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CHEMICALS AND ADVANCED MATERIALS

Direct Reduced Iron Market Analysis by Form (Lumps, and Pellets); by Process (MIDREX, Coal Based, and Others); and by Application (Steel Making, and Construction) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2033

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Inflation And Looming Recession to Haunt Businesses:

In 2022 & 2023, market players expected to sail in rough waters; might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain. Further, U.S. economy is expected to grow merely by 3% in 2022.

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Purchasing power in the couPurchasing power in the country is expected to fell nearly by 2.5%. On the other hand, European countries to see the worst coming in the form of energy crisis especially in upcoming winters!! Right after COVID-19, inflation has started gripping the economies across the globe. Higher than anticipated inflation, especially in western world had raised concerns for national banks and financial institutions to control the economic loss and safeguard the interest of the businesses. Increased interest rates, strong USD inflated oil prices, looming prices for gas and energy resources due to Ukraine-Russia conflict, China economic slowdown (~4% in 2022) disrupting the production and global supply chain and other factors would impact each industry negatively.                                                         Request Insights

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IN THE NEWS

  • The ArcelorMittal Group has commissioned Midrex Technologies, Inc. to design and build a demonstration plant which will produce hydrogen steel in Hamburg.
  • Voestalpine AG opened a new high-tech steel research facility in Donawitz, Austria.
     

Global Direct Reduced Iron Market Highlights Over 2023 - 2033

Base Year

2022

Forecast Year

2023-2033

CAGR

~7.5%

Base Year Market Size (2022)

~ USD 26,537.2 Million

Forecast Year Market Size (2033)

~ USD 61,446.9 Million

The global direct reduced iron market is estimated to garner a revenue of ~USD 61,446.9 Million by the end of 2033 by growing at a CAGR of ~7.5% over the forecast period, i.e., 2023 – 2033. Further, the market generated revenue of ~USD 26,537.2 Million in the year 2022. The growth of the market can be attributed primarily to the rising production of steel worldwide. For instance, the Indian steel industry recorded a growth of nearly 25% in crude steel production in the year 2021.

Direct-Reduced-Iron-Market

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A direct reduced iron (DRI) also referred to as sponge iron is produced by reducing iron ore directly into iron through the use of a reducing gas, such as natural gas or coal, or even by the use of elemental carbon, such as carbon dioxide. Moreover, the production of high grade steel, awareness of CO2 emission control, GDP growth, increasing infrastructure expenditure, along with expansion of iron and steel industry are anticipated to drive global direct reduced iron market growth during the forecast period.

Global Direct Reduced Iron Market: Growth Drivers and Challenges

Growth Drivers

  • Rising Demand For Steel Products Of High Quality- It has been found that during the manufacture of steel, the emissions that are released when steel scraps are used as raw materials for steel production are higher than the emissions that are released by DRI.
  • Increasing Production of DRI Around the World- It was observed that approximately 104 million tons (Mt) of Direct Reduced Iron (DRI) were produced worldwide in 2020.
  • Growing Urbanization and Industrialization –Statistics provided by the World Bank indicate that approximately 4.5 million people reside in urban areas, representing 57% of the total population. 
  • Rapid Expansion Of Automotive Sector Worldwide- The growth in the automotive industry in India is expected to reach 250 billion dollars by 2031, thereby becoming the third largest industry worldwide by 2031.
  • Growing Chemical Industry- Emerging technologies in India have led to the growth of the chemical industry at a CAGR of 10% and its revenue is projected to reach USD 300 billion by the end of 2025.

Challenges

  • High Production Cost
  • Strict Government Regulations
  • Availability Of Alternative Product In The Market

The global direct reduced iron market is segmented and analyzed for demand and supply by process into MIDREX, coal cased, and others. Among these segments, the MIDREX segment held the largest market size by 55% in the year 2022 in the global direct reduced iron market. The MIDREX direct reduction ironmaking process uses natural gas to reduce iron ore. Moreover, the increasing use of DRI as a raw material in the manufacturing of electric arc furnaces (EAFs) in place of scrap iron is expected to augment segment growth over the forecast period.

Major Macro-Economic Indicators Impacting the Market Growth

Major-Macro-Economic-Indicators-Impacting-the-Market-Growth

The chemical industry is a major component of the economy. According to the U.S. Bureau of Economic Analysis, in 2020, for the U.S., the value added by chemical products as a percentage of GDP was around 1.9%. Additionally, according to the World Bank, Chemical industry in the U.S. accounted for 16.43% to manufacturing value-added in 2018. With the growing demand from end-users, the market for chemical products is expected to grow in future. According to UNEP (United Nations Environment Program), the sales of chemicals are projected to almost double from 2017 to 2030. In the current scenario, Asia Pacific is the largest chemical producing and consuming region. China has the world’s largest chemical industry, that accounted for annual sales of approximately more than USD 1.5 trillion, or about more than one-third of global sales, in recent years. Additionally, a vast consumer base and favorable government policies have boosted investment in China’s chemical industry. Easy availability of low-cost raw material & labor as well as government subsidies and relaxed environmental norms have served as a production base for key vendors globally. On the other hand, according to the FICCI (Federation of Indian Chambers of Commerce & Industry), the chemical industry in India was valued at 163 billion in 2019 and it contributed 3.4% to the global chemical industry. It ranks 6th in global chemical production. This statistic shows the lucrative opportunity for the investment in businesses in Asia Pacific countries in the upcoming years.

Global Direct Reduced Iron Market Regional Synopsis

Regionally, the global direct reduced iron market is studied into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. Amongst these markets, the market in Asia Pacific captured the largest market share of 40% in the year 2022 backed by the expansion of the construction industry in the region. For instance, according to estimates, by the end of 2025, the construction industry in India is expected to reach a total value of USD 1.3 trillion. Moreover, increasing steel production, along with demand for DRI from various industries such as automotive and aerospace are factors expected to drive the direct reduced iron market in the region during the forecast period.

Direct-Reduced-Iron-Market-Size

The global direct reduced iron market is further classified on the basis of region as follows:

  • North America (U.S. & Canada) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook
  • Latin America (Brazil, Mexico, Argentina, Rest of Latin America) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook
  • Europe (U.K., Germany, France, Italy, Spain, Hungary, Belgium, Netherlands & Luxembourg, NORDIC (Finland, Sweden, Norway, Denmark), Ireland, Switzerland, Austria, Poland, Turkey, Russia, Rest of Europe), Poland, Turkey, Russia, Rest of Europe) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook
  • Asia-Pacific (China, India, Japan, South Korea, Singapore, Indonesia, Malaysia, Australia, New Zealand, Rest of Asia-Pacific) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook
  • Middle East and Africa (Israel, GCC (Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman), North Africa, South Africa, Rest of Middle East and Africa) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook

Market Segmentation

Our in-depth analysis of the global direct reduced iron market includes the following segments:

By Form

  • Lumps
  • Pellets

By Process

  • MIDREX (55%)
  • Coal Based (25%)
  • Others (20%)

By Application

  • Steel Making
  • Construction

Top Featured Companies Dominating the Global Direct Reduced Iron Market

  • Midrex Technologies, Inc. 
    • Company Overview
    • Business Strategy
    • Key Product Offerings
    • Financial Performance
    • Key Performance Indicators
    • Risk Analysis
    • Recent Development
    • Regional Presence
    • SWOT Analysis
  • voestalpine AG
  • Khouzestan Steel Company
  • Qatar Stee
  • Hadeed Steel Industries
  • Jindal Shadeed Iron & Steel LLC
  • Tosyali Algeria A.S.
  • Welspun Group
  • Gallantt Group of Industries
  • Nucor Corporation

 

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