Increasing demand for direct reduced iron (DRI) from infrastructure, appliances, aerospace, automotive, and other sectors is propelling the market growth. The valuation of this market is expected to reach US$ 28,195.90 million in 2024.
By 2034, the market is projected to reach US$ 60,013.60 million, expanding at a CAGR of 7.60%. The market is driven by several companies like Voestalpine, Salzgiter, ArcelorMittal, etc. that are boosting the creation of new DRI as well as electric arc furnaces.
| Attributes | Key Insights |
|---|---|
| Direct Reduced Iron Market Size (2024E) | US$ 28,195.90 million |
| Market Valuation (2034F) | US$ 60,013.60 million |
| Value-based CAGR (2024 to 2034) | 7.60% |
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| Leading Form | Lumps |
|---|---|
| Value Share (2024) | 97.60% |
The lumps segment is projected to gain 97.60% of the market share in 2024. The use of lump DRI is increasing as it has a more consistent and well-defined chemical composition that allows for improved control over the end properties of the steel being produced.
The segment is further expanding because steel manufacturers are rapidly focusing on developing high-quality steel. Since the lump form of DRI is a reliable supplement to scrap steel, it helps manufacturers achieve better quality final products.
| Leading Production Process | Gas based |
|---|---|
| Value Share (2024) | 71.40% |
The gas-based production process of direct reduced iron (DRI) is expected to obtain a 71.40% value share in 2024. The demand for gas-based processes is rising as they offer greater energy efficiency as opposed to coal-based alternatives. This results in lower production costs and lower waste heat.
The gas-based DRI is usually of higher quality, with improved metallization (iron content) and reduced levels of impurities, which is increasing its adoption to produce iron.
Principal Consultant
| Countries | Forecast CAGR (2024 to 2034) |
|---|---|
| United States | 4.20% |
| Germany | 3.50% |
| Spain | 5.60% |
| China | 8.40% |
| India | 11.30% |
The United States direct reduced iron (DRI) market is projected to expand at a CAGR of 4.20% over the forecast period. With many facilities for iron-making making their home in the United States, the country is projected to continue expanding at a steady pace.
Climate advocates had previously emphasized the upgraded and new iron and steelmaking investments to safeguard the community’s health as well as the climate. In March 2024, the Office of Clean Energy Demonstrations of the United States Department of Energy announced the initial award negotiations for the first hydrogen-ready iron-making facilities in the United States.
This iron made of green hydrogen developed from new, renewable energy sources has the potential to develop fossil-free iron in modern direct-reduced iron (DRI) furnaces.
Another notable development took place in March 2024. The United States Department of Energy chose Vale USA to commence negotiations to finance the construction of an iron ore briquette plant of $282.9 million. Vale’s project aims to develop a distinct iron ore briquette manufacturing facility in the country by using a patented cold sintering process to manufacture direct reduced products.
The market in Spain is predicted to expand at a CAGR of 5.60% in the next ten years. The growth of this industry is projected to be driven by new and continuous partnerships. For instance, in February 2024, Hydnum Steel and Vale inked a Memorandum of Understanding (MoU) to produce low-carbon solutions for steelmaking.
The agreement consists of jointly evaluating the possibility of constructing a collocated iron ore briquette plant in the flagship project of Hydnum Steel for green steel in Spain, precisely in Puertollano.
The direct reduced iron (DRI) market in Germany is projected to expand at a CAGR of 3.50% over the next decade. Rising investments in research and development are projected to propel market growth. For instance, in March 2024, ThyssenKrupp, the German industrial firm, was planning to develop a direct reduced iron (DRI) test facility, such as auxiliary infrastructure, at its steel plant in Duisburg, Duisburg-Nord.
The intent behind the project is to develop research into DRI production. Investments in the development of a demonstration-scale plant are projected to be US$ 10.75 million. The test facility is expected to play a crucial role in the commercialization of hydrogen-based direct reduction of iron.
The latest trend impacting the market is the production of iron via green hydrogen. In August 2023, for instance, saw the launch of a direct reduction plant to produce iron via green hydrogen at the RWE AG's (ETR: RWE) power plant site in Lingen, Lower Saxony province.
India’s direct reduced iron market is anticipated to expand at a CAGR of 11.30% over the forecast period. The country is recognized as a leading producer of direct reduced iron. The demand for DRI has accelerated over the years due to the significant push given to the decarbonization of the steel industry.
Several companies are taking massive steps to lower their carbon footprint and executing relevant modernization projects. The latest trend in the market is the use of green hydrogen. It is used as a solution to solve the decarbonization challenge in the steel industry.
The steel sector's contribution to the overall CO2 in the country is claimed to be 12%. Every ton of steel produced in India emits around 2.55 tons of CO2 as opposed to the global average of 1.85 tons.
The expansion plans of the steel industry in India, motivated by the government’s ambitious infrastructure development targets, emphasize the urgency for steel producers to embrace tactics for decarbonization.
The growth of the direct reduced iron (DRI) market in China is projected to observe a CAGR of 8.40% over the forecast period. Expansion strategies adopted by market players are propelling the market growth. For instance, in January 2024, Baosteel Zhanjiang Iron & Steel set up a direct reduced iron (DRI) plant in the Guangdong province.
The new plant can develop up to one million tons of DRI annually using natural gas, hydrogen, and coke oven gas using the Energiron Zero Reformer technology produced by Tenova and Danieli.
HBIS successfully developed the commercial batch of DRI using Energiron technology in June 2023. The company enhances coke oven gas by hydrogen. Meanwhile, the firm plans to extend its hydrogen-based DRI production capacity to 1.2 million tons annually.
Key players are shifting their focus to emerging countries to meet the increasing demand for direct reduced iron. Several players are concentrating their efforts on enhancing their production capabilities.
Players are further investing in research and development activities. Additionally, the focus of the companies is on coming into collaborative partnerships to increase their revenue earnings. Industry participants are escalating their merger and acquisition activities to increase their market share.
Industry contenders are investing in new technologies to transform the DRI market. Moreover, supportive government policies are projected to augment the market growth.
Latest Developments in the Direct Reduced Iron (DRI) Market
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Current projections of the market indicate a valuation of US$ 28,195.90 million in 2024.
Looking ahead to 2034, the current forecast projects a CAGR of 7.60% for the industry.
FMI predicts the market to reach US$ 60,013.60 million by the year 2034.
The lumps segment is predicted to hold a significant market share in 2024, about 97.6%.
ArcelorMittal, Mobarakeh Steel, and Essar Steel are powerful players in the direct reduced iron industry.
1. Executive Summary
1.1. Global Market Outlook
1.2. Demand-side Trends
1.3. Supply-side Trends
1.4. Technology Roadmap Analysis
1.5. Analysis and Recommendations
2. Market Overview
2.1. Market Coverage / Taxonomy
2.2. Market Definition / Scope / Limitations
3. Market Background
3.1. Market Dynamics
3.1.1. Drivers
3.1.2. Restraints
3.1.3. Opportunity
3.1.4. Trends
3.2. Scenario Forecast
3.2.1. Demand in Optimistic Scenario
3.2.2. Demand in Likely Scenario
3.2.3. Demand in Conservative Scenario
3.3. Opportunity Map Analysis
3.4. Product Life Cycle Analysis
3.5. Supply Chain Analysis
3.5.1. Supply Side Participants and their Roles
3.5.1.1. Manufacturer
3.5.2. Value Added and Value Created at Node in the Supply Chain
3.5.3. List of Raw Material Suppliers
3.5.4. List of Existing and Potential Buyer’s
3.6. Investment Feasibility Matrix
3.7. Value Chain Analysis
3.7.1. Profit Margin Analysis
3.8. PESTLE and Porter’s Analysis
3.9. Regulatory Landscape
3.9.1. By Key Regions
3.9.2. By Key Countries
3.10. Regional Parent Market Outlook
3.11. Production and Consumption Statistics
3.12. Import and Export Statistics
4. Global Market Analysis 2019 to 2023 and Forecast, 2024 to 2034
4.1. Historical Market Size Value (US$ Million) & Volume (Tons) Analysis, 2019 to 2023
4.2. Current and Future Market Size Value (US$ Million) & Volume (Tons) Projections, 2024 to 2034
4.2.1. Y-o-Y Growth Trend Analysis
4.2.2. Absolute $ Opportunity Analysis
5. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Form
5.1. Introduction / Key Findings
5.2. Historical Market Size Value (US$ Million) & Volume (Tons) Analysis By Form, 2019 to 2023
5.3. Current and Future Market Size Value (US$ Million) & Volume (Tons) Analysis and Forecast By Form, 2024 to 2034
5.3.1. Lump
5.3.2. Pellets
5.4. Y-o-Y Growth Trend Analysis By Form, 2019 to 2023
5.5. Absolute $ Opportunity Analysis By Form, 2024 to 2034
6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Production Process
6.1. Introduction / Key Findings
6.2. Historical Market Size Value (US$ Million) & Volume (Tons) Analysis By Production Process, 2019 to 2023
6.3. Current and Future Market Size Value (US$ Million) & Volume (Tons) Analysis and Forecast By Production Process, 2024 to 2034
6.3.1. Coal-Based
6.3.2. Gas-Based
6.4. Y-o-Y Growth Trend Analysis By Production Process, 2019 to 2023
6.5. Absolute $ Opportunity Analysis By Production Process, 2024 to 2034
7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Application
7.1. Introduction / Key Findings
7.2. Historical Market Size Value (US$ Million) & Volume (Tons) Analysis By Application, 2019 to 2023
7.3. Current and Future Market Size Value (US$ Million) & Volume (Tons) Analysis and Forecast By Application, 2024 to 2034
7.3.1. Steel Making
7.3.2. Construction
7.4. Y-o-Y Growth Trend Analysis By Application, 2019 to 2023
7.5. Absolute $ Opportunity Analysis By Application, 2024 to 2034
8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region
8.1. Introduction
8.2. Historical Market Size Value (US$ Million) & Volume (Tons) Analysis By Region, 2019 to 2023
8.3. Current Market Size Value (US$ Million) & Volume (Tons) Analysis and Forecast By Region, 2024 to 2034
8.3.1. North America
8.3.2. Latin America
8.3.3. Western Europe
8.3.4. Eastern Europe
8.3.5. South Asia and Pacific
8.3.6. East Asia
8.3.7. Middle East and Africa
8.4. Market Attractiveness Analysis By Region
9. North America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
9.1. Historical Market Size Value (US$ Million) & Volume (Tons) Trend Analysis By Market Taxonomy, 2019 to 2023
9.2. Market Size Value (US$ Million) & Volume (Tons) Forecast By Market Taxonomy, 2024 to 2034
9.2.1. By Country
9.2.1.1. USA
9.2.1.2. Canada
9.2.2. By Form
9.2.3. By Production Process
9.2.4. By Application
9.3. Market Attractiveness Analysis
9.3.1. By Country
9.3.2. By Form
9.3.3. By Production Process
9.3.4. By Application
9.4. Key Takeaways
10. Latin America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
10.1. Historical Market Size Value (US$ Million) & Volume (Tons) Trend Analysis By Market Taxonomy, 2019 to 2023
10.2. Market Size Value (US$ Million) & Volume (Tons) Forecast By Market Taxonomy, 2024 to 2034
10.2.1. By Country
10.2.1.1. Brazil
10.2.1.2. Mexico
10.2.1.3. Rest of Latin America
10.2.2. By Form
10.2.3. By Production Process
10.2.4. By Application
10.3. Market Attractiveness Analysis
10.3.1. By Country
10.3.2. By Form
10.3.3. By Production Process
10.3.4. By Application
10.4. Key Takeaways
11. Western Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
11.1. Historical Market Size Value (US$ Million) & Volume (Tons) Trend Analysis By Market Taxonomy, 2019 to 2023
11.2. Market Size Value (US$ Million) & Volume (Tons) Forecast By Market Taxonomy, 2024 to 2034
11.2.1. By Country
11.2.1.1. Germany
11.2.1.2. UK
11.2.1.3. France
11.2.1.4. Spain
11.2.1.5. Italy
11.2.1.6. Rest of Western Europe
11.2.2. By Form
11.2.3. By Production Process
11.2.4. By Application
11.3. Market Attractiveness Analysis
11.3.1. By Country
11.3.2. By Form
11.3.3. By Production Process
11.3.4. By Application
11.4. Key Takeaways
12. Eastern Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
12.1. Historical Market Size Value (US$ Million) & Volume (Tons) Trend Analysis By Market Taxonomy, 2019 to 2023
12.2. Market Size Value (US$ Million) & Volume (Tons) Forecast By Market Taxonomy, 2024 to 2034
12.2.1. By Country
12.2.1.1. Poland
12.2.1.2. Russia
12.2.1.3. Czech Republic
12.2.1.4. Romania
12.2.1.5. Rest of Eastern Europe
12.2.2. By Form
12.2.3. By Production Process
12.2.4. By Application
12.3. Market Attractiveness Analysis
12.3.1. By Country
12.3.2. By Form
12.3.3. By Production Process
12.3.4. By Application
12.4. Key Takeaways
13. South Asia and Pacific Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
13.1. Historical Market Size Value (US$ Million) & Volume (Tons) Trend Analysis By Market Taxonomy, 2019 to 2023
13.2. Market Size Value (US$ Million) & Volume (Tons) Forecast By Market Taxonomy, 2024 to 2034
13.2.1. By Country
13.2.1.1. India
13.2.1.2. Bangladesh
13.2.1.3. Australia
13.2.1.4. New Zealand
13.2.1.5. Rest of South Asia and Pacific
13.2.2. By Form
13.2.3. By Production Process
13.2.4. By Application
13.3. Market Attractiveness Analysis
13.3.1. By Country
13.3.2. By Form
13.3.3. By Production Process
13.3.4. By Application
13.4. Key Takeaways
14. East Asia Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
14.1. Historical Market Size Value (US$ Million) & Volume (Tons) Trend Analysis By Market Taxonomy, 2019 to 2023
14.2. Market Size Value (US$ Million) & Volume (Tons) Forecast By Market Taxonomy, 2024 to 2034
14.2.1. By Country
14.2.1.1. China
14.2.1.2. Japan
14.2.1.3. South Korea
14.2.2. By Form
14.2.3. By Production Process
14.2.4. By Application
14.3. Market Attractiveness Analysis
14.3.1. By Country
14.3.2. By Form
14.3.3. By Production Process
14.3.4. By Application
14.4. Key Takeaways
15. Middle East and Africa Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
15.1. Historical Market Size Value (US$ Million) & Volume (Tons) Trend Analysis By Market Taxonomy, 2019 to 2023
15.2. Market Size Value (US$ Million) & Volume (Tons) Forecast By Market Taxonomy, 2024 to 2034
15.2.1. By Country
15.2.1.1. GCC Countries
15.2.1.2. South Africa
15.2.1.3. Israel
15.2.1.4. Rest of MEA
15.2.2. By Form
15.2.3. By Production Process
15.2.4. By Application
15.3. Market Attractiveness Analysis
15.3.1. By Country
15.3.2. By Form
15.3.3. By Production Process
15.3.4. By Application
15.4. Key Takeaways
16. Key Countries Market Analysis
16.1. USA
16.1.1. Pricing Analysis
16.1.2. Market Share Analysis, 2023
16.1.2.1. By Form
16.1.2.2. By Production Process
16.1.2.3. By Application
16.2. Canada
16.2.1. Pricing Analysis
16.2.2. Market Share Analysis, 2023
16.2.2.1. By Form
16.2.2.2. By Production Process
16.2.2.3. By Application
16.3. Brazil
16.3.1. Pricing Analysis
16.3.2. Market Share Analysis, 2023
16.3.2.1. By Form
16.3.2.2. By Production Process
16.3.2.3. By Application
16.4. Mexico
16.4.1. Pricing Analysis
16.4.2. Market Share Analysis, 2023
16.4.2.1. By Form
16.4.2.2. By Production Process
16.4.2.3. By Application
16.5. Germany
16.5.1. Pricing Analysis
16.5.2. Market Share Analysis, 2023
16.5.2.1. By Form
16.5.2.2. By Production Process
16.5.2.3. By Application
16.6. UK
16.6.1. Pricing Analysis
16.6.2. Market Share Analysis, 2023
16.6.2.1. By Form
16.6.2.2. By Production Process
16.6.2.3. By Application
16.7. France
16.7.1. Pricing Analysis
16.7.2. Market Share Analysis, 2023
16.7.2.1. By Form
16.7.2.2. By Production Process
16.7.2.3. By Application
16.8. Spain
16.8.1. Pricing Analysis
16.8.2. Market Share Analysis, 2023
16.8.2.1. By Form
16.8.2.2. By Production Process
16.8.2.3. By Application
16.9. Italy
16.9.1. Pricing Analysis
16.9.2. Market Share Analysis, 2023
16.9.2.1. By Form
16.9.2.2. By Production Process
16.9.2.3. By Application
16.10. Poland
16.10.1. Pricing Analysis
16.10.2. Market Share Analysis, 2023
16.10.2.1. By Form
16.10.2.2. By Production Process
16.10.2.3. By Application
16.11. Russia
16.11.1. Pricing Analysis
16.11.2. Market Share Analysis, 2023
16.11.2.1. By Form
16.11.2.2. By Production Process
16.11.2.3. By Application
16.12. Czech Republic
16.12.1. Pricing Analysis
16.12.2. Market Share Analysis, 2023
16.12.2.1. By Form
16.12.2.2. By Production Process
16.12.2.3. By Application
16.13. Romania
16.13.1. Pricing Analysis
16.13.2. Market Share Analysis, 2023
16.13.2.1. By Form
16.13.2.2. By Production Process
16.13.2.3. By Application
16.14. India
16.14.1. Pricing Analysis
16.14.2. Market Share Analysis, 2023
16.14.2.1. By Form
16.14.2.2. By Production Process
16.14.2.3. By Application
16.15. Bangladesh
16.15.1. Pricing Analysis
16.15.2. Market Share Analysis, 2023
16.15.2.1. By Form
16.15.2.2. By Production Process
16.15.2.3. By Application
16.16. Australia
16.16.1. Pricing Analysis
16.16.2. Market Share Analysis, 2023
16.16.2.1. By Form
16.16.2.2. By Production Process
16.16.2.3. By Application
16.17. New Zealand
16.17.1. Pricing Analysis
16.17.2. Market Share Analysis, 2023
16.17.2.1. By Form
16.17.2.2. By Production Process
16.17.2.3. By Application
16.18. China
16.18.1. Pricing Analysis
16.18.2. Market Share Analysis, 2023
16.18.2.1. By Form
16.18.2.2. By Production Process
16.18.2.3. By Application
16.19. Japan
16.19.1. Pricing Analysis
16.19.2. Market Share Analysis, 2023
16.19.2.1. By Form
16.19.2.2. By Production Process
16.19.2.3. By Application
16.20. South Korea
16.20.1. Pricing Analysis
16.20.2. Market Share Analysis, 2023
16.20.2.1. By Form
16.20.2.2. By Production Process
16.20.2.3. By Application
16.21. GCC Countries
16.21.1. Pricing Analysis
16.21.2. Market Share Analysis, 2023
16.21.2.1. By Form
16.21.2.2. By Production Process
16.21.2.3. By Application
16.22. South Africa
16.22.1. Pricing Analysis
16.22.2. Market Share Analysis, 2023
16.22.2.1. By Form
16.22.2.2. By Production Process
16.22.2.3. By Application
16.23. Israel
16.23.1. Pricing Analysis
16.23.2. Market Share Analysis, 2023
16.23.2.1. By Form
16.23.2.2. By Production Process
16.23.2.3. By Application
17. Market Structure Analysis
17.1. Competition Dashboard
17.2. Competition Benchmarking
17.3. Market Share Analysis of Top Players
17.3.1. By Regional
17.3.2. By Form
17.3.3. By Production Process
17.3.4. By Application
18. Competition Analysis
18.1. Competition Deep Dive
18.1.1. ArcelorMittal
18.1.1.1. Overview
18.1.1.2. Product Portfolio
18.1.1.3. Profitability by Market Segments
18.1.1.4. Sales Footprint
18.1.1.5. Strategy Overview
18.1.1.5.1. Marketing Strategy
18.1.1.5.2. Product Strategy
18.1.1.5.3. Channel Strategy
18.1.2. Mobarakeh Steel
18.1.2.1. Overview
18.1.2.2. Product Portfolio
18.1.2.3. Profitability by Market Segments
18.1.2.4. Sales Footprint
18.1.2.5. Strategy Overview
18.1.2.5.1. Marketing Strategy
18.1.2.5.2. Product Strategy
18.1.2.5.3. Channel Strategy
18.1.3. Essar Steel
18.1.3.1. Overview
18.1.3.2. Product Portfolio
18.1.3.3. Profitability by Market Segments
18.1.3.4. Sales Footprint
18.1.3.5. Strategy Overview
18.1.3.5.1. Marketing Strategy
18.1.3.5.2. Product Strategy
18.1.3.5.3. Channel Strategy
18.1.4. Qatar Steel
18.1.4.1. Overview
18.1.4.2. Product Portfolio
18.1.4.3. Profitability by Market Segments
18.1.4.4. Sales Footprint
18.1.4.5. Strategy Overview
18.1.4.5.1. Marketing Strategy
18.1.4.5.2. Product Strategy
18.1.4.5.3. Channel Strategy
18.1.5. Hadeed
18.1.5.1. Overview
18.1.5.2. Product Portfolio
18.1.5.3. Profitability by Market Segments
18.1.5.4. Sales Footprint
18.1.5.5. Strategy Overview
18.1.5.5.1. Marketing Strategy
18.1.5.5.2. Product Strategy
18.1.5.5.3. Channel Strategy
18.1.6. Khouzestan Steel Co.
18.1.6.1. Overview
18.1.6.2. Product Portfolio
18.1.6.3. Profitability by Market Segments
18.1.6.4. Sales Footprint
18.1.6.5. Strategy Overview
18.1.6.5.1. Marketing Strategy
18.1.6.5.2. Product Strategy
18.1.6.5.3. Channel Strategy
18.1.7. Jindal Steel & Power
18.1.7.1. Overview
18.1.7.2. Product Portfolio
18.1.7.3. Profitability by Market Segments
18.1.7.4. Sales Footprint
18.1.7.5. Strategy Overview
18.1.7.5.1. Marketing Strategy
18.1.7.5.2. Product Strategy
18.1.7.5.3. Channel Strategy
18.1.8. Nucor
18.1.8.1. Overview
18.1.8.2. Product Portfolio
18.1.8.3. Profitability by Market Segments
18.1.8.4. Sales Footprint
18.1.8.5. Strategy Overview
18.1.8.5.1. Marketing Strategy
18.1.8.5.2. Product Strategy
18.1.8.5.3. Channel Strategy
19. Assumptions & Acronyms Used
20. Research Methodology
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Direct Reduced Iron Market
