직접환원철 시장 규모, 점유율, 성장 및 산업 분석 : 유형별, 용도별, 지역별 인사이트 및 예측(2026-2034년)

Growth Factors of direct reduced iron (DRI) Market

The global direct reduced iron (DRI) market is experiencing strong growth driven by rising demand for high-quality steel and increasing focus on low-carbon production technologies. The market was valued at USD 62.33 billion in 2025 and is projected to grow to USD 68.06 billion in 2026, reaching USD 137.62 billion by 2034, exhibiting a CAGR of 9.2% during the forecast period (2026-2034). In 2025, Asia Pacific dominated the market with a 59.6% share, supported by rapid industrialization and infrastructure growth in countries such as China and India.

Market Overview

Direct reduced iron (DRI), also known as sponge iron, is produced by reducing iron ore in its solid state using reducing gases such as hydrogen and carbon monoxide. Unlike traditional blast furnace processes, DRI production offers a more energy-efficient and environmentally friendly alternative, especially when integrated with Electric Arc Furnace (EAF) steelmaking.

With increasing pressure to reduce carbon emissions, steel manufacturers are shifting toward gas-based and hydrogen-based DRI technologies. These innovations significantly reduce CO2 emissions compared to conventional methods, making DRI a critical component in sustainable steel production.

Impact of COVID-19

The COVID-19 pandemic disrupted the DRI market due to supply chain interruptions, halted manufacturing operations, and reduced demand from key industries. Lockdowns across major economies such as India, China, and the U.S. affected raw material supply and finished goods distribution. However, post-pandemic recovery led to increased production activities, supported by government initiatives and rising demand for steel across construction and industrial sectors.

Market Trends

A major trend in the market is the growing adoption of hydrogen-based DRI technology. This method replaces carbon with hydrogen as a reducing agent, significantly lowering greenhouse gas emissions. The global push for decarbonization and sustainable steel production is accelerating R&D investments in this area.

Additionally, the integration of DRI with EAF technology is gaining momentum, enabling steelmakers to produce high-quality steel with greater operational flexibility and lower environmental impact.

Market Growth Drivers

The primary growth driver is the increasing demand for high-quality steel across industries such as construction, automotive, and oil & gas. DRI enhances steel quality due to its high iron content, low impurities, and consistent chemical composition.

Moreover, the flexibility of DRI-based steelmaking processes allows manufacturers to adjust production based on market conditions. Lower capital and operating costs, along with improved efficiency, further support market expansion.

Rising infrastructure development and urbanization, especially in emerging economies, are also fueling steel consumption, thereby boosting the demand for DRI.

Restraining Factors

Despite strong growth prospects, the market faces challenges related to handling and storage risks. DRI is highly reactive and prone to oxidation, which can generate heat and hydrogen gas, posing safety risks during transportation and storage.

Additionally, exposure to moisture can lead to hydrogen release, increasing the risk of fire or explosion. These factors require stringent safety measures, adding to operational complexities.

Market Segmentation Analysis

By Form:

The pellets segment dominates the market, accounting for a major share due to ease of transport, cost-effectiveness, and high reactivity. Pellets are widely used in EAF steelmaking processes.

By Production Process:

The gas-based segment leads the market with a 76.2% share in 2026, owing to lower impurities and reduced carbon emissions compared to coal-based processes. It is also preferred for producing higher-quality steel.

By Application:

The steel production segment holds the largest share (46.47% in 2026), driven by the increasing need for high-quality and environmentally sustainable steel.

Regional Insights

Asia Pacific led the global market with a value of USD 37.16 billion in 2025, growing to USD 40.83 billion in 2026. The region benefits from strong steel demand, expanding infrastructure, and supportive government policies.

North America accounted for USD 4.96 billion in 2025 and is projected to reach USD 5.37 billion in 2026, driven by demand from the oil & gas and construction industries. The U.S. market is expected to reach USD 7.68 billion by 2032.

Europe is witnessing steady growth, with USD 6.69 billion in 2025 and USD 7.28 billion in 2026, supported by R&D investments and decarbonization initiatives.

Middle East & Africa held a significant share at USD 12.37 billion in 2025, while Latin America continues to grow steadily due to automotive and industrial expansion.

Key Companies

Major players in the DRI market include Qatar Steel, Kobe Steel Ltd., ArcelorMittal, NUCOR, Midrex Technologies Inc., and Jindal Shadeed Iron & Steel. These companies are focusing on capacity expansion, technological innovation, and strategic partnerships to strengthen their market positions.

Key Industry Developments

Recent developments include the establishment of hydrogen-powered DRI plants, investments in low-carbon steel technologies, and expansion of production facilities. Companies are actively working toward reducing emissions and improving efficiency.

Conclusion

The direct reduced iron (DRI) market is poised for substantial growth, driven by rising steel demand, technological advancements, and the global shift toward sustainable manufacturing. While challenges such as handling risks and infrastructure requirements persist, increasing investments in hydrogen-based technologies and cleaner production methods are expected to transform the industry. By 2034, DRI will play a pivotal role in enabling low-carbon steel production and supporting global sustainability goals.

Segmentation By Form

• Pellets
• Others

By Production Process

• Gas-based
• Coal-based

By Application

• Steel Production
• Construction
• Others

By Region

• North America (By Form, Production Process, Application, Country)
  • U.S. (By Application)
  • Canada (By Application)
• Europe (By Form, Production Process, Application, Country)
  • Germany (By Application)
  • U.K. (By Application)
  • France (By Application)
  • CIS (By Application)
  • Rest of Europe (By Application)
• Asia Pacific (By Form, Production Process, Application, Country)
  • China (By Application)
  • India (By Application)
  • Japan (By Application)
  • ASEAN (By Application)
  • Rest of the Asia Pacific (By Application)
• Latin America (By Form, Production Process, Application, Country)
  • Brazil (By Application)
  • Mexico (By Application)
  • Rest of Latin America (By Application)
• Middle East & Africa (By Form, Production Process, Application, Country)
  • South Africa (By Application)
  • GCC (By Application)
  • Rest of the Middle East & Africa (By Application)

Table of Content

1. Introduction

• 1.1. Research Scope
• 1.2. Market Segmentation
• 1.3. Research Methodology
• 1.4. Definitions and Assumptions

2. Executive Summary

3. Market Dynamics

• 3.1. Market Drivers
• 3.2. Market Restraints
• 3.3. Market Opportunities

4. Key Insights

• 4.1. Key Trends
• 4.2. Key Developments
• 4.3. Insights on Regulatory Scenario
• 4.4. Latest Technological Advancements
• 4.5. Porter's Five Forces Analysis
• 4.6. Qualitative Insights on Impact of COVID-19 on Market

5. Global Direct Reduced Iron Market Analysis, Insights and Forecast, 2025-2034

• 5.1. Key Findings / Summary
• 5.2. By Form (Value/Volume)
  • 5.2.1. Pellets
  • 5.2.2. Others
• 5.3. By Production Process (Value/Volume)
  • 5.3.1. Gas-based
  • 5.3.2. Coal-based
• 5.4. By Application (Value/Volume)
  • 5.4.1. Steel Production
  • 5.4.2. Construction
  • 5.4.3. Others
• 5.5. By Region (Value/Volume)
  • 5.5.1. North America
  • 5.5.2. Europe
  • 5.5.3. Asia Pacific
  • 5.5.4. Latin America
  • 5.5.5. Middle East & Africa

6. North America Direct Reduced Iron Market Analysis, Insights and Forecast, 2021-2034

• 6.1. Key Findings / Summary
• 6.2. By Form (Value/Volume)
  • 6.2.1. Pellets
  • 6.2.2. Others
• 6.3. By Production Process (Value/Volume)
  • 6.3.1. Gas-based
  • 6.3.2. Coal-based
• 6.4. By Application (Value/Volume)
  • 6.4.1. Steel Production
  • 6.4.2. Construction
  • 6.4.3. Others
• 6.5. By Country (Value/Volume)
  • 6.5.1. U.S.
    • 6.5.1.1. By Application
      • 6.5.1.1.1. Steel Production
      • 6.5.1.1.2. Construction
      • 6.5.1.1.3. Others
  • 6.5.2. Canada
    • 6.5.2.1. By Application
      • 6.5.2.1.1. Steel Production
      • 6.5.2.1.2. Construction
      • 6.5.2.1.3. Others

7. Europe Direct Reduced Iron Market Analysis, Insights and Forecast, 2021-2034

• 7.1. Key Findings / Summary
• 7.2. By Form (Value/Volume)
  • 7.2.1. Pellets
  • 7.2.2. Others
• 7.3. By Production Process (Value/Volume)
  • 7.3.1. Gas-based
  • 7.3.2. Coal-based
• 7.4. By Application (Value/Volume)
  • 7.4.1. Steel Production
  • 7.4.2. Construction
  • 7.4.3. Others
• 7.5. By Country (Value/Volume)
  • 7.5.1. Germany
    • 7.5.1.1. By Application
      • 7.5.1.1.1. Steel Production
      • 7.5.1.1.2. Construction
      • 7.5.1.1.3. Others
  • 7.5.2. U.K.
    • 7.5.2.1. By Application
      • 7.5.2.1.1. Steel Production
      • 7.5.2.1.2. Construction
      • 7.5.2.1.3. Others
  • 7.5.3. France
    • 7.5.3.1. By Application
      • 7.5.3.1.1. Steel Production
      • 7.5.3.1.2. Construction
      • 7.5.3.1.3. Others
  • 7.5.4. CIS
    • 7.5.4.1. By Application
      • 7.5.4.1.1. Steel Production
      • 7.5.4.1.2. Construction
      • 7.5.4.1.3. Others
  • 7.5.5. Rest of Europe
    • 7.5.5.1. By Application
      • 7.5.5.1.1. Steel Production
      • 7.5.5.1.2. Construction
      • 7.5.5.1.3. Others

8. Asia-Pacific Direct Reduced Iron Market Analysis, Insights and Forecast, 2021-2034

• 8.1. Key Findings / Summary
• 8.2. By Form (Value/Volume)
  • 8.2.1. Pellets
  • 8.2.2. Others
• 8.3. By Production Process (Value/Volume)
  • 8.3.1. Gas-based
  • 8.3.2. Coal-based
• 8.4. By Application (Value/Volume)
  • 8.4.1. Steel Production
  • 8.4.2. Construction
  • 8.4.3. Others
• 8.5. By Country (Value/Volume)
  • 8.5.1. China
    • 8.5.1.1. By Application
      • 8.5.1.1.1. Steel Production
      • 8.5.1.1.2. Construction
      • 8.5.1.1.3. Others
  • 8.5.2. India
    • 8.5.2.1. By Application
      • 8.5.2.1.1. Steel Production
      • 8.5.2.1.2. Construction
      • 8.5.2.1.3. Others
  • 8.5.3. Japan
    • 8.5.3.1. By Application
      • 8.5.3.1.1. Steel Production
      • 8.5.3.1.2. Construction
      • 8.5.3.1.3. Others
  • 8.5.4. ASEAN
    • 8.5.4.1. By Application
      • 8.5.4.1.1. Steel Production
      • 8.5.4.1.2. Construction
      • 8.5.4.1.3. Others
  • 8.5.5. Rest of Asia Pacific
    • 8.5.5.1. By Application
      • 8.5.5.1.1. Steel Production
      • 8.5.5.1.2. Construction
      • 8.5.5.1.3. Others

9. Latin America Direct Reduced Iron Market Analysis, Insights and Forecast, 2021-2034

• 9.1. Key Findings / Summary
• 9.2. By Form (Value/Volume)
  • 9.2.1. Pellets
  • 9.2.2. Others
• 9.3. By Production Process (Value/Volume)
  • 9.3.1. Gas-based
  • 9.3.2. Coal-based
• 9.4. By Application (Value/Volume)
  • 9.4.1. Steel Production
  • 9.4.2. Construction
  • 9.4.3. Others
• 9.5. By Country (Value/Volume)
  • 9.5.1. Brazil
    • 9.5.1.1. By Application
      • 9.5.1.1.1. Steel Production
      • 9.5.1.1.2. Construction
      • 9.5.1.1.3. Others
  • 9.5.2. Mexico
    • 9.5.2.1. By Application
      • 9.5.2.1.1. Steel Production
      • 9.5.2.1.2. Construction
      • 9.5.2.1.3. Others
  • 9.5.3. Rest of Latin America
    • 9.5.3.1. By Application
      • 9.5.3.1.1. Steel Production
      • 9.5.3.1.2. Construction
      • 9.5.3.1.3. Others

10. Middle East & Africa Direct Reduced Iron Market Analysis, Insights and Forecast, 2021-2034

• 10.1. Key Findings / Summary
• 10.2. By Form (Value/Volume)
  • 10.2.1. Pellets
  • 10.2.2. Others
• 10.3. By Production Process (Value/Volume)
  • 10.3.1. Gas-based
  • 10.3.2. Coal-based
• 10.4. By Application (Value/Volume)
  • 10.4.1. Steel Production
  • 10.4.2. Construction
  • 10.4.3. Others
• 10.5. By Country (Value/Volume)
  • 10.5.1. South Africa
    • 10.5.1.1. By Application
      • 10.5.1.1.1. Steel Production
      • 10.5.1.1.2. Construction
      • 10.5.1.1.3. Others
  • 10.5.2. GCC
    • 10.5.2.1. By Application
      • 10.5.2.1.1. Steel Production
      • 10.5.2.1.2. Construction
      • 10.5.2.1.3. Others
  • 10.5.3. Rest of Middle East & Africa
    • 10.5.3.1. By Application
      • 10.5.3.1.1. Steel Production
      • 10.5.3.1.2. Construction
      • 10.5.3.1.3. Others

11. Company Profiles

• 11.1. Qatar Steel
  • 11.1.1. Overview
  • 11.1.2. Description
  • 11.1.3. Product Portfolio
  • 11.1.4. Financials (As per Availability)
  • 11.1.5. Recent Developments
• 11.2. Kobe Steel Ltd
  • 11.2.1. Overview
  • 11.2.2. Description
  • 11.2.3. Product Portfolio
  • 11.2.4. Financials (As per Availability)
  • 11.2.5. Recent Developments
• 11.3. ArcelorMittal
  • 11.3.1. Overview
  • 11.3.2. Description
  • 11.3.3. Product Portfolio
  • 11.3.4. Financials (As per Availability)
  • 11.3.5. Recent Developments
• 11.4. NUCOR
  • 11.4.1. Overview
  • 11.4.2. Description
  • 11.4.3. Product Portfolio
  • 11.4.4. Financials (As per Availability)
  • 11.4.5. Recent Developments
• 11.5. Midrex Technologies Inc.
  • 11.5.1. Overview
  • 11.5.2. Description
  • 11.5.3. Product Portfolio
  • 11.5.4. Financials (As per Availability)
  • 11.5.5. Recent Developments
• 11.6. Khouzestan Steel Company
  • 11.6.1. Overview
  • 11.6.2. Description
  • 11.6.3. Product Portfolio
  • 11.6.4. Financials (As per Availability)
  • 11.6.5. Recent Developments
• 11.7. Welspun Group
  • 11.7.1. Overview
  • 11.7.2. Description
  • 11.7.3. Product Portfolio
  • 11.7.4. Financials (As per Availability)
  • 11.7.5. Recent Developments
• 11.8. Jindal Shadeed Iron & Steel LLC
  • 11.8.1. Overview
  • 11.8.2. Description
  • 11.8.3. Product Portfolio
  • 11.8.4. Financials (As per Availability)
  • 11.8.5. Recent Developments
• 11.9. AM/NS India
  • 11.9.1. Overview
  • 11.9.2. Description
  • 11.9.3. Product Portfolio
  • 11.9.4. Financials (As per Availability)
  • 11.9.5. Recent Developments
• 11.10. Tosyali Algeria A.S.
  • 11.10.1. Overview
  • 11.10.2. Description
  • 11.10.3. Product Portfolio
  • 11.10.4. Financials (As per Availability)
  • 11.10.5. Recent Developments

12. Strategic Recommendations