US Green Steel Market Size

US Green Steel Market Overview

US Green Steel Market Size was valued at USD 0.7 Billion in 2022. The green steel industry is projected to grow from USD 1.17 Billion in 2023 to USD 31.055 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 50.50% during the forecast period (2024 - 2032). The green steel market has grown significantly over the last decade, owing to key market drivers such as increased demand for materials that assist reduce carbon footprints and achieve future sustainable development targets in the United StatesSource: Secondary Research, Primary Research, MRFR Database and Analyst Review

Green Steel Market Trends

Growing Expertise of Green Steel Production in Prominent US Industries to Boost the Market Growth

The growing awareness of the environmental consequences of conventional steel production has led to a rise in interest in and demand for greener, more sustainable steel manufacture. This increased awareness—which is the result of a number of factors—has helped the green steel industry grow. Additionally, businesses and customers alike are becoming more aware of the detrimental effects traditional steel manufacturing has on the environment, including the high carbon emissions, contamination of the air and water, and depletion of resources. This worry has caused an emphasis to change in favor of more environmentally friendly solutions. Furthermore, the importance of incorporating sustainable practices into their operations is also being recognized by a large number of well-known industries and companies. Using green steel production practices can help a company meet its CSR goals, project environmental concern, and enhance its reputation. Customers' growing concern for the environment is driving up demand for products made with sustainable materials, such as green steel. The public's increasing knowledge of the potential benefits of green steel for many industries, the environment, and society at large has led to an overall expansion of the green steel industry.

In recent decades, there has been an increase in infrastructure construction, and high-rise structures have sprouted up all over the place. The real estate business has been booming in response to rising urbanization. Green steel offers numerous benefits in construction, including high strength, lightweight, a high degree of industrialization, rapid construction speed, high housing yield, and so on. Furthermore, traditional concrete buildings' primary building materials remain non-recyclable materials such as cement, sand, and gravel. Their demolition would generate some difficult-to-degrade construction trash, adding to the environmental stress caused by garbage management. As a result, the growing emphasis on energy saving in buildings will revolutionize architecture and construction materials in the next years. The US is gradually shifting away from traditional concrete buildings and toward prefabricated steel constructions. According to the World Steel Association, the steel sector in the US utilizes about 2% of all domestic energy each year. Thus, driving the green steel market revenue.

Green Steel Market Segment Insights

Green Steel Production Technology Insights

The US Green Steel market segmentation, based on production technology includes Renewable – Electric Arc Furnace (R-EAF), Hydrogen Direct Reduced Iron (DRI) – EAF, and Molten Oxide Electrolysis (MOE). The renewable – electric arc furnace (R-EAF) segment dominated the market mostly. The majority of electric arc furnaces now in use can simply include the product. Up until the midterm forecast, this production technology is expected to continue dominating the market. Businesses like Nucor Corporation and others have already made investments in this production technique, and in 2022 they will introduce Econiq, a net zero steel product. This product offers its clients an emission-free steel product because it is entirely made by renewable energy.

Figure 1: US Green Steel Market, by Production Technology, 2022 & 2032 (USD Billion)Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Green Steel Application Insights

The US Green Steel market segmentation, based on application, includes Building & Construction, Automotive, Renewable Energy Infrastructure, Home Appliances, and Others. The automotive category generated the most income because automakers have a preference for employing sustainable materials, including green steel, in the production of cars and spare parts as a result of their increasing awareness of their significantly larger carbon footprints in recent years. Additionally, it is projected that the expansion will come from the numerous automotive producers who collaborated with goods makers.

For instance, corporations like Mercedes and BMW have already declared their intention to utilize the product manufactured by H2 Green firm in the near future.

Green Steel Country Insights

The green steel market in the US was expanding due to increased demand for sustainable and low-carbon materials. Additionally, as they strive to employ sustainable products, many end-user industries, such as building and construction, automotive, and so on, are expected to increase their demand for low-carbon steel. The market is projected to be influenced mostly by governments in the US, who are pushing for the adoption of sustainable products, reduced carbon emissions, and improved manufacturing methods in industries like as electronics, industrial equipment, and construction. In addition, the US is the world's fourth largest producer of steel. EAF steel production accounts for more than 70% of overall production in the country. With such a large EAF production capability, the US stands a good chance of becoming the first to market. Furthermore, by employing renewable electricity, the production of green steel using EAF-based production units can become practically carbon-free. This will allow US steel makers to move smoothly from carbon-intensive steel to carbon-free steel, allowing this industry to thrive during the projection period.

Green Steel Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the green steel market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, green steel industry must offer cost-effective items.

Major players in the green steel market are attempting to increase market demand by investing in research and development operations includes Ansteel Group (China), Boston Metal (U.S.), Cleveland-Cliffs (U.S.), H2 Green Steel (U.S.), Nippon Steel Corporation (Japan), China Baowu Group (China), ArcelorMittal (Luxembourg), Nucor Corporation (U.S.), Steel Dynamics, Inc. (U.S.), and United States Steel Corporation (U.S.).

Key Companies in the green steel market include

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  Ansteel Group (China)

  
  


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  ArcelorMittal (Luxembourg)

  
  


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  Boston Metal (U.S.)

  
  


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  China Baowu Group (China)

  
  


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  Cleveland-Cliffs (U.S.)

  
  


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  H2 Green Steel (U.S.)

  
  


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  Nippon Steel Corporation (Japan)

  
  


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  Nucor Corporation (U.S.)

  
  


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  Steel Dynamics, Inc. (U.S.)

  
  


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  United States Steel Corporation (U.S.)

  
  

Green Steel Industry Developments

June 2023: H2 Green Steel Company and Gotland Company, a shipping firm, collaborated to investigate the viability of establishing and delivering green hydrogen using Gotland Company's fleet. In a same vein, several prominent businesses including ArcelorMittal, Salzgitter AG, and Nucor Corporation intend to open new manufacturing facilities. Throughout the evaluation period, the U.S. market will grow thanks to these measures.

March 2023: ThyssenKrupp Steel, in collaboration with the SMS group, Düsseldorf, intended to build the first hydrogen-powered direct reduction plant in history. With this, one of the largest industrial decarbonization initiatives in history will get underway, instantly stopping the annual release of over 3.5 million metric tons of CO2.

Green Steel Market Segmentation

Green Steel Production Technology Outlook

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  Renewable – Electric Arc Furnace (R-EAF)

  
  


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  Hydrogen Direct Reduced Iron (DRI) – EAF

  
  


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  Molten Oxide Electrolysis (MOE)

  
  

Green Steel Application Outlook

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  Building & Construction

  
  


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  Automotive

  
  


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  Renewable Energy Infrastructure

  
  


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  Home Appliances

  
  


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  Others