The direct reduced iron (DRI) market is projected to experience substantial growth, with its value anticipated to increase from USD 28,195.90 million in 2024 to USD 60,013.60 million by 2034. This impressive expansion, marked by a compound annual growth rate (CAGR) of 7.60% over the next decade, highlights the escalating demand and adoption of DRI in the steelmaking industry. Factors such as advancements in production technologies, rising emphasis on reducing carbon emissions, and increasing investments in steel infrastructure are driving this robust market growth. As industries seek more sustainable and efficient steel production methods, the DRI market is set to play a pivotal role in meeting global steel demands while aligning with environmental goals.
Significant changes in the steel industry are pushing forward the demand for direct reduced iron. Presently, the steel industry is going through a pivotal shift toward lower-carbon production. This is raising the demand for alternative technologies like direct reduced iron.
The production of direct reduced iron is projected to separate from steel production, as the global steel sector gradually decarbonizes. More iron ore is expected to be processed in places where renewable energy sources are available and where cheap green hydrogen can be produced.
The resultant direct reduced iron is planned to be shipped to places with higher steel demand. Going forward, North America and the Middle East are assessed to become global leaders in DRI trade.
Key Takeaways from the Direct Reduced Iron Market Report
- Direct reduced iron (DRI) market attained a valuation of USD 23,375.80 million in 2019. By 2023, the market attained a value of USD 26,470.50 million, expanding at a CAGR of 2.50% over the historical period.
- By form, the lumps segment is predicted to account for a value share of 97.60% in 2024.
- Based on the production process, the gas-based direct reduced iron is predicted to acquire a share of 71.40% in 2024.
- India and China are predicted to record a CAGR of 11.30% and 8.40%, respectively, over the forecast period.
- In North America, the United States is set to expand at a CAGR of 4.20% over the forecast period, whereas Canada is slated to register a CAGR of 4.60% during the same time.
- In Europe, Spain and France are in line to observe significant CAGRs of 5.60% and 5.30% over the forecast period.
New Developments in the Market
- In November 2023, JSW Steel Ltd., a prominent maker of alloy in India, announced plans to develop a green steel manufacturing facility by the year 2030. This is in response to the European Union’s (EU’s) Carbon Border Adjustment Mechanism (CBAM).
- In August 2023, H2 Green Steel signed agreements with Rio Tinto for a flat reduction of iron ore pellets and hot briquetted iron in Sweden.
Profile of Top Players Operating in Direct Reduced Iron Market
- ArcelorMittal
ArcelorMittal S.A., based in Luxembourg City, is a multinational steel manufacturing corporation. The company develops smarter steels for people and the planet as the metal becomes an even more relevant component in manufacturing.
- Mobarakeh Steel
Mobarakeh Steel is a private Iranian steel firm that is located 65 km southwest of Esfahan, close to Mobarakeh, Iran. It is a prominent steel entity in the MENA region and has a substantial complex operating in Iran. The company offers extensive services in specialized fields of the steel industry and provides them in all parts of Iran.
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Top Market Players in the Direct Reduced Iron Market
- ArcelorMittal
- Mobarakeh Steel
- Essar Steel
- Qatar Steel
- Hadeed
- SIDOR
- Khouzestan Steel Co.
- Jindal Steel & Power
- Gol-e-Gohar
- Nucor
- Others
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