Global H2 Green Steel Market Size Likely to Grow at a CAGR of 4.5% By 2033

As per the current market research conducted by the CMI Team, the global H2 Green Steel Market size is expected to record a CAGR of 4.5% from 2024 to 2033. In 2024, the market size is projected to reach a valuation of USD 252.7 Billion. By 2033, the valuation is anticipated to reach USD 375.5 Billion.

H2 Green Steel Market: Growth Factors and Dynamics

• Climate Imperatives: Rising commitments for carbon reduction as well as climate targets are resulting in the H2 Green Steel market becoming more robust. It has been observed that this is changing the calamitous competition in the industry as well as investment decisions by many players in the industry due to regulations and policies that support the production of low-carbon steel.

• Technological Advancements: There have been advancements in the production and the economic feasibility of H2 green steel owing to the development of hydrogen-based reduction technologies. The new developments in electrolysis, renewable production of hydrogen, and direct reductions are essential factors creating opportunities for the growth and competitiveness of the market.

• Market Expansion: The H2 Green Steel market is broadening due to its increasing applicability in the automotive, construction and renewable energy industries. This is supported by the increasing demand for materials that meet the ever-high global environmental standards and consumer demand.

• Investment Influx: H2 Green Steel projects are being fast-tracked due to substantial funding from the government, players in the industry and funding agencies. These funds assist in research, demonstration, and building of commercial facilities that promote and create innovative ideas and growth in the market.

• Consumer Demand: With increased knowledge and a shift in purchasing towards more responsible product offerings, the manufacturing and industry are attempting to embrace H2 Green Steel solutions. This trend is affecting how organizations think about supply chains, product differentiation, and sustainability policies in markets worldwide.

• Policy Support: The expansion of the market is mainly because of such policies and incentives that encourage the establishment of hydrogen infrastructure and the ensuing production of green steel. These policies may come in grants, subsidies, tax waivers, or other interventions, such as carbon pricing that encourage using low-carbon steel technology.

• Supply Chain Integration: The coupling of hydrogen supply chains with steelmaking processes is a design requirement for enabling the H2 Green Steel technology to be deployed at scale and made sustainable. This includes the latest developments in the networks for the transport, storage, and distribution of hydrogen, making access to renewable hydrogen for steelmakers globally.

• Collaborative Initiatives: Efforts to increase H2 Green Steel production rely on governments, research, and industry cooperating. Such mechanisms as joint ventures, consortia, and partnerships promote a culture of high innovation, knowledge, and adoption of the best practices in the production of green steel, escalating the market and its competitiveness.

H2 Green Steel Market: Partnership and Acquisitions

• In 2023, Mercedes-Benz and H2 Green Steel entered a binding agreement for the supply of approximately 50,000 tons of steel annually, produced at their facility in Boden, northern Sweden.

• In 2022, H2 Green Steel and BMW Group signed an agreement to supply CO2-reduced steel, incorporating recycling and end-of-life management measures into their partnership.

• In 2022, Kobe Steel launched “Kobenable Steel,” Japan’s first blast furnace product designed to achieve very low CO2 emissions during the ironmaking process, marking a significant advancement in sustainable steel production within the industry.

Report Scope

H2 Green Steel Market: COVID-19 Analysis

The COVID-19 pandemic has significantly impacted the H2 Green Steel Market, with the industry experiencing both positive and negative effects. Here are some of the key impacts:

COVID-19’s influence on the H2 green steel industry has been particularly negative owing to the interruption of supply chains, shortages of labour and postponement of heavy engineering works. The situation worsened as the coronavirus spread, and foreign governments declared lockdowns, including in certain cases travel restrictions, which hampered the supply of some materials essential in making H2 green steel, like iron ore and hydrogen.

Also, the operational capacities of manufacturing plants were limited, or the facilities were shut down completely because of the reduced availability of the skilled workforce, which further delayed production and development activities within the green steel industry.

These economic factors caused by the pandemic also declined global investments as companies and shareholders reduced or postponed their profiles in developing green hydrogen resources. Several large projects related to advanced capital expenditures, including the projects on green steel manufacture, were shifted to the waiting position.

Moreover, the greening steel transition plans required the construction of downstream infrastructure, such as renewable energy and hydrogen plants, which were delayed because of the construction and funding difficulties.

List of the prominent players in the H2 Green Steel Market:

• SSAB
• Tata Steel
• ArcelorMittal
• Nippon Steel Corporation
• Thyssenkrupp AG
• Voestalpine AG
• Posco
• Baowu Steel Group
• JFE Steel Corporation
• Hybrit Development AB
• Salzgitter AG
• Celsa Group
• Liberty Steel Group
• JSW Steel
• Aperam
• Others

The H2 Green Steel Market is segmented as follows:

By Steel Type

• Stainless Steel
• High-Strength Steel

By Production Technology

• Electric Arc Furnace (EAF)
• Hydrogen-based Reduction
• Bioenergy Reduction
• Others

By Application

• Construction
• Automotive
• Consumer Goods
• Energy
• Others

By End-Users

• Heavy Machinery
• Packaging
• Rail and Shipbuilding
• Others

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America