At 8.2% CAGR, the Asia Pacific Direct Reduced Iron (DRI) Market is projected to be worth US$ 27,765.91 million by 2030, says Business Market Insights

According to Business Market Insights research, the Asia Pacific Direct Reduced Iron (DRI) Market was valued at US$ 16,011.13 million in 2023 and is expected to reach US$ 27,765.91 million by 2030, registering a CAGR of 8.2% from 2023 to 2030. Rise in steel production and use expansion of direct reduced iron plants to the Asia Pacific Direct Reduced Iron (DRI) Market expansion.        

Green steel is steel produced through processes that do not emit carbon dioxide. The production is essentially carried out using hydrogen as a reducing agent to remove oxygen in steel production. Iron ore fundamentally comprises iron oxide, and hydrogen is used to isolate oxygen away from the ore, leaving pure iron behind, which is further utilized in steelmaking. Green steel is manufactured without the use of fossil fuels. Currently, hydrogen is the potential substitute of coke for reducing oxygen. In manufacturing plants, a direct reduced reactor refines iron ore to direct-reduced iron by exposing iron ore to hydrogen, which reacts with the oxygen in the ore to form residual steam. The use of direct reduced iron produced using hydrogen is a promising method of producing green steel. An upsurge in the preference for green steel production using direct reduced iron using hydrogen as a reducing agent creates lucrative opportunities for the direct reduced iron market. Further, the investment and funds raised by governments of various region for manufacturing steel by using green hydrogen is one of the factors of increasing preference for green steel production.

On the contrary, shortage of High-Quality Raw Material hampers the Asia Pacific Direct Reduced Iron (DRI) Market.  

Based on route of from, the Asia Pacific Direct Reduced Iron (DRI) Market is segmented into lumps, pellets, and fine. The pellets delivery segment held 74.2% share of Asia Pacific Direct Reduced Iron (DRI) Market in 2023, amassing US$ 11,886.7 million. It is projected to garner US$ 20,852.4 million by 2030 to expand at 8.4% CAGR during 2023–2030. 

Based on production process, the Asia Pacific Direct Reduced Iron (DRI) Market is segmented into coal based, and gas based. The coal-based segment held 63.2% share of Asia Pacific Direct Reduced Iron (DRI) Market in 2023, amassing US$ 10,126.2 million. It is projected to garner US$ 14,991.1 million by 2030 to expand at 5.8% CAGR during 2023–2030.

Based on application, the Asia Pacific Direct Reduced Iron (DRI) Market is segmented into steel making, and construction. The hospitals and clinics segment held 63.2% share of Asia Pacific Direct Reduced Iron (DRI) Market in 2023, amassing US$ 10,126.2 million. It is projected to garner US$ 14,991.1 million by 2030 to expand at 5.8% CAGR during 2023–2030.

Based on country, the Asia Pacific Direct Reduced Iron (DRI) Market has been categorized into the China, India, Japan, Malaysia, South Korea, and the Rest of Asia Pacific. Our regional analysis states that the India captured 91.3% share of Asia Pacific Direct Reduced Iron (DRI) Market in 2023. It was assessed at US$ 14,611.43 million in 2023 and is likely to hit US$ 25,336.05 million by 2030, exhibiting a CAGR of 8.2% during the forecast period.      

Key players dominating the Asia Pacific Direct Reduced Iron (DRI) Market are Kobe Steel Ltd; SMS Group GmbH; Voestalpine AG; JSW Steel Ltd; Tenova SpA; Liberty Steel Group Holdings UK Ltd; Bharat Engineering Works Pvt Ltd.   

• Midrex Technologies, Inc., a wholly owned subsidiary of Kobe Steel Ltd., has developed MIDREX DR process which accounts for about 60% of worldwide production. As a licensee of the MIDREX DR Process, Kobe Steel Ltd has supplied many MIDREX™ DR Plants all over the world. 
• Pual Wurth, subsidiary of SMS group GmbH offers Midrex gas based direct reduction ironmaking plants as a part of its portfolio. Paul Wurth and its technology partner, Midrex Technologies, have completed and commissioned their first joint reference plants on behalf of Tosyali Holding in Algeria and Algerian Qatari Steel. Both Midrex plants are designed to produce 2.5 million tonnes of hot and/or cold direct reduced iron per year.

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