Direct-Reduced Iron (DRI) And Hot-Briquetted Iron (HBI) Market
According to a new study by DataHorizzon Research, the “Direct-Reduced Iron (DRI) and Hot-Briquetted Iron (HBI) Market” is projected to grow at a CAGR of 6.2% from 2025 to 2033, driven by the rapid transition toward low-carbon steelmaking, rising demand for high-purity metallic feedstock, and the expansion of electric arc furnace (EAF)-based steel production worldwide. DRI and HBI are increasingly becoming central to decarbonization strategies as steelmakers aim to reduce dependence on traditional blast furnaces and shift to energy-efficient technologies powered by natural gas and renewable hydrogen.
The market’s growth trajectory is further supported by rising steel consumption in construction, automotive, renewable energy, and infrastructure sectors. As governments across major economies implement climate-focused industrial policies, DRI and HBI are expected to play a pivotal role in helping steel manufacturers achieve their carbon-reduction targets.
Market Size & Insights
The direct-reduced iron (DRI) and hot-briquetted iron (HBI) market is valued at approximately USD 21.5 billion in 2024 and is anticipated to reach around USD 39.4 billion by 2033, reflecting a CAGR of 6.2% from 2025 to 2033.
The global direct-reduced iron (DRI) and hot-briquetted iron (HBI) market has witnessed significant expansion as steelmakers aggressively adopt sustainable production technologies. In 2024, increasing global interest in low-emission steel products pushed major steel operators to enhance DRI/HBI capacity, supported by investments in gas-based and emerging hydrogen-based reduction processes. DRI production, which relies on the direct reduction of iron ore lumps and pellets, offers a cleaner and more energy-efficient alternative to coke-intensive blast furnace operations.
HBI, derived from compacting DRI into dense briquettes, is becoming a preferred export-ready raw material due to its ease of handling, improved metallurgical quality, and reduced reactivity. The growing adoption of EAF steelmaking-which relies heavily on DRI or HBI as high-purity feedstock-has further accelerated market demand, especially in regions where quality is inconsistent or insufficient.
As the global energy landscape shifts toward renewable hydrogen, the long-term potential for green DRI/HBI production is expected to increase significantly. This shift aligns with global climate commitments and supports steel mills’ roadmap to significantly reduce emissions by 2030 and beyond. With strong policy support, rising steel production, and ongoing technological advancements, the DRI/HBI market is positioned for sustained long-term growth.
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Important Points
• DRI/HBI are essential materials for low-carbon and hydrogen-based steelmaking.
• Growing EAF penetration is increasing demand for high-purity metallic feedstock.
• HBI offers superior handling and transportation safety, making it ideal for global trade.
• Increasing government focus on industrial decarbonization is accelerating market expansion.
• High-grade iron ore pellet supply is a critical factor influencing production capacity.
• Major steel manufacturers are investing in large-scale DRI modules to meet sustainability goals.
Key Factors Driving the Future Growth of the DRI and HBI Market
• Rising global demand for low-carbon steel in automotive, construction, and renewable sectors.
• Rapid transition from blast furnace steelmaking to EAF-based steel production.
• Growing investments in hydrogen-powered DRI plants to enable zero-emission steel manufacturing.
• Increasing steel shortages and quality issues, boosting the need for alternative feedstock.
• Expansion of iron ore pelletizing capacity to support large-scale DRI operations.
• Industry focus on improving energy efficiency and reducing carbon intensity in steel production.
Top 10 Market Companies
• ArcelorMittal
• Voestalpine
• Cleveland-Cliffs Inc.
• Emirates Steel Arkan
• Nucor Corporation
• Qatar Steel
• Jindal Steel & Power
• Ternium
• Essar Steel (ESL Steel)
• Metalloinvest
Market Segments
By Type:
o Direct-Reduced Iron (DRI)
o Hot-Briquetted Iron (HBI)
By Process:
o Natural Gas-based DRI
o Coal-based DRI
By End-Use:
o Steel Industry
o Automotive Industry
o Construction Industry
By Region:
o North America
o Europe
o Asia Pacific
o Latin America
o Middle East & Africa
Recent Developments
• Global steelmakers are launching large-scale hydrogen-DRI pilot projects to reduce emissions.
• Expansion of HBI export terminals is enhancing international supply chain capability.
• New partnerships between iron ore miners and steel producers aim to secure pellet supply.
• Technology providers are developing next-generation DRI modules optimized for hydrogen use.
• Investments in renewable energy projects are supporting green DRI/HBI production.
• Several steel groups are upgrading EAF facilities to integrate higher volumes of DRI/HBI.
Regional Insights
The Middle East holds a leading position in DRI/HBI production due to abundant natural gas resources and large export capabilities, with countries such as Iran, Saudi Arabia, and the UAE driving regional dominance. North America is rapidly expanding its DRI capacity to support EAF-based steel growth, while Europe is emerging as the global hub for hydrogen-DRI projects aligned with decarbonization targets. Asia-Pacific remains the largest steel-consuming region, with growing demand for cleaner feedstock in India and Southeast Asia. Latin America is progressively increasing HBI exports, and Africa is exploring new DRI opportunities supported by mineral resource availability.
Market Outlook
The outlook for the direct-reduced iron (DRI) and hot-briquetted iron (HBI) market is highly optimistic, supported by a historic shift taking place within the global steel industry. As nations and manufacturers commit to reducing carbon emissions, DRI and HBI are emerging as indispensable materials for the future of sustainable steelmaking. Over the next decade, the expansion of hydrogen-DRI projects is expected to reshape production economics, allowing the industry to move toward near-zero-carbon steel.
With electric arc furnaces gaining popularity due to their ability to accommodate renewable energy and reduce overall environmental impact, the reliance on DRI/HBI as consistent, high-purity feedstock will continue to rise. Global steel demand-especially from infrastructure modernization, renewable energy development, EV manufacturing, and green construction-will further strengthen market fundamentals.
Additionally, countries rich in natural gas and renewable power are expected to become major hubs for green HBI exports, supporting low-carbon steel production worldwide. As supply chain optimization, pellet quality improvements, and technological advancements continue, the DRI/HBI market is set to enter a phase of robust and sustained expansion through 2033.
Contact:
Ajay N
Ph: +1-970-633-3460
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DataHorizzon is a market research and advisory company that assists organizations across the globe in formulating growth strategies for changing business dynamics. Its offerings include consulting services across enterprises and business insights to make actionable decisions. DHR’s comprehensive research methodology for predicting long-term and sustainable trends in the market facilitates complex decisions for organizations.
This release was published on openPR.
