Global Green Steel Market to Grow at a 14.8% CAGR During 2026-32 | MarkNtel Advisors (Leading Market Players: Nucor Corporation, ArcelorMittal, Tata Steel, Salzgitter AG, H2 Green Steel, Outokumpu)

NEW DELHI, Dec. 18, 2025 /PRNewswire/ -- According to recent analysis by MarkNtel Advisors, the Global Green Steel Market is projected to grow at an extraordinary compound annual growth rate (CAGR) of 14.8% during the forecast period, i.e., 2026-32, driven by robust decarbonization mandates, technological innovation, and expanding partnerships across industrial sectors.

Global steel production is expected to hit 1,749 million tons in 2025, emitting approximately 4.1 billion tons of CO2e annually (7–8% of global emissions).

Global Green Steel Market Key Takeaways

• Valued at around 28.77 billion tons in 2025, the market is projected to reach USD 54.5 billion tons by 2032.
• Decarburization mandates  and climate regulations across key industries are critical growth drivers.
• Electric Arc Furnace (EAF) technology is set to capture a dominant market share during the forecast period.
• Other renewable energy sources (hydropower, biomass, etc.) led the green steel production energy mix with a 61% share in 2025.
• The automotive & transportation sector is poised to hold a significant share of the green steel market from 2026 to 2032.
• The Europe green steel market will see substantial growth fueled by EU initiatives targeting steel industry carbon neutrality by 2032.

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Green Steel Market Analysis

By Technology, Electric Arc Furnace (EAF) leads the green steel production technology segment. Its energy efficiency, ability to utilize renewable energy, and compatibility with recycled scrap make it the preferred choice globally. Companies like SSAB, Tata Steel, and Salzgitter AG are expanding commercial EAF operations, supporting the shift toward near-zero emission steel manufacturing.

By Energy Source, other renewable energy sources, including hydropower, biomass, and similar, dominate the energy mix for green steel production, accounting for a 61% share in 2025. Their stable output and established infrastructure make them the primary energy source, supporting sustainable steel production growth worldwide.

By End User, the automotive and transportation sector leads green steel consumption. Key OEMs such as BMW and General Motors have committed to sustainable sourcing by entering long-term green steel supply agreements, driving market expansion, and accelerating green steel adoption in vehicle manufacturing globally.

By Region, Europe stands as the dominant region in green steel deployment, benefiting from rigorous carbon emission regulations, carbon border adjustment mechanisms (CBAM), and well-developed renewable energy systems. The region's strong policy framework and industrial investments underpin its substantial market share and lead in sustainable steel production.

Key green steel players are pivotal in accelerating the industry by driving technological innovation, making strategic investments, and forging partnerships that enable large-scale sustainable steel production. Their role encompasses deploying advanced low-carbon production methods, integrating renewable energy sources, and facilitating supply chain decarbonization, which collectively enhance market adoption and environmental impact reduction. For instance:

• May 2024: Linde signed a supply agreement to provide industrial gases to the world's first large-scale green steel plant, highlighting the critical role of infrastructure and logistics in scaling green steel production.
• February 2024: Salzgitter Flachstahl GmbH partnered with Octopus Energy through a long-term Power Purchase Agreement to secure clean electricity for green hydrogen production and future green steel operations in Germany.
• January 2024: Kalyani Steels announced plans to produce green steel at a newly acquired plant, showcasing emerging commitment among Indian manufacturers toward sustainable steelmaking.
• January 2024: ArcelorMittal launched its XCarb Program focused on carbon-neutral steel via investments in renewable energy and hydrogen-based technologies, reinforcing sectoral collaboration.

These initiatives underscore how key players are instrumental in shaping the trajectory of the green steel market, driving both innovation and industrial transition toward net-zero emissions.

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How Are Technological Advancements Accelerating and Modernizing Green Steel Production Worldwide?

Technological advancements are fundamental in accelerating and modernizing green steel production globally. Innovations in hydrogen-based Direct Reduced Iron (DRI), Electric Arc Furnace (EAF) technology, and digital process optimization are enabling steelmakers to significantly reduce carbon emissions while scaling production efficiently. Hydrogen DRI replaces coal with green hydrogen, emitting water instead of CO2, revolutionizing the traditional blast furnace process. EAF technology leverages renewable energy and recycled scrap steel, making it a flexible and low-emission alternative gaining widespread adoption. Advanced digital tools, including AI and IoT, facilitate real-time monitoring, energy management, and predictive maintenance, improving production efficiency and sustainability.

Notable instances exemplifying this technological push include:

• SSAB and HYBRIT in Sweden employ hydrogen DRI combined with EAF to produce fossil-free steel, setting a global benchmark for carbon-neutral steel production.
• Nucor Corporation focuses on expanding its Econiq line, using EAF technology powered by renewable energy and high scrap utilization to supply net-zero steel.
• Tata Steel Europe invests in modernizing its IJmuiden plant with EAFs driven by renewable electricity, aiming for near-zero carbon operations.
• ArcelorMittal's XCarb Program integrates hydrogen steelmaking and digital innovations to advance sustainable production across multiple sites globally.

These cutting-edge technologies not only enable decarbonization but also enhance economic viability, fostering wider market acceptance and expanding green steel adoption worldwide.

What Are the Key Factors Accelerating Green Steel Market Outlook?

1. Stringent Decarbonization Policies: Governments globally, especially in Europe and Asia-Pacific, have implemented strict emission reduction targets, incentivizing manufacturers to shift towards green steel to comply with regulatory frameworks like the EU's CBAM.
2. Rising Carbon Pricing: The escalation in carbon permit costs, exceeding USD 80 per ton in regions like the EU, makes fossil-fuel-based steel production economically unfeasible, pushing industries toward low-carbon alternatives.
3. Automotive OEMs' Sustainability Commitments: Leading automakers like BMW and GM are entering long-term supply agreements for green steel, creating high demand and encouraging industry-wide adoption.
4. Increasing Investment in Renewable Energy: Expansion of renewable energy capacity, especially wind and hydropower, provides the clean power needed for sustainable steelmaking, making green steel more economically viable and widespread.

How Does the Lack of Standardized Carbon Accounting and Certification Impede Market Growth?

The absence of universally accepted and transparent carbon accounting frameworks creates significant hurdles for the green steel industry. Without consistent methods to measure, report, and verify carbon emissions across all production scopes (direct, indirect, and supply chain), stakeholders face uncertainty around green steel's environmental credentials. This complicates compliance, certification, and market trust, slowing demand growth. Divergent regional regulations and evolving policies exacerbate the complexity, increasing operational and reporting costs, and delaying widespread green steel adoption. Achieving harmonized standards is critical to fostering investor confidence and accelerating market expansion.

Major Companies in the Global Green Steel Market

• Green Steel Group
• H2 Green Steel
• Deutsche Edelstahlwerke
• Tata Steel
• HYBRIT
• Arcelor Mittal
• Emirates Steel
• Sheffield Forgemasters
• Celsa Steel UK
• Liberty Steel
• British Steel
• Outokumpu
• Voestalpine
• Arab Steel Co.
• Jindal Shadeed Group- Oman
• Essar Group-Saudi Arabia
• Others (ThyssenKrupp AG, China Baowu Steel Group Corporation)

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Global Green Steel Market Segmentation (2026-32)

• Production Technology: Electric Arc Furnace (EAF), Molten Oxide Electrolysis
• Energy Source: Solar, Wind, Others (Renewable Energy Sources)
• End User: Building & Construction, Automotive & Transportation, Electronics, Industrial Equipment, and Others.
• Region: North America, Europe, Asia-Pacific, Middle East & Africa, Latin America

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About Us

MarkNtel Advisors is a globally recognized Industry Research Firm delivering comprehensive market intelligence across diverse sectors, including the Global Green Steel Market. Our syndicated reports provide in-depth insights into market dynamics, technological innovations, regulatory frameworks, and competitive strategies shaping the green steel industry worldwide. Leveraging advanced analytics, quantitative modeling, and validated industrial and environmental data, we empower manufacturers, steelmakers, investors, and policymakers to navigate the evolving low-carbon steel markets and capitalize on growth opportunities. Our expertise spans global and regional markets such as Europe, Asia-Pacific, North America, and India, emphasizing emerging sustainability trends, decarbonization mandates, and the impact of renewable energy integration on green steel production. Through specialized consulting, we support our clients in achieving strategic advantage and measurable business growth amid shifting regulatory landscapes and increasing demand for sustainable materials.

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