Direct Reduced Iron Market Regional Analysis:
APAC Market Insights
The Asia Pacific direct reduced iron market is predicted to hold the largest revenue share of 51% by 2035. The Asia-Pacific region is a major hub for steel production, with countries such as China, India, and Japan leading the way. As steel demand continues to increase in sectors such as construction, automotive, and infrastructure development, a stable and cost-effective supply of steel is required. DRI provides a reliable and efficient alternative to traditional steelmaking methods. Its use in steel production will help meet the growing demand for steel in the region, thereby driving the growth of the DRI market. Rapid infrastructure development, growing investment in development, and urbanization in countries such as China and India are driving demand for steel in the Asia-Pacific region. Welspun announced plans to invest about USD 5 billion in Telangana over the next five years, across segments such as IT and ITES clusters and logistic parks, in September 2023. Welspun World Chairman B.K. Goenka said that it would create around 50,000 jobs, including 20,000 direct and 30,000 indirect ones.
European Market Insights
The direct reduced iron market in the Europe region is expected to grow substantially by the end of 2035. In the production process, operational efficiency and energy consumption have been greatly improved due to the development of advanced DRI technologies in the region. The modern generation of distributed renewable energy plants offers enhanced energy recovery systems and optimized process parameters that lead to a reduced power requirement for each tonne of DRI produced. Given the increased energy costs and environmental concerns, energy efficiency is an essential factor for Europe's steel producers.
