Direct-Reduced-Iron (DRI) Market Size to Surpass USD 45.7 Billion by 2033, Driven by Sustainable Steelmaking Practices

According to a new study by DataHorizzon Research, the Direct-Reduced-Iron (DRI) Market is projected to grow at a CAGR of 4.8% from 2025 to 2033. The market expansion is primarily driven by the rising global demand for low-emission steelmaking processes, growing investments in green steel production, and increasing government support for decarbonization in the iron and steel sector. As industries shift toward energy-efficient methods, DRI has become a preferred alternative to traditional blast furnace ironmaking due to its reduced carbon footprint and ability to utilize natural gas and hydrogen as reducing agents.

Market Size & Insights

The global direct-reduced-iron (DRI) market is witnessing rapid transformation as steelmakers adapt to stricter environmental regulations and explore sustainable production technologies. The direct-reduced-iron (DRI) market is valued at approximately USD 28.5 billion in 2024 and is anticipated to reach around USD 45.7 billion by 2033, reflecting a CAGR of 4.8% from 2025 to 2033.

One of the critical reasons for this growth is the ability of DRI to provide a cleaner substitute for electric arc furnaces (EAFs), ensuring consistent quality and reduced impurities. In addition, the integration of hydrogen-based DRI production is gaining traction, as it eliminates a significant portion of CO2 emissions, positioning the technology as a cornerstone of green steelmaking.

The demand is further supported by rapid industrialization in Asia-Pacific, particularly in India and China, where steel consumption continues to surge. Meanwhile, North America and Europe are focusing on decarbonization and energy-efficient methods, creating new opportunities for market participants. This combination of demand-driven growth and sustainability-focused adoption ensures that DRI remains a strategic enabler for the global steel industry over the next decade.

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Key Factors Driving the Future Growth of the Direct-Reduced-Iron (DRI) Market:

• Increasing demand for low-carbon and sustainable steelmaking solutions across automotive, construction, and infrastructure sectors.
• Rising adoption of hydrogen-based DRI production technologies to meet net-zero emission goals.
• Supportive government policies and investments in green steel initiatives worldwide.
• Growing industrialization and urbanization in emerging economies, boosting steel consumption.
• Technological advancements in shaft furnace and rotary kiln processes, improving efficiency and reducing production costs.
• Increasing integration of renewable energy sources in DRI-based steelmaking.

Top 10 Market Companies

• Midrex Technologies, Inc.
• Tenova S.p.A.
• Kobe Steel, Ltd.
• Tosyali Holding
• Jindal Steel & Power Ltd.
• Emirates Steel Arkan
• Cleveland-Cliffs Inc.
• Metalloinvest
• Essar Steel (Nippon Steel)
• voestalpine AG

Market Segments

By Form
o Hot Briquetted Iron (HBI)
o Cold DRI (CDRI)

By Production Method
o Gas-Based DRI
o Coal-Based DRI

By Application
o Steelmaking (Electric Arc Furnace)
o Blast Furnace Feedstock
o Foundry Industry
o Others

By Region
o North America
o Europe
o Asia Pacific
o Latin America
o Middle East & Africa

Recent Developments

• Introduction of hydrogen-based DRI pilot plants by major steel producers.
• Expansion of hot briquetted iron (HBI) facilities to improve storage and transport efficiency.
• Strategic partnerships between steelmakers and technology providers for low-emission DRI projects.
• Increased investments in renewable-powered DRI production in Europe and the Middle East.
• Development of modular DRI plants for flexible and scalable production.
• Launch of carbon capture and utilization (CCU) integrated DRI systems to further cut emissions.

Regional Insights

The Asia-Pacific region dominates the DRI market, with India emerging as the largest producer and consumer due to abundant natural gas resources and robust steel demand. China is also expanding its DRI capacity to meet green steelmaking goals. North America and Europe are focusing on hydrogen-based DRI projects, supported by government subsidies and carbon reduction policies. Meanwhile, the Middle East is positioning itself as a global hub for HBI exports, leveraging natural gas reserves and proximity to European markets. Latin America and Africa are also witnessing gradual adoption as part of industrial development initiatives.

Market Outlook

The outlook for the direct-reduced-iron (DRI) market remains highly optimistic, with sustainability at the forefront of global steelmaking strategies. By 2033, the market is expected to surpass USD 45.7 Billion, underpinned by strong demand across construction, automotive, and infrastructure projects. As governments worldwide implement stricter carbon reduction policies, steelmakers are compelled to adopt DRI technologies, especially hydrogen-based methods that promise near-zero emissions.

Furthermore, the rising popularity of electric arc furnaces (EAFs) combined with DRI feedstock offers a pathway to cost-effective and environmentally friendly steel production. The transition toward circular steelmaking, increasing R&D investments, and rapid scaling of renewable energy projects are additional factors shaping the market.

Industry players are likely to witness intense competition as global giants expand capacity and regional players collaborate with technology providers. With hydrogen infrastructure gaining momentum, the next decade will mark a transformative period for the DRI market, positioning it as a critical enabler of the green industrial revolution.

Contact:
Ajay N
Ph: +1-970-633-3460

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DataHorizzon is a market research and advisory company that assists organizations across the globe in formulating growth strategies for changing business dynamics. Its offerings include consulting services across enterprises and business insights to make actionable decisions. DHR's comprehensive research methodology for predicting long-term and sustainable trends in the market facilitates complex decisions for organizations.

This release was published on openPR.