The global direct reduced iron (DRI) market was estimated at USD 47.76 billion in 2024 and is projected to reach USD 68.98 billion by 2030, expanding at a compound annual growth rate (CAGR) of 7.1% from 2025 to 2030. Rapid infrastructure development and accelerating urbanization—particularly across emerging economies—have significantly increased steel consumption, thereby strengthening demand for direct reduced iron as a critical raw material in steelmaking.

The growing preference for DRI over conventional iron-making methods is largely attributed to its lower carbon footprint and cost efficiency. As environmental concerns intensify and governments impose stricter emissions regulations, steel producers are increasingly shifting toward cleaner alternatives to traditional blast furnace processes. DRI production generates significantly lower carbon dioxide emissions, making it a preferred option for manufacturers aiming to meet sustainability targets and reduce environmental impact.

Key Market Trends and Insights

• Asia Pacific emerged as the dominant regional market, accounting for the largest revenue share of 56.8% in 2024, supported by strong steel production capacity and infrastructure investments.
• The U.S. direct reduced iron market is expected to register a notable CAGR over the forecast period, driven by modernization of steel plants and growing adoption of cleaner steelmaking inputs.
• By end use, the steelmaking segment led the market with a commanding 83.8% revenue share in 2024, reflecting DRI’s extensive application in electric arc furnace (EAF) operations.
• By form, cold direct reduced iron (CDRI) dominated the market, capturing 78.8% of total revenue in 2024, due to its ease of handling and wide industrial acceptance.

Market Size and CAGR

• 2024 Market Size: USD 47.76 Billion
• 2030 Projected Market Size: USD 68.98 Billion
• CAGR (2025–2030): 7.1%
• Largest Regional Market (2024): Asia Pacific

According to Midrex World Direct Reduction Statistics, global DRI production reached 135.7 million tons (Mt) in 2023, up 6.5% from 127.4 Mt in 2022. Worldwide output has increased by approximately 25.6% over the past five years and by nearly 82% over the last decade. In parallel, government incentives and policy frameworks promoting green technologies continue to accelerate the adoption of DRI, aligning with global efforts to transition toward a low-carbon economy.

Ongoing innovations in gas-based and coal-based reduction technologies have enhanced production efficiency, scalability, and product consistency. Additionally, the emergence of modular DRI plants has lowered entry barriers for smaller producers, broadening market participation. These advancements have reduced operating costs while improving product quality, further reinforcing DRI’s role in modern steelmaking across diverse geographies.

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Key Direct Reduced Iron Company Insights

The market is moderately consolidated, with several established players shaping technological development and capacity expansion.

• Qatar Steel is a prominent steel producer in Qatar, known for its strong emphasis on quality and sustainability. The company manufactures direct reduced iron using advanced, environmentally responsible processes that support efficient steel production.
• Kobe Steel Ltd., one of Japan’s leading steelmakers, specializes in high-quality DRI production using the MIDREX Process, which primarily relies on natural gas as a reducing agent. This approach significantly lowers carbon emissions while enhancing the metallic quality of the final product.

Key Direct Reduced Iron Companies

Major participants operating in the global direct reduced iron market include:

• AM/NS India
• ArcelorMittal
• Ghadir Iron and Steel Company
• Jindal Shadeed Iron & Steel LLC
• Khorasan Steel II
• Khouzestan Steel Company
• Kobe Steel Ltd.
• NUCOR
• Qatar Steel
• Tosyali Algeria A.S.
• Welspun Group

Conclusion

The direct reduced iron market is positioned for sustained growth through 2030, driven by rising steel demand, increasing environmental regulations, and a global shift toward low-carbon manufacturing processes. With strong production growth, rapid technological advancements, and expanding adoption across key regions, DRI is set to play a pivotal role in the future of sustainable steelmaking. Continued investments in cleaner technologies and supportive government policies are expected to further reinforce the market’s long-term expansion trajectory.

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