Green Steel Industry Growing Fast with 21.4% CAGR

"Revolutionizing the Steel Industry: How Green Steel is Paving the Way for a Sustainable Future Through Renewable Energy, Carbon Emission Reduction, and Eco-Friendly Manufacturing Practices Across Construction, Automotive, and Industrial Sectors"

Boston, July 15, 2025 (GLOBE NEWSWIRE) -- According to the latest study from BCC Research, “Global Green Steel Market" is expected to grow from $7.4 billion in 2024 to $19.4 billion by the end of 2029, at a compound annual growth rate (CAGR) of 21.4% from 2024 through 2029.

This report offers an overview of the global green steel market, emphasizing its growing role in promoting sustainability and reducing carbon emissions. It examines key production methods such as electric arc furnaces, hydrogen-based processes, and carbon capture technologies. The report also explores applications across the construction, transportation, and machinery industries, and provides regional insights for North America, Europe, Asia-Pacific, South America, and the Middle East and Africa. It highlights market trends, major companies, and future opportunities, presenting a clear picture of the industry's potential for growth.

This report is particularly relevant today as the steel industry faces urgent pressure to reduce its carbon footprint, due to its contributing around 8% of global emissions. Green steel, produced using hydrogen and renewable electricity instead of coal, can cut emissions by up to 95% while maintaining the same quality. With rising demand for sustainable materials in the automotive and construction sectors, and growing global investments in renewable energy, the need for green steel is rapidly increasing. This shift is also driven by heightened awareness of environmental impacts and the push for energy-efficient, eco-friendly manufacturing solutions.

The factors driving the market’s growth include:

Increased social licensing pressures for green steelmaking: People and communities are demanding cleaner industrial practices. Steel companies face growing expectations to reduce pollution and adopt green methods to maintain public trust and business approval.

Rising CO₂ emissions and renewable targets in sustainable steelmaking: Steel production is a major source of CO₂. With global climate targets rising, there is a strong push to cut emissions and use renewable energy in steelmaking, driving demand for greener solutions.

Government support and investments for green steel manufacturing: Governments are offering funding, tax breaks, and policies to promote green steel. This support helps companies invest in cleaner technologies and scale up sustainable production.

Technological advances in steelmaking: Innovations like hydrogen-based steelmaking and carbon capture are making green steel more efficient and more affordable. These advances are key to transforming the industry.

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Report Synopsis

Interesting facts:

• Revolutionary Green Steelmaking Technology: Molten oxide electrolysis (MOE), a technology developed by Boston Metal, uses renewable electricity to convert iron ore directly into high-purity molten iron, eliminating CO₂ emissions. Unlike traditional methods, it produces only oxygen as a byproduct and avoids the need for hydrogen or carbon capture technologies.

• Scalable and Cost-Effective Solution: MOE cells are modular and scalable, allowing flexible production capacities. The technology is expected to reach commercial scale by 2026, offering a sustainable and economically viable path for steelmakers to drastically reduce their carbon footprint.

Emerging startups

• Blastr Green Steel AS: Founded in 2021. Blastr Green Steel is delivering ultra-low CO₂ steel through a fully integrated and sustainable value chain. The company strives to transform the steel industry by substituting hydrogen for conventional coal and coke in production processes, which drastically reduces greenhouse gas emissions.

• Stegra: Stegra, formerly H2 Green Steel, was founded in 2020 to decarbonize hard-to-abate industries, starting with the steel sector. Headquartered in Stockholm, Sweden, the company is constructing its flagship plant in Boden, with the goal of making it one of the most extensive facilities for producing green hydrogen, iron, and steel.

The report addresses the following questions:

1. What is the projected size and growth rate of the market?

• The green steel market is projected to reach $19.4 billion by the end of 2029, with a CAGR of 21.4%.

2. What factors are driving the growth of the market?

• Key drivers include:

• Increased social licensing pressures for green steelmaking.
• Rising CO₂ emissions and renewable targets in sustainable steelmaking.

3. Which market segments are covered in the report?

• The green steel market is segmented based on processing techniques, end-user, and region. Processing techniques include electric arc furnaces, hydrogen-based production, carbon capture, utilization and storage, and others. End users include the building and construction, transportation, machinery, and other sectors. Regional market estimates and forecasts are made for North America, Europe, Asia-Pacific, South America, and the Middle East and Africa.

4. Which end-user segment will be dominant through 2029?

• The building and construction segment will continue to dominate the green steel market through 2029.

5. Which region has the largest market share?

• Europe holds the largest market share due to the presence of many key producers in this region and the high demand for transportation and construction applications.  Sweden and Germany are among the largest consumers of the technology and infrastructure materials.

Market leaders include:

• ARCELORMITTAL
• AFRY AB
• BLASTR GREEN STEEL AS
• BOSTON METAL
• HELIOS PROJECT LTD.
• HYDNUM STEEL
• LIBERTY STEEL GROUP
• NUCOR CORP.
• SALZGITTER AG
• SMS GROUP GMBH
• SSAB
• SSG
• STEGRA
• THYSSENKRUPP AG
• VOESTALPINE AG

Related reports:

Carbon Capture, Utilization & Storage Technologies: This report provides a comprehensive analysis of the global market for Carbon Capture, Utilization, and Storage (CCUS) technologies. It examines market size in both value (USD millions) and volume (thousand metric tons), and explores technological, economic, and competitive trends. The study segments the market by technology, services, industry, and region, and concludes with profiles of 15 leading companies in the CCUS space.

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