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Over 4,800 people, including 1,300 children, live in 32 accommodation centres across the country.
Direct provision was set up to house asylum seekers nearly 20 years ago and was meant to last six months.
Today however, thousands of people have spent years in the system.
Asylum seekers in Direct Provision are not allowed to work and are given €22 a week to live.
Organisations taking part in the march are calling for the immediate end to the Direct Provision system.
They say asylum seekers should be able to work and gain access to third-level education.
In May this year, the Supreme Court ruled that the ban on asylum seekers seeking employment is in principle "unconstitutional".
Minister for Justice Charlie Flanagan is expected to bring proposals to Cabinet soon that will allow work permits to be granted in limited circumstances.
March calling for an end to the Direct Provision system in Ireland #directprovision More on @rtenews pic.twitter.com/sA4S5pm2cb