Direct-Reduced-Iron (DRI) Market to Grow at a CAGR of 4.8% by 2033 | Key Players: ArcelorMittal, JSW Steel, Midrex Technologies, Kobe Steel Ltd., and Cleveland-Cliffs Inc.

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, driven by the global transition toward low-carbon steelmaking technologies, the rising demand for electric arc furnace (EAF)-based steel production, and the growing focus on decarbonization in the iron and steel sector. DRI, also known as sponge iron, is increasingly being adopted as a sustainable alternative to blast furnace iron due to its energy efficiency, reduced emissions, and high metallization rate. As steel manufacturers move toward greener production processes, DRI has emerged as a vital raw material for achieving carbon neutrality and meeting global emission standards.

Market Size & Insights

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.

The demand surge is fueled by the rising adoption of EAF technology, which relies heavily on DRI as a primary feedstock. DRI's ability to replace metal in steelmaking provides a cleaner, more consistent alternative with minimal impurities.

The market is witnessing significant technological advancements, particularly in natural gas-based and hydrogen-based DRI production, which reduce CO2 emissions by up to 90% compared to conventional blast furnaces. Governments and major steelmakers are investing heavily in hydrogen-based DRI facilities to support green steel initiatives. Moreover, regional expansions across the Middle East, India, and North America are driving supply diversification and infrastructure upgrades. As the world's steel industry embraces circular economy principles, the role of DRI as a low-carbon feedstock continues to strengthen.

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Important Points

• DRI is a key enabler for green steel production, supporting global decarbonization goals.
• The shift from blast furnaces to EAFs is significantly boosting DRI consumption.
• Hydrogen-based DRI is emerging as the next major innovation in clean steel manufacturing.
• Asia-Pacific and the Middle East remain the largest producers and exporters of DRI.
• Increasing investments in renewable-powered DRI plants are transforming the market landscape.
• The automotive and construction industries are major end-users of DRI-based steel products.

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

• Rising Demand for Green Steel: The global steel industry's commitment to reduce emissions is fueling demand for hydrogen-based DRI.
• Technological Advancements: Innovations in natural gas and hydrogen-based reduction processes are enhancing energy efficiency.
• Expansion of Electric Arc Furnaces (EAFs): Increasing installation of EAFs across developed and emerging economies supports steady DRI demand.
• Government Decarbonization Policies: Carbon taxes and climate initiatives are encouraging low-emission ironmaking technologies.
• Infrastructure and Construction Boom: Rapid urbanization and industrial growth in Asia and Africa are driving steel demand.
• Strategic Partnerships: Collaborations between steelmakers and energy providers are advancing green DRI production capacity.

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

• ArcelorMittal launched a €2 billion investment in hydrogen-based DRI plants in Germany and Spain to accelerate green steel production.
• JSW Steel announced plans to build a large-scale DRI facility integrated with renewable hydrogen in India by 2027.
• Midrex Technologies developed a next-generation DRI process compatible with 100% hydrogen feedstock.
• Kobe Steel Ltd. expanded its MIDREX® technology licenses for new DRI plants in the Middle East and North Africa.
• Cleveland-Cliffs Inc. started producing hot-briquetted iron (HBI) at its Ohio facility, reducing dependency on metal.
• POSCO Holdings partnered with global energy firms to secure hydrogen supply chains for its future DRI operations.

Regional Insights

The Asia-Pacific region dominates the DRI market, accounting for nearly 40% of global production, led by India, China, and Iran, where coal- and gas-based DRI facilities are abundant. The Middle East follows closely, benefiting from abundant natural gas resources and large-scale export-oriented DRI plants. Europe is emerging as a major hub for hydrogen-based DRI projects, supported by stringent emission reduction policies. North America is witnessing strong growth due to the expansion of EAF-based steel mills, particularly in the U.S. and Canada. Meanwhile, Latin America and Africa are becoming attractive destinations for future DRI investments due to their energy potential and growing steel demand.

Market Outlook

The direct-reduced-iron (DRI) market is poised for robust growth over the next decade, driven by technological transformation, decarbonization efforts, and increased steel demand. With the steel industry accounting for nearly 7-8% of global CO2 emissions, DRI offers a path toward sustainable and low-carbon steel production. The shift from coal-based to hydrogen-based DRI technologies is expected to redefine the global market, especially as governments promote renewable hydrogen as a clean reducing agent.

By 2033, hydrogen DRI and EAF integration will become the cornerstone of next-generation steelmaking, enabling industries to achieve significant emission reductions while maintaining production efficiency. Strategic collaborations among steel producers, energy suppliers, and technology developers will further accelerate this transition. Moreover, as green infrastructure projects multiply across major economies, demand for DRI-based steel in construction, transportation, and manufacturing will continue to rise.

In conclusion, the DRI market is entering a transformative decade, marked by innovation, sustainability, and policy-driven growth. Companies investing early in hydrogen-ready technologies and renewable integration will gain a competitive edge, positioning themselves at the forefront of the global green steel 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.