How Has The Direct Reduced Iron Market Size Evolved Historically?
The direct reduced iron market has seen considerable growth due to a variety of factors.
•The size of the direct reduced iron market has seen robust growth in recent years. It is expected to rise from $31.36 billion in 2024 to $34.18 billion in 2025, with a Compound Annual Growth Rate (CAGR) of 9.0%.
The historic period growth can be credited to factors such as the availability of raw materials, the dynamics of the steel industry, concerns over energy efficiency, environmental guidelines, and the competitive cost.
What Will Be The Direct Reduced Iron Market Size In The Future?
The direct reduced iron market is expected to maintain its strong growth trajectory in upcoming years.
• In the direct reduced iron market, robust expansion is projected in the coming years, with the market size anticipated to reach $48.85 billion by 2029, showing a compound annual growth rate (CAGR) of 9.3%.
Factors contributing to this projected growth during the forecast period include global developments in infrastructure, the incorporation of renewable energy, advancements in steelmaking technologies, widespread urbanization and increased demand in the construction sector, as well as changes in trade and supply chains. During the forecast period, key trends will include a focus on carbon capture and storage (CCS), a transition towards EAF steel production, strategic upscaling of DRI capacity, and the impact of governmental regulations and policies.
What Are The Primary Growth Drivers In The Direct Reduced Iron Market?
The boom in the demand for products made from steel is set to spur the expansion of the direct reduced iron industry. Steel products encompass a broad spectrum of items and materials that utilize steel as their primary element. Direct reduced iron, often employed as a substitute for scrap metal and pig iron in steel production, contributes to lesser greenhouse gas emissions and decreased energy utilization. For instance, the World Steel Association, an international industry organization headquartered in Belgium, reported in 2022 that steel demand is anticipated to be 1840.2 metric tons, marking a 0.4% rise from the previous year, and is predicted to spike 2.2% in 2023, reaching 1881.4 metric tons. Consequently, the escalating demand for steel-related products is fuelling the direct reduced iron industry's growth.
What Is The Segmentation Of The Global Direct Reduced Iron Market?
The direct reduced iron market covered in this report is segmented –
1) By Production Process: Coal-Based, Gas-Based Or Midrex
2) By Form: Pellets, Lumps
3) By Application: Steel Making, Construction
Subsegments:
1) By Coal-Based: Direct Reduced Iron (DRI) From Coal, Sponge Iron Production Via Coal Gasification
2) By Gas-Based Or Midrex: Midrex Process, Hyl Process (HY-Lite)
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What Emerging Trends Are Shaping The Direct Reduced Iron Market Landscape?
The direct reduced iron market is experiencing a surge in popularity due to significant technological advancements. Major market players are developing innovative, tech-infused products to solidify their market position. This was exemplified in October 2022 when Metso Outotec, a machinery manufacturing company based in Finland, introduced a direct reduced iron smelting furnace to further reduce carbon emissions in the steel industry. This ongoing development in direct reduced iron smelting technology aims to improve the process for customized feed materials and bolster Metso Outotec's Planet Positive campaign to decarbonize the iron and steel sector.
Who Are the Key Players in the Direct Reduced Iron Market?
Major companies operating in the direct reduced iron market include:
• 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
• 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
What are the Regional Insights into the Direct Reduced Iron Market?
Asia-Pacific was the largest region in the direct reduced iron market in 2024. The regions covered in the direct reduced iron market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
