035
Creator: Market Research Future
License: https://www.marketresearchfuture.com/pages/terms-and-conditions

ID: MRFR/CnM/9766-HCR

128 Pages

Chitranshi Jaiswal

October 2025

Green Steel Market Research Report By Method of Production (Hydrogen-Based Reduction, Electrolysis, Biomass Direct Reduction, Recycling), By End Use Industry (Construction, Automotive, Manufacturing, Energy), By Form (Flat Steel, Long Steel, Steel Products), By Quality Grade (High Strength Steel, Low Alloy Steel, Stainless Steel) and By Regional (North America, Europe, South America, Asia Pacif...

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Green Steel Size

Green steel Market Growth Projections and Opportunities

The Green Steel Market is the present process of considerable differences prompted by a combination of environmental issues, technological innovations, and evolving consumer options. As metal enterprises face pressure to reduce their carbon footprint, numerous key marketplace factors shape the panorama of inexperienced metal manufacturing.

The number one driver for the inexperienced metal market is the worldwide vital to gain carbon neutrality. Traditional metallic manufacturing techniques, in particular blast furnaces, emit great carbon dioxide. The shift closer to green metal is motivated by the need to cope with weather change and reduce the environmental impact of metal manufacturing.

The improvement and adoption of low-carbon technology, which includes hydrogen-based totally direct discount and electric arc furnaces powered with the aid of renewable energy, are key individuals to the growth of the green metal market. These technologies offer options to standard methods and significantly lessen carbon emissions within the steelmaking manner.

Stringent environmental guidelines and authority incentives play a pivotal role in encouraging the adoption of inexperienced steel. Countries and regions are implementing guidelines to encourage metal enterprises to transition to cleaner manufacturing strategies. Incentives, along with carbon pricing and subsidies for green projects, accelerate this transition.

Increasing patron cognizance and call for sustainable merchandise have an impact on industries such as metal manufacturing. Manufacturers and purchasers alike are prioritizing merchandise with decreased carbon footprints, prompting metallic producers to adopt greener practices to fulfill market expectations and enhance emblem photography.

The idea of a round financial system, emphasizing aid performance and recycling affects the inexperienced steel marketplace. Steel recycling reduces the reliance on uncooked materials, conserves power, and minimizes waste. Steelmakers incorporating circular economy ideas make contributions to the sustainability desires of the enterprise.

Collaborations between steel producers, era vendors, and governments boost the development and implementation of green metallic solutions. Partnerships facilitate knowledge exchange, shared sources, and the scaling up of green steel production, contributing to the general growth of the marketplace.

Green metal gives an aggressive advantage and a unique selling proposition for metallic producers. Companies adopting sustainable practices can differentiate themselves inside the marketplace, attracting environmentally conscious clients and securing partnerships with green industries.

Economic trends and market conditions affect the tempo of the adoption of green metallic technology. Economic balance and boom can impact investments in sustainable metallic production, while economic downturns may additionally pose demanding situations.

Educating consumers about the environmental impact of steel production and the benefits of choosing green steel products is essential. Awareness campaigns contribute to changing consumer perceptions and fostering a preference for eco-friendly steel, further driving the demand for green steel in the market.

Market Highlights

Author

Chitranshi Jaiswal

Research Analyst Level I

In her 3 years of experience in the market research field, she has handled critical cross-domain projects. She has an in-depth knowledge of market estimation & analysis, problem-solving, primary as well as secondary research, and team management.She holds an engineering degree and is an MBA professional from a well-known university, capable of evaluating the market and competitive conditions. An exceptional strategist with excellent communication skills and a passion for delivering cutting-edge & practical insights for the market. Proficient in multi-tasking, and can successfully deal with competing demands, while maintaining complete confidentiality. Generated business through active client and project development, networking, and high-quality responses. Her knowledge and skills have helped in making solid business decisions, securing funding from investors, and avoiding business failures.

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FAQs

What is the expected market size of the Green Steel Market in 2024?

The Green Steel Market is expected to be valued at 2.91 USD Billion in 2024.

What is the expected CAGR of the Green Steel Market from 2025 to 2035?

Green steel Market is projected to register a CAGR of 112.52% from 2025-2035

Which region is expected to dominate the Green Steel Market by 2035?

Europe is expected to be the dominant region, with a market valuation of 20.0 USD Billion by 2035.

What is the market value of Hydrogen-Based Reduction in 2024?

The Hydrogen-Based Reduction segment is valued at 1.2 USD Billion in 2024.

Who are the key players in the Green Steel Market?

Major players include Tata Steel, Hyundai Steel, POSCO, Thyssenkrupp, and ArcelorMittal.

What is the market value of North America in the Green Steel Market for 2024?

North America is valued at 0.74 USD Billion in 2024.

What is the projected market value of the Asia Pacific region in 2035?

The Asia Pacific region is expected to reach a market value of 10.0 USD Billion by 2035.

What growth opportunities exist within the Green Steel Market?

Key opportunities include advancements in production methods and rising demand for sustainable steel.

1. Market Overview

2. Market Trends

3. Market Segment Insights

4. Key Players and Competitive Insights

5. Industry Developments

6. Market Segmentation

7. Report Scope

8. Market Highlights

9. FAQs

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Market Summary

As per Market Research Future Analysis, the Global Green Steel Market is poised for substantial growth, driven by increasing environmental regulations and rising demand from the automotive and construction sectors. The market size was estimated at 0.87 USD Billion in 2024 and is projected to reach 3480.06 USD Billion by 2035, reflecting a compound annual growth rate (CAGR) of approximately 29.49% from 2025 to 2035. Key technological innovations, such as hydrogen-based reduction and recycling methods, are enhancing production efficiency and sustainability.

Key Market Trends & Highlights

The Global Green Steel Market is witnessing transformative trends focused on sustainability and innovation.

Market Size in 2024: 0.87 USD Billion; expected to grow to 50 USD Billion by 2035.
Hydrogen-Based Reduction method projected to grow from 0.91 USD Billion in 2024 to 15.0 USD Billion by 2035.
Electric vehicles expected to account for 30% of all vehicle sales by 2030, driving green steel demand.
Europe's market valuation in 2024: 1.2 USD Billion; anticipated to reach 20.0 USD Billion by 2035.

Market Size & Forecast

2024 Market Size	USD 0.87 Billion
2035 Market Size	USD 3480.06 Billion
CAGR (2025-2035)	1.13%
Largest Regional Market Share in 2024	Europe.

Major Players

Key companies include Boston Metal, Nucor, ClevelandCliffs, POSCO, Voestalpine, SSAB, Tata Steel, Severstal, Thyssenkrupp, United States Steel, Salzgitter AG, ArcelorMittal, H2 Green Steel.

Market Trends

The Green Steel Market is experiencing significant growth driven by increasing environmental regulations and the urgent need to reduce carbon emissions in steel production. Governments worldwide are pushing for greener manufacturing processes, and steel producers are responding by investing in technologies that promote sustainability, such as hydrogen-based steelmaking. This shift is driven by a growing awareness of climate change and its impact on health and the environment, pushing companies to adopt cleaner alternatives.

Additionally, the demand for green steel is rising due to the automotive and construction industries prioritizing sustainable materials to meet consumer expectations for environmentally friendly products.Opportunities to be explored in this market include advances in carbon capture and storage technologies, as well as the potential for recycling scrap steel, which can reduce the reliance on virgin iron ore. Developing countries, in particular, can benefit from investing in green steel technologies, thus creating an avenue for economic growth and job creation in sustainable sectors.

The future of the Green Steel Market looks promising, supported by policy incentives and growing consumer demand for sustainable solutions.

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The transition towards green steel production is poised to reshape the global steel industry, driven by increasing regulatory pressures and a growing demand for sustainable practices across various sectors.

U.S. Department of Energy

Green steel Market Market Drivers

Market Growth Projections

The Global Green Steel Market Industry is projected to experience remarkable growth, with estimates suggesting a market value of 50 USD Billion by 2035. This anticipated expansion is driven by various factors, including rising demand for sustainable products, government regulations, and technological advancements. The industry is expected to witness a compound annual growth rate of 29.5% from 2025 to 2035, indicating a robust trajectory. As stakeholders increasingly recognize the importance of sustainable practices, the green steel sector is likely to play a crucial role in the global transition towards a low-carbon economy.

Government Regulations and Incentives

Government regulations play a pivotal role in shaping the Global Green Steel Market Industry. Many countries are implementing stringent emissions standards and offering incentives for companies that adopt greener practices. For instance, initiatives aimed at reducing carbon emissions are encouraging steel manufacturers to invest in green technologies. Such policies not only promote the use of green steel but also create a competitive advantage for compliant firms. As the regulatory landscape evolves, it is likely that the market will expand, with projections indicating a growth trajectory that could reach 50 USD Billion by 2035. This regulatory push underscores the importance of aligning with environmental goals.

Investment in Renewable Energy Sources

Investment in renewable energy sources is becoming increasingly critical for the Global Green Steel Market Industry. The integration of renewable energy into steel production processes can drastically lower carbon emissions, making green steel more competitive. As companies seek to transition away from fossil fuels, the reliance on solar, wind, and hydropower is expected to rise. This shift not only supports sustainability goals but also aligns with global energy trends. The growing emphasis on renewable energy solutions indicates a promising future for the green steel sector, as it positions itself as a key player in the broader transition to a low-carbon economy.

Rising Demand for Sustainable Products

The Global Green Steel Market Industry experiences a notable surge in demand for sustainable products as consumers and industries increasingly prioritize environmental responsibility. This shift is reflected in the growing adoption of green steel, which is produced with significantly lower carbon emissions compared to traditional methods. As of 2024, the market is valued at approximately 2.91 USD Billion, indicating a robust interest in eco-friendly alternatives. Industries such as automotive and construction are leading the charge, seeking to reduce their carbon footprints. This trend suggests that the Global Green Steel Market Industry is poised for substantial growth as sustainability becomes a core value across sectors.

Technological Advancements in Steel Production

Technological advancements are transforming the Global Green Steel Market Industry, enabling more efficient and sustainable production methods. Innovations such as hydrogen-based direct reduction processes and electric arc furnaces are gaining traction, significantly reducing the carbon intensity of steel production. These technologies not only enhance productivity but also align with global sustainability goals. As manufacturers adopt these cutting-edge techniques, the market is expected to witness a compound annual growth rate of 29.5% from 2025 to 2035. This rapid technological evolution indicates a shift towards a more sustainable steel industry, positioning green steel as a viable alternative in the global market.

Consumer Awareness and Corporate Responsibility

Consumer awareness regarding environmental issues is driving the Global Green Steel Market Industry towards more sustainable practices. As consumers become more informed about the impacts of their purchasing decisions, they increasingly favor products made from green steel. This shift is prompting companies to adopt corporate responsibility initiatives that prioritize sustainability in their supply chains. The growing demand for transparency and eco-friendly products is likely to influence manufacturers to invest in green steel technologies. As a result, the market is expected to expand significantly, reflecting a broader societal shift towards sustainability and responsible consumption.

Market Segment Insights

Green Steel Market Method of Production Insights

The Method of Production segment of the Green Steel Market is poised for significant development, showcasing diverse approaches such as Hydrogen-Based Reduction, Electrolysis, Biomass Direct Reduction, and Recycling. The overall market in 2024 is valued at 2.91 USD Billion and is expected to witness robust growth by 2035, reaching 50.0 USD Billion.

In 2024, the Hydrogen-Based Reduction segment holds a valuation of 1.2 USD Billion, reflecting its strong potential and increasing adoption as industries seek cleaner alternatives for steel production.By 2035, this segment is expected to lead with a valuation of 20.0 USD Billion, giving it a majority holding in the Green Steel Market. This method is considered significant due to its lower carbon emissions compared to traditional processes, which aligns with sustainability goals. Electrolysis, another key method, is valued at 0.85 USD Billion in 2024 and is projected to achieve 15.0 USD Billion by 2035.

This technology utilizes electricity to split water into hydrogen and oxygen, which is then applied in steel production, further enhancing its appeal amid the renewable energy push.Biomass Direct Reduction, with a valuation of 0.45 USD Billion in 2024, is anticipated to grow to 8.0 USD Billion by 2035. This method leverages organic materials to reduce iron ore into iron, contributing significantly to the circular economy by utilizing waste products. Lastly, the Recycling method, valued at 0.41 USD Billion in 2024, is expected to reach 7.0 USD Billion in 2035.

While it represents the least dominant segment, its importance cannot be overlooked as recycling steel greatly reduces energy consumption and greenhouse gas emissions.These insights reflect the underlying trends and market dynamics of the Green Steel Market, where sustainability and innovative production methods play a crucial role in shaping the future of steel manufacturing.

Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

Green Steel Market End Use Industry Insights

The Green Steel Market, which is set to be valued at 2.91 USD Billion in 2024, showcases a significant expansion driven by the increasing demand in the End Use Industry. The construction sector plays a crucial role, as it increasingly adopts green steel to meet sustainability goals and reduce carbon footprints. The automotive industry is also witnessing a strong shift, with manufacturers prioritizing lightweight and eco-friendly materials to enhance fuel efficiency.

In manufacturing, green steel is essential for the production of machinery and components, aligning with the trend towards decarbonization.Energy applications of green steel are significant as well, particularly in renewable energy infrastructure, supporting the shift towards clean energy sources. The overall market growth is supported by rising environmental regulations and the urgency to mitigate climate change impacts, providing ample opportunities across these sectors. As the focus on sustainability deepens, green steel is expected to gain the majority holding, particularly in the construction and automotive industries, making it a pivotal element in the transition toward a greener future.

Green Steel Market Form Insights

The Green Steel Market, focusing on the Form segment, has been experiencing notable growth, with significant contributions from various categories such as Flat Steel, Long Steel, and Steel Products. By 2024, this market is expected to be valued at 2.91 USD Billion and is projected to witness an increase to 50.0 USD Billion by 2035. Flat Steel is essential due to its versatility and application across the automotive and construction industries, supporting the shift towards sustainable practices in these sectors.

Long Steel plays a crucial role in infrastructure development, catering to the demands for eco-friendly building solutions.Steel Products encompasses a range of items that aid in the production of innovative and efficient applications, aligning with sustainability efforts. The Green Steel Market segmentation indicates a strong consumer preference for low-carbon steel solutions, driven by rising environmental regulations and growing awareness of climate change.

This market growth is further supported by advancements in technology aimed at reducing emissions, thus presenting numerous opportunities while also facing challenges related to production costs and raw material availability.Overall, the market data reflects a robust potential for expansion in the Green Steel industry, demonstrating significant shifts towards greener alternatives and increased demand for sustainable steel forms.

Green Steel Market Quality Grade Insights

The Green Steel Market is witnessing significant growth, particularly in the Quality Grade segment. By 2024, the market is valued at 2.91 USD Billion and is expected to rise substantially in the coming years. This segment encompasses various grades of steel, including High Strength Steel, Low Alloy Steel, and Stainless Steel, which are critical in meeting the evolving demands for sustainability and performance in industrial applications.

High Strength Steel is gaining traction due to its lightweight and high durability, making it vital for industries such as automotive and construction.Low Alloy Steel plays a crucial role in enhancing strength and toughness while maintaining low costs, appealing to manufacturers looking for efficient production methods. Stainless Steel, known for its corrosion resistance and longevity, remains significant for sectors requiring reliable materials, such as food and pharmaceuticals. The Green Steel Market revenues and segmentation underscore a robust market growth trajectory driven by increasing investments in sustainable practices and the adoption of advanced technologies.

Market challenges include the need for improved production methods to enhance efficiency while maintaining environmental benefits, presenting opportunities for innovation in this sector.Overall, the Quality Grade segment is poised to shape the Green Steel Market landscape as industries transition towards greener solutions.

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Regional Insights

The 'Green Steel Market' is projected to witness significant growth across various regions, with a valuation of 2.91 USD Billion in 2024 and expected to reach 50.0 USD Billion by 2035. North America is expected to hold a major portion, valued at 0.74 USD Billion in 2024, rising to 12.5 USD Billion in 2035, driven by a surge in eco-friendly initiatives and technological advancements.

Europe follows closely, with a valuation of 1.1 USD Billion in 2024, anticipated to reach 20.0 USD Billion by 2035, emphasizing the region's strong commitment to sustainable practices.Asia Pacific is also significant, valued at 0.61 USD Billion in 2024, and projected to grow to 10.0 USD Billion by 2035, benefiting from increased demand for green steel in rapidly industrializing economies.

Meanwhile, South America and the Middle East and Africa report valuations of 0.29 USD Billion and 0.17 USD Billion in 2024, respectively, with growth prospects reaching 5.0 USD Billion and 2.5 USD Billion by 2035, as local industries prioritize environmentally friendly production methods. Overall, the regional segmentation showcases varied growth drivers, with significant potential in established and emerging markets alike, highlighting the importance of sustainable steel production initiatives for environmental goals.

Green Steel Market Regional Insights

Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

Key Players and Competitive Insights

The Green Steel Market is experiencing robust growth as environmental concerns and sustainability priorities drive manufacturers and consumers to seek more eco-friendly production methods. The competitive landscape is shaped by the pressing need for carbon neutrality and the shift toward hydrogen-reduced steelmaking processes. Various companies are investing heavily in research and development to innovate sustainable practices while maintaining high-quality steel production. As economies worldwide commit to reducing emissions, the market for green steel is likely to expand, drawing in new entrants while established players innovate to improve their offerings and enhance their competitive stance.

The competitive insights reveal a focus on technological advancements, strategic partnerships, and dynamic supply chain management to meet the changing demands of industries.Tata Steel has established a significant presence in the Green Steel Market, leveraging its expertise in steel manufacturing and commitment to sustainability. The company's strengths lie in its advanced manufacturing technologies and a strong emphasis on reducing its carbon footprint, positioning itself as a responsible steel producer. Tata Steel's ongoing initiatives in carbon capture and utilization demonstrate its proactive approach to addressing environmental challenges.

Additionally, the company has been focused on investing in renewable energy sources, which further strengthens its sustainability credentials. Through these efforts, Tata Steel is not only enhancing its reputation as a leader within the sector but also expanding its influence in markets that prioritize greener practices.Hyundai Steel is strategically positioned in the Green Steel Market, focusing on developing low-carbon and eco-friendly steel solutions. The company has adopted several initiatives to bolster its commitment to sustainability, including investing in innovative production technologies that reduce greenhouse gas emissions.

Hyundai Steel's key products include high-strength steel and specialized steel products that cater to various industries, emphasizing quality and sustainability. The company's market presence is augmented by its strategic mergers and acquisitions aimed at enhancing technological capabilities and expanding its product range. Hyundai Steel's ongoing R&D efforts to improve its steel production processes and its focus on industry collaborations further reflect its strengths in adapting to the evolving landscape of steel production. By maintaining a focus on sustainable practices, Hyundai Steel is poised to strengthen its market position as demand for green steel alternatives continues to grow globally.

Key Companies in the Green steel Market market include

Industry Developments

Q3 2025: American startup tests cheaper approach to producing green steel Hertha Metals, a U.S. startup, announced the successful testing of a new, single-step, energy-efficient process for green steel production that minimizes emissions without increasing costs compared to traditional methods.

Future Outlook

Green steel Market Future Outlook

The Green Steel Market is projected to grow at a remarkable 29.50% CAGR from 2025 to 2035, driven by increasing demand for sustainable materials and regulatory support.

New opportunities lie in:

Invest in innovative hydrogen-based steel production technologies.
Develop partnerships with renewable energy providers for sustainable operations.
Expand into emerging markets with tailored green steel solutions.

By 2035, the Green Steel Market is poised to achieve substantial growth, reflecting a robust transition towards sustainability.

Market Segmentation

Green Steel Market Form Outlook

Flat Steel
Long Steel
Steel Products

Green Steel Market Regional Outlook

North America
Europe
South America
Asia Pacific
Middle East and Africa

Green Steel Market Quality Grade Outlook

High Strength Steel
Low Alloy Steel
Stainless Steel

Green Steel Market End Use Industry Outlook

Construction
Automotive
Manufacturing
Energy

Green Steel Market Method of Production Outlook

Hydrogen-Based Reduction
Electrolysis
Biomass Direct Reduction
Recycling

Report Scope

Report Attribute/Metric	Details
Market Size 2024	2.91(USD Billion)
Market Size 2035	3480.06 (USD Billion)
Compound Annual Growth Rate (CAGR)	112.52% (2025 - 2035)
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Base Year	2024
Market Forecast Period	2025 - 2035
Historical Data	2019 - 2024
Market Forecast Units	USD Billion
Key Companies Profiled	Tata Steel, Hyundai Steel, POSCO, Thyssenkrupp, ArcelorMittal, H2 Green Steel, Steel Dynamics, Nucor, ClevelandCliffs, SAIL, SSAB, Voestalpine, John Wood Group, United States Steel, Sierra Steel
Segments Covered	Method of Production, End Use Industry, Form, Quality Grade, Regional
Key Market Opportunities	Decarbonization initiatives drive demand, Government regulations favoring green processes, Growing electric vehicle manufacturing needs, Rising consumer preference for sustainability, and Investment in innovative production technologies.
Key Market Dynamics	sustainability trends, regulatory support, technological advancements, increasing demand, cost competitiveness
Countries Covered	North America, Europe, APAC, South America, MEA
Market Size 2025	1.85 (USD Billion)

Market Highlights

Author

Chitranshi Jaiswal

Research Analyst Level I

She holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.

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