At 7.1% CAGR, the North America Direct Reduced Iron (DRI) Market is projected to be worth US$ 5,616.15 million by 2030, says Business Market Insights

According to Business Market Insights research, the North America Direct Reduced Iron (DRI) Market was valued at US$ 3,463.48 million in 2023 and is expected to reach US$ 5,616.15 million by 2030, registering a CAGR of 7.1% from 2023 to 2030. Rise in steel production and use and expansion of direct reduced iron plants attributed to the North America Direct Reduced Iron (DRI) Market expansion.        

Steel is a vital alloy to modern economies as it plays a major role in manufacturing industries. It is the world’s most important engineering and construction material. The construction of homes, schools, hospitals, bridges, and automotive vehicles, among others, relies heavily on steel. It is also an integral component of energy transition efforts of countries, as it is used in the production of solar panels, wind turbines, electric vehicles, etc. Steel is produced via two main processes: blast furnace-basic oxygen furnace (BF-BOF) and electric arc furnace (EAF). Steel manufacturing involves lower energy consumption than the production processes of other materials. Further, it is the world’s most recycled material, with an easy process of recycling. The unique magnetic properties of steel make its separation and recovery from the stream to be recycled easy. Steel components can be designed into various forms, with better shapes and sturdy edges, unlike components made from iron, which is a commonly used metal in weapons. Engineering steel is used in general engineering and manufacturing sectors. In the automobile industry, different types of steel are used in a car for its body, doors, engine, suspension, and interior. Steel manufacturing from direct reduced iron is considered as a sustainable way of steel production. Direct reduced iron, also known as sponge iron, has a high degree of iron content. It exhibits a consistent quality, and low sulfur and phosphorus content, along with insignificant impurities. Therefore, sponge iron is used as a substitute for scrap in steel production. In mini steel plants, sponge iron can be directly dissolved in an electric arc furnace instead of melting the steel scraps. Thus, the use of direct reduced iron in steel manufacturing is increasing with a continuous rise in the demand for steel.

On the contrary, Shortage of high-quality raw material hampers the North America Direct Reduced Iron (DRI) Market.  

Based on route of from, the North America Direct Reduced Iron (DRI) Market is segmented into lumps, pellets, and fine. The pellets delivery segment held 85.6% share of North America Direct Reduced Iron (DRI) Market in 2023, amassing US$ 2,9645.74 million. It is projected to garner US$ 4,836.55 million by 2030 to expand at 7.2% CAGR during 2023–2030. 

Based on production process, the North America Direct Reduced Iron (DRI) Market is segmented into coal based, and gas based. The gas-based segment held 99.0% share of North America Direct Reduced Iron (DRI) Market in 2023, amassing US$ 3,428.95 million. It is projected to garner US$ 5,579.53 million by 2030 to expand at 7.2% CAGR during 2023–2030.

Based on application, the North America Direct Reduced Iron (DRI) Market is segmented into steel making, and construction. The steel making segment held 54.6% share of North America Direct Reduced Iron (DRI) Market in 2023, amassing US$ 1,892.33 million. It is projected to garner US$ 3,001.35 million by 2030 to expand at 6.8% CAGR during 2023–2030.

Based on country, the North America Direct Reduced Iron (DRI) Market has been categorized into the US, Canada, and Mexico. Our regional analysis states that the US captured 45.2%  share of North America Direct Reduced Iron (DRI) Market in 2023. It was assessed at US$  1,565.23 million in 2023 and is likely to hit US$  2,538.51  million by 2030, exhibiting a CAGR of 7.2% during the forecast period.      

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

• In October-2022, Tenova was chosen by ArcelorMittal Dofasco, one of the flagship locations of ArcelorMittal, for the design and supply of a hydrogen-ready 2,500,000 tonnes/year ENERGIRON direct reduction (DR) plant, to be in Hamilton, Canada.