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India Green Steel Market

ID: MRFR/CnM/47021-HCR
200 Pages
Chitranshi Jaiswal
October 2025

India Green Steel Market Research Report: By Method of Production (Hydrogen-Based Reduction, Electrolysis, Biomass Direct Reduction, Recycling), By End Use Industry (Construction, Automotive, Manufacturing, Energy), By Form (Flat Steel, Long Steel, Steel Products) andBy Quality Grade (High Strength Steel, Low Alloy Steel, Stainless Steel)- Forecast to 2035

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India Green Steel Market Summary

As per Market Research Future analysis, the green steel market size was estimated at 102.47 USD Million in 2024. The green steel market is projected to grow from 217.81 USD Million in 2025 to 410000.0 USD Million by 2035, exhibiting a compound annual growth rate (CAGR) of 112.5% during the forecast period 2025 - 2035

Key Market Trends & Highlights

The India green steel market is poised for substantial growth driven by regulatory support and technological advancements.

  • Government initiatives are increasingly promoting the adoption of green steel technologies across various sectors.
  • Technological advancements in steel production are enhancing efficiency and reducing carbon emissions, making green steel more viable.
  • Rising consumer demand for sustainable products is pushing manufacturers to invest in green steel solutions, particularly in the automotive and construction segments.
  • Key market drivers include regulatory framework enhancements and corporate sustainability commitments that are shaping the industry's future.

Market Size & Forecast

2024 Market Size 102.47 (USD Million)
2035 Market Size 410000.0 (USD Million)
CAGR (2025 - 2035) 112.56%

Major Players

SSAB (SE), ArcelorMittal (LU), Thyssenkrupp (DE), Nucor Corporation (US), Cleveland-Cliffs (US), POSCO (KR), Tata Steel (GB), Salzgitter AG (DE), Hyundai Steel (KR)

India Green Steel Market Trends

The green steel market is currently experiencing a transformative phase. This transformation is driven by increasing environmental awareness and regulatory pressures. Stakeholders are increasingly recognizing the necessity of sustainable practices in steel production, which has led to a surge in investments aimed at reducing carbon emissions. The Indian government has introduced various initiatives to promote green technologies, which are likely to enhance the adoption of innovative methods in steel manufacturing. This shift not only aligns with global sustainability goals but also positions the country as a potential leader in the green steel sector. Moreover, the demand for green steel is anticipated to rise as industries seek to meet stringent sustainability targets. Companies are exploring alternative raw materials and energy sources, such as hydrogen and renewable energy, to minimize their carbon footprint. This trend suggests a significant shift in production methodologies, which may redefine the competitive landscape. As the market evolves, collaboration between public and private sectors appears essential to foster innovation and ensure the successful transition towards greener practices in steel production.

Government Initiatives

The government is actively promoting policies that encourage the adoption of green technologies in steel production. Initiatives include financial incentives for companies investing in sustainable practices and research grants for developing innovative solutions. These measures are likely to stimulate growth in the green steel market.

Technological Advancements

Innovations in production processes, such as the use of hydrogen in steelmaking, are gaining traction. These advancements aim to reduce reliance on fossil fuels and lower emissions. As technology continues to evolve, it may lead to more efficient and environmentally friendly methods in the green steel market.

Rising Consumer Demand

There is a growing awareness among consumers regarding the environmental impact of products. This shift in consumer preferences is driving industries to seek greener alternatives, including steel. As demand for sustainable products increases, the green steel market is expected to expand significantly.

Market Segment Insights

By Method of Production: Hydrogen-Based Reduction (Largest) vs. Recycling (Fastest-Growing)

In the India green steel market, Hydrogen-Based Reduction holds the largest market share among the various production methods, leveraging advanced technologies to minimize carbon emissions effectively. It is significantly leading the segment as producers seek sustainable practices due to regulatory pressures and consumer demand for greener products. Conversely, Recycling is the fastest-growing segment within this category, gaining traction as it capitalizes on the increasing emphasis on circular economy models and resource efficiency initiatives. The growth trends in this segment are being driven by technological advancements and favorable government policies promoting green initiatives. Hydrogen-Based Reduction is emerging as a cornerstone for decarbonization in steel production, while Recycling is benefitting from rising scrap steel availability and the reduced energy consumption associated with reprocessing. Together, these methods are reshaping the landscape of steel production, demonstrating a clear shift toward sustainable practices in the industry.

Hydrogen-Based Reduction (Dominant) vs. Recycling (Emerging)

Hydrogen-Based Reduction is characterized by its ability to produce steel with near-zero emissions, positioning it as the dominant method in the India green steel market. Leveraging hydrogen as a reducing agent allows for cleaner production processes compared to traditional methods. On the other hand, Recycling is an emerging practice that significantly reduces the need for raw material extraction and minimizes energy consumption. This method enhances sustainability by reusing existing materials and is gaining popularity among steel manufacturers due to its economic and environmental benefits. As the market evolves, both these methods are crucial for meeting the increasing demand for sustainable steel solutions.

By End Use Industry: Construction (Largest) vs. Automotive (Fastest-Growing)

The India green steel market shows a significant market share distribution among the end use industries, with construction leading as the largest segment. This reflects the increasing demand for sustainable building materials in response to urban development and infrastructure projects across the country. The automotive industry is the second largest segment, gaining traction as manufacturers pivot towards greener alternatives in vehicle production. Growth trends in the India green steel market indicate that the automotive sector is emerging as the fastest-growing segment. This growth is driven by the rising adoption of electric vehicles, stringent emissions regulations, and shifting consumer preferences towards environmentally friendly transportation solutions. Moreover, the construction segment is expected to maintain its dominance due to ongoing infrastructure investments and the push for sustainable building practices.

Construction: Dominant vs. Automotive: Emerging

The construction sector stands as the dominant end use industry within the India green steel market, characterized by its extensive use in various building applications and infrastructure projects. This segment benefits from governmental policies promoting green construction practices and sustainable materials. On the other hand, the automotive sector is an emerging player, rapidly expanding its use of green steel driven by innovation in electric vehicle technologies and greater emphasis on reducing the carbon footprint. While construction projects rely heavily on the durability and strength of green steel, the automotive industry's growth is fueled by technological advancements and a commitment to cleaner production methods, making both segments vital for the future of green steel.

By Form: Flat Steel (Largest) vs. Long Steel (Fastest-Growing)

In the India green steel market, the market share distribution showcases Flat Steel as the largest segment, primarily driven by its extensive applications in construction and manufacturing. Long Steel closely follows, benefiting from its versatility and adaptability in various structural applications. Steel Products also hold a significant portion of the market, providing essential components across multiple industries. Growth trends indicate a robust demand for Long Steel, which is expected to grow at a faster pace compared to Flat Steel. This growth is fueled by the increasing infrastructure projects and urbanization efforts. The rising environmental awareness and shift towards sustainable practices further amplify the demand for green steel products, positioning Long Steel as a key player in the market.

Flat Steel (Dominant) vs. Long Steel (Emerging)

Flat Steel, being the dominant segment, is characterized by its wide range of applications including automotive and construction sectors, which makes it integral to industrial activities. This segment is recognized for its ability to offer superior surface quality and dimensional accuracy. On the other hand, Long Steel, while currently categorized as emerging, is rapidly gaining traction due to its critical role in structural applications. The flexibility of Long Steel products such as bars and rods enhances their appeal, particularly in construction and engineering projects. As the focus on sustainability in the steel manufacturing process increases, both segments are adapting to meet the requirements for low carbon emissions and energy efficiency.

By Quality Grade: Stainless Steel (Largest) vs. High Strength Steel (Fastest-Growing)

In the India green steel market, the quality grade segment is shaped primarily by the contributions from stainless steel, high strength steel, and low alloy steel. Stainless steel holds the largest share, primarily due to its extensive applications in construction, automotive, and consumer goods. High strength steel is gaining traction for its lightweight and durability characteristics, appealing to industries aiming for efficiency without compromising strength. Low alloy steel, while important, remains a smaller segment in comparison to the other two due to its niche applications. The growth prospects within the quality grade segment are dynamic, with high strength steel projected to experience the fastest growth driven by increased demand in advanced manufacturing and automotive sectors. The push for sustainability and the need for robust materials suitable for various applications are further catalyzing this trend. Stainless steel, although dominant, is also benefiting from innovation in production techniques, enhancing its appeal in sectors focused on performance and sustainability. Low alloy steel's growth, although steady, is hindered by its slower market adaptation compared to its counterparts.

Stainless Steel (Dominant) vs. High Strength Steel (Emerging)

Stainless steel remains the dominant player in the quality grade segment of the India green steel market. It is renowned for its corrosion resistance, strength, and aesthetic appeal, making it a preferred choice in industries such as construction and consumer appliances. High strength steel, on the other hand, is emerging due to its ability to provide superior strength-to-weight ratios, allowing for innovative design solutions, especially in vehicle manufacturing and infrastructure projects. This emerging segment is characterized by ongoing advancements in metallurgical processes, enhancing its performance metrics. The competitive landscape indicates a healthy progression of both stainless and high strength steels, with the latter set to capture significant market attention as industries increasingly prioritize sustainability and material performance.

Get more detailed insights about India Green Steel Market

Key Players and Competitive Insights

The green steel market is currently characterized by a dynamic competitive landscape, driven by increasing demand for sustainable production methods and stringent regulatory frameworks. Major players are actively pursuing strategies that emphasize innovation, regional expansion, and partnerships to enhance their market positioning. For instance, Tata Steel (GB) has been focusing on integrating advanced technologies into its production processes, which not only reduces carbon emissions but also improves operational efficiency. Similarly, ArcelorMittal (LU) is investing heavily in research and development to pioneer new methods of green steel production, thereby reinforcing its leadership in the sector. These strategic initiatives collectively contribute to a competitive environment that is increasingly oriented towards sustainability and technological advancement.

In terms of business tactics, companies are localizing manufacturing to reduce transportation emissions and optimize supply chains. The market structure appears moderately fragmented, with several key players exerting influence over their respective segments. This fragmentation allows for a variety of competitive strategies, as companies seek to differentiate themselves through unique value propositions and operational efficiencies.

In October 2025, Thyssenkrupp (DE) announced a partnership with a leading renewable energy provider to develop a green hydrogen production facility. This strategic move is expected to significantly lower the carbon footprint of their steel production processes, aligning with global sustainability goals. The collaboration not only enhances Thyssenkrupp's operational capabilities but also positions the company as a frontrunner in the transition towards green steel manufacturing.

In September 2025, POSCO (KR) unveiled its plans to invest €1 billion in a new facility dedicated to producing low-emission steel. This investment underscores POSCO's commitment to sustainability and its strategic focus on expanding its green steel production capacity. By enhancing its technological capabilities, POSCO aims to capture a larger share of the growing market, which is increasingly favoring environmentally friendly products.

In August 2025, Nucor Corporation (US) launched a new initiative aimed at increasing the use of recycled materials in its steel production. This initiative not only reduces waste but also aligns with the company's sustainability objectives. By prioritizing recycled content, Nucor is likely to appeal to environmentally conscious consumers and businesses, thereby enhancing its competitive edge in the market.

As of November 2025, current trends in the green steel market indicate a strong emphasis on digitalization, sustainability, and the integration of artificial intelligence in production processes. Strategic alliances are becoming increasingly vital, as companies collaborate to leverage shared resources and expertise. Looking ahead, competitive differentiation is expected to evolve, with a notable shift from price-based competition to a focus on innovation, technological advancements, and supply chain reliability. This transition may redefine market dynamics, as companies that prioritize sustainable practices and cutting-edge technologies are likely to emerge as leaders in the green steel sector.

Key Companies in the India Green Steel Market include

Industry Developments

The India Green Steel Market has seen significant advancements recently, particularly in the push towards sustainable steel production. Companies such as Tata Steel and JSW Steel are forming partnerships and investing in new technologies to lower carbon emissions. In October 2023, Tata Steel announced its commitment to achieving net-zero emissions by 2045, which is expected to include investments in hydrogen-based steelmaking.

Growth in the market valuation for companies like Hindalco and Jindal Steel and Power is evident, driven by rising demand for environmentally friendly construction materials. In September 2023, JSW Steel expanded its efforts in the renewable energy sector by integrating solar power into its manufacturing processes.

In the context of mergers and acquisitions, Shyam Metalics and Maithan Alloys have been considering strategic collaborations to bolster production capacities however, no finalized deals have been publicly announced in this quarter. The regulatory framework in India continues to evolve, promoting incentives for green technologies, thus enhancing overall market dynamics.

Recent developments illustrate a sector increasingly aligned with global green initiatives while focusing on innovative solutions to meet the demands of a changing world economy.

Future Outlook

India Green Steel Market Future Outlook

The green steel market in India is projected to grow at a remarkable 112.56% CAGR from 2024 to 2035, driven by sustainability initiatives, technological advancements, and regulatory support.

New opportunities lie in:

  • Investment in hydrogen-based steel production facilities.
  • Development of carbon capture and storage technologies.
  • Partnerships with renewable energy providers for sustainable operations.

By 2035, the green steel market is expected to achieve substantial growth and innovation.

Market Segmentation

India Green Steel Market Form Outlook

  • Flat Steel
  • Long Steel
  • Steel Products

India Green Steel Market Quality Grade Outlook

  • High Strength Steel
  • Low Alloy Steel
  • Stainless Steel

India Green Steel Market End Use Industry Outlook

  • Construction
  • Automotive
  • Manufacturing
  • Energy

India Green Steel Market Method of Production Outlook

  • Hydrogen-Based Reduction
  • Electrolysis
  • Biomass Direct Reduction
  • Recycling

Report Scope

MARKET SIZE 2024102.47(USD Million)
MARKET SIZE 2025217.81(USD Million)
MARKET SIZE 2035410000.0(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR)112.56% (2024 - 2035)
REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR2024
Market Forecast Period2025 - 2035
Historical Data2019 - 2024
Market Forecast UnitsUSD Million
Key Companies Profiled["SSAB (SE)", "ArcelorMittal (LU)", "Thyssenkrupp (DE)", "Nucor Corporation (US)", "Cleveland-Cliffs (US)", "POSCO (KR)", "Tata Steel (GB)", "Salzgitter AG (DE)", "Hyundai Steel (KR)"]
Segments CoveredMethod of Production, End Use Industry, Form, Quality Grade
Key Market OpportunitiesAdoption of innovative hydrogen-based production methods enhances sustainability in the green steel market.
Key Market DynamicsRising demand for sustainable materials drives innovation and competition in the green steel market.
Countries CoveredIndia

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FAQs

What is the expected market size of the India Green Steel Market in 2024?

The India Green Steel Market is expected to be valued at 254.62 million USD in 2024.

What is the projected market size of the India Green Steel Market by 2035?

By 2035, the India Green Steel Market is anticipated to reach a value of 4750 million USD.

What is the expected CAGR for the India Green Steel Market from 2025 to 2035?

The expected compound annual growth rate (CAGR) for the India Green Steel Market from 2025 to 2035 is 30.475%.

Who are the major players in the India Green Steel Market?

Key players in the India Green Steel Market include JSW Steel, Tata Steel, and Steel Authority of India among others.

What is the market value of Hydrogen-Based Reduction in 2024 for the India Green Steel Market?

The Hydrogen-Based Reduction segment of the India Green Steel Market is valued at 50 million USD in 2024.

What is the future market value of Electrolysis in the India Green Steel Market by 2035?

Electrolysis is projected to reach a market value of 1300 million USD in 2035 within the India Green Steel Market.

What opportunities exist for the India Green Steel Market regarding Biomass Direct Reduction by 2035?

Biomass Direct Reduction is anticipated to grow to a market value of 500 million USD by 2035 in the India Green Steel Market.

What is the anticipated market size for Recycling in the India Green Steel Market by 2035?

The Recycling segment is projected to reach 2050 million USD in the India Green Steel Market by 2035.

What emerging trends are impacting the growth of the India Green Steel Market?

The growth of the India Green Steel Market is fueled by increasing environmental awareness and technological advancements in steel production.

What challenges does the India Green Steel Market face in achieving its growth potential?

The India Green Steel Market may face challenges such as high production costs and limited availability of green technologies.

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