At 7.9% CAGR, the Europe Direct Reduced Iron (DRI) Market is projected to be worth US$ 4,766.90 million by 2030, says Business Market Insights

According to Business Market Insights research, the Europe Direct Reduced Iron (DRI) Market was valued at US$ 2,801.99 million in 2023 and is expected to reach US$ 4,766.90 million by 2030, registering a CAGR of 7.9% from 2023 to 2030. Rise in steel production and use expansion of direct reduced iron plants attributed to the Europe Direct Reduced Iron (DRI) Market expansion.        

Coal and natural gas are the principal raw material to produce direct reduced iron in coal based and gas-based process. The abundance availability of coal and natural gas in various regions of the world is the major factor in increasing production of direct reduced iron. Natural gas has gained significant traction as a source of energy in recent times owing to its relatively clean combustion and fuel efficiency. The major manufacturers of direct reduced iron (DRI) across Europe are expanding their production capacities due to the feasibility of accessing coal and natural gas. In March 2023, leading German steelmaker ThyssenKrupp Steel has signed a contract with technology company SMS group GmbH to build a direct reduction iron (DRI) plant that can run on hydrogen. The plant will consist capacity of 2.5 million tons of DRI per year and will be in operation till end of 2026. Further, in November 2022, 24 DRI projects with total capacity of 40 to 50 megatons have been announced in western and northern Europe. Thus, the consistent investment made for setting up of new DRI plants from past few years is boosting the market growth.

On the contrary, shortage of high-quality raw material hampers the Europe Direct Reduced Iron (DRI) Market. 

Based on route of from, the Europe Direct Reduced Iron (DRI) Market is segmented into lumps, pellets, and fine. The pellets segment held 11.8% share of Europe Direct Reduced Iron (DRI) Market in 2023, amassing US$ 330.44 million. It is projected to garner US$ 527.90 million by 2030 to expand at 6.9% CAGR during 2023–2030. 

Based on production process, the Europe Direct Reduced Iron (DRI) Market is segmented into coal based and gas based. The gas-based segment held 99.2% share of Europe Direct Reduced Iron (DRI) Market in 2023, amassing US$ 2,779.09 million. It is projected to garner US$ 4,739.80 million by 2030 to expand at 7.9% CAGR during 2023–2030.

Based on application, the Europe Direct Reduced Iron (DRI) Market is segmented into steel making and construction. The steel making segment held 63.0% share of Europe Direct Reduced Iron (DRI) Market in 2023, amassing US$ 1,764.25 million. It is projected to garner US$ 2,929.69 million by 2030 to expand at 7.5% CAGR during 2023–2030.

Based on country, the Europe Direct Reduced Iron (DRI) Market has been categorized into the Germany, France, Italy, UK, Russia, and Rest of Europe. Our regional analysis states that the Russia captured 45.4% share of Europe Direct Reduced Iron (DRI) Market in 2023. It was assessed at US$ 1,272.75 million in 2023 and is likely to hit US$ 2,104.04 million by 2030, exhibiting a CAGR of 7.4% during the forecast period.      

Key players dominating the Europe Direct Reduced Iron (DRI) Market are Nucor Corp; Cleveland-Cliffs Inc; Kobe Steel Ltd; SMS Group GmbH; Voestalpine AG; Ternium SA; JSW Steel Ltd -GLOBAL; Tenova SpA; Liberty Steel Group Holdings UK Ltd; Bharat Engineering Works Pvt Ltd.   

• The company produces DRI in two manufacturing facilities which are situated in the US and Trinidad. The manufacturing process involves converting natural gas and iron ore pellets into high-quality DRI (direct-reduced iron), which is the raw material used by company’s steel mills.
• The company started the production of HBI in 2020. HBI is a low-carbon iron feedstock used in blast furnaces, BOFs and EAFs. The company produces 1.9 million metric tons of HBI annually.

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