Market Overview

The global green steel industry which focuses on producing steel with drastically reduced carbon emissions through hydrogen-based reduction, renewable-energy-powered electric arc furnaces (EAF), and high-grade scrap usage is entering a high-growth phase. Driven by net-zero targets, corporate sustainability commitments, and government incentives, green steel is shifting from an experimental niche to a commercial reality.

Traditional steelmaking contributes around 7–8% of global CO₂ emissions, pushing governments and manufacturers to adopt low-carbon solutions. As a result, the green steel market is projected to grow at a CAGR of 15–25% over the next decade, with Europe, North America, and Asia-Pacific leading investments in hydrogen infrastructure, renewable power, and low-emission furnaces.

Automotive, construction, consumer goods, and industrial sectors are increasingly demanding green materials as part of their sustainability roadmaps. With large OEMs committing to carbon-neutral supply chains, green steel suppliers are positioned for long-term demand security. The market is still emerging, but its commercial adoption is expected to accelerate significantly between 2025 and 2035.

Key Market Trends

1. Hydrogen-Based Direct Reduction (H-DRI) Gaining Momentum

Replacing coal with green hydrogen in the reduction process is the most promising pathway to ultra-low emissions. Companies are scaling hydrogen-based DRI pilots and commercial plants to meet future demand.

2. Surge in Renewable Energy–Powered Electric Arc Furnaces

EAF-based steelmaking powered by solar, wind, or hydro energy is experiencing rapid adoption due to lower emissions, lower operating costs, and flexibility in production.

3. Growing Demand for High-Quality Recycled Scrap Steel

Circularity is becoming core to green steel. Many regions are expanding scrap recycling infrastructure to reduce reliance on virgin ore.

4. Corporate Sustainability Mandates Accelerating Adoption

Major automotive manufacturers, appliance companies, and infrastructure developers are signing long-term green steel procurement agreements to meet ESG targets.

5. Government Policies & Funding Support

Countries are launching carbon border adjustment mechanisms (CBAM), green hydrogen missions, renewable energy subsidies, and tax incentives, all accelerating investment in green steel technologies.

6. Long-Term Shift Toward Carbon-Neutral Supply Chains

Large companies now evaluate suppliers based on carbon footprint. Green steel is becoming essential for competitive advantage in global manufacturing.

Market Share & Major Players

The green steel market is led by established steel manufacturers transitioning their processes as well as new entrants specializing in hydrogen-based technologies.

Key Players in the Growing Green Steel Ecosystem

• SSAB – One of the first companies to launch fossil-free steel using hydrogen-reduced iron.
• ArcelorMittal – Investing heavily in DRI and EAF facilities across Europe and North America.
• Tata Steel – Advancing hydrogen-based and recycling-focused steelmaking in Europe and India.
• Thyssenkrupp Steel – Large-scale investment in green hydrogen infrastructure for DRI plants.
• H2 Green Steel – A new-generation company focusing exclusively on hydrogen-powered steelmaking.
• POSCO, Nippon Steel, Baowu Group – Asian giants investing in carbon-neutral production technologies.

Emerging companies and energy providers (Air Liquide, Nel Hydrogen, and renewable power producers) are also becoming key ecosystem partners.

Report Scope

A detailed market research report on the green steel industry typically includes:

• Market Segmentation:
• By technology (Hydrogen DRI, EAF, Scrap-Based, Carbon Capture Steel).
• By end use (Automotive, Construction, Machinery, Consumer Goods).
• By energy source (Renewable-powered, Hybrid, Hydrogen-based).
• Geographical Analysis:
• North America, Europe, Asia-Pacific, Latin America, Middle East & Africa.
• Investment Landscape:
• Planned H-DRI projects, renewable power integration, pilot-to-commercial scale transitions.
• Competitive Landscape:
• Company profiles, partnerships, technology roadmaps, capacity expansions.
• Market Forecast:
• Revenue projections, capacity additions, demand outlook for green steel input materials (hydrogen, scrap).
• Challenges Covered:
• High cost of green hydrogen, limited renewable power availability, technology scale-up barriers.

What to Expect from Outlook:

         1. Save time carrying out entry-level research by identifying the size, growth trends, major    segments, and leading companies in the Global Green Steel Market

2. Use the PORTER’s Five Forces analysis to assess competitive intensity and overall attractiveness of the global industrial brakes sector.

3. Profiles of leading companies provide insights into key players’ regional operations, strategies, financial results, and recent initiatives.

4. Add weight to presentations and pitches by understanding the future growth prospects of the Global Forklift Market with forecast for decade by both market share (%) & revenue (USD Million). 

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