DUBLIN--(BUSINESS WIRE)--The "European Green Steel Market: Insights and Forecast (2023-2028)" report has been added to ResearchAndMarkets.com's offering, providing valuable insights into the European green steel market, with an overview of the industry's dynamics, trends, challenges, and growth drivers.
Green steel, a more environmentally friendly alternative to traditional steel production, is characterized by reduced environmental impact, achieved by adopting non-coal-based alternative technologies. The use of green hydrogen, rather than coal or non-fossil power sources, is a common practice in green steel manufacturing.
The European green steel industry is poised for future growth, with key steelmakers like Thyssenkrupp and ArcelorMittal in Germany exploring hydrogen as a replacement for coking coal. The demand for green steel is on the rise, creating a tight supply/demand balance over the next decade and substantial profit potential. However, as supply expands and green steel becomes the norm, price competitiveness is expected to decrease. The European green steel market is projected to reach US$76.97 million by 2023, with a remarkable compound annual growth rate (CAGR) of 75.24% during the forecast period.
Key Highlights:
- The demand for green steel has exceeded expectations, with a broader range of end-users than initially projected.
- Green steel demand is driven by two primary factors: Scope 3 emissions reduction goals and end-user demand.
Green Steel Market in Europe:
- Green steel demand in Europe is expected to reach 3.68 million tonnes in 2023.
- In 2021, Swedish partnership SSAB supplied the first batch of green steel, produced using green hydrogen, to a vehicle manufacturer for truck manufacturing.
- Swedish steelmakers are set to increase steel output in the coming years, driven by the adoption of green hydrogen, which is transforming one of the most challenging sectors to decarbonize.
- European green steel market supply is predicted to grow to 1.51 million tonnes in 2023.
Segmentation Overview: The report provides insights into the European green steel market through two key segments:
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Type: The market is categorized into two types: Molten Oxide Electrolysis (MOE) and Electric Arc Furnace (EAF). MOE dominates the market due to its elimination of coking ovens and blast furnaces, using an electrolyte solution to reduce iron ore into liquid form. EAF is expected to have the highest future growth rate, with the potential to significantly reduce carbon emissions.
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End Users: The market is segmented into four end-user segments: Automotive, Construction, Electronics, and Other End Users. Automotive is the largest segment, with automakers increasingly using green steel to support eco-friendly manufacturing. Major international automakers have committed to becoming carbon neutral by 2040.
Geographic Coverage: The European green steel market is divided into five subregions: Sweden, Germany, France, the UK, and the Rest of Europe. Sweden holds the highest market share, driven by its commitment to achieving climate neutrality by 2045 and significant investment volumes. Prominent European financial institutions are supporting hydrogen-based steel plant construction in northern Sweden, leading to increased supply as more players establish green steel plants in Europe.
Key Impacting Factors:
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Driver: Rising Green Penetration: Growing environmental concerns have led to increased demand for green steel, aligning with decarbonization efforts. Investments from governments and financial institutions are expected to drive market growth.
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Challenge: Energy Crisis: The ongoing European energy crisis has resulted in cost inflation and challenges for the steel industry. Decarbonization efforts may increase the industry's vulnerability to power and gas costs.
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Trend: New Technologies: The market is evolving rapidly, with new technologies expected to emerge post-2025. Green hydrogen and direct reduced iron (DRI) plants, powered by renewable energy, are set to transform the industry.
Key Players: The European green steel market is led by key players such as ArcelorMittal, ThyssenKrupp, Salzgitter, SSAB, Tenaris, Tata Steel Europe, Swiss Steel Group, Vanir Green Industries, GFG Alliance, Voestalpine AG, and H2 Green Steel.
The "European Green Steel Market: Insights and Forecast (2023-2028)" report offers a comprehensive overview of the market's dynamics, challenges, and growth drivers.
For more information about this report visit https://www.researchandmarkets.com/r/oeapl5
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