Hot Briquetted Iron (HBI) Market Size, Share, Growth, and Industry Analysis, By Types (Fe Content 90-92%, Fe Content above 92%), By Applications (Electric Arc Furnaces, Blast Furnaces, Basic Oxygen Furnaces, Others) , and Regional Insights and Forecast to 2034

Hot Briquetted Iron (HBI) Market Size

The Global Hot Briquetted Iron (HBI) Market size was valued at USD 3.8 billion in 2024 and is projected to reach USD 3.87 billion in 2025, USD 3.93 billion in 2026, and further touch USD 4.5 billion by 2034, expanding at a steady growth rate of 1.7% during the forecast period (2025–2034). This growth is driven by rising steel production, increasing adoption of electric arc furnaces, and global efforts to reduce carbon emissions in the metallurgical industry. Over 62% of steel manufacturers are now integrating HBI into production, indicating a long-term shift toward cleaner and more efficient ironmaking.

The US Hot Briquetted Iron (HBI) Market is experiencing consistent expansion due to the adoption of energy-efficient furnace technologies and domestic steel recycling initiatives. Around 58% of U.S. steel plants utilize HBI in electric arc furnaces, improving process efficiency by nearly 23% and reducing energy costs by 18%. The nation’s focus on sustainable metallurgy has accelerated investment, with 42% of HBI imports directed toward automotive and construction industries, highlighting the country’s strategic role in driving low-emission steel production and supply chain modernization.

Key Findings

• Market Size: Global Hot Briquetted Iron (HBI) Market reached USD 3.8 billion in 2024, USD 3.87 billion in 2025, and will touch USD 4.5 billion by 2034, expanding 1.7% overall.
• Growth Drivers: Over 61% of steelmakers adopted HBI in electric arc furnaces, reducing CO₂ emissions by 30% and enhancing energy efficiency by 22% globally.
• Trends: Around 47% increase in HBI use across Asia-Pacific, 35% in Europe, and 29% rise in high-grade HBI production for green steel applications.
• Key Players: Metalloinvest, JSW Steel, Voestalpine, Qatar Steel, Lisco & more.
• Regional Insights: Asia-Pacific leads with 39% share driven by industrial expansion and green steel demand, followed by Europe at 27% emphasizing sustainable metallurgy. The Middle East & Africa hold 21% supported by strong HBI exports, while North America accounts for 13% with growing electric arc furnace adoption and recycling initiatives.
• Challenges: Around 33% of producers face high energy costs, while 28% struggle with logistics disruptions and 25% with raw material supply fluctuations.
• Industry Impact: Nearly 40% reduction in carbon footprint and 32% improvement in furnace productivity through adoption of high-density HBI worldwide.
• Recent Developments: 24% of companies introduced advanced briquetting systems, 30% increased production efficiency, and 18% expanded green HBI facilities.

The Hot Briquetted Iron (HBI) Market is undergoing a major transformation driven by clean steelmaking technologies and rising demand for energy efficiency. Approximately 59% of global HBI output is now linked to low-carbon initiatives, making it central to the decarbonization of the steel industry. Technological innovations in direct reduction and digital furnace monitoring have improved yield by 21% and reduced oxidation losses by 19%. With 45% of new HBI plants concentrated in emerging economies, the market is evolving as a cornerstone of sustainable metallurgical advancements.

Hot Briquetted Iron (HBI) Market Trends

The Hot Briquetted Iron (HBI) Market is witnessing strong growth across industrial and manufacturing sectors due to increasing demand for high-quality raw materials in steelmaking. Globally, over 65% of electric arc furnace (EAF) operators have integrated HBI as a primary feedstock, driven by its high iron content of around 90–94%. The use of HBI has surged by nearly 48% in Asia-Pacific and 35% in the Middle East, as these regions expand steel production capacities. Moreover, 52% of major steel manufacturers have adopted HBI for its low impurity levels and superior density, reducing energy consumption during melting by approximately 18%. Environmental benefits also play a key role, with HBI helping reduce CO₂ emissions by nearly 30% compared to traditional pig iron. The shift toward decarbonization and cleaner steel production methods has resulted in a 41% increase in investments toward HBI plants globally. Additionally, the shipping-friendly briquetted form of HBI, which minimizes oxidation risk by nearly 75%, continues to attract interest from exporters. The HBI market’s upward trend is further reinforced by technological advancements in direct reduced iron (DRI) processing and government support for sustainable steelmaking initiatives.

Hot Briquetted Iron (HBI) Market Dynamics

OPPORTUNITY

Rising Demand for Low-Carbon Steelmaking Inputs

The global push toward low-emission steel production is creating significant opportunities for the Hot Briquetted Iron (HBI) Market. Nearly 54% of steel manufacturers are shifting to cleaner feedstocks, and HBI plays a crucial role due to its 90–94% iron content and reduced carbon output. The adoption of HBI in electric arc furnaces (EAFs) has grown by 47%, as industries aim to meet carbon neutrality targets. Around 39% of new green steel projects globally are integrating HBI to minimize CO₂ emissions by almost 30%. The strong move toward sustainable metallurgy positions HBI as a preferred raw material for eco-efficient steelmaking in emerging industrial economies.

DRIVERS

Growth in Electric Arc Furnace (EAF) Steel Production

The increasing global shift toward Electric Arc Furnace technology is a major driver of the Hot Briquetted Iron (HBI) Market. Over 61% of new steel production capacity is being added through EAF routes, which consume HBI as a core feed material. The use of HBI in these systems enhances productivity by 26% and lowers impurity content by 18%. Moreover, around 44% of steel mills have adopted HBI to improve energy efficiency and reduce waste generation. The consistent quality, high density, and oxidation resistance of HBI have made it a preferred input in advanced furnace operations worldwide, boosting the overall market expansion.

RESTRAINTS

"High Energy Consumption and Production Cost"

The Hot Briquetted Iron (HBI) Market faces production challenges due to high energy use and processing expenses. Around 31% of producers report that briquetting operations increase power consumption by nearly 24% compared to standard DRI processes. Additionally, maintenance and operational costs contribute to a 19% rise in total expenditure, limiting small-scale manufacturers’ participation. The dependency on high-grade iron ore also adds pressure, with 28% of producers citing raw material cost fluctuations as a major restraint. These factors collectively reduce cost competitiveness, especially in regions with limited access to affordable energy and ore supplies.

CHALLENGE

"Logistics and Supply Chain Volatility"

Volatile logistics networks and unstable raw material supplies present key challenges in the Hot Briquetted Iron (HBI) Market. Nearly 37% of producers have experienced shipment delays and freight rate surges due to global trade disruptions. Supply chain inefficiencies have affected up to 29% of HBI exports, causing fluctuations in availability and pricing. Furthermore, 21% of HBI manufacturers report inconsistencies in ore quality from key mining regions, affecting production uniformity. These disruptions have led to a 15% reduction in manufacturing stability and hindered the ability of market players to meet the rising international demand for high-quality briquetted iron.

Segmentation Analysis

The Global Hot Briquetted Iron (HBI) Market, valued at USD 3.8 Billion in 2024, is projected to reach USD 3.87 Billion in 2025 and USD 4.5 Billion by 2034, expanding at a CAGR of 1.7% during the forecast period. The market is segmented by type into Fe Content 90–92% and Fe Content Above 92%, and by application into Electric Arc Furnaces, Blast Furnaces, Basic Oxygen Furnaces, and Others. Among these, the Fe Content Above 92% segment dominates with a 58% share in 2025, followed by the Fe Content 90–92% segment with 42%. On the application side, Electric Arc Furnaces lead with 63% of total usage, driven by the global push toward energy-efficient and low-emission steelmaking technologies. The Blast Furnace application represents 21% share, while Basic Oxygen Furnaces and Others account for 10% and 6% respectively, showing diverse integration across the metallurgical industry.

By Type

Fe Content 90–92%

This segment is widely used in mid-grade steel manufacturing and secondary metallurgy applications due to its stable performance and balanced metallization ratio. Approximately 44% of medium-capacity plants globally rely on Fe Content 90–92% HBI for its cost efficiency and lower oxidation tendency during storage. It offers reliable energy conversion efficiency of 85–88% in electric arc operations.

The Fe Content 90–92% segment held a market share of 42% in 2025, accounting for USD 1.63 Billion, and is projected to grow at a CAGR of 1.3% from 2025 to 2034, driven by steady demand in Asia-Pacific and the Middle East steel industries.

Major Dominant Countries in the Type 1 Segment

• India led the Fe Content 90–92% segment with a market size of USD 0.46 Billion in 2025, holding a 28% share and expected to grow at a CAGR of 1.4% due to rising EAF capacity expansion and increased domestic steel demand.
• Iran accounted for a 19% share with USD 0.31 Billion in 2025, growing at a CAGR of 1.2% driven by regional exports and integrated steel plants.
• Russia captured a 16% share, amounting to USD 0.26 Billion, and is anticipated to expand at a CAGR of 1.1% due to consistent iron ore availability and low production costs.

Fe Content Above 92%

This high-grade segment is preferred for advanced steelmaking processes that demand ultra-high purity inputs. Around 56% of large integrated steel mills globally use Fe Content Above 92% HBI for high-strength and specialty steel production. The segment’s high metallization rate exceeding 94% enhances furnace efficiency and minimizes slag formation by nearly 27% compared to lower-grade alternatives.

The Fe Content Above 92% segment dominated the market with a 58% share in 2025, equating to USD 2.24 Billion, and is projected to grow at a CAGR of 1.9% through 2034, fueled by increased adoption in Europe and North America for decarbonized steelmaking projects.

Major Dominant Countries in the Type 2 Segment

• Germany led the Fe Content Above 92% segment with a market size of USD 0.63 Billion in 2025, holding a 28% share and growing at a CAGR of 2.1% due to strong industrial sustainability initiatives.
• United States followed with a 22% share (USD 0.49 Billion), expanding at a CAGR of 1.8% driven by modern EAF technology adoption and increased infrastructure investments.
• Japan secured a 17% share with USD 0.38 Billion, expected to grow at a CAGR of 1.6%, supported by rising production of high-grade alloy steels.

By Application

Electric Arc Furnaces (EAF)

Electric Arc Furnaces represent the largest application segment, accounting for 63% of total HBI consumption. Over 68% of EAF-based plants globally incorporate HBI to enhance efficiency and reduce carbon emissions. The segment’s adoption has surged due to its ability to cut energy usage by 20% and improve metallization control during melting operations.

The Electric Arc Furnace segment held a market size of USD 2.44 Billion in 2025, with a 63% share and a CAGR of 1.9% between 2025 and 2034, driven by global steel recycling trends and decarbonization goals.

Top 3 Major Dominant Countries in the Electric Arc Furnaces Segment

• China led the segment with a market size of USD 0.82 Billion in 2025, holding a 34% share and growing at a CAGR of 2.0% due to massive EAF infrastructure expansion.
• United States followed with a 23% share (USD 0.56 Billion) and a CAGR of 1.8%, driven by modernization of steel recycling facilities.
• India captured 18% share (USD 0.44 Billion) with a CAGR of 2.1%, supported by rising construction and automotive steel demand.

Blast Furnaces

Blast Furnaces use HBI as a supplemental feedstock to improve operational stability and reduce coke consumption by 12–15%. The segment accounts for 21% of total market share, with increasing adoption in regions transitioning from traditional pig iron inputs toward cleaner alternatives.

The Blast Furnace segment reached USD 0.81 Billion in 2025, representing a 21% share, and is projected to grow at a CAGR of 1.5%, fueled by modernization of old steel plants and consistent iron quality advantages.

Top 3 Major Dominant Countries in the Blast Furnace Segment

• China led with USD 0.29 Billion (36% share), growing at a CAGR of 1.6% due to large-scale integration of hybrid furnace systems.
• South Korea held a 19% share (USD 0.15 Billion) with a CAGR of 1.4%, supported by energy efficiency initiatives.
• Germany accounted for a 14% share (USD 0.11 Billion) with a CAGR of 1.3% due to sustainable ironmaking projects.

Basic Oxygen Furnaces (BOF)

Basic Oxygen Furnaces employ HBI to enhance metal yield and lower impurity levels by up to 22%. This segment represents 10% of total market consumption, mainly in integrated steel production setups that blend scrap and HBI for improved consistency.

The Basic Oxygen Furnace segment stood at USD 0.39 Billion in 2025, representing a 10% share, with a CAGR of 1.4% through 2034, driven by technological upgradation in European and Asian steel plants.

Top 3 Major Dominant Countries in the Basic Oxygen Furnace Segment

• Japan led the segment with USD 0.12 Billion (31% share) and a CAGR of 1.5%, driven by high-quality steel production.
• Russia held a 25% share (USD 0.10 Billion) with a CAGR of 1.3%, backed by availability of high-grade ore.
• Brazil captured 18% share (USD 0.07 Billion) and a CAGR of 1.4% due to expanding automotive steel demand.

Others

The “Others” category includes foundries, specialty steelmakers, and smaller metallurgical industries utilizing HBI for alloy and tool steel production. This segment represents around 6% of the total market, driven by demand for premium-quality iron input in niche industrial applications.

The Others segment accounted for USD 0.23 Billion in 2025, representing 6% of the total market, with a CAGR of 1.1% through 2034, supported by custom steel manufacturing and energy optimization efforts.

Top 3 Major Dominant Countries in the Others Segment

• Italy led with USD 0.08 Billion (35% share), growing at a CAGR of 1.2% due to specialty alloy production.
• Turkey followed with a 22% share (USD 0.05 Billion) and a CAGR of 1.1%, supported by export-driven steel manufacturing.
• Spain held a 15% share (USD 0.03 Billion), expanding at a CAGR of 1.0% due to rising tool steel output.

Hot Briquetted Iron (HBI) Market Regional Outlook

The Global Hot Briquetted Iron (HBI) Market, valued at USD 3.8 Billion in 2024, is projected to reach USD 3.87 Billion in 2025 and USD 4.5 Billion by 2034, growing at a CAGR of 1.7% during the forecast period. Regional analysis indicates that Asia-Pacific dominates the global market with a 39% share in 2025, followed by Europe with 27%, the Middle East & Africa with 21%, and North America with 13%. Growth across regions is supported by expanding steel production capacities, a shift toward sustainable metallurgy, and increasing utilization of HBI in electric arc furnaces. Each region shows unique trends driven by industrialization, infrastructure development, and strategic investments in low-carbon steelmaking technologies.

North America

The North American Hot Briquetted Iron (HBI) Market is driven by modernization of steel manufacturing facilities and the adoption of electric arc furnaces (EAFs) in the U.S. and Canada. Around 61% of EAF plants across the region now utilize HBI as a feedstock due to its high metallization efficiency and energy savings of nearly 20%. The region is also witnessing strong demand from automotive and construction industries, which together account for 46% of total steel consumption. With growing investments in low-emission production, the market continues to expand steadily.

North America accounted for USD 0.50 Billion in 2025, representing a 13% share of the global Hot Briquetted Iron (HBI) Market. This regional market is projected to grow at a CAGR of 1.5% through 2034, driven by technological innovation, energy-efficient production, and sustainable industrial initiatives.

North America - Major Dominant Countries in the Hot Briquetted Iron (HBI) Market

• United States led the North America market with a size of USD 0.28 Billion in 2025, holding a 56% share, driven by EAF expansion and infrastructure development.
• Canada accounted for a 28% share (USD 0.14 Billion) due to increased investments in green steel projects and reduced carbon steel manufacturing.
• Mexico captured 16% share (USD 0.08 Billion), supported by automotive industry growth and rising HBI imports for foundry applications.

Europe

Europe remains a significant hub for HBI production and consumption, driven by stringent decarbonization policies and advanced steelmaking technologies. Nearly 58% of European steel mills incorporate HBI to meet emission reduction goals, while 34% have invested in new DRI-HBI hybrid production systems. The region’s industrial demand is largely concentrated in Germany, Italy, and France, where high-grade HBI is preferred for electric arc and hybrid furnaces. Europe’s strong sustainability focus positions it as a leader in green steel transformation.

Europe held a 27% share of the global Hot Briquetted Iron (HBI) Market in 2025, valued at USD 1.04 Billion. The market is anticipated to grow at a CAGR of 1.8% through 2034, supported by policy-driven clean energy transitions and technological advancements in steel processing.

Europe - Major Dominant Countries in the Hot Briquetted Iron (HBI) Market

• Germany led with a market size of USD 0.38 Billion in 2025, holding a 36% share due to strong adoption of EAF-based green steel technologies.
• Italy followed with USD 0.26 Billion (25% share), benefiting from industrial automation and HBI integration in alloy production.
• France accounted for USD 0.18 Billion (17% share) driven by steady industrial output and growing investment in sustainable metallurgy.

Asia-Pacific

Asia-Pacific dominates the Hot Briquetted Iron (HBI) Market, accounting for nearly 39% of global demand in 2025. The region’s rapid industrialization, expanding construction sector, and rising steel output in China, India, and Japan are key growth factors. Around 67% of new steel projects in Asia-Pacific are EAF-based, with HBI usage increasing by 42% to enhance metallurgical efficiency and lower CO₂ emissions. Additionally, regional governments are promoting energy-efficient and low-carbon manufacturing, further boosting HBI adoption across key industries.

Asia-Pacific reached USD 1.51 Billion in 2025, representing 39% of the total market, and is projected to grow at a CAGR of 1.9% through 2034, supported by industrial growth, infrastructure investments, and rapid adoption of green steel technologies.

Asia-Pacific - Major Dominant Countries in the Hot Briquetted Iron (HBI) Market

• China led the Asia-Pacific market with USD 0.67 Billion in 2025, holding a 44% share due to massive steel production capacity and EAF expansion.
• India followed with USD 0.48 Billion (32% share), driven by the government’s infrastructure initiatives and rising demand for low-carbon steel.
• Japan captured USD 0.21 Billion (14% share), supported by specialty steel manufacturing and technology-driven energy optimization.

Middle East & Africa

The Middle East & Africa region plays a crucial role in HBI production and export, contributing 21% of the global market share in 2025. Countries such as Iran, UAE, and Saudi Arabia are key producers, accounting for nearly 74% of the region’s HBI output. Increased access to high-grade iron ore and low-cost natural gas has driven production efficiency by over 25%. The region’s growing focus on self-sufficiency and industrial diversification continues to strengthen its HBI market position globally.

Middle East & Africa accounted for USD 0.81 Billion in 2025, representing 21% of the total market, with a projected CAGR of 1.6% through 2034. Expansion of domestic steel industries, export-oriented strategies, and government-led investments in sustainable production drive market growth.

Middle East & Africa - Major Dominant Countries in the Hot Briquetted Iron (HBI) Market

• Iran led the region with USD 0.33 Billion in 2025, holding a 41% share, supported by strong export capacity and domestic industrial growth.
• United Arab Emirates followed with USD 0.24 Billion (30% share), driven by energy-efficient steel plants and strategic location advantages.
• Saudi Arabia captured USD 0.17 Billion (21% share), boosted by Vision 2030 industrial initiatives and investments in downstream manufacturing.

List of Key Hot Briquetted Iron (HBI) Market Companies Profiled

Investment Analysis and Opportunities in Hot Briquetted Iron (HBI) Market

The Hot Briquetted Iron (HBI) Market presents significant investment opportunities as global steelmakers shift toward sustainable production. Around 49% of new steel plants under construction are adopting HBI-based inputs to reduce emissions. Investment inflows into HBI production facilities have risen by nearly 36%, particularly in Asia-Pacific and the Middle East. Over 41% of market investors are focusing on long-term green metallurgy projects, while 27% are targeting infrastructure and energy efficiency upgrades. With more than 52% of major companies prioritizing circular economy principles, HBI serves as a key asset for reducing carbon intensity in steelmaking. Strategic alliances and technological collaborations are expected to strengthen future investment potential in HBI production and logistics optimization.

New Products Development

Innovation in Hot Briquetted Iron (HBI) production is accelerating, with 43% of global manufacturers introducing new briquetting technologies for enhanced density and metallization. Recent developments include oxygen-free briquetting systems and temperature-controlled cooling methods that improve structural integrity by 28%. Around 39% of producers are developing HBI variants optimized for hybrid and hydrogen-based steelmaking. In addition, 31% of companies have integrated real-time monitoring sensors to achieve up to 20% reduction in material loss during transport. The adoption of smart automation and energy-efficient furnaces has grown by 34%, highlighting the industry’s shift toward precision-driven and eco-friendly HBI innovation. These advancements are positioning HBI as the preferred raw material for next-generation steel production.

Developments

• Metalloinvest: Introduced an advanced HBI line that improved production efficiency by 22% through enhanced DRI briquetting and low-carbon thermal systems in 2024.
• JSW Steel: Expanded its HBI capacity by 18%, integrating smart furnace controls to minimize impurities and optimize metallization processes.
• Voestalpine: Developed a pilot hydrogen-based HBI project reducing CO₂ emissions by nearly 30%, marking a significant step toward green steel production.
• Qatar Steel: Enhanced its HBI export capabilities by 25% through automated handling systems and real-time logistics tracking for improved supply efficiency.
• Lion Group: Deployed a new closed-loop HBI cooling system achieving a 19% increase in structural stability and extended product shelf life.

Report Coverage

The Hot Briquetted Iron (HBI) Market report provides a comprehensive overview covering market dynamics, segmentation, regional insights, key company profiles, and strategic developments. It includes an in-depth SWOT analysis to evaluate the industry’s current positioning. Strengths include a 90–94% iron content, low impurity levels, and 30% lower CO₂ emissions compared to conventional inputs. Weaknesses involve high production costs and 25% dependence on energy-intensive processes. Opportunities arise from the 41% increase in demand for eco-friendly steelmaking and 37% rise in electric arc furnace installations. Challenges include raw material price volatility affecting 32% of producers and logistics disruptions impacting 28% of global exports. The report also covers technological trends, such as 40% adoption of automation and 33% growth in hydrogen-based HBI development. It analyzes investment potential, regional diversification, and ongoing product innovations. Additionally, it emphasizes the growing alignment of industry practices with sustainability targets, highlighting HBI’s critical role in the global transition toward green steel and carbon-neutral metallurgical operations.