The green steel market growth is attributed to the increasing demand for steel in the infrastructure and construction industry. Steel has a high strength-to-weight ratio, for which it is widely used in the construction of structures such as bridges, residential apartments, and commercial buildings.
The steel industry is one of the major contributors to global greenhouse gas emissions with an annual emission of 2.9 GtCO2. As opposed to this, green steel is produced without the use of fossil fuels. Instead of using conventional coal-fired facilities, alternative low-carbon energy sources like electricity, hydrogen, or coal gasification are utilized in the manufacturing process, which reduces greenhouse gas emissions, lowers costs, and improves the quality of the product.
Based on product, the market is segmented into hot-rolled and cold-rolled. The former is expected to dominate the market over the forecast period. Its demand is attributed to its superior properties such as excellent formidability, weldability, good adhesion ability, and high residual strain during baking.
Based on application, the market is segmented into pre-engineered metal building, industrial structures, and bridges. Pre-engineered metal buildings are the key consumers of the market. Rapid urbanization and rising awareness regarding lower costs associated with pre-engineered metal buildings are anticipated to drive segment growth over the forecast period.
Based on region, Asia Pacific was estimated to hold the highest revenue share in 2022. Governments across the region are trying to reduce carbon emissions emitted from their steel industry. For instance, the Indian government launched Pradhan Mantri Urja Ganga Project in 2019 with an aim to supply CNG for automobiles, cooking gas, as well as industries to meet their feedstock/fuel requirement in Eastern India. Also, the National Green Hydrogen Mission launched by the government focuses on the production and usage of hydrogen, with steel being a major stakeholder.
Decarbonization goals is further aiding to market growth. For instance, in February 2022, the French government announced to invest EUR 1.7 billion (~USD 1.7 billion) in ArcelorMittal’s decarbonization program in France. With this investment, steelmaking in France will undergo a significant transition, and by 2030, ArcelorMittal's CO2 emissions in France will be reduced by 7.8 million tons annually, or by 40%.
Further, companies are also expanding their production with growing demand. For instance, Blastr Green Steel is establishing a green steel facility with an integrated hydrogen production facility in Inkoo, Finland. Its operation is expected to commence in 2026. This investment is estimated at EUR 4 billion (~USD 4.36 billion) and will create around 1,200 direct jobs.
NEED A CUSTOM REPORT?
We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports, as well as offer affordable discounts for start-ups & universities. Contact us now
"The quality of research they have done for us has been excellent."