Green Steel Market (2025-2032)
The Green Steel Market was valued at $2.5 billion in 2024. This market is expected to reach $88.4 billion by 2032 from an estimated $3.8 billion in 2025, at a CAGR of 56.6% during the forecast period 2025-2032. Green Steel Market Size & Forecast The growth in this market is driven by factors such
- Published
- Aug 2024
- Pages
- 200
- Format
- PDF + Excel
- Report ID
- MRCHM - 1041296
- Base year
- 2024
- 2024 · BASELINE
- $2.50B
- 2032
- $88.40B
- CAGR 2025–2032
- 56.6%
2024 baseline · 2025–2032 forecast at 56.6% CAGR · hover a bar for the value
Key highlights
The Green Steel Market was valued at $2.5 billion in 2024.
This market is expected to reach $88.4 billion by 2032 from an estimated $3.8 billion in 2025, at a CAGR of 56.6% during the forecast period 2025-2032.
The electric arc furnace (EAF) segment is expected to account for the largest share of over 57.0% of the global green steel market.
The Automotive Segment to Dominate the Green Steel Market in 2025
In 2025, Europe is expected to account for the largest share, over 41.0%, of the green steel market. This large share of the region is attributed to the rising investment in carbon-free steel production plants, residential and commercial infrastructure development projects, European steelmakers' rising focus on decarbonization strategies, and government investment in green steel projects.
However, the Asia-Pacific region is expected to grow with the highest CAGR of over 59.0% during the forecast period.
Report summary
| Particulars | Details |
|---|---|
| Number of Pages | 200 |
| Format | |
| Forecast Period | 2025–2032 |
| Base Year | 2024 |
| CAGR | 56.6% |
| Market Size (Value) | USD 88.4 Billion by 2032 |
| Segments Covered | By Process · Water Electric Arc Furnace (EAF) · Molten Oxide Electrolysis (MOE) · Other Processes · By End-use Industry · Buildings & Construction · Automotive · Electronics · Manufacturing · Aerospace · Agriculture · Energy & Power · Oil & Gas · Other End-use Industries |
| Countries Covered | North America (U.S., Canada), Europe (Germany, U.K., France, Italy, Spain, Switzerland, Netherlands, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Singapore, Malaysia, and Rest of Asia-Pacific), Latin America (Brazil, Mexico, and Rest of Latin America), and Middle East & Africa (UAE, Israel, Rest of Middle East & Africa) |
| Key Companies | H2 Green Steel (Sweden), Thyssenkrupp AG (Germany), Tata Steel Ltd. (India), Arcelor Mittal (Luxembourg), Emirates Steel (UAE), Green Steel Group (Italy), Jindal Steel and Power (India), Swiss Steel Group (Switzerland), Nippon Steel Corporation (Japan), Cleveland-Cliffs Inc. (U.S.), Nucor Corporation (U.S.), JFE Steel Corporation (Japan), among others. |
Report overview
Segments covered: process, end-use industry. Regions: North America, Europe, Asia-Pacific, Latin America, Middle East & Africa.
The growth in this market is driven by factors such as growing concern about GHG emissions from steel production, government support and investment in green steel manufacturing, and increasing investment in green steel production. However, the high cost of green steel production can restrain the growth of the market. In addition, surging demand for low-carbon steel from the automotive industry and technological advancement in green steel production are expected to provide opportunities for market growth. The availability of renewable energy sources poses challenges for market growth.
Steel is a fundamental element in modern society, playing a crucial role in engineering and construction. It is integral to many aspects of our daily lives. However, the steel industry now faces increasing pressure to minimize its carbon footprint due to environmental and economic concerns.
The global steel industry is a major emitter of greenhouse gases. According to The World Economic Forum (Switzerland), steel production is the planet’s largest-emitting manufacturing sector, responsible for 7% of all man-made greenhouse gas emissions. Two billion or so metric tons of crude steel are produced globally every year. If all that tonnage were green steel instead of carbon-intensive steel, it would dramatically cut the emissions of the steel industry, and it would also reduce hefty portions of the carbon footprints of several industries.
Green steel is steel manufactured through eco-friendly and sustainable practices. It uses energy from renewable sources, creates less carbon dioxide, and manages waste better. Therefore, the growing concern about GHG emissions from steel production is expected to drive the green steel market's growth in the forecasted period.
With many countries aiming to reduce carbon emissions to net zero over the coming decades, industry leaders are looking to decarbonize the steelmaking process. Governments across several countries are considering mandating the use of ‘green steel’ in government projects with the goal of decarbonizing one of the most hard-to-abate sectors. Additionally, the government is investing heavily to support the green steel manufacturing process, which is, in turn, driving the market growth. Some of the recent developments in the market space:
In February 2025, the Union Ministry of New and Renewable Energy (India) released scheme guidelines for implementing pilot green hydrogen projects in the steel sector under the National Green Hydrogen Mission (NGHM). The government also allocated INR 455 crore (USD 54.34 million) until the financial year 2029-30 to promote the use of green hydrogen in the sector.
In February 2025, The German government pledged to support the multinational steel manufacturing corporation Arcelor Mittal (Luxembourg) with a total of Euro 1.3 billion (USD 1.41 billion) to help reduce carbon emissions from steel production in the country.
In February 2022, the French Government announced support for Arcelor Mittal's (Luxembourg) decarbonization program in France, which involves a Euro 1.7 billion (USD 1.84 billion) investment in its Fos-sur-Mer and Dunkirk sites.
Report infographic
Market dynamics
1 factors across 1 forceSurging Demand for Low-Carbon Steel from Automotive Industry
The automotive sector stands as a significant consumer of steel, with cars, buses, and trucks embodying the ubiquitous presence of this material in daily life. Steel is one of the key materials in the automotive industry. According to the World Steel Organization (Belgium), around 900 kg of steel is used per vehicle. Out of this, about 40% of steel is used in body structures, doors, and trunk closures; around 23% is used in drivetrains; approximately 12% is used in suspensions, and the remaining in wheels, fuel tanks, braking systems, etc. In brief, the importance of steel in the automotive sector can be seen in every part of the vehicle.
As more countries and companies commit to reducing carbon emissions and promoting sustainability, the demand for green steel is expected to increase rapidly. In addition, rising efforts by automotive manufacturers to use green steel in the manufacturing process are expected to provide opportunities for market growth.
Table of contents
10 chapters · 100 sections · 200 pages · click to expandSegmental analysis
| Segment | Largest share (2025) | Fastest growth (2025–2032) |
|---|---|---|
| By Process | Electric Arc Furnace (EAF) | Electric arc furnace (EAF) |
| By End-use Industry | Automotive | Buildings & construction |
By Process
- The electric arc furnace (EAF) segment is expected to account for the largest share of over 57.0% of the global green steel market.
- A large share of the segment is attributed to the rising use of the EAF process by steelmakers to significantly reduce carbon emissions in steel production, the flexibility and adaptability to adjust production based on demand fluctuations, and the capacity of electric arc furnaces to use up to 100% scrap steel as its raw material.
- Moreover, the electric arc furnace (EAF) segment is expected to grow at the highest CAGR during the forecast period.
- This growth is driven by steel manufacturers' rising investment in building electric arc furnaces to transition to green steel production.
By End-use Industry
- The Automotive Segment to Dominate the Green Steel Market in 2025
- The automotive segment is expected to account for the largest share of over 23.0% of the global green steel market.
- A large share of the segment is attributed to the automotive industry's greater emphasis on adopting sustainable practices and reducing greenhouse gas emissions and the rising focus of automotive manufacturers on strategic initiatives to use green steel in the manufacturing process.
- However, the buildings & construction segment is expected to grow at the highest CAGR during the forecast period.
- This segment's growth is driven by rising construction and development activities in emerging countries, rapid urbanization, and increasing government initiatives for green buildings to improve energy efficiency and reduce carbon emissions in the construction industry.
Geographic analysis
Europe
Largest shareIn 2025, Europe is expected to account for the largest share, over 41.0%, of the green steel market. This large share of the region is attributed to the rising investment in carbon-free steel production plants, residential and commercial infrastructure development projects, European steelmakers' rising focus on decarbonization strategies, and government investment in green steel projects.
Asia-Pacific
Fastest growthHowever, the Asia-Pacific region is expected to grow with the highest CAGR of over 59.0% during the forecast period. This region's rapid growth is driven by the growing investments in environmentally friendly construction materials and green steel manufacturing, the rising focus of government to promote the adoption of green steel, rising urbanization, increasing disposable income, and the rapidly growing construction industry.
Competitive landscape
- June 2025
Volkswagen AG (Germany) and Vulcan Green Steel (Oman) signed a Memorandum of Understanding (MoU) to partner in low-carbon steel, a key element of Volkswagen’s green steel strategy. The partnership is one of a series of initiatives by the Volkswagen Group to expand the use of green steel in production.
- June 2024
Mercedes-Benz (Germany) signed a supply agreement with H2 Green Steel (Sweden) for approximately 50,000 tons of almost CO₂-free steel per year for its European press shops. It deepened its partnership through a Memorandum of Understanding (MoU) to establish a sustainable steel supply chain in North America.
- February 2022
The BMW Group (Germany) signed a corresponding agreement with Salzgitter AG (Germany) for the delivery of low-carbon steel. From 2026 onwards, the steel will be used in the standard production of cars at the BMW Group’s European plants.
- July 2025
Blastr Green Steel (Norway) signed a partnership agreement with Lhoist (Belgium), a global supplier of lime, dolime, and mineral solutions, to develop a scalable decarbonized value chain for ultra-low CO₂ steel production in Europe.
- January 2025
H2 Green Steel (Sweden) raises more than Euro 4 billion (USD 4,33 Billion) in debt financing for the world’s first large-scale green steel plant.
- May 2024
Klöckner & Co (Germany) partnered with the Salzgitter Group (Germany) to step up their collaboration in transforming the steel industry into a green one.
- July 2022
Hitachi Energy (Switzerland) signed a Memorandum of Understanding (MoU) with H2 Green Steel (Sweden) to leverage electrification, digitalization, and hydrogen to support the decarbonization of the steel industry.
- H2 Green Steel · Sweden
- ThyssenKrupp AG · Germany
- Tata Steel Ltd. · India
- ArcelorMittal S.A. · Luxembourg
- Emirates Steel (UAE)
- Green Steel Group · Italy
- Jindal Steel and Power Limited · India
- Swiss Steel Group · Switzerland
- Nippon Steel Corporation · Japan
- Cleveland-Cliffs Inc. (U.S.)
- Nucor Corporation (U.S.)
- JFE Steel Corporation · Japan
Frequently asked questions
The Green Steel Market focuses on steel produced through eco-friendly methods, using renewable energy and sustainable practices to reduce carbon emissions.
Cite this report
Meticulous Research. (2024). Green Steel Market - Global Opportunity Analysis And Industry Forecast (2025-2032) (Report No. MRCHM - 1041296). Meticulous Market Research Pvt. Ltd. https://www.meticulousresearch.com/product/green-steel-market-5979