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 |
|
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 steel industry is struggling because the prices of the raw materials they need, like iron ore and coal, keep going up and down. This makes it hard for them to make a profit and keep the market stable. For example, in 2011, the price of iron ore was really high, around $190 per ton. But two years later, it had dropped to less than $80 per ton. That's a huge difference! The same thing happens with coal and natural gas, which are used to make steel. Their prices also go up and down a lot. These price swings are a big problem for steel companies. When prices are high, it costs them more to make steel, and they can't make as much money. Sometimes, they even have to close down their factories because they can't afford to keep them running. This can lead to shortages of steel and even higher prices.
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.
The market for steelmaking can be divided into different groups based on how the steel is made. These groups are electric arc furnaces, basic oxygen furnaces, foundries, and other methods. Basic oxygen furnaces are the most popular way to make steel, and they accounted for about $33.4 billion in sales in 2023. This method is expected to keep growing at a steady rate of 8.3% from 2024 to 2032. The demand for direct reduced iron (DRI) in basic oxygen furnace steelmaking is influenced by factors such as the demand for steel, the availability of raw materials, and regulations aimed at reducing emissions and promoting sustainability. Basic oxygen furnace steelmaking is seen as a way to cut carbon emissions and make the steel industry more environmentally friendly. However, DRI is not only used in steelmaking and foundries. It is also employed in other industries and processes, including manufacturing iron and steel powder, briquetting DRI, and pelletizing iron ore.
Looking for region specific data?
The Middle East and Africa have been leading the race for direct reduced iron (DRI), holding a sizable 39.3% of the market in 2023. And guess what? They're expected to keep growing at a healthy pace of 6.1% each year in the coming years. This region is a big player in the steel industry because it's got all the right ingredientslots of natural resources, a focus on innovation, and a drive to keep developing the market. The Middle East and Africa are pouring money into technology and infrastructure, which is giving the DRI market a big boost. And there's more good news on the horizon. By 2030, the manufacturing industry in the Middle East and Africa is predicted to be worth a whopping $2.3 trillion. That means more steel will be needed, which is great for DRI, because it's a key raw material for steel production.
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
Click here to Buy Section of this Report
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
Report Content
Chapter 1 Methodology & Scope
1.1 Market scope & definition
1.2 Base estimates & calculations
1.3 Forecast parameters
1.4 Data sources
1.4.1 Primary
1.4.2 Secondary
1.4.2.1 Paid sources
1.4.2.2 Public sources
Chapter 2 Executive Summary
2.1 Industry 3600 synopsis, 2021 - 2032
Chapter 3 Industry Insights
3.1 Industry ecosystem analysis
3.1.1 Factors affecting the value chain
3.1.2 Profit margin analysis
3.1.3 Disruptions
3.1.4 Future outlook
3.1.5 Manufacturers
3.1.6 Distributors
3.1.7 Retailors
3.2 Regulatory landscape
3.3 Impact forces
3.3.1 Growth drivers
3.3.1.1 Increasing demand for steel
3.3.1.2 Increasing industrial activities
3.3.1.3 Growing population
3.3.2 Industry pitfalls & challenges
3.3.2.1 Price volatility of raw materials
3.3.2.2 High capital investment
3.3.2.3 Energy-intensive processes
3.4 Consumer buying behavior analysis
3.4.1 Demographic trends
3.4.2 Factors affecting buying decision
3.4.3 Consumer product adoption
3.4.4 Preferred distribution channel
3.4.5 Preferred price range
3.5 Growth potential analysis
3.6 Porter’s analysis
3.7 PESTEL analysis
Chapter 4 Competitive Landscape, 2023
4.1 Introduction
4.2 Company market share analysis
4.3 Competitive positioning matrix
4.4 Strategic outlook matrix
Chapter 5 Market Estimates & Forecast, By Product Type, 2021 – 2032, (USD Million) (Thousand Units)
5.1 Key trends
5.2 Hot briquetted iron
5.3 Cold direct reduced iron
Chapter 6 Market Estimates & Forecast, By Technology, 2021 – 2032, (USD Million) (Thousand Units)
6.1 Key trends
6.2 Gas-based
6.3 Coal-based
Chapter 7 Market Estimates & Forecast, By Application, 2021 – 2032, (USD Million) (Thousand Units)
7.1 Key trends
7.2 Electric arc furnace
7.3 Basic oxygen furnace
7.4 Foundries
7.5 Others
Chapter 8 Market Estimates & Forecast, By End User, 2021 – 2032, (USD Million) (Thousand Units)
8.1 Key trends
8.2 Construction
8.3 Automotive
8.4 Aerospace
8.5 Machinery & equipment
8.6 Electrical & electronic
8.7 Renewable energy
8.8 Others
Chapter 9 Market Estimates & Forecast, By Region, 2021 – 2032, (USD Million) (Thousand Units)
9.1 Key trends
9.2 North America
9.2.1 U.S.
9.2.2 Canada
9.3 Europe
9.3.1 Germany
9.3.2 UK
9.3.3 France
9.3.4 Italy
9.3.5 Spain
9.3.6 Rest of Europe
9.4 Asia Pacific
9.4.1 China
9.4.2 India
9.4.3 Japan
9.4.4 South Korea
9.4.5 Australia
9.4.6 Malaysia
9.4.7 Indonesia
9.4.8 Rest of Asia Pacific
9.5 Latin America
9.5.1 Brazil
9.5.2 Mexico
9.5.3 Rest of Latin America
9.6 MEA
9.6.1 UAE
9.6.2 Saudi Arabia
9.6.3 South Africa
9.6.4 Rest of MEA
Chapter 10 Company Profiles (Business Overview, Financial Data, Product Landscape, Strategic Outlook, SWOT Analysis)
10.1 ArcelorMittal
10.2 Essar
10.3 JFE Steel
10.4 Jindal Steel & Power Ltd
10.5 Jindal Steel & Power Ltd
10.6 JSW Steel Limited
10.7 JSW Steel Limited
10.8 Kobe Steel
10.9 Metinvest Holding LLC
10.10 MIDREX Technologies
10.11 Mobarakeh steel
10.12 NLMK Group
10.13 NUCOR Corporation
10.14 Qatar Steel Company FZE
10.15 Sinosteel Corporation
10.16 Tata Steel Limited
10.17 Tenova S.p.A
10.18 Ternium
- 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
Related Reports
- Flat Glass Market - By Product (Basic Float, Laminated, Insulating, Tempered), By Application (Automotive [OEM, Aftermar...
- Electrical Steel Market - By Product (Grain Oriented, Non-Grain-Oriented), By Application (Large Power Transformers, Dis...
- Lithium Cobalt Oxide Market - By Grade (Industrial, Battery), Application (Consumer electronic, Electric vehicle, Medica...
- Conductive Polymers Market – By Conduction Mechanism (Composites Inherently Conductive Polymers, Conducting Polymer), ...
- Dimethyl Terephthalate Market - By Form (Solid, Liquid), Grade (Technical, Reagent, Pure, Synthesis), Application, End u...
- Dimethyl Terephthalate Market - By Form (Solid, Liquid), Grade (Technical, Reagent, Pure, Synthesis), Application, End u...
Table of Content
Will be Available in the sample /Final Report. Please ask our sales Team.
List Tables Figures
Will be Available in the sample /Final Report. Please ask our sales Team.
FAQ'S
For a single, multi and corporate client license, the report will be available in PDF format. Sample report would be given you in excel format. For more questions please contact:
Within 24 to 48 hrs.
You can contact Sales team (sales@marketinsightsresearch.com) and they will direct you on email
You can order a report by selecting payment methods, which is bank wire or online payment through any Debit/Credit card, Razor pay or PayPal.
Discounts are available.
Hard Copy