GREEN STEEL MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Regional Analysis

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The Europe has firmly established itself as the dominant region in the global green steel market. The region is expected to account for 39.1% share in 2024. The bloc has a robust steel manufacturing industry footprint across major countries like Germany, Italy, France, and Spain. Furthermore, the European Commission has taken a clear leadership role in promoting sustainable practices and has implemented strict regulations to reduce carbon emissions from heavy industries such as steel production.

This has prompted steelmakers in the EU to increasingly invest in green technologies and processes to lower their carbon footprint. Major players have set ambitious targets to become carbon neutral in the coming years. They have invested heavily in areas like electric arc furnaces, renewable energy integration, hydrogen use, and carbon capture utilization and storage. The EU government is also providing production-linked incentives and subsidies to support steel companies in their green transition.

Asia Pacific represents the fastest growing regional market for green steel. Countries like China, India, Indonesia and Vietnam have huge raw material reserves and a fast growing manufacturing sector, driving massive steel demand. However, traditional coal-based steel production methods have resulted in high pollution levels in major cities. This has forced governments in the region to support low-carbon alternatives and encourage imports of green steel to meet environmental regulations.

China, the world's largest steel manufacturer, has announced plans to become carbon neutral by 2060. It is now focusing on adopting European green technologies through production partnerships, joint research initiatives and engineering expertise exchanges. Other nations are also formulating long-term strategies and missions to transition existing mills and set up new greenfield projects based on low-carbon feedstocks and renewable energy. The ASEAN countries are especially leveraging their strategic locations along major global trade routes to attract foreign investments into building import-export hubs for green building materials like steel. Their supportive investment environments and availability of low-cost production resources is attracting global steel giants to establish local manufacturing presence.