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The U.S. green steel market size was worth USD 747.22 million in 2022 and is projected to grow at a CAGR of 49.8% during the forecast period.
The U.S. is the fourth largest steel manufacturer in the world. Electric Arc Furnace (EAF) steel production accounts for over 70% of the total production in the country. With such a huge EAF production capability, the U.S. has a high chance of gaining a first-mover advantage over other countries.
The manufacturing of green steel using EAF-based production plants can become almost carbon-free by using renewable electricity. This will allow U.S. steel manufacturers a smooth transition from carbon intensive steel to carbon free steel, allowing this industry to flourish during the forecast period.
The COVID-19 pandemic disrupted many industries, including metals and mining. Short and long-term contracts were delayed due to mine closures hampering the supply-demand equation. This market is still in the early stages of development, with only a few pilot plants in operation. As a result, the COVID-19 outbreak had little impact on the global market. However, a positive stance on environmental sustainability will undoubtedly lay a progressive foundation for the market.
Rising Trend of E-mobility to Propel Market Growth
The U.S. is one of the largest electric automotive producers, which is expected to fuel the demand for the product in the country during the forecast period. This can be attributed to the increasing steel consumption in Electric Vehicles (EVs) to increase their range. Automotive OEMs are using Advanced High-Strength Steel (AHSS) to meet their goal of improving the vehicle’s range by lowering its body weight without compromising safety. As the government is tightening carbon emissions norms, the product will emerge as an ideal solution for automotive makers to meet their carbon emission goals.
Green Steel to Become Ideal Green Building Material Owing to its Carbon Benefits
The construction of a new building is an energy and carbon-intensive process in which steel is the crucial raw material. As per the Department of Energy, overall carbon emission associated with green building is 34% less. In addition, it consumes 25% less energy compared to conventional building. The usage of the product in green building projects will significantly reduce tons of carbon dioxide emission. Moreover, the carbon benefits associated with the product are anticipated to make it an ideal material in the building & construction industry. The increasing investment in green building projects will further fuel the product demand over the assessment period. These factors are expected to propel the market growth over the study period.
High Cost Associated With Product Production to Restraint Market Growth
Green steel production is limited to electric arc furnaces (EAFs) and requires renewable electricity to make it a green process. Powering all the regional EAF-based steel-producing plants requires a tremendous amount of electricity, and today, no country has the capability to meet this demand. At present, nearly 20% of the electricity generated in the U.S. comes from renewable sources and is already utilized for many applications. However, the existing renewable electricity supply is insufficient to meet the increasing demand for low to no-carbon steel production. In addition, renewable electricity plants are cost intensive, which further increases the overall cost of decarbonizing steel production. The above mentioned factors are poised to hamper U.S. green steel market growth over the forecast period.
Based on production technology, the market is segmented into Renewable–Electric Arc Furnace (R-EAF), Hydrogen Direct Reduced Iron (DRI) - EAF, and Molten Oxide Electrolysis (MOE).
The renewable–electric arc furnace segment held the largest U.S. green steel market share in 2022. The product can be easily implemented in most existing electric arc furnaces. This production technology is poised to maintain its dominance till the midterm forecast.
Based on application, the market is segmented into building & construction, automotive, renewable energy infrastructure, home appliances, and others.
The automotive industry was identified as the largest consumer in the U.S. market in 2022 and is poised to maintain its dominance till the midterm forecast. The growth is anticipated on the back of many automotive manufacturers that partnered with product manufacturers.
In terms of competitive landscape, the market depicts the presence of established and emerging companies. The market being at a nascent stage does not have any market leader yet, but there are a few companies that are first movers and will gain a competitive advantage.
Companies such as H2 Green Steel, Boston Metal, and Nucor Corporation are the few companies with a considerable presence in the U.S. market. They are getting involved in many organic and inorganic strategic initiatives to gain maximum profit. For instance, in June 2023, H2 Green Steel Company partnered with a shipping company named Gotland Company to explore the possibility of establishing and supplying green hydrogen through Gotland Company’s fleet. Similarly, other leading companies such as ArcelorMittal, Salzgitter AG, and Nucor Corporation are planning to establish new production plants. These initiatives will fuel the U.S. market growth over the assessment period.
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The report thoroughly examines key aspects such as leading companies, applications, and products. It also provides the major market trends and highlights significant industry advancements. The study includes different variables that have contributed to the market growth in recent years. It provides a country-wise analysis of the industry's newest market dynamics, opportunities, historical data, and revenue growth estimates.
CAGR of 49.8% from 2023 to 2030
Value (USD Million)
By Production Technology
Fortune Business Insights says that the U.S. market size was worth USD 747.22 million in 2022.
The market is expected to exhibit a CAGR of 49.8% during the forecast period (2023-2030).
By production technology, the renewable – electric arc furnace segment is anticipated to lead the market by 2030.
Nucor Corporation, H2 Green Steel, and Cleveland-Cliffs are among the top players in the U.S. market.
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