Green Steel Market Size

The global green steel market size was worth USD 3.70 billion in 2024 and is anticipated to expand to around USD 279.40 billion by 2034, registering a compound annual growth rate (CAGR) of 54.10% from 2025 to 2034.

What is the Green Steel Market?

The Green Steel Market refers to the segment of the global steel industry that produces steel using low-carbon or carbon-neutral processes, primarily aimed at reducing CO2 emissions during production. Conventional steel production accounts for nearly 7-9% of global greenhouse gas emissions, making it a significant contributor to climate change. Green steel replaces fossil-fuel-based methods with alternatives such as hydrogen-based direct reduced iron (H-DRI), electric arc furnaces (EAFs) using renewable energy, and carbon capture technologies.

This market represents not only a technological shift but a climate imperative, aligning with global commitments to achieve Net Zero emissions by 2050.

Green Steel Market Growth Factors

The growth of the green steel market is driven by increasing pressure to decarbonize heavy industries, stricter government regulations on industrial emissions, rising carbon prices, and growing investor and consumer demand for sustainable products. The availability of green hydrogen, renewable energy investments, and government incentives across Europe, North America, and Asia-Pacific further support growth. Additionally, sustainability-linked contracts and “green premiums” from automakers and construction companies help financially justify the higher costs associated with green steel production.

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Why is the Green Steel Market Important?

Green steel is crucial to achieving global decarbonization goals, particularly in the hard-to-abate steel sector, which has traditionally relied on coal-based blast furnaces. With climate change accelerating and regulations tightening, green steel offers a pathway to:

• Reduce industrial carbon footprint
• Enable sustainable construction, automotive, and infrastructure
• Comply with ESG standards and carbon pricing mechanisms
• Foster innovation and competitiveness in the steel sector

Green Steel Market Top Companies

1. SSAB AB

• Specialization: Advanced high-strength steel and fossil-free steel production
• Key Focus Areas: HYBRIT project (Hydrogen Breakthrough Ironmaking Technology)
• Notable Features: First to deliver fossil-free steel in 2021
• 2024 Revenue: ~$11.6 billion (estimated)
• Market Share: Leading player in Nordic green steel
• Global Presence: Europe, North America, Asia

2. Emirates Steel Arkan Group

• Specialization: Long steel products, decarbonized production via energy efficiency and EAF
• Key Focus Areas: Circular economy, green hydrogen integration
• Notable Features: First in MENA to issue a Climate Action Plan
• 2024 Revenue: ~$3.2 billion (estimated)
• Market Share: Major player in GCC region
• Global Presence: UAE, GCC, Asia, Africa

3. Outokumpu Oyj

• Specialization: Stainless steel with low carbon footprint
• Key Focus Areas: Recycled steel, energy-efficient production
• Notable Features: Uses 90% recycled materials
• 2024 Revenue: ~$8.4 billion (estimated)
• Market Share: Leading stainless green steel producer in Europe
• Global Presence: Europe, USA, Asia

4. Swiss Steel Group

• Specialization: Engineering and special steel production via EAF
• Key Focus Areas: Carbon-neutral steel, digitalization, recycling
• Notable Features: EAF-based production cuts CO2 by up to 80%
• 2024 Revenue: ~$3.6 billion (estimated)
• Market Share: Strong presence in EAF segment
• Global Presence: Europe, North America, Asia

5. ArcelorMittal

• Specialization: Flat and long steel products using Smart Carbon and DRI
• Key Focus Areas: XCarb Green Steel Certificates, green hydrogen, CCUS
• Notable Features: $10B decarbonization fund, net-zero by 2050
• 2024 Revenue: ~$64 billion (estimated)
• Market Share: One of the largest green steel players globally
• Global Presence: Europe, Americas, Africa, Asia

Leading Trends and Their Impact

• Hydrogen-based Steelmaking: Replaces coal with hydrogen in DRI processes. Gaining traction in Europe and UAE.
• Carbon Border Adjustment Mechanisms (CBAM): Encourages green steel production to stay competitive under EU regulations.
• Green Steel Premiums: OEMs like BMW and Volvo are paying more for certified green steel.
• Digitalization: AI-based carbon tracking and smart factories optimize energy and resource use.
• Circular Economy: Focus on recycled steel reduces mining and GHG emissions.

Successful Examples of Green Steel Initiatives

• Sweden: SSAB’s HYBRIT project delivered fossil-free steel to Volvo.
• UAE: Emirates Steel uses EAFs with renewable power and targets hydrogen integration.
• Germany: ArcelorMittal’s Bremen and Hamburg plants using hydrogen-based DRI.
• Australia: Fortescue Future Industries investing in green steel and hydrogen.
• India: JSW and Tata Steel launching green steel pilots with hydrogen and CCUS.

Global Regional Analysis and Government Initiatives

North America

• USA’s Inflation Reduction Act: $6B for industrial decarbonization including green steel.
• DOE and EPA supporting hydrogen and low-emission processes.
• Nucor and US Steel focus on renewable-powered EAFs.

Europe

• EU Green Deal and Fit for 55 strategy support green steel through subsidies and carbon pricing.
• Germany, Sweden lead hydrogen-based steel innovation.
• CBAM drives demand for locally produced green steel.

Asia-Pacific

• China: Developing low-carbon steel pilot plants and mandating recycling targets.
• India: National Green Hydrogen Mission supporting steel decarbonization.
• Japan, South Korea: Advancing R&D in hydrogen steel and CCUS.

Middle East and Africa

• UAE and Saudi Arabia: Building hydrogen corridors and green steel ecosystems as part of Vision 2030.

Latin America

• Brazil and Chile: Investing in renewables and sustainable steelmaking aligned with climate targets.

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Read Report: Green Ammonia Market Growth Drivers, Top Companies, Trends, and Global Policy Impact (2025-2034)