Global Direct Reduced Iron (Dri) Market Growth, Share, Size, Trends and Forecast (2025 - 2031)

• In October 2022, H2 Green Steel established a DRI plant powered by 100% green hydrogen and based on Midrex technology. The Midrex H2 plant has an annual production of 2.1 million tonnes of hot DRI and Hot Briquette Iron (HBI), which feeds the production of an initial 2.5 million tonnes of green steel in the soil of northern Sweden. This unique DRI system is being provided by a consortium of Midrex and Paul Wurth, an SMS group company.

• In May 2022, Kobe Steel launched “Kobenable Steel” and became the first company to provide low CO2 blast furnace steel products in Japan. The company significantly reduced CO2 emissions while product manufacturing using the blast furnace ironmaking process. It has also planned to sell the new products in the fiscal year 2023.

In this report, the Global Direct Reduced Iron (DRI) Market is segmented by Production Process, Application, Form, and Geography. The segmentation by production process covers methods such as the hydrogen-based direct reduction process and traditional natural gas-based reduction processes. Each method has distinct implications for efficiency, emissions, and cost, influencing market dynamics and adoption rates.

The market is also analyzed based on application, including its use in steelmaking, foundries, and other industries. Additionally, segmentation by form distinguishes between products like hot-briquetted iron (HBI) and direct reduced iron (DRI) pellets. Geographic segmentation addresses regional variations in production and demand, providing insights into key markets across North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America. This comprehensive approach offers a detailed view of the market’s structure and growth opportunities in different regions and applications.

Global Direct Reduced Iron (Dri) Segment Analysis

In this report, the Global Direct Reduced Iron (Dri) Market has been segmented by Production Process, Application, Form and Geography.

Global Direct Reduced Iron (Dri) Market, Segmentation by Production Process

The Global Direct Reduced Iron (Dri) Market has been segmented by Production Process into Coal-based and Gas-based.

The coal-based process primarily utilizes natural gas or coal-derived reducing gases to convert iron ore into DRI. This method has been traditionally used due to its established technology and infrastructure, though it produces significant CO2 emissions, which raises environmental concerns.

In contrast, the gas-based process employs hydrogen and carbon monoxide, typically sourced from natural gas reforming or synthesis gas. This method is gaining traction as it offers a more sustainable alternative by reducing greenhouse gas emissions. As industries increasingly focus on eco-friendly practices, the gas-based process is expected to see growing adoption, driving innovations and investments in cleaner DRI production technologies.

Global Direct Reduced Iron (Dri) Market, Segmentation by Application

The Global Direct Reduced Iron (Dri) Market has been segmented by Application into Steel Production and Construction.

In steel production, DRI serves as a crucial raw material that is used in Electric Arc Furnaces (EAF) to produce high-quality steel. Its use in this sector is driven by the need for cleaner and more efficient methods of steelmaking, as DRI offers a lower carbon footprint compared to traditional blast furnace methods. The versatility and efficiency of DRI in steel production contribute to its significant role in meeting the growing demand for steel globally.

In the construction industry, DRI is utilized as a component in the production of structural steel and reinforcement bars. The use of DRI in construction applications is expanding due to its ability to produce high-strength steel with fewer impurities. This application benefits from the increasing global infrastructure development and urbanization, where high-quality and durable steel is essential for building projects. The demand for robust construction materials continues to drive the adoption of DRI in this sector.

The dual application of DRI in steel production and construction highlights its importance across different industries. As the focus shifts towards more sustainable and efficient production methods, the market for DRI is expected to grow, driven by advancements in technology and increasing demand for high-quality steel products in various applications.

Global Direct Reduced Iron (Dri) Market, Segmentation by Form

The Global Direct Reduced Iron (Dri) Market has been segmented by Form into Lumps and Pellets.

DRI in the form of lumps is typically produced through direct reduction processes and is used directly in Electric Arc Furnaces (EAF) for steelmaking. This form of DRI is favored for its ease of handling and direct application in various steelmaking processes, providing a cost-effective and efficient option for steel producers.

On the other hand, DRI in the form of pellets involves the agglomeration of fine iron ore into small, spherical pellets before the reduction process. This form is advantageous because the pellets have a uniform size and composition, which enhances the efficiency of the reduction process and minimizes the generation of fines. Pellets are especially valued in high-capacity and automated steelmaking operations due to their consistent quality and ease of handling.

Both forms of DRI—lumps and pellets—play critical roles in the steel production process. The choice between them depends on the specific requirements of the steelmaking facility, including the type of furnace used, production capacity, and desired steel quality. The availability and demand for each form reflect the evolving needs of the steel industry as it seeks to improve efficiency and reduce environmental impact.

Global Direct Reduced Iron (Dri) Market, Segmentation by Geography

In this report, the Global Direct Reduced Iron (Dri) Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.

Global Direct Reduced Iron (Dri) Market Share (%), by Geographical Region, 2024

North America, Europe, Asia Pacific, Middle East and Africa, and Latin America. Each region presents unique dynamics and growth opportunities for the DRI market, influenced by local industrial activities, regulatory environments, and economic conditions.

In North America and Europe, established steel industries and stringent environmental regulations drive the demand for cleaner DRI production methods. In contrast, the Asia Pacific region, with its rapid industrialization and expanding infrastructure projects, represents a significant growth opportunity for DRI. The Middle East and Africa, alongside Latin America, are emerging markets where increasing industrial activities and evolving economic conditions are expected to spur growth in the DRI sector. This regional segmentation provides a comprehensive view of the market's global landscape and highlights key areas for investment and development.

This report provides an in depth analysis of various factors that impact the dynamics of Global Direct Reduced Iron (Dri) Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers, Restraints and Opportunity Analysis

Drivers :

• Shifting Steelmaking Technologies

• Focus on Sustainability - The Global Direct Reduced Iron (DRI) Market is increasingly emphasizing sustainability as a key driver of growth and innovation. Traditional steelmaking processes, which rely on fossil fuels and produce substantial CO2 emissions, are facing growing scrutiny due to environmental concerns. As a result, there is a notable shift towards adopting more sustainable practices within the DRI sector.

  One of the primary sustainable advancements in DRI production is the development of hydrogen-based reduction processes. Unlike conventional methods that use coal or natural gas, hydrogen-based DRI production significantly reduces greenhouse gas emissions by utilizing hydrogen as a reducing agent. This transition aligns with global efforts to mitigate climate change and reduce carbon footprints, making hydrogen-based DRI a focal point for future investments.

  Additionally, the emphasis on sustainability extends to the recycling and efficient use of resources. The use of DRI in Electric Arc Furnaces (EAF) not only improves the efficiency of steel production but also promotes the recycling of scrap steel, further reducing the environmental impact. This sustainable approach is becoming increasingly vital as industries and governments prioritize eco-friendly practices and work towards achieving carbon neutrality. The growing focus on sustainability in the DRI market reflects a broader commitment to environmental stewardship and innovation in the steelmaking industry.

Restraints :

• Energy Prices

• Technological Advancements - Technological advancements are pivotal in shaping the future of the Direct Reduced Iron (DRI) market, driving both efficiency and sustainability. Innovations in DRI production technologies are focused on enhancing the efficiency of the reduction process, improving the quality of the final product, and minimizing environmental impact.

  One significant advancement is the development of hydrogen-based DRI production technologies. Traditional methods use natural gas or coal, which contribute to high CO2 emissions. In contrast, hydrogen-based reduction processes employ hydrogen as a reducing agent, offering a cleaner alternative with significantly lower carbon emissions. This shift aligns with global sustainability goals and is supported by increasing investments in hydrogen infrastructure and technology. Companies are exploring ways to scale up these technologies and integrate them into existing steelmaking operations, marking a transformative step towards greener steel production.

  Another area of technological progress is the optimization of DRI production processes through automation and advanced control systems. Enhanced automation improves process control, reduces operational costs, and increases the overall efficiency of DRI production. Innovations such as real-time monitoring and advanced data analytics enable better management of production parameters, leading to higher-quality DRI and reduced energy consumption.

  Moreover, research is underway to develop more efficient methods for pelletizing and processing DRI, addressing challenges such as the quality of feedstock and the handling of by-products. These advancements are expected to improve the performance of DRI in various applications, including steelmaking and construction, while also supporting the industry's shift towards more sustainable practices.

  Overall, technological advancements in the DRI market are crucial for meeting the growing demand for high-quality steel products while adhering to environmental regulations and sustainability goals. These innovations are set to redefine the market landscape, driving both growth and transformation in the steelmaking industry.

Opportunities :

• Strategic Investments

• Trade Dynamics - Trade dynamics play a crucial role in shaping the Global Direct Reduced Iron (DRI) Market, influencing supply chains, pricing, and market access. The trade of DRI is significantly affected by regional production capacities, trade policies, and global economic conditions. Major producing countries, particularly those with advanced steel industries, engage in both import and export activities to balance domestic supply with international demand. The flow of DRI between countries is often driven by factors such as production costs, trade tariffs, and regional steel demand, which can lead to fluctuations in market prices and availability.

  Additionally, the evolving focus on sustainability and environmental regulations is impacting trade dynamics in the DRI market. Countries and regions with stringent environmental standards may impose higher tariffs or regulations on imports of DRI produced using traditional methods with higher carbon footprints. Conversely, nations investing in cleaner, hydrogen-based DRI technologies are likely to experience increased trade opportunities and market access. This shifting landscape underscores the importance of adapting trade strategies to align with global sustainability goals and technological advancements, influencing how countries participate in the global DRI market.

Key players in Global Direct Reduced Iron (Dri) Market include

• ArcelorMittal
• QATAR STEEL
• AM/NS India
• NUCOR

In this report, the profile of each market player provides following information:

• Company Overview and Product Portfolio
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis