Green Steel Market By Product Type (Flat Steel, Long Steel, Tubular Steel, Others), By Application (Construction, Automotive & Transportation, Consumer Goods & Appliances, Industrial Equipment, Others), By Production Method (Electric Arc Furnace, Hydrogen-Based Direct Reduced Iron, Molten Oxide Electrolysis, Others), By End-user (Building & Infrastructure, Automotive, Manufacturing, Energy, Others), Global Market Size, Segmental analysis, Regional Overview, Company share analysis, Leading Company Profiles And Market Forecast, 2025 – 2035

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What trends will shape the Green Steel Market in the coming years?

The Green Steel Market accounted for USD 5.92 Billion in 2024 and USD 7.77 Billion in 2025 is expected to reach USD 117.38 Billion by 2035, growing at a CAGR of around 31.20 % between 2025 and 2035. The Green Steel Market refers to the subject of creating steel using low-carbon techniques such as hydrogen-based reduction, renewable-powered electric arc furnaces, and other methods. The main trends that expand the market are the increase in the consumption of environmentally-friendly resources, decarbonization of heavy industries, favorable government policies, and breakthroughs in hydrogen production and recycling.

Developing ESG obligations and net-zero targets of manufacturers and end-use sectors, such as the automotive industry and construction, is also fast-tracking adoption. Barriers exist in high production costs, inadequate infrastructure related to hydrogen, and raw material issues. Innovation and global climate targets, however, are likely to increase the opportunities in the market. There is a healthy future vision, and green steel will emerge as one of the building blocks of the clean industrial revolution. 

What do industry experts say about the Green Steel Market trends?

"Steel must decarbonize by 2050. Hydrogen-based direct reduction (DRI) and carbon capture (CCUS) are viable pathways but require policy support and scaled investment."

• Dr. Adair Turner, Energy Transitions Commission

Which segments and geographies does the report analyze?

What are the key drivers and challenges shaping the Green Steel Market?

How are rising carbon neutrality goals driving green steel adoption?

The iron and steel industry is global, with 3.7 billion tons of CO2 emitted annually, representing 7.11 percent of the total global emission of GHGs, which makes it one of the carbon-intensive industries in the world. Consequently, the Green Steel Market is picking up with nations pledging to become net-zero by the middle of the century. This decarbonization effort in the world is urging the steel sector to shift to low-carbon solutions, such as hydrogen-based reduction and renewable energy-based electric arc furnaces. This movement is being hastened by regulatory tools such as the European Union Carbon Border Adjustment Mechanism (CBAM) and the increase in the price of carbon.

Decarbonization ceases to be a long-term goal of the most popular manufacturers, but, at the current moment, it is a strategic priority. With ESG criteria gaining greater purchase in the setting of investment priorities and purchasing policies, green steel is being added to value chains in construction, automotives, appliances, and industrial equipment. The Green Steel Market is therefore becoming a critical lever in the strategy of the global climate, according to which the first movers among the companies investing early in clean technologies and low-carbon producing processes will gain first-mover advantages.

Why is hydrogen-based steelmaking gaining momentum in industrial applications?

The National Green Hydrogen Mission of India has given out funds of Rs 455 crore (~USD 55 million) towards pilot steel-hydrogen projects, with a large 3,200 tons-per-day plant being led by SAIL, a declaration of governmental intent to inculcate clean industrial transformation in the country. Hydrogen-based steelmaking is pioneered on a global scale in the Green Steel Market in the Green Steel Market giving a viable solution to achieving near-zero emissions through the replacement of coking coal with green hydrogen in the iron reduction process. In comparison with the classical blast furnaces, which are responsible for high emissions of CO2, hydrogen-based direct reduction produces only water vapor, and this allows it to become one of the most important technologies in the decarbonization of the steel industry.

This strategy is picking up pace with strong government support and national hydrogen roadmaps and industry pilots throughout Europe, India, and the U.S. With the ever-dropping price of electrolyzers and renewable energy, the scalability of this model is gaining more interest. Hydrogen steelmaking is more than a technological transition, and it is, in fact, part of a strategic pivot that uses green steel as an essential parameter of low-carbon industrial ecosystems and long-term energy resilience.

What makes green steel production more expensive than conventional methods?

The cost of production is very high, which constitutes one of the biggest impediments to the quick adoption in the Green Steel Market. Energy-intensive green steel, as produced through hydrogen-based direct reduction or electricity-powered electric arc furnaces, is presently considerably more expensive than traditionally produced steel. Such high price tags are mainly possible due to the significant capital outlook on new infrastructure, low production of green hydrogen, and comparatively expensive renewable electricity. Moreover, compared to conventional processes with their decades-long experience with process optimization, green steel approaches are being developed at the phase of early stage and are not supported by economies of scale.

Such a difference in costs may deter steel makers, especially in the developing economies, from taking the step to become steel makers, especially without significant subsidies or good policing. The economic feasibility is a core issue within the Green Steel Market, so it is important that the point be made, governments and stakeholders are willing to form financial incentives, carbon credits, or demand guarantees. The green steel transition will otherwise only find its niche in markets instead of serving as a global industrial standard due to the lack of cost-bridging mechanisms.

Can global net-zero policies accelerate investments in green metallurgy?

The competition in the global net-zero policies, as a result, is making available a very strong incentive for the Green Steel Market to generate long-term capital and innovation. The sector was particularly hard hit by a sweeping regulatory push on the climate front as nations move to set climate commitments under the Paris Agreement, including the steel industry. This policy thrust is also spurring funds into green metallurgy technology, such as hydrogen-based DRI, carbon capture integration, and low-carbon process automation. The governments are providing grants, tax credits, and public-private partnerships to encourage the building of green steel plants.

At the same time, climate-aware lenders and climate-aware investors are also starting to reprime portfolios to include green industrial assets. The Green Steel Market has a massive opportunity that it will gain significantly by being able to attain this transition because those metal producers with a low-carbon pedigree will get premium pricing, long-term buying contracts, and the elimination of future regulatory risks. With carbon accountability reaching the mainstream, the net-zero frameworks can no longer be considered desirable, but rather executable market drivers. This is a very fertile ground that pioneers innovation, financing, and faster acceptance in the production of green steel.

How can automotive partnerships boost demand for eco-friendly steel?

Changing priorities of the automotive industry are developing a strategic possibility for the Green Steel Market. As the car industry strives to be electric and carbon-neutral in its production activity, green materials sourcing, which includes steel, has become a cornerstone of sustainable road maps. A significant demand shift has been signalled as long-term contracts with the green steel producers have already been signed by companies such as BMW, Volvo, and Mercedes-Benz. Such alliances are not merely regulatory but branding, investor expectations, and life cycle emission objectives. Hundreds of kilograms of steel in the vehicles, the replacement of the materials with more eco-friendly ones will significantly reduce the carbon footprint of a car.

In addition, applied regulatory norms in major markets such as the EU are starting to consider the supply chain emissions, pushing car manufacturers to rethink the approach to their materials choice. This trend is also believed to increase with the pressure of end consumers and fleet purchasers to require* sustainability in transportation solutions. These cross-sector partnerships are also opening up the creation of new avenues of revenue generation and fast-tracking the commercialization process far beyond pilot-scale operationalities in the Green Steel Market.

What are the key market segments in the Green Steel industry?

Based on the Product Type, the Green Steel Market has been classified into Flat Steel, Long Steel, Tubular Steel, and Others. The flat steel segment is dominant, driven by a wide utility in automotive, construction, and industrial equipment industries. Flat steel is especially appropriate in producing car bodies, roofing panels, and machinery parts, and thus is one of the most desired materials used in industries that are now focusing on the use of sustainable inputs.

Steel is also consistent, particularly on infrastructure projects and heavy rebar applications. Tubular steel is also on the rise in the renewable energy field, such as wind turbine constructs and pipelines. Due to decarbonization and increasing ESG concerns along the supply chain, the market will see a large increase in the demand for green versions of flat and tubular steel. The product segment as such is changing in tandem with changes in technology in low-carbon steel manufacturing operations.

Based on the Application, the Green Steel Market has been classified into Construction, Automotive & Transportation, Consumer Goods & Appliances, Industrial Equipment, and Others. The construction segment becomes the biggest domain of the Green Steel Market, thanks to the increasing green buildings, as well as government requirements on sustainable urbanization. The industry is becoming more environmentally conscious, and the use of green steel in structural designs, bridges, and reinforcement is increasing to accommodate reduction targets on the carbon content.

Automotive & transportation is not far behind, with OEMs trying to minimize the number of emissions that take place in the life cycle of the vehicle and comply with regulations, as well as customer demand. The industrial equipment and consumer goods industries are also considering the green steel alternatives, especially in the high-end of the appliance and machinery sector. With the global concern over sustainable sourcing growing increasingly, such applications are likely to experience a gradual replacement of a traditional steel solution with a green steel solution, which will only further the change in the market.

Which regions are leading the Green Steel Market, and why?

The European Green Steel Market is the largest region, due to robust regulatory systems, high ambition in the field of climate, and early interest in low-carbon technologies. A combination of the European Union Green Deal, the Carbon Border Adjustment Mechanism (CBAM), and enthusiastic support of hydrogen infrastructures has, by these measures, made it a very pleasant environment in which to make green steel.

Countries such as Germany, Sweden, and the Netherlands are at the forefront of high investments in hydrogen-backed DRI and renewable-based electric arc furnaces. Larger players like SSAB, ArcelorMittal, or Salzgitter AG already have pilot projects started or even commercial units. As the demands of the automotive, construction, and industrial industries continue to rise, Europe is likely to retain its status as a developed and innovation-centered Green-Steel market.

The Asia-Pacific Green Steel Market is rapidly growing with rapid industrialization, an explosion in steel usage, and growing environmental consciousness. The Asia-Pacific market has been the fastest-rising market. Nationwide hydrogen policies and decarbonization goals are among the many factors that guide strategic moves by China, India, Japan, and South Korea towards low-emission steel making.

Although traditional steel production remains the most popular, the governments and key producers are now focusing on the emergence of green steel plants to support not only their sustainability but also international trade policies. The demand is particularly increasing in the construction and manufacturing industries, where these industries are under pressure to minimize their carbon footprint. With Asia-Pacific on a trajectory to expand its clean energy system and practice the circular economic approach, the region is set to experience unprecedented growth in the green steel sector.  

What does the competitive landscape of the Green Steel Market look like?

The Green Steel Market is highly dynamic, so that in the current situation, not only the traditional steelmaking giants but also new players are making active investments in low-carbon technology. ArcelorMittal, SSAB, ThyssenKrupp, Tata Steel, and Nucor are the key players who are leading on a massive scale in going green steel by using hydrogen-based DRI, electric arc furnaces, and integration of renewable energy. A number of companies are making multi-sectoral connections with automotive giants, energy, and governments to ease access to green hydrogen sourcing and increase production capacity.  

As an example, SSAB is collaborating with Volvo Group to provide fossil-free steel to be used in vehicle production, and ArcelorMittal is rolling out carbon-capturing and green hydrogen pilots throughout its operations in Europe. Until then, new players in the market, such as H2 Green Steel, or technological innovators, are introducing agility and novel process innovation to the market, making commercialization faster. Firms are also taking advantage of green certification, sustainable sourcing practices, and environmental, social, and governance reporting to enhance a firm's competitive advantage, and they are aligning to meet higher customer demands. Competition is now moving towards cost parity, output mass, and first-mover advantage in high-demand industries such as construction and the automobile sectors as the demand escalates.

Green Steel Market, Company Shares Analysis, 2024

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Which recent mergers, acquisitions, or product launches are shaping the Green Steel industry?

• In March 2025, Hyundai Motor Group announced plans to build a $6 billion low‑carbon steel plant in Louisiana, featuring an electric arc furnace powered by clean electricity to supply its automotive operations with sustainable steel.
• In June 2025, Tata Steel Nederland submitted its Environmental Impact Assessment report to Dutch authorities, detailing plans to transition from coal to natural gas and green electricity (with future hydrogen integration), aiming to cut 5 million tonnes of CO₂ annually.

Report Coverage:

By Product Type

• Flat Steel
• Long Steel
• Tubular Steel
• Others

By Application

• Construction
• Automotive & Transportation
• Consumer Goods & Appliances
• Industrial Equipment
• Others

 By Production Method

• Electric Arc Furnace
• Hydrogen-Based Direct Reduced Iron
• Molten Oxide Electrolysis
• Others

By End-user

• Building & Infrastructure
• Automotive
• Manufacturing
• Energy
• Others

By Region

North America

• U.S.
• Canada

Europe

• U.K.
• France
• Germany
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Singapore
• Rest of Asia Pacific

Latin America

• Brazil
• Argentina
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC Countries
• South Africa
• Rest of Middle East & Africa

List of Companies:

• ArcelorMittal
• SSAB
• Thyssenkrupp AG
• Tata Steel
• Nucor Corporation
• POSCO
• China Baowu Steel Group
• Nippon Steel Corporation
• JFE Steel Corporation
• H2 Green Steel
• Salzgitter AG
• Voestalpine AG
• JSW Steel
• Emirates Steel Arkan Group
• Outokumpu Oyj

Frequently Asked Questions (FAQs)