Burlingame, CA, Dec. 30, 2025 (GLOBE NEWSWIRE) — Green Steel to Hit USD 189.82 Billion by 2032, at a CAGR of 60.4%, says Coherent Market Insights
The Global Green Steel Market is estimated to be valued at USD 6.95 Bn in 2025 and is expected to reach USD 189.82 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 60.4% from 2025 to 2032. Green steel production is projected to witness substantial growth over the next decade, driven by tightening environmental regulations and a global emphasis on carbon-emission reduction. Commitments by numerous countries to achieve net-zero emissions by 2050 are compelling carbon-intensive industries, including steel manufacturing, to adopt cleaner and more sustainable production technologies.
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Global Green Steel Market Key Takeaways
Global demand for green steel is projected to increase at a stupendous CAGR of 60.4% from 2025 to 2032.
By process type, electric arc furnace (EAF) segment is slated to account for 42.9% of the global green steel market share in 2025.
Automotive remains the leading end-use industry for green steel, capturing nearly two-fifths of the global market share in 2025.
Europe is anticipated to dominate the global green steel industry with a 39.6% share in 2025. This is mostly due to rising adoption of sustainable steel in residential and industrial sectors.
Asia Pacific is poised to emerge as the fastest growing green steel market during the forecast period. This can be attributed to expanding residential and commercial sector, growing popularity of eco-friendly steel, and favourable government support.
Strict Environmental Regulations and Carbon Reduction Targets Fueling Market Growth
The latest green steel market analysis by Coherent Market Insights identifies prominent factors shaping market growth. These include implementation of stringent environmental regulations, ambitious carbon reduction targets, expanding industrial sector, rising demand for low-carbon steel, and advancements in green steel production technologies.
Governments around the world are imposing stricter carbon emission regulations and setting long-term decarbonisation goals, pushing heavy industries like steel to reduce their environmental impact. This regulatory pressure is encouraging the use of green steel, since traditional steel production creates a lot of carbon emissions.
Policy mechanisms such as carbon pricing, emissions trading systems, net-zero commitments, and incentives for low-carbon production are encouraging steel manufacturers to shift toward greener processes to stay compliant and economically competitive. This transition is expected to boost growth of green steel market during the forecast period.
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High Production Costs Limiting Green Steel Market Growth
The global green steel market outlook appears bright, owing to enforcement of stringent environmental regulations and rising demand for eco-friendly steel across various industries. However, high production costs associated with green steel manufacturing may constrain market growth to some extent during the fothcoming period.
Green steel production, especially using hydrogen-based reduction and renewable-powered electric arc furnaces, requires high upfront investment in new plants, electrolyzers, and technology upgrades. This limits cost competitiveness, especially for smaller producers and price-sensitive regions.
Demand for Low-Carbon and Sustainable Steel Creating Growth Opportunities
There is a rising demand for low-carbon steel products from industries like automotive, construction, and infrastructure. These industries prefer eco-friendly materials. This growing preference towards reducing carbon footprints as well as meeting Scope 3 emission targets is expected to create lucrative growth opportunities for manufacturers of green steel during the forecast period.
Emerging Green Steel Market Trends
Expansion of renewable energy infrastructure is supporting growth in the green steel industry. Cheaper and more accessible renewable energy, like solar and wind, can power electric furnaces and make low-carbon hydrogen. This lowers production costs and makes steel plants more environmentally friendly.
Rapid urbanization, infrastructure growth, and sustainability goals in car manufacturing are increasing the need for greener materials. For instance, construction projects are choosing low-carbon materials, and car makers are asking for sustainable supply chains, which is encouraging the use of green steel.
Rising adoption in the automotive sector, especially electric vehicle segment, is expected to boost green steel market growth during the forecast period. Automotive companies like Volvo, BMW, GM, and Mercedes are signing long-term supply agreements with green steel producers. Volvo Cars recently signed a supply contract with SSAB for fossil-free steel.
Innovations in production technology, including Electric Arc Furnaces (EAF), hydrogen-based direct reduction (H2-DRI), and carbon capture and storage (CCS), are making green steel more feasible and efficient. These technologies reduce reliance on traditional blast furnaces as well as lower greenhouse gas emissions.
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Analyst’s View
“The global green steel market is set to grow rapidly, owing to stringent environmental regulations, rising carbon reduction targets, and increasing demand from automotive, construction, and industrial sectors,” said a senior CMI analyst. “Green steel producers investing in low-carbon technologies, sustainable production methods, and strategic partnerships are well positioned to seize emerging market opportunities.”
Competitor Insights
Key companies listed in the green steel market research report:
- Nippon Steel Corporation
- Ansteel Group
- China Baowu Group
- ArcelorMittal
- Boston Metal
- Cleveland-Cliffs
- H2 Green Steel
- Nucor Corporation
- Swiss Steel Group
- Steel Dynamics, Inc.
- Jindal Stainless Limited
- United States Steel Corporation
Key Developments
In May 2025, India’s JSW Steel launched GreenEdge, its own low-emission steel brand. This new brand allows customers to reduce their Scope 3 emissions by purchasing steel with verified low‑carbon credentials.
In August 2025, Ansteel Group launched green hydrogen steel trial operation at Bayuquan plant. The Bayuquan plant uses green hydrogen to make steel, which produces much less carbon than regular steelmaking.
Market Segmentation
Process Type Insights (Revenue, USD Bn, 2020 – 2032)
- Electric Arc Furnace (EAF)
- Basic Oxygen Furnace (BOF)
- Direct Reduced Iron (DRI)
End-use Industry Insights (Revenue, USD Bn, 2020 – 2032)
- Construction
- Automotive
- Machinery
- Others (Shipbuilding, Appliances, etc.)
Regional Insights (Revenue, USD Bn, 2020 – 2032)
- North America
- U.S.
- Canada
- Latin America
- Brazil
- Argentina
- Mexico
- Rest of Latin America
- Europe
- Germany
- U.K.
- Spain
- France
- Italy
- Russia
- Rest of Europe
- Asia Pacific
- China
- India
- Japan
- Australia
- South Korea
- ASEAN
- Rest of Asia Pacific
- Middle East & Africa
- GCC Countries
- Israel
- Rest of Middle East & Africa
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CONTACT: About Us: Coherent Market Insights leads into data and analytics, audience measurement, consumer behaviors, and market trend analysis. From shorter dispatch to in-depth insights, CMI has exceled in offering research, analytics, and consumer-focused shifts for nearly a decade. With cutting-edge syndicated tools and custom-made research services, we empower businesses to move in the direction of growth. We are multifunctional in our work scope and have 450+ seasoned consultants, analysts, and researchers across 26+ industries spread out in 32+ countries. Contact Us: Mr. Shah Coherent Market Insights 533 Airport Boulevard, Suite 400, Burlingame, CA 94010, United States US: + 12524771362 UK: +442039578553 AUS: +61-8-7924-7805 India: +91-848-285-0837 Email: sales@coherentmarketinsights.com Website: https://www.coherentmarketinsights.com For Latest Update Follow Us: LinkedIn | Facebook | Twitter
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