Direct Reduced Iron Market Report 2026

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.

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