Direct Reduced Iron Global Market Report 2026

Direct reduced iron (DRI), also referred to as sponge iron, is produced by directly reducing iron ore using a reducing gas such as natural gas, coal, or carbon dioxide. This process creates iron without the need for intermediate melting stages. DRI serves as an efficient raw material for small-mill electric furnaces, allowing the utilization of lower-grade scrap for the remainder of the charge or enabling higher steel production rates.

The primary production methods for direct reduced iron include coal-based, gas-based, or Midrex processes. The coal-based direct reduction rotary kiln process was developed to convert iron ore directly into metallic iron without the need for melting. This method offers advantages such as requiring less initial capital and eliminating the necessity for coking coal. Direct reduced iron is available in pellet or lump form and finds application in steel-making and various construction-related uses.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs on iron ore, coal, and gas-based feedstocks have impacted the direct reduced iron market by increasing production costs and delaying shipments, particularly affecting coal-based and gas-based segments. Regions such as asia-pacific, north america, and europe are most impacted due to import dependencies. Positive impacts include promotion of domestic production, boosting local sourcing, and driving technological advancements in efficient DRI processes.

The direct reduced iron market research report is one of a series of new reports from The Business Research Company that provides direct reduced iron market statistics, including direct reduced iron industry global market size, regional shares, competitors with a direct reduced iron market share, detailed direct reduced iron market segments, market trends and opportunities, and any further data you may need to thrive in the direct reduced iron industry. This direct reduced iron market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The direct reduced iron market size has grown strongly in recent years. It will grow from $33.59 billion in 2025 to $36.54 billion in 2026 at a compound annual growth rate (CAGR) of 8.8%. The growth in the historic period can be attributed to adoption of coal-based dri production, early use of midrex and hyl processes, growth of steel-making industry, increasing sponge iron production to meet demand, rising demand from construction sector.

The direct reduced iron market size is expected to see strong growth in the next few years. It will grow to $51.95 billion in 2030 at a compound annual growth rate (CAGR) of 9.2%. The growth in the forecast period can be attributed to expansion of gas-based dri production capacity, increasing demand for pellets in electric furnaces, adoption of eco-friendly reduction techniques, growth in steel and construction applications, integration of advanced process control and automation. Major trends in the forecast period include growth in gas-based dri production processes, increasing adoption of coal-based sponge iron production, rising demand for pellets and lumps in steel making, expansion of dri usage in construction applications, integration of high-efficiency midrex and hyl processes.

The increasing investments in infrastructure development are anticipated to drive the expansion of the direct reduced iron market. Infrastructure development involves the planning, designing, financing, construction, and maintenance of physical and organizational structures and facilities that are vital for the functioning of a society or economy. DRI is utilized in steel production for infrastructure projects in the energy sector, further boosting the demand for direct reduced iron. For example, in July 2025, according to the Office for National Statistics, a UK-based Statistics Authority, total general government investment in infrastructure increased by 2.2% to $38.7 billion (£28.9 billion) in current prices in 2024 compared with 2023. Therefore, the growing investments in infrastructure development are expected to propel the growth of the direct reduced iron market.

Prominent entities within the direct reduction iron market are strategically investing in initiatives such as direct reduction plants to address surging demand and broaden their customer base. These plants are specialized facilities where iron ore undergoes a reduction process, typically utilizing natural gas or hydrogen, to yield direct reduced iron (DRI) for steelmaking purposes. A noteworthy example is the inauguration, in August 2023, of the world's largest direct reduction plant for green iron by a Germany-based Raw Materials Manufacturing partnership comprising Namibian and German companies. Located at RWE's Emsland gas-fired power plant site, the facility received a €3 million contribution from the Lower Saxony Ministry of Environment. This plant focuses on exclusively reducing iron ore through the utilization of green hydrogen, with plans to explore the application of sponge iron in steel production starting in 2024. Lingen was chosen as the plant's location due to the concentrated presence of hydrogen projects in the broader Emsland H2 region, particularly at the RWE's Emsland gas-fired power plant site. In the upcoming stages, green hydrogen for HyIron will be generated at RWE's 14-megawatt pilot electrolysis plant, set to commence operations directly adjacent to the direct reduction plant by the end of 2023.

In April 2025, Clariant International Limited, a Switzerland-based specialty chemicals company, partnered with Midrex to enhance collaboration in direct reduced iron (DRI) technology and promote the decarbonization of steel production. Through this partnership, Clariant aims to advance its low-carbon syngas and catalyst solutions across the DRI value chain, increase its presence in decarbonization technologies, and speed up the adoption of lower-CO2 steelmaking processes. Midrex Technologies Inc is a US-based provider of direct reduced iron (DRI) process technology and plant solutions that contribute to reducing CO2 emissions in steel production.

Major companies operating in the direct reduced iron market report are ArcelorMittal, JFE Steel Corporation, Cleveland-Cliffs Inc., Kobe Steel Ltd., Gallantt Group of Industries, Voestalpine AG, Ternium SA, Nucor Corporation, Mobarakeh Steel Company, Hadeed Steel Industries, Jindal Steel and Power Ltd, Qatar Steel Company, Salzgitter AG, Jindal Shadeed Iron & Steel LLC, Tosyali Algeria, Tata Sponge, Tuwairqi Steel Mills Limited, JSW Ispat Special Products Limited, Midrex Technologies Inc., AM/NS India, Tenova SpA, Khouzestan Steel Company, Essar Steel

Asia-Pacific was the largest region in the direct reduced iron market in 2025. The regions covered in the direct reduced iron market are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the direct reduced iron market are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The direct reduced iron market consists of sales of gas-based direct reduced iron and coal-based direct reduced iron. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Direct Reduced Iron Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses direct reduced iron market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for direct reduced iron ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The direct reduced iron market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market. This section also examines key products and services offered in the market, evaluates brand-level differentiation, compares product features, and highlights major innovation and product development trends.
• The supply chain analysis section provides an overview of the entire value chain, including key raw materials, resources, and supplier analysis. It also provides a list competitor at each level of the supply chain.
• The updated trends and strategies section analyses the shape of the market as it evolves and highlights emerging technology trends such as digital transformation, automation, sustainability initiatives, and AI-driven innovation. It suggests how companies can leverage these advancements to strengthen their market position and achieve competitive differentiation.
• The regulatory and investment landscape section provides an overview of the key regulatory frameworks, regularity bodies, associations, and government policies influencing the market. It also examines major investment flows, incentives, and funding trends shaping industry growth and innovation.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.
• The total addressable market (TAM) analysis section defines and estimates the market potential compares it with the current market size, and provides strategic insights and growth opportunities based on this evaluation.
• The market attractiveness scoring section evaluates the market based on a quantitative scoring framework that considers growth potential, competitive dynamics, strategic fit, and risk profile. It also provides interpretive insights and strategic implications for decision-makers.
• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• Expanded geographical coverage includes Taiwan and Southeast Asia, reflecting recent supply chain realignments and manufacturing shifts in the region. This section analyzes how these markets are becoming increasingly important hubs in the global value chain.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The company scoring matrix section evaluates and ranks leading companies based on a multi-parameter framework that includes market share or revenues, product innovation, and brand recognition.

Scope

• Markets Covered:1) By Production Process: Coal-Based; Gas-Based Or Midrex
• 2) By Form: Pellets; Lumps
• 3) By Application: Electric Arc Furnace (EAF) Steelmaking; Basic Oxygen Furnace (BOF) Or Blast Furnace (BF) Charge Enrichment; Hot Briquetted Iron (HBI) for Merchant Trade; Foundry Applications
• Subsegments:
• 1) By Coal-Based: Direct Reduced Iron (DRI) From Coal; Sponge Iron Production Via Coal Gasification
• 2) By Gas-Based Or Midrex: Midrex Process; Hyl Process (HY-Lite)
• Companies Mentioned: ArcelorMittal; JFE Steel Corporation; Cleveland-Cliffs Inc.; Kobe Steel Ltd.; Gallantt Group of Industries; Voestalpine AG; Ternium SA; Nucor Corporation; Mobarakeh Steel Company; Hadeed Steel Industries; Jindal Steel and Power Ltd; Qatar Steel Company; Salzgitter AG; Jindal Shadeed Iron & Steel LLC; Tosyali Algeria; Tata Sponge; Tuwairqi Steel Mills Limited; JSW Ispat Special Products Limited; Midrex Technologies Inc.; AM/NS India; Tenova SpA; Khouzestan Steel Company; Essar Steel
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain.
• Regions: Asia-Pacific; South East Asia; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
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