Direct Reduced Iron

Global Direct Reduced Iron Market to Reach US$124.8 Billion by 2030

The global market for Direct Reduced Iron estimated at US$79.9 Billion in the year 2024, is expected to reach US$124.8 Billion by 2030, growing at a CAGR of 7.7% over the analysis period 2024-2030. Hot Briquetted Iron, one of the segments analyzed in the report, is expected to record a 6.4% CAGR and reach US$81.5 Billion by the end of the analysis period. Growth in the Cold Direct Reduced Iron segment is estimated at 10.5% CAGR over the analysis period.

The U.S. Market is Estimated at US$21.0 Billion While China is Forecast to Grow at 7.6% CAGR

The Direct Reduced Iron market in the U.S. is estimated at US$21.0 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$20.1 Billion by the year 2030 trailing a CAGR of 7.6% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 6.9% and 6.7% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 6.4% CAGR.

Global Direct Reduced Iron (DRI) Market – Key Trends & Drivers Summarized

Can Direct Reduced Iron (DRI) Revolutionize Sustainable Steelmaking?

The demand for environmentally sustainable steel production is driving the global adoption of Direct Reduced Iron (DRI) as an alternative to traditional blast furnace methods. DRI, produced by reducing iron ore using natural gas or hydrogen instead of coke, significantly lowers carbon emissions compared to conventional steelmaking. With the global push for decarbonization and net-zero emissions, steel manufacturers are shifting toward DRI-based production to reduce their environmental footprint. Many leading steelmakers are investing in DRI plants as governments impose stricter carbon regulations and incentivize green steel initiatives. Despite its advantages, challenges such as natural gas availability, hydrogen production scalability, and high capital investment costs remain hurdles for widespread DRI adoption. However, as the steel industry faces increasing pressure to transition toward low-carbon technologies, DRI is emerging as a critical component in sustainable steelmaking.

How Is the Transition to Hydrogen-Based DRI Impacting the Market?

The move toward hydrogen-based Direct Reduced Iron (H2-DRI) production is gaining momentum as companies seek fossil fuel-free alternatives for steel manufacturing. Traditional DRI processes rely on natural gas as the primary reducing agent, but hydrogen presents a cleaner solution with zero carbon emissions. Europe, led by initiatives such as the European Green Deal, is investing heavily in hydrogen-powered DRI technology to replace coal-based steelmaking. Pilot projects in Sweden, Germany, and Japan are demonstrating the feasibility of H2-DRI on an industrial scale. However, the commercial viability of hydrogen-based DRI depends on the availability of green hydrogen, which requires large-scale electrolyzer capacity and renewable energy sources. While the transition is still in its early stages, advancements in hydrogen infrastructure and government incentives for green steel are expected to accelerate H2-DRI adoption in the coming decade.

Can DRI Solve the Raw Material Challenges Facing the Steel Industry?

Fluctuating iron ore prices, geopolitical supply chain disruptions, and growing demand for high-quality steel are increasing the importance of Direct Reduced Iron in the global market. DRI offers greater flexibility in raw material sourcing, allowing steelmakers to use different grades of iron ore and avoid dependence on traditional blast furnace-grade iron ore. The growing use of DRI in Electric Arc Furnaces (EAFs) is also enabling steelmakers to produce high-quality steel with lower impurities, meeting the demands of the automotive, construction, and aerospace industries. However, logistical challenges such as the need for specialized storage and handling of hot briquetted iron (HBI), a compacted form of DRI, add complexity to supply chain management. Despite these challenges, as demand for high-purity raw materials increases, the strategic importance of DRI is expected to grow within the global steel industry.

What Is Driving the Growth of the Direct Reduced Iron Market?

The growth in the Direct Reduced Iron (DRI) market is driven by several factors, including increasing demand for low-carbon steel production, the expansion of hydrogen-based DRI technology, and the growing adoption of EAF-based steelmaking. Government regulations targeting carbon emissions are pushing steelmakers toward cleaner production methods, boosting investments in DRI plants. The volatility of coking coal prices and the need for raw material diversification are also driving interest in DRI as a flexible alternative to traditional ironmaking. Additionally, advancements in hydrogen infrastructure, renewable energy integration, and the global shift toward green steel initiatives are accelerating DRI market expansion. While challenges such as high capital costs, hydrogen production constraints, and logistical complexities remain, continuous innovation in the DRI sector is expected to position it as a cornerstone of the future steel industry.

SCOPE OF STUDY:

The report analyzes the Direct Reduced Iron market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Product (Hot Briquetted Iron, Cold Direct Reduced Iron); Technology (Gas-based Technology, Coal-based Technology); Application (Electric Arc Furnace Application, Basic Oxygen Furnace Application, Foundries Application, Other Application); End-Use (Construction End-Use, Automotive End-Use, Aerospace End-Use, Machinery & Equipment End-Use, Electrical & Electronic End-Use, Renewable Energy End-Use, Other End-Uses)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; and Rest of Europe); Asia-Pacific; Rest of World.

Select Competitors (Total 32 Featured) -

• AM/NS India
• ArcelorMittal
• Bhushan Steel Limited
• Cleveland-Cliffs Inc.
• Emirates Steel
• Essar Steel India Ltd.
• Golgohar Mining and Industrial Company
• Hadeed (Saudi Iron & Steel Company)
• Jindal Shadeed Iron & Steel LLC
• JSW Steel Ltd.
• Khouzestan Steel Company
• Kobe Steel Ltd.
• Lion Industries Corporation Berhad
• Metinvest Holding LLC
• Midrex Technologies, Inc.
• NMDC Limited
• Nucor Corporation
• POSCO
• Qatar Steel Company
• Saldanha Steel

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

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APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

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INDIA
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