European Green Steel Market

Best Price Guarantee	Length	Publisher	Published Date	SKU
from $4,500	116 Pages	Koncept Analytics	November, 2023	KOAN18283376

Best Price Guarantee
Price	from $4,500
Length	116 Pages
Publisher	Koncept Analytics
Published Date	November, 2023
SKU	KOAN18283376

European Green Steel Market (by Demand, Supply, Type, End User, & Region): Insights and Forecast with Potential Impact of COVID-19 (2023-2028)

Market Insight:

Green steel is steel that is less harmful to the environment than typical steel-making procedures. This footprint is reduced when non-coal-based alternative technologies are implemented. Green hydrogen is typically used in green steel manufacturing rather than coal or power generated from non-fossil sources.

The European green steel industry is projected to develop in the future as European steelmaking rivals such as Germany's Thyssenkrupp and ArcelorMittal consider utilising hydrogen to replace coking coal. With demand growing fast, green steel providers are likely to benefit from a very tight supply/demand balance over the next decade, with considerable profit upside forecast. However, as supply expands and green steel becomes the standard, price power is expected to dwindle. Europe green steel market is expected to reach US$76.97 million by 2023, growing at a CAGR of 75.24% during the forecast period.

The outlook for green steel demand has positively surprised over recent years with a larger range of end users than projected. It is clear that demand for green steel has spread into many more end sectors than was anticipated. Green steel demand is ultimately driven by a mix of two primary drivers: Scope 3 emissions reduction objectives and end-user demand. Green steel market demand in Europe is expected to reach 3.68 million tonnes in 2023. In 2021, the European green steel market saw a supply as SSAB, a Swedish partnership, supplied the first batch of the metal—made using 'green' hydrogen—to a vehicle manufacturer for truck manufacturing. Swedish steel makers would increase steel output in the next few years as green hydrogen drives the transformation of one of the most difficult sectors to decarbonize. Europe green steel market supply is predicted to grow to 1.51 million tonnes in 2023.

Segment Covered:

By Type: In terms of type, the report offers insights of the Europe green steel market into two types: Molten Oxide Electrolysis (MOE) and Electric Arc Furnace (EAF). Molten Oxide Electrolysis (MOE) segment acquired majority of share in the market, as it removes the need for coking ovens and blast furnaces. Instead, iron ore is dissolved in a liquid electrolyte solution at a temperature of about 1,600ºC before an electrical current is passed through the solution, reducing the iron ore into a liquid in an endothermic reaction. Whereas, Electric Arc Furnace (EAF) segment is expected to have the highest CAGR in the future as arc furnaces used in research laboratories and by dentists may have a capacity of only a few dozen grams. These furnaces run on natural gas and will eventually use green hydrogen (H2), dramatically reducing the plant’s carbon emissions.
By End User: On the basis of end users, the report provides the bifurcation of the market into four segments: Automotive, Construction, Electronics and Other End Users. Automotive segment held the largest share in the market, as green steel is now being used by automakers to ensure a cleaner, greener manufacturing ecosystem. Moreover, international auto makers like GM, Volvo, Mercedes etc., have pledged to become carbon neutral by 2040.

Geographic Coverage:

According to the report, the Europe green steel market can be divided into five sub regions: Sweden, Germany, France, UK and Rest of Europe. Sweden green steel market enjoyed the highest market share, primarily owing to aims for climate neutrality by 2045 and accounts for the biggest investment volume that has been announced. Swedish steel venture H2 Green Steel – founded in 2020 – announced that some of the most prominent European financial institutions have decided to support the hydrogen-based steel plant construction in northern Sweden. These investments and funding would increase the supply as many players would establish green steel plants in Europe. Swedish steel companies will ramp up the country’s steel production over the next few years as green hydrogen helps drive the transformation of one of the hardest industries to decarbonize.

Top Impacting Factors:

Growth Drivers

Rising Green Penetration
Carbon Neutrality
Certificate-based Products
Multiple End Users

Challenges

Energy Crisis
Higher Cost Of Production

Trends

Increasing Investment In Launching Greenfield Projects
High Utilization Of Alternative Resources
New Technologies
Driver: Rising Green Penetration

A green field strategy is a penetration plan designed to broach the untouched or undeveloped areas. Often selling organizations are so focused on well-defined product sales opportunities that they miss the green field altogether. Many companies are following the strategy due to the environment concerns. Green steel is the manufacturing of steel without the use of fossil fuels. Demand for green steel is increasing and technologies continue to be developed as the industry moves towards decarbonization and a more sustainable future. Low-cost and renewable energy sources must be more readily available, however, should the industry wish to achieve its carbon neutral goals. Also, the government of different countries are and will be investing in the green steel market as the supply and demand for green steel is estimated to increase.

Challenge: Energy Crisis

The ongoing European energy crisis has put the domestic steel industry under extreme pressure, driving significant cost inflation and testing the degree to which unprecedented supply discipline can force customers to accept price hikes. Ironically, while currently surging gas and power costs have not impacted all European steelmakers equally, leaving BF-based producers relatively better off, the companies are concerned that decarbonization will meaningfully increase the industry’s leverage to power and gas costs. Absent a meaningful correction in prices, this situation could expose the fundamental uncompetitiveness of the industry compared to other regions, in particular the US.

Trend: New Technologies

While certificate-based green products are the focus today, the market is changing rapidly, and today’s green products will be followed by a whole new range of options post-2025 as new technologies ramp-up. In Europe, the consensus plan is to develop green hydrogen capacity that will power new direct reduced iron (DRI) plants; green DRI will then be processed into steel in new EAFs powered by renewable energy. The industry's response to the challenges posed by traditional methods is green steel—metal produced without releasing carbon into the environment. There are various technologies being rolled out in pilots around the world, but the focus is on replacing coking coal in the process. Key technologies such as carbon capture, utilization and storage for cement and steel industries and hydrogen-based steel manufacturing are still in prototype and demonstration stages.

The COVID-19 Analysis:

The COVID-19 pandemic continues into 2022 and is still impacting different industries across the globe. There is no significant impact of COVID-19 on the Europe green steel market. In fact, the pandemic had helped manufacturers and buyers realize the importance of environment friendly products. Thus, the growth of green steel market emerged and companies as well as government are investing in different projects in the market on producing green steel.

Analysis of Key Players:

Europe green steel market is concentrated with SSAB, Salzgitter and ArcelorMittal as best positioned, in Europe. Key players of Europe green steel market are:

ArcelorMittal S.A.
ThyssenKrupp AG
Salzgitter AG
SSAB AB
Tenaris S.A.
Tata Steel Europe Limited
Swiss Steel Group (Deutsche Edelstahlwerke Specialty Steel GmbH & Co. KG)
Vanir Green Industries (Blaster Green Steel)
GFG Alliance (Liberty Steel Group Holdings UK Ltd) O-I Glass, Inc.,
Voestalpine AG
H2 Green Steel

As the European market transitions there is a clear first mover advantage with SSAB and Salzgitter ahead of peers and aiming to fully shift to green steel by 2030 and 2033, respectively, vs peers’ targets of 2050. Notably, this will allow both companies to gain share in premium green products above and beyond their existing market share in standard grades whilst ArcelorMittal and Thyssenkrupp are set to lose market share due to their relatively slower transitions. SSAB has taken this one step further identifying the transition to green steel as an opportunity to take share in high value automotive markets by also investing in new downstream finishing capacity. The key players are constantly investing in strategic initiatives, such as new product launches, introducing their products to emerging markets and more, to maintain a competitive edge in this market. For instance, in 2022, ArcelorMittal plans to invest US$100 million Also, in 2021, Iberdrola & H2 Green Steel signed a green hydrogen deal of US$2.59 billion. With a capacity to generate 2 million tons of pig iron would be produced & fueled by green hydrogen at the new facility.

1. Executive Summary 2. Introduction 2.1 Green Steel: An Overview 2.1.1 Green Steel Production Process Table 1: Green Steel Production Process 2.2 Green Steel Segmentation: An Overview 2.2.1 Green Steel Segmentation Table 2: Green Steel Segmentation 3. Europe Market Analysis 3.1 Europe Green Steel Market: An Analysis 3.1.1 Europe Green Steel Market: An Overview 3.1.2 Europe Green Steel Market by Value Table 3: Europe Green Steel Market by Value; 2021-2022 (US$ Million) Table 4: Europe Green Steel Market by Value; 2023-2028 (US$ Million) 3.1.3 Europe Green Steel Market by Type (Molten Oxide Electrolysis (MOE) and Electric Arc Furnace (EAF)) Table 5: Europe Green Steel Market by Type; 2022 (Percentage, %) 3.1.4 Europe Green Steel Market by End User (Automotive, Construction, Electronics and Other End Users) Table 6: Europe Green Steel Market by End User; 2022 (Percentage, %) 3.1.5 Europe Green Steel Market by Region (Sweden, Germany, France, UK and Rest of Europe) Table 7: Europe Green Steel Market by Region; 2022 (Percentage, %) 3.2 Europe Green Steel Market by Demand: An Analysis 3.2.1 Europe Green Steel Market by Demand: An Overview 3.2.2 Europe Green Steel Market by Demand Table 8: Europe Green Steel Market by Demand; 2021-2022 (Million Tonnes) Table 9: Europe Green Steel Market by Demand; 2023-2028 (Million Tonnes) 3.3 Europe Green Steel Market by Supply: An Analysis 3.3.1 Europe Green Steel Market by Supply: An Overview 3.3.2 Europe Green Steel Market by Supply Table 10: Europe Green Steel Market by Supply; 2021-2022 (Thousand Tonnes) Table 11: Europe Green Steel Market by Supply; 2023-2028 (Million Tonnes) 3.4 Europe Green Steel Market: Type Analysis 3.4.1 Europe Green Steel Market by Type: An Overview 3.4.2 Europe Molten Oxide Electrolysis (MOE) Green Steel Market by Value Table 12: Europe Molten Oxide Electrolysis (MOE) Green Steel Market by Value; 2021-2022 (US$ Million) Table 13: Europe Molten Oxide Electrolysis (MOE) Green Steel Market by Value; 2023-2028 (US$ Million) 3.4.3 Europe Electric Arc Furnace (EAF) Green Steel Market by Value Table 14: Europe Electric Arc Furnace (EAF) Green Steel Market by Value; 2021-2022 (US$ Million) Table 15: Europe Electric Arc Furnace (EAF) Green Steel Market by Value; 2023-2028 (US$ Million) 3.5 Europe Green Steel Market: End User Analysis 3.5.1 Europe Green Steel Market by End User: An Overview 3.5.2 Europe Automotive Green Steel Market by Value Table 16: Europe Automotive Green Steel Market by Value; 2021-2022 (US$ Million) Table 17: Europe Automotive Green Steel Market by Value; 2023-2028 (US$ Million) 3.5.3 Europe Construction Green Steel Market by Value Table 18: Europe Construction Green Steel Market by Value; 2021-2022 (US$ Million) Table 19: Europe Construction Green Steel Market by Value; 2023-2028 (US$ Million) 3.5.4 Europe Electronics Green Steel Market by Value Table 20: Europe Electronics Green Steel Market by Value; 2021-2022 (US$ Million) Table 21: Europe Electronics Green Steel Market by Value; 2023-2028 (US$ Million) 3.5.5 Europe Other End Users Green Steel Market by Value Table 22: Europe Other End Users Green Steel Market by Value; 2021-2022 (US$ Million) Table 23: Europe Other End Users Green Steel Market by Value; 2023-2028 (US$ Million) 4. Regional Market Analysis 4.1 Sweden Green Steel Market: An Analysis 4.1.1 Sweden Green Steel Market by Value Table 24: Sweden Green Steel Market by Value; 2021-2022 (US$ Million) Table 25: Sweden Green Steel Market by Value; 2023-2028 (US$ Million) 4.2 Germany Green Steel Market: An Analysis 4.2.1 Germany Green Steel Market by Value Table 26: Germany Green Steel Market by Value; 2021-2022 (US$ Million) Table 27: Germany Green Steel Market by Value; 2023-2028 (US$ Million) 4.3 France Green Steel Market: An Analysis 4.3.1 France Green Steel Market by Value Table 28: France Green Steel Market by Value; 2021-2022 (US$ Million) Table 29: France Green Steel Market by Value; 2023-2028 (US$ Million) 4.4 UK Green Steel Market: An Analysis 4.4.1 UK Green Steel Market by Value Table 30: UK Green Steel Market by Value; 2021-2022 (US$ Thousand) Table 31: UK Green Steel Market by Value; 2023-2028 (US$ Million) 4.5 Rest of Europe Green Steel Market: An Analysis 4.5.1 Rest of Europe Green Steel Market by Value Table 32: Rest of Europe Green Steel Market by Value; 2021-2022 (US$ Million) Table 33: Rest of Europe Green Steel Market by Value; 2023-2028 (US$ Million) 5. Impact of COVID-19 5.1 Impact of COVID-19 5.1.1 COVID-19 Impact on Green Steel Market 5.1.2 Post COVID-19 Impact 6. Market Dynamics 6.1 Growth Drivers 6.1.1 Rising Green Penetration Table 34: Europe Green Penetration; 2021, 2030, 2040 and 2050 (Percentage, %) 6.1.2 Carbon Neutrality Table 35: Automaker’s Decarbonization Targets over the Coming Decades Table 36: Construction Companies Decarbonisation Targets over the Coming Decades 6.1.3 Certificate-based Products 6.1.4 Premium Green Steel 6.1.5 Multiple End Users 6.2 Challenges 6.2.1 Energy Crisis Table 37: EU Energy Costs (Electricity + Natural Gas) per Tonne of Steel Produced; Hist Avg, 2Q21, 3Q21, 4Q21, 1Q22, 2Q22, Spot (US$/Tonne) 6.2.2 Complex Carbon Accounting Calculation 6.2.3 Higher Cost of Production 6.3 Market Trends 6.3.1 Increasing Investment in Launching Greenfield Projects 6.3.2 High Utilization of Alternative Resources 6.3.3 New Technologies 7. Competitive Landscape 7.1 Europe Green Steel Players by Market Share Table 38: Europe Green Steel Players by Market Share; Grey (2019)-Green (2030) (Percentage, %) 7.2 Europe Green Steel Players by Green Steel Volume Table 39: Europe Green Steel Players by Green Steel Volume; 2030 (Percentage, %) 7.3 Europe Green Steel Players by Estimated Supply Table 40: Europe Green Steel Players by Estimated Supply; 2025-2030 (Million Tonnes) 7.4 Europe Green Steel Market Players: Low Carbon Steel Products Comparison Table 41: Europe Green Steel Market Players: Low Carbon Steel Products Comparison 7.5 Europe Green Steel Market Players: Emission Reduction Goals Comparison Table 42: Europe Green Steel Market Players: Emission Reduction Goals Comparison 7.6 Europe Green Steel Market Players: Decarbonisation Projects Comparison Table 43: Europe Green Steel Market Players: Decarbonisation Projects Comparison 8. Company Profiles 8.1 ArcelorMittal S.A. 8.1.1 Business Overview 8.1.2 Operating Segments Table 44: ArcelorMittal S.A. Sales by Segments; 2021 (Percentage, %) 8.1.3 Business Strategy 8.2 Salzgitter AG 8.2.1 Business Overview 8.2.2 Operating Segments Table 45: Salzgitter AG Sales by Segments; 2021 (Percentage, %) 8.2.3 Business Strategy 8.3 SSAB AB 8.3.1 Business Overview 8.3.2 Operating Segments Table 46: SSAB AB Revenue by Segments; 2021 (Percentage, %) 8.3.3 Business Strategy 8.4 ThyssenKrupp AG 8.4.1 Business Overview 8.4.2 Operating Segments Table 47: ThyssenKrupp AG Net Sales by Segments; 2022 (Percentage, %) 8.4.3 Business Strategy 8.5 Tata Steel Europe Limited 8.5.1 Business Overview 8.5.2 Operating Regions Table 48: Tata Steel Europe Limited Revenue by Regions; 2021 (Percentage, %) 8.5.3 Business Strategy 8.6 Tenaris S.A. 8.6.1 Business Overview 8.6.2 Operating Segments Table 49: Tenaris S.A. Net Sales by Segments; 2021 (Percentage, %) 8.6.3 Business Strategy 8.7 Swiss Steel Group (Deutsche Edelstahlwerke Specialty Steel GmbH & Co. KG) 8.7.1 Business Overview 8.7.2 Operating Segments Table 50: Swiss Steel Group Revenue by Segments; 2021 (Percentage, %) 8.7.3 Business Strategy 8.8 Voestalpine AG 8.8.1 Business Overview 8.8.2 Operating Segments Table 51: Voestalpine AG Revenue by Segments; 2021 (Percentage, %) 8.8.3 Business Strategy 8.9 H2 Green Steel 8.9.1 Business Overview 8.9.2 Business Strategy 8.10 Vanir Green Industries (Blaster Green Steel) 8.10.1 Business Overview 8.10.2 Business Strategy 8.11 GFG Alliance (Liberty Steel Group Holdings UK Ltd) 8.11.1 Business Overview 8.11.3 Business Strategy