Direct Reduced Iron Market - By Product Type (Hot Briquetted Iron, Cold Direct Reduced Iron), By Technology (Gas-based, Coal-based), By Application (Electric Arc Furnace, Basic Oxygen Furnace, Foundries), By End Use, By Region & Forecast 2024 – 2032
Published Date: July - 2024 | Publisher: MRA | No of Pages: 240 | Industry: Chemical | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request CustomizationDirect Reduced Iron Market - By Product Type (Hot Briquetted Iron, Cold Direct Reduced Iron), By Technology (Gas-based, Coal-based), By Application (Electric Arc Furnace, Basic Oxygen Furnace, Foundries), By End Use, By Region & Forecast 2024 – 2032
Direct Reduced Iron Market Size
Direct Reduced Iron Market was valued at USD 67.8 billion in 2023 and is anticipated to register a CAGR of 9.1% between 2024 and 2032. The rapid market growth is credited to increasing urbanization, infrastructure development, and expanding manufacturing sectors.
To get key market trends
The rise in steel consumption influences the Direct Reduced Iron (DRI) sector, driving it to a promising future. According to the World Steel Association, global steel demand was expected to reach 1.87 billion tons in 2023, up by 3.3% from 2022. This expansion is particularly seen in emerging countries, such as China and India, where urbanization and infrastructure development are fueling a construction boom.
| Report Attribute | Details |
|---|---|
| Base Year | 2023 |
| Direct Reduced Iron Market Size in 2023 | USD 67.8 Billion |
| Forecast Period | 2024 – 2032 |
| Forecast Period 2024 – 2032 CAGR | 9.1% |
| 2024 – 2032 Value Projection | USD 147.8 Billion |
| Historical Data for | 2021 – 2023 |
| No. of Pages | 313 |
| Tables, Charts & Figures | 520 |
| Segments covered | Product Type, Technology, End Use, Region |
| Growth Drivers |
|
| Pitfalls & Challenges |
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What are the growth opportunities in this market?
The UN estimates that the world's population will reach a staggering 9.7 billion by 2050. This rapid growth will lead to increased demand for infrastructure, housing, and consumer goods, which rely significantly on steel. As populations grow, especially in emerging countries, urbanization accelerates. The World Bank predicts that by 2045, 68% of the global population will reside in urban areas. This fast urbanization will result in a boom in the construction of buildings, transit networks, and essential infrastructure, boosting the demand for direct reduced iron.
The iron industry that relies on direct reduction is facing a serious problemthe prices of their essential materials, like iron ore and the fuel they use to process it (like coal or natural gas), keep changing a lot. This is not good for their costs, their profits, or the whole market. Over the past ten years, the price of iron ore has been all over the place. In 2011, it was really high, with Platts IODEX 62% CFR iron ore prices going over $190 per ton. But just two years later, it had crashed to less than $80 per ton. That's a huge drop of 58%, showing how much the price can swing. The prices of coal and natural gas, which are the main fuels used to make direct reduced iron (DRI), are also unstable. These changing raw material prices make it tough for DRI manufacturers. When prices go up, so do their production costs, which means less profit. Sometimes, they even have to cut back on production or even shut down their factories, which affects the total supply of DRI and makes the price go up even more.
Direct Reduced Iron Market Trends
Steel consumption is increasing as the world's urbanization and infrastructure development accelerates. Direct reduced iron is an important feedstock in steelmaking, especially in Electric Arc Furnaces (EAFs), which are gaining popularity due to their efficiency and environmental benefits.
Furthermore, advancements in furnace design and reduced agent consumption are resulting in more efficient DRI production. According to research conducted by the International Energy Agency (IEA), new technology might reduce energy usage in DRI manufacturing by 10-15%.
Direct Reduced Iron Market Analysis
Learn more about the key segments shaping this market
Based on product type, the market is categorized into hot briquetted iron and cold direct reduced iron. Cold direct reduced iron (CDRI) dominated the market with a share of 76% in 2023 and is expected to reach around USD 110.2 billion by 2032. This growth can be attributed to the increasing environmental restrictions aimed at decreasing carbon emissions and improving air quality. This has prompted steelmakers to adopt cleaner production methods, boosting demand for CDRI, which emits fewer greenhouse gases than typical blast furnace ironmaking.
Learn more about the key segments shaping this market
Based on technology, the direct reduced iron market is segmented into gas-based and coal-based. The coal-based segment was valued at around USD 53.6 billion in 2023 and is expected to grow at a CAGR of 9.3% from 2024 to 2032. Coal-based solutions provide resistance to gas price fluctuation and can be more practical in areas with large coal supplies. Furthermore, while coal-based DRI procedures have advantages in areas with low coal prices or limited availability of natural gas, gas-based techniques are frequently favored due to their reduced total running costs and environmental benefits.
Imagine you're at the market for steel-making machinery. To make it easier to choose, the market is split into different sectionselectric arc furnace, basic oxygen furnace, foundries, and others. The basic oxygen furnace section was the big cheese in 2023, worth a whopping $33.4 billion. And it's only getting better, with experts predicting it'll keep growing by a solid 8.3% each year until 2032. Why is the basic oxygen furnace so popular? Well, it's all about making steel faster and cleaner. It uses a process called Direct Reduced Iron (DRI), which helps reduce carbon emissions and keeps the air a bit cleaner. Plus, DRI isn't just for making steel. It's also used for things like making iron powder, making iron ore pellets, and other cool industrial stuff.
Looking for region specific data?
The Middle East and Africa are major players in the global market for direct reduced iron (DRI), a key ingredient in steel production. In 2023, they accounted for nearly 40% of the worldwide DRI market and are poised for steady growth in the coming years. This region is a strategic hub for steel production due to its abundant natural resources and keen focus on innovation and development. Governments and businesses are investing heavily in cutting-edge technologies and infrastructure projects, which is fueling the demand for DRI. By 2030, the manufacturing sector in the Middle East and Africa is expected to reach a staggering $2.3 trillion. This growth surge will create a ripple effect, boosting the need for steel and, consequently, DRI. As a result, the Middle East and Africa are well-positioned to remain leaders in the global DRI market for years to come.
Furthermore, the MEA region is rich in natural gas and coal resources, which are used as significant feedstocks for DRI manufacturing. Countries with substantial reserves include Saudi Arabia, Qatar, Iran, and South Africa, making the area an essential player in the global direct reduced iron (DRI) industry.
In terms of country, the U.S. dominated the North America market with a share of near about 77% in 2023. The steel business in the U.S. is thriving due to high demand from industries such as construction, automotive, and infrastructure. Direct reduced iron is an important feedstock in steelmaking, especially in EAFs. The increasing demand for steel in the country adds to the region's high need for direct reduced iron.
Russia led the Europe direct reduced iron (DRI) market, accounting for a share of about 63% in 2023. The regional growth can be attributed to several key factors such as an abundance of natural resources and a strong steel industry, which accounts for a considerable portion of Europe's production capacity. As direct reduced iron is an important feedstock for steelmaking, especially in EAFs, the high demand for steel in Europe propels product penetration. Russia is positioned as a prominent producer that provides a consistent supply of these important resources to European steelmakers.
Direct Reduced Iron Market Share
The market is consolidated, with prominent players such as JSW Steel Limited, Jindal Steel & Power Ltd., MIDREX Technologies, Qatar Steel Company FZE, and Kobe Steel. Manufacturers are adopting strategic steps, such as mergers, acquisitions, partnerships, and collaboration, to consolidate their market position and meet the growing consumer demand.
Direct Reduced Iron Market Companies
Major players operating in the market include
- ArcelorMittal
- Essar
- JFE Steel
- Jindal Steel & Power Ltd
- Jindal Steel & Power Ltd
- JSW Steel Limited
- JSW Steel Limited
- Kobe Steel
- Metinvest Holding LLC
- MIDREX Technologies
- Mobarakeh steel
- NLMK Group
- NUCOR Corporation
- Qatar Steel Company FZE
- Sinosteel Corporation
- Tata Steel Limited
- Tenova S.p.A
- Ternium
Direct Reduced Iron Industry News
- In February 2024, Tosyali Algerie, a steel producer in Algeria, inaugurated its second Direct Reduced Iron (DRI) production unit. The new DRI unit, located in the industrial zone of Bethioua, Oran Province, has a production capacity of 2.5 million tonnes per year.
- In January 2024, BHP signed an agreement with China’s HBIS Group for a Direct Reduced Iron (DRI) production trial and utilization of iron ores in blends and to progress a separate enhanced lump Stage 2 trial aimed at lowering blast furnace carbon emissions
- In June 2023, Kobe Steel, Ltd. and Mitsui & Co., Ltd. signed a Memorandum of Understanding (MoU) with Oman’s Public Authority for Special Economic Zones and Free Zones (OPAZ) to manufacture and sell DRI near the port of Duqm. The plant will utilize MIDREX Flex technology, which allows for initial operation on natural gas with a transition to up to 100% hydrogen. The Low-CO? Iron Metallics Project aims to produce 5 million tons of DRI with a future expansion plan under study.
The direct reduced iron market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Million) and volume (Thousand units) from 2021 to 2032, for the following segments
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Market, By Product type
- Hot briquetted iron
- Cold direct reduced iron
Market, By Technology
- Gas-based
- Coal-based
Market, By Application
- Electric arc furnace
- Basic oxygen furnace
- Foundries
- Others
Market, By End Use
- Construction
- Automotive
- Aerospace
- Machinery & equipment
- Electrical & electronic
- Renewable energy
- Others
The above information is provided for the following regions and countries
- North America
- U.S.
- Canada
- Europe
- Germany
- UK
- France
- Spain
- Italy
- Portugal
- Romania
- Switzerland
- Netherlands
- Asia Pacific
- China
- Japan
- India
- South Korea
- Australia
- Rest of Asia Pacific
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- MEA
- UAE
- Saudi Arabia
- South Africa
- Rest of MEA
Table of Content
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