Direct Reduced Iron (DRI) Market 2023 – Market Size & Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Forecast 2030

The market value of the direct reduced iron market was valued at USD 48.2 billion in 2022, and a CAGR of 9.8% is expected during the forecast period. DRI is used as a source of food-grade iron powder, for food fortification, and for oxygen scavenging. The direct-reduced iron market is steadily growing due to its advantage in steelmaking. Factors like cost-effectiveness, environmental benefits, and steel quality enhancement are driving its demand. The rise in steel production and technological advancements contribute to the expansion of the direct iron market. Several factors, like steel industry demand, environmental regulations, technological advancements, resource availability, and cost-efficiency, are driving the growth of the market significantly.

Impact of Covid-19

During the early stage of the pandemic, due to supply chain disruption, lockdown, and social distancing, there was a slowdown in the market. Despite the initial disruption, the market still showed resilience. As economies recovered and steel demand picked up, the market gradually rebounded, aided by stimulus packages, infrastructure projects, and a resurgence in construction activities. Supply chain disruptions, including transportation bottlenecks and raw material shortages, affected DRI production and delivery schedules, causing intermittent challenges for the market. The pandemic prompted a reassessment of supply chains, leading to a potential shift in preferences towards more localized or diversified sources of raw materials, which did impact DRI market dynamics in the long term.

Growth Drivers

The direct reduction of iron’s market growth is typically driven by factors like increasing demand in steel production, cost-effectiveness compared to traditional iron-making methods, environmental benefits due to lower carbon emissions, and technological advancements improving the efficiency of production processes. Additionally, regional market dynamics, raw material availability, and government policies also play a significant role in shaping its growth. Increased demand for direct-reduced iron in construction and in many other industries is driving growth in the direct-reduced iron market. The growing steel industry is a positive sign for global business. The rebound in the residential construction industry after the pandemic is the major growth driver in the direct-reduced iron industry. Increasing demand for cost-effective, durable, and quality products with all the desired qualities is the demand of the time.

Increasing industrialization and urbanization are rapidly driving the growth in the direct market. Increasing demand from the steel industry is also driving growth in the direct reduced iron market. The construction, automotive, aerospace, and appliances industries are driving growth in the market. Increasing demand for high-quality steel is also driving growth in the market.

Segmentation

By Form

·         Lump

·         Pellets

By Production Process

·         Coal-based

·         Gas-based

By Application

·         Steel Making

·         Construction

Regional Outlook

·         Asia Pacific

·         North America

·         Latin America

·         Europe

·         Middle East and Africa

Direct Reduced Iron by Form Market Segmentation

On the basis of form, the direct reduced iron market is segmented into lumps and pellets. Pellets are the leading segment and are expected to lead during the forecast period. Lumps are irregularly shaped pieces, while pellets are more uniform and formed through agglomeration processes. Both play a significant role in steel production, with pellets often preferred for their consistent quality and improved handling. Production method, transportation, and specific requirements in steel manufacturing are driving the growth during the forecast period.

Direct Reduced Iron Market by Application

On the basis of application, the direct reduced iron market is segmented into steel making and construction activities. Steel making is the leading segment and is expected to lead the market during the forecast period. In steel making, DRI serves as a high-quality iron for producing steel in various parts of the world. In construction sectors, it finds applications in various structural components like beams, columns, and reinforcement bars due to its strength and durability. These sectors heavily rely on DRI due to its durability and cost-effectiveness.

Direct Reduced Iron Market By Production Segmentation

On the basis of production segment, the direct reduced iron market is segmented into gas-based and coal-based. DRI is produced by either coal or natural gas. The process involves using a reducing gas or elemental carbon to reduce iron ore to iron. The reducing gas is mainly made up of carbon monoxide and hydrogen. Increasing demand for DRI in various industries is driving the growth of the direct reduced iron market significantly. Increasing demand for it in producing steel and in other construction activities is driving the growth in the direct reduced iron market significantly.

Regional Outlook

On the basis of regions, the direct reduced iron market is segmented into 5 parts: Asia Pacific, North America, Latin America, Europe, and the Middle East and Africa. The Middle East and Africa are expected to be the largest segments due to the increasing consumption of steel. Saudi Arabia is the largest steel consumer. One of the key factors driving market growth is the increasing consumption of steel. The United Arab Emirates is the second-leading market in the region. Growing consumption of steel in Russia is driving the growth significantly. Increasing demand for steel in the construction, automotive, manufacturing, and aerospace industries is driving the growth of the market. In North America, the direct reduced iron market is witnessing growth due to increased investment in steel manufacturing infrastructure.

An emphasis on energy-efficient production methods and efforts to reduce carbon emissions are driving the growth of the market significantly. In countries in the Asia-Pacific region like China and India, factors like increasing industrialization, high demand for steel in construction and manufacturing, and initiatives to adopt cleaner production technologies have been driving the growth in the market significantly. Direct-reduced iron has vast significance in steel production and in the aerospace, automation, and construction industries. The United States of America, Canada, India, China, the U.A.E., and Japan are showing significant growth during the forecast period. Spain, France, and Germany in the European region are other countries showing significant growth in the direct iron market.

 Key Players

·         AcrelorMittal

·         Essar Steel

·         Qatar Steel

·         Hadeed

·         Sidor

·         Jindal Sniteel and Power

·         Gol-e-Gohar

·         Nucor

·         Khouzestan Steel Company

·         Mobaraken Steel

·         Other Players

Global Direct Reduced Iron (DRI) Market research report presents a strategic analysis of the global Direct Reduced Iron (DRI) Market and a forecast for its development in the medium term, taking into account the impact of COVID-19 on it.

This report delivers market size, regional and country market data, segmentation growth, market share, competitive landscape, company’s Direct Reduced Iron (DRI) revenue analysis, strategies of domestic and global market players, opportunities analysis, strategic market growth analysis, and technological innovations. It analyses historical and current market data to accurately gauge its future growth potential. This market report provides in-depth analysis and insight of market drivers, challenges, trends & opportunities. At the same time, comprehensive coverage of major vendors (recent product development & industrial activities, company overview, insights on business strategy & financial performance, company SWOT analysis) is provided to give competitive overview. This study presents most detailed (COVID-19 updated) and in-depth analysis about the global Direct Reduced Iron (DRI) market, covering all global regions and countries. The report provides intricate dynamics for each of the countries covered, offering unmatched value, accuracy and expert insights.

Report Purpose

The purpose of the report is to portray the state of the global Direct Reduced Iron (DRI) Market and to present real and expert-verified data and insights about the market values, volumes, dynamics, segmentation and prices. It also offers forecast for the market development in the short and medium term and the impact COVID-19 has and will have on it. Further, it covers in-depth analysis of the key market players, industry trends and insights, growth drivers and challenges and all other factors, influencing the growth of market.

Scope of the Report

The report on the global Direct Reduced Iron (DRI) Market presents:

·         Historical Data: Market data including volume, growth rate, value, and dynamics; Market segmentation (by product, by region and by country; etc.) for the last five years;

·         Strategic Insights for companies looking to launch new products to diversify their business, exploring leading countries to establish supply chain, and top countries to increase company export and go global

·         Comprehensive Regional Market Data: volume, growth rate, value, market share and dynamics of for the last five years (broken down by region);

·         Market Dynamics: Analysis of the factors impacting the market including demand drivers, industry trends and challenges and the short and the medium-term impact of COVID-19 presently and in near future;

·         Analysis and forecast for the global economy and demographics;

·         Supply chain and value chain analysis, risk analysis of supply side and demand side;

·         Market Forecast for next ten years (market share, year-on-year growth, volume, value and segmentation by region);

·         Company profiling of key market players covering company’s Direct Reduced Iron (DRI) revenue, sales and market share;

·         Comprehensive coverage of competitive landscape offering market positioning and snapshot of key business strategies;

·         Porter’s Five Forces analysis;

How Can You Benefit from This Report?

In this report you can:

·         Track and identify key market trends and insights and key drivers behind recent market changes and see the impact COVID-19 has and will have on the market in both the short and the medium term;

·         Get access to reliable and verified market data, with which aids you to make confident business decisions;

·         Analysis of market numbers, such as volume, value, forecasts, dynamics, segmentation and market structure – past, present and future;

·         Gain competitive intelligence about the market at low cost as compared to other reports;

·         Understand growth potential countries and regions, opportunities, growth drivers and barriers on the market;

·         Own data spreadsheet for comparison at global, regional and for individual country, covered in the report;

·         Analyse countries with highest and lowest demand for Direct Reduced Iron (DRI) and countries in each region which will grow at highest growth in next five years.

·         Strategically plan business strategy based on verified market data and expert insights;

·         Identify revenue generation opportunities in the countries and regions within the market;

·         Get market trend data of last 10 years and how market growth will unfold in next ten years;

·         Market share analysis and positioning of leading market players;

·         Get an assessment of competitive intensity, fragmentation and environment and understand competitive threats;

·         Get hands on data your competitors might already have and be acting upon;

·         Assess your position on the market, choose a new product line market to enter or get to know a completely new market;

·         Save money, time and resources by not purchasing/collecting data and compiling them by yourself;

·         Extensive analysis of all required market data in one place;

·         Empower your marketing, branding, strategy, product and business development, consumption and supply functions with valuable market insights;

·         Assess market attractiveness and BPS analysis for region and country and strategies business activities;

·         Develop your own market entry or market expansion strategy or validate your current strategy;

·         Get easy to read, perceive and understand report.

What Kind of Decisions You Can Make Based on the Data in This Report?

This report detailed and all-inclusive data on Direct Reduced Iron (DRI) Market, providing valuable support to make vital decisions regarding:

·         Strategic planning;

·         Industry analysis;

·         Target Market/Marketing and sales;

·         Regional and country assessment and opportunity analysis;

·         Market entry into new product group or country;

·         Pricing of existing and new products;

·         New product development and Innovation in existing products;

·         Supply chain management;

·         Market evaluation;

·         Mergers, Expansions, Joint Ventures and acquisitions.

Who Is This Report for?

This report is intended to give broad overview of market to people who already are working on this market:

·         C-suite Level executives;

·         Directors;

·         Industry strategists;

·         Marketing professionals;

·         Business development professionals;

·         Product developers;

·         Product marketers and strategists;

·         Product managers;

·         Project managers;

·         Suppliers;

·         Traders;

This report also caters to people who are not involved in the market, representatives of investors, consultants, advisors and financial institutions:

·         Management consultants;

·         Investment managers;

·         Financial professionals;

·         M&A managers. 

Regional Coverage

The report on the global Direct Reduced Iron (DRI) Market breaks down the world into the following regions & countries and covers every single one of them:

Report Customization

If the report as is does not serve your market research needs, get it customized at free of cost, as per your own specific requirements. Feel free to contact us for more information!