Market Overview

The Germany steel market size was valued at USD 43,732.09 Million in 2024 and is forecasted to reach USD 58,268.28 Million by 2033. The market is expected to grow at a CAGR of 3.24% during the forecast period of 2025–2033. Growth is driven by the shift towards decarbonization and green steel production supported by EU climate policies and increasing demand for environmentally friendly materials. Companies are adopting technologies such as hydrogen-based steelmaking and electric arc furnaces while emphasizing circular economy practices with recycled scrap usage.

Study Assumption Years

• Base Year: 2024

• Historical Year/Period: 2019-2024

• Forecast Year/Period: 2025-2033

Germany Steel Market Key Takeaways

• The market size reached USD 43,732.09 Million in 2024 and is projected to reach USD 58,268.28 Million by 2033.

• The market is expected to grow at a CAGR of 3.24% between 2025 and 2033.

• Green steel and decarbonization are major trends, with government funding of 07 billion to accelerate the transition.

• Increased use of scrap and circular economy practices are reducing reliance on raw materials and lowering CO2 emissions.

• Digitalization and smart manufacturing, including AI and IoT adoption, are enhancing efficiency and competitiveness in the sector.

• Key challenges include high electricity costs, renewable energy supply uncertainties, and slow hydrogen infrastructure development.

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Market Growth Factors

Germany's steel industry is swiftly transitioning toward green and low-carbon production, supported by 07 billion in public funding for decarbonization. Companies are investing heavily in hydrogen-based steelmaking and energy-efficient technologies to reduce CO₂ emissions, aligning with EU climate goals and growing customer demand for sustainable materials. This shift reflects a strong governmental and corporate commitment to environmental sustainability, positioning the industry for future resilience.

Increased reliance on scrap and circular economy strategies is another key growth factor. Steel producers are expanding electric arc furnace capacity, using recycled steel scrap instead of raw iron ore, which significantly lowers CO₂ emissions and energy use. Feralpi Stahl sources scrap from Germany, Poland, and the Czech Republic, ensuring quality for this purpose. This resource shift reduces dependence on raw material imports like coking coal or iron ore, while responding to customer preference for recycled steel products. The industry is addressing supply challenges of scrap availability and quality through increased investment in recycling infrastructure and logistics.

Digitalization and smart manufacturing are transforming the sector through adoption of advanced data analytics, automation, AI, IoT sensors, and digital twins. These technologies streamline production, reduce waste, enhance energy efficiency, and optimize resource use. Digital innovation also helps mitigate labor shortages through automation and supports competitiveness through customization and supply chain integration. Government initiatives like "Industrie 4.0" foster these developments, making technology a fundamental driver for growth and sustainability in the German steel market.

Market Segmentation

Type Insights

• Flat Steel: The report highlights flat steel as a primary type segment, crucial in various end applications across the country.

• Long Steel: Included as a key segment, long steel caters to specific construction and manufacturing needs.

Product Insights

• Structural Steel: A major product segment used extensively in building and construction.

• Prestressing Steel: Included as a significant product type in the sector.

• Bright Steel: Recognized as part of the product breakdown.

• Welding Wire and Rod: Constitutes a component of the product range.

• Iron Steel Wire: An important product category described in the report.

• Ropes: Included among the products used for specialized applications.

• Braids: Listed as a specific product segment.

Application Insights

• Building and Construction: A major application sector for steel products.

• Electrical Appliances: Steel usage in manufacturing electrical appliances is detailed.

• Metal Products: Covers a broad range of steel-based metal products.

• Automotive: Steel applications in automobiles are analyzed.

• Transportation: Covers the use of steel in transportation infrastructure and equipment.

• Mechanical Equipment: Industrial machinery and equipment use steel widely.

• Domestic Appliances: Steel's role in consumer appliances is included.

Regional Insights

The report analyzes key regional markets within Germany, including Western Germany, Southern Germany, Eastern Germany, and Northern Germany. While no explicit dominant region statistics such as market shares or CAGR are provided, the segmentation underlines the comprehensive coverage and regional importance of all four major areas impacting the overall Germany steel market.

Recent Developments & News

In June 2025, ArcelorMittal abandoned plans to convert two German plants to carbon-neutral production citing high energy costs, also declining government subsidies worth 01.3 billion ($1.5 billion). This setback casts doubt on Germany's green hydrogen ambitions amidst the loss of Russian gas supply. However, competitors Thyssenkrupp and Salzgitter continue advancing their green steel projects.

In May 2025, Feralpi Stahl inaugurated a 20 million energy-efficient steel rolling mill in Riesa, Saxony, one of the largest green metallurgy investments in Germany. The plant uses direct rolling technology and renewable energy-powered electric arc furnaces to reduce energy consumption and emissions, though challenges from high electricity prices persist.

Key Players

• ArcelorMittal

• Thyssenkrupp

• Salzgitter

• Feralpi Stahl

Customization Note

If you require any specific information that is not covered currently within the scope of the report, we will provide the same as a part of the customization.

About Us

IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provides a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.