Direct Reduced Iron Global Market Report 2024

The direct reduced iron market size has grown strongly in recent years. It will grow from $28.98 billion in 2023 to $31.8 billion in 2024 at a compound annual growth rate (CAGR) of 9.7%. The growth observed during the historic period can be attributed to several factors. These include the availability of raw materials necessary for the production of direct reduced iron (DRI), the dynamics within the steel industry, increased concerns about energy efficiency, adherence to environmental regulations, and the emphasis on cost competitiveness. These combined elements significantly contributed to the expansion and development of the direct reduced iron sector during that period.

The direct reduced iron market size is expected to see strong growth in the next few years. It will grow to $44.31 billion in 2028 at a compound annual growth rate (CAGR) of 8.7%. The anticipated growth in the forecast period can be attributed to several key factors. These include the ongoing global development of infrastructure, the integration of renewable energy sources into various industries including steelmaking, advancements in steelmaking technologies, increasing demand stemming from urbanization and construction activities, and the evolving dynamics of trade and supply chains. Key trends expected in this period encompass a heightened focus on carbon capture and storage (CCS) technologies within the steel industry, a gradual shift towards Electric Arc Furnace (EAF) steel production methods, strategic investments aimed at expanding Direct Reduced Iron (DRI) capacity, and the impact of governmental regulations and policies influencing the direction and growth trajectory of the industry.

The projected surge in demand for steel products is anticipated to drive the expansion of the direct reduced iron market. Steel products encompass a diverse array of items and materials manufactured using steel as the primary raw material. Direct reduced iron serves as a substitute for scrap metal and pig iron in steel production, resulting in reduced greenhouse gas emissions and energy consumption. Notably, global crude steel production, as reported by the World Steel Association, witnessed a 3.7% increase, reaching 1,950.5 million tons in 2021, compared to 1,880.4 million tons in 2020. This upward trend in steel demand is a significant catalyst for the growth of the direct reduced iron market.

The escalating investments in infrastructure development are poised to propel the direct reduced iron market's expansion. Infrastructure development involves the comprehensive process of planning, designing, financing, constructing, and maintaining essential physical and organizational structures. Direct reduced iron is integral to steel production for infrastructure projects in the energy sector, contributing to the increased demand for this resource. In April 2023, the World Bank reported a noteworthy recovery in infrastructure investments in low- and middle-income countries, with private participation in infrastructure (PPI) investments surging to $91.7 billion across 263 projects. This 23% increase from 2021 signifies a positive trajectory that will drive the growth of the direct reduced iron market.

A prominent trend gaining traction in the direct reduced iron market is technological advancement. Leading companies in this market are actively developing innovative products with advanced technologies to solidify their market position. For instance, in October 2022, Metso Outotec, a Finland-based machinery manufacturing company, introduced a direct reduced iron (DRI) smelting furnace designed to further decarbonize the steel sector. Ongoing developments in direct reduced iron smelting technology aim to optimize processes for specific customer feed materials, aligning with Metso Outotec’s commitment to decarbonizing the iron and steel industry as part of its Planet Positive offering.

Prominent entities within the direct reduction iron market are strategically investing in initiatives such as direct reduction plants to address surging demand and broaden their customer base. These plants are specialized facilities where iron ore undergoes a reduction process, typically utilizing natural gas or hydrogen, to yield direct reduced iron (DRI) for steelmaking purposes. A noteworthy example is the inauguration, in August 2023, of the world's largest direct reduction plant for green iron by a Germany-based Raw Materials Manufacturing partnership comprising Namibian and German companies. Located at RWE's Emsland gas-fired power plant site, the facility received a €3 million contribution from the Lower Saxony Ministry of Environment. This plant focuses on exclusively reducing iron ore through the utilization of green hydrogen, with plans to explore the application of sponge iron in steel production starting in 2024. Lingen was chosen as the plant's location due to the concentrated presence of hydrogen projects in the broader Emsland H2 region, particularly at the RWE's Emsland gas-fired power plant site. In the upcoming stages, green hydrogen for HyIron will be generated at RWE's 14-megawatt pilot electrolysis plant, set to commence operations directly adjacent to the direct reduction plant by the end of 2023.

In October 2022, H2 Green Steel, a Sweden-based green steel producer, entered into a strategic partnership with Midrex. This collaboration facilitated Kobe Steel's investment in H2 Green Steel, covering plant supply and equity investment, as part of a joint effort to address the global challenge of carbon neutrality. Midrex Technologies, Inc., a US-based company specializing in direct reduction ironmaking technology, played a pivotal role in this partnership.

Major companies operating in the direct reduced iron market report are Welspun Group, ArcelorMittal, ArcelorMittal S.A., JFE Steel Corporation, Cleveland-Cliffs Inc., Kobe Steel Ltd., Steel Dynamics Inc., Gallantt Group of Industries, Voestalpine AG, Ternium SA, Liberty Steel Group, Nucor Corporation, Mobarakeh Steel Company, Kobe Steel Ltd, Hadeed Steel Industries, SMS Group GmbH, Jindal Steel and Power Ltd, Qatar Steel Company, Salzgitter AG, Jindal Shadeed Iron & Steel LLC, Tosyali Algeria,TATA Steel Long Product Limited, Tata Sponge, Tuwairqi Steel Mills Limited, JSW Ispat Special Products Limited, Midrex Technologies Inc., AM/NS India, Tenova SpA, Khouzestan Steel Company, Essar Steel.

Asia-Pacific was the largest region in the direct reduced iron market in 2023. The regions covered in the direct reduced iron market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the direct reduced iron market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The primary production methods for direct reduced iron include coal-based, gas-based, or Midrex processes. The coal-based direct reduction rotary kiln process was developed to convert iron ore directly into metallic iron without the need for melting. This method offers advantages such as requiring less initial capital and eliminating the necessity for coking coal. Direct reduced iron is available in pellet or lump form and finds application in steel-making and various construction-related uses.

The direct reduced iron research report is one of a series of new reports that provides direct reduced iron market statistics, including the direct reduced iron industry's global market size, regional shares, competitors with direct reduced iron market share, detailed direct reduced iron market segments, market trends and opportunities, and any further data you may need to thrive in the direct reduced iron industry. This direct reduced iron market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The direct reduced iron market consists of sales of gas-based direct reduced iron and coal-based direct reduced iron. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).


The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.