Asia Pacific steel demand fuels dry bulk shipping rise to $425.6b

It accounted for 44.8% of the global market value in 2025.

The dry bulk shipping market is projected to grow to $425.6b by 2035, driven by growing infrastructure investment, Asian steel demand, and changing trade routes.

According to a Market Research Future report, one of the strongest drivers of the market is infrastructure and industrial development across Asia-Pacific.

The region accounted for 44.8% of global market value in 2025 and is also the fastest-growing regional market, with a projected 6.42% compound annual growth rate (CAGR).

“China and India are particularly important because of their large steel industries and substantial requirements for imported raw materials,” the report said.

India's infrastructure expansion is creating additional demand for iron ore, coal, cement, and other bulk commodities whilst China remains a major source of dry bulk demand because of its enormous iron ore imports.

By end user, construction accounted for 24.1% of global market value in 2025, making it the largest segment.

Meanwhile, energy is the fastest-growing end-user category, expanding at a 6.18% CAGR.

Although traditional thermal coal demand faces long-term pressure, the report noted that biomass pellets and other energy-related bulk commodities are creating new shipping opportunities.

Moreover, agriculture represents another major demand source, contributing $51.36b in 2025 despite being sensitive to harvest conditions, export policies, geopolitical developments, and disruptions to major agricultural corridors.

By route, long-haul shipping generated $168.44b in 2025, supported by major intercontinental commodity routes such as Brazil to Asia iron ore and Australia to Asia coal.

Short-haul services are expected to expand at a 6.11% CAGR as regional trade networks deepen.

Further, the transition toward lower-carbon shipping is increasing interest in liquefied natural gas, methanol, ammonia, and other alternative-fuel-capable vessels.

Green shipping corridors are another emerging opportunity, the report noted. “Operators participating in designated routes can potentially gain access to concessional financing, priority infrastructure, and longer-term contracts with cargo owners seeking lower-emission transportation”.