Direct Reduced Iron Market - By Product Type (Hot Briquetted Iron, Cold Direct Reduced Iron), By Technology (Gas-based, Coal-based), By Application (Electric Arc Furnace, Basic Oxygen Furnace, Foundries), By End Use, By Region & Forecast 2024 - 2032

Direct Reduced Iron Market - By Product Type (Hot Briquetted Iron, Cold Direct Reduced Iron), By Technology (Gas-based, Coal-based), By Application (Electric Arc Furnace, Basic Oxygen Furnace, Foundries), By End Use, By Region & Forecast 2024 - 2032
The global direct reduced iron market size is projected to record 9.1% CAGR during 2024-2032, due to the increased demand from steel sector and the advancements of manufacturing technology.

According to the United Nations, meeting the Paris Agreements ambitious goal of limiting global warming to 1.5°C requires a 45% reduction in emissions by 2030, with a subsequent target of achieving net-zero emissions by 2050. As industries around the world strive to minimize their environmental footprint, there is demand for a cleaner and more sustainable production process. Direct reduced iron DRI technology offers a viable solution that enables steelmakers to significantly reduce GHG emissions compared to traditional methods. Moreover, wider recognition of DRI by governments and international bodies is poised to amplify its demand, positioning it as a pivotal element in the shift towards a low-carbon economy.

The direct reduced iron industry is classified based on product type, technology, application, end-use, and region.

The gas-based technology segment will gain notable traction through 2032, owing to the advantages, such as lower production costs, reduced GHG emissions, and better energy efficiency compared to traditional coal-based methods. Many steel producers are increasingly adopting gas based DRI technology to improve their production processes and reduce their carbon footprint. In addition, the versatility of gas-based processes allows the use of different sources of raw materials, which ensures flexibility and adaptability in unstable market conditions.

Hot briquetted iron segment is poised to witness surge in demand over 2024 and 2032, as ductile iron offers many advantages over traditional forms of DRI. HBI is produced by pressing hot direct reduced iron into a dense briquette, which improves its handling, storage and transport properties. In addition, HBI has a higher iron content and fewer impurities than traditional DRI, making it an attractive choice for steelmakers looking to improve the quality and efficiency of their steelmaking processes.

Europe direct reduced iron market size will grow at a moderate pace through 2032, favored by the booming steel industry and increasing demand for steel with lower carbon footprints. The regions stringent environmental regulations are driving steel manufacturers to adopt cleaner production technologies. There are rising investments in electric arc furnace EAF technology, which relies heavily on DRI. Moreover, the ongoing innovations in DRI production processes, such as hydrogen-based reduction, are enhancing the efficiency and sustainability of steel manufacturing, thereby boosting the DRI market in Europe.