Global Electric Arc Furnaces Market Overview:
As per MRFR analysis, the Electric Arc Furnaces Market Size was estimated at 5.4 (USD Billion) in 2022. The Electric Arc Furnaces Market Industry is expected to grow from 5.87 (USD Billion) in 2023 to 12.5 (USD Billion) by 2032. The Electric Arc Furnaces Market CAGR (growth rate) is expected to be around 8.75% during the forecast period (2024 - 2032).
Key Electric Arc Furnaces Market Trends Highlighted
The electric arc furnaces (EAFs) market is poised for steady growth, fueled by rising demand for steel production. EAFs offer numerous advantages over traditional blast furnaces, including lower capital and operating costs, increased energy efficiency, and reduced carbon emissions. Key market drivers include growing infrastructure development, increasing demand for steel from automotive and construction sectors, and government regulations favoring sustainable steelmaking practices.
Opportunities for growth lie in the adoption of advanced technologies such as vacuum degassing and secondary refining to enhance steel quality. EAFs are also gaining popularity in the recycling of ferrous scrap, supporting the circular economy and reducing environmental impact. Recent trends indicate a shift towards EAFs with higher capacities and increased automation, aiming to optimize production efficiency and reduce operational costs.
Additionally, the growing adoption of renewable energy sources to power EAFs is expected to further fuel market expansion. By harnessing green electricity, steel mills can significantly reduce their carbon footprint and meet sustainability goals. As the demand for environmentally friendly steel production methods continues to rise, the global EAF market is well-positioned to capitalize on this trend.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Electric Arc Furnaces Market Drivers
Rising Demand for Steel Production
Electric arc furnaces are important aids for production of steel, an indispensable material for the numerous industries in world. Growing industries like automobile manufacturing, construction and refineries have increased the demand and requirement for steel. The Electric Arc Furnaces Market Industry is expected to grow more, and people would need the product of steel as it is still the essential material. Search for alternatives for the production of materials is under investigation and is termed as EAF.It has the advantage of both capital and operating cost. Environmental impairments were less, and it uses scrap as its raw materials. At the same time, the advantages of choosing EAF would demand proportionate increase in market.
Government Regulations and Environmental Concerns
Strict government regulatory laws for reducing carbon emissions and promoting a sustainable environment drive the growth of the Electric Arc Furnaces Market Industry. The major advantage of EAFs over blast furnaces is that the former generate lower levels of greenhouse gases and air pollutants. Furthermore, a growing emphasis on environmental sustainability is propelling steel companies across the globe to shift their focus towards the adoption of advanced EAFs, particularly in regions with vast governmental laws and regulations.In addition, the implementation of government incentives and subsidies for encouraging the adoption of green technologies is expected to further stimulate the demand for EAFs.
Technological Advancements and Cost Reductions
Technological developments in both EAF design and operation have continuously improved the efficiency and cost-effectiveness of these furnaces. The new generation of refractories and advanced EAF control systems, as well as new optimization techniques, have helped to increase productivity further and reduce operating costs. Holtkamp adds decreasing costs of wind and solar energy makes EAFs more economical. All these factors drive the growth of the Electric Arc Furnaces Market Industry.
Electric Arc Furnaces Market Segment Insights:
Electric Arc Furnaces Market Furnace Type Insights
The Furnace Type segment of the world electric arc furnaces market is composed of Direct Current Electric Arc Furnaces, Alternating Current Electric Arc Furnaces, and Submerged Arc Furnaces. According to the expected market data, the AC EAF segment will be the leader on the world market by 2023, and it will be responsible for about 60% of the total revenue. AC EAF market is expected to be valued at $7 500 000 000 by 2032, and the CAGR 2024-2032 presentz8.5%.As the domain segment, the AC EAF will be the largest probably due to the fact that this type of electric arc furnaces is the most efficient one and it requires the lowest in comparison to the other furnace types operational costs.The DC EAF is also expected to increase its share on the market significantly in the forthcoming years because it is related to the production of stainless steel of high-quality, and the type is characterized by better control of the melting process, which allows the producers to satisfy the demand on the highest quality of the end product.
The SAF market will be the smallest among the domain segments because submerged arc furnaces can be applied to the production of quality steel but be applied for some grades.The DC EAF market is expected to demonstrate a higher CAGR within the same period of time, which is 9.0%, and the market will be estimated at $2 500 000 by 2032. The SAF market is expected to have the lowest CAGR, 7.5%, so it will be valued at $2 000 000 by 2032. In general, the world electric arc furnaces market growth will be caused by the increasing demand on steel from the construction, automotive. Manufacturing industries. In addition, there are several benefits over blast furnaces, such as lower cost level and greater flexibility, thus, the number of electric arc furnaces is likely to increase, which will lead to a steady expansion of the market.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Electric Arc Furnaces Market Application Insights
The Electric Arc Furnaces Market is divided on the application basis as steelmaking, ironmaking, nickelmaking, and coppermaking. Among the application segments, steelmaking is the largest segment, accounting for more than 75% of the global market. The growth of the steelmaking segment is primarily driven by the increasing demand for steel from various end-use industries, such as automotive, construction, and shipbuilding. The ironmaking segment is the second largest segment, accounting for about 15% of the global market. The growth of the ironmaking segment is driven by the increasing demand for iron ore from steel mills.The nickelmaking and coppermaking segments are smaller, accounting for about 5% of the global market each. However, the segments are likely to witness faster growth in the coming years, as the demand for nickel and copper is increasing from various end-use industries, such as electronics, aerospace, and automotive.
Electric Arc Furnaces Market Capacity Insights
The capacity segment plays a crucial role in the Electric Arc Furnaces Market segmentation. Based on capacity, the market is segmented into four categories: Less than 50 Tons, 50-100 Tons, 100-150 Tons, and More than 150 Tons. In 2023, the 'Less than 50 Tons' segment accounted for a significant portion of the market revenue, owing to its widespread adoption in small-scale steel production facilities. However, the 'More than 150 Tons' segment is projected to witness the highest growth rate during 2023-2032, driven by the increasing demand for high-volume steel production in industries such as automotive and construction.The '50-100 Tons' and '100-150 Tons' segments are also expected to contribute substantially to the overall market growth, supported by the growing demand for electric arc furnaces in medium-scale and large-scale steel production plants.
Electric Arc Furnaces Market Energy Efficiency Insights
Energy Efficiency segment plays a crucial role in the Electric Arc Furnaces Market revenue. It is segmented into High Efficiency Induction Furnace, Standard Efficiency Furnaces, and Low Efficiency Furnaces. High Efficiency Furnaces are witnessing a surge in adoption due to their ability to minimize energy consumption by up to 30%. In 2024, the High Efficiency Furnaces segment held a dominant market share of approximately 45%, driven by stringent government regulations and rising energy costs.
Standard Efficiency Furnaces account for a significant portion of the market, offering a balance between energy efficiency and cost-effectiveness. Low Efficiency Furnaces are gradually losing market share due to their higher energy consumption and environmental impact. The Electric Arc Furnaces Market is projected to witness steady growth in the coming years, fueled by increasing demand for energy-efficient solutions in various industries.
Electric Arc Furnaces Market Regional Insights
The Electric Arc Furnaces Market is segmented into North America, Europe, APAC, South America, and MEA. North America is the largest market for electric arc furnaces, accounting for over 40% of the global market in 2023. The region is expected to continue to dominate the market over the forecast period, driven by the growing demand for steel in the region. Europe is the second-largest market for electric arc furnaces, accounting for over 30% of the global market in 2023.
The region is expected to witness moderate growth over the forecast period, driven by the increasing adoption of electric arc furnaces in the automotive and construction industries.APAC is the third-largest market for electric arc furnaces, accounting for over 20% of the global market in 2023. The region is expected to witness significant growth over the forecast period, driven by the growing demand for steel in the region. South America and MEA are expected to witness moderate growth over the forecast period, driven by the increasing adoption of electric arc furnaces in the region.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Electric Arc Furnaces Market Key Players and Competitive Insights:
In the Electric Arc Furnaces Market, major competitors are actively seeking leadership, which translates into stiff competition. Leaders of the market are major investors in innovative solutions, relying on research and development to improve the products. For this reason, the most dominant companies actively acquire new ventures in the industry to further expand their geographic presence and market share. Meanwhile, the market is also significantly impacted by the emergence of new players and their new products, often based on innovative technologies. The factors described above influence the dynamics of the Electric Arc Furnaces Market and, as such, the extreme competitiveness of the market environment.
One of the players in the market, Danieli, is a global company. The company actively invests in its R and offers its clients innovative, technological and equipment solutions. Danieli charges itself with the continued quest for effective solutions in order to meet the needs of its regional customer branches. The company is trusted by its clients due to the reputation of the provider quality, reliability, and expertise. Danieli offers a wide selection of products in its product lines, including the products of another market competitors, electric arc furnaces, ladle furnaces, and continuous casting machines in addition to various further and auxiliary equipment.
SMS group is another player involved in the Electric Arc Furnaces Market. The company operates in Germany and has been a leader in
metallurgical plant construction and engineering since its founding. The company offers a variety of solutions, from smaller to high-powerd electric arc furnaces. High related to innovation and its beliefs in the long-term sustainability of its operations, SMS group has been a trusted company in the industry. SMS group has workers and agents globally, allowing the company to operate all over the world of the experience in construction and engineering of metallurgical plants.
Key Companies in the Electric Arc Furnaces Market Include:
- Danieli C. Officine Meccaniche SpA
- Evraz Plc
- Primetals Technologies Ltd.
- Constellium
- Riva Acciaio SpA
- Ferriere Nord SpA
- Nucor Corporation
- Tenova SpA
- Arvedi SpA
- Steel Dynamics, Inc.
- Tata Steel Ltd.
- SMS group GmbH
- BlawKnox
- CMEC Engineering Co., Ltd
- Commercial Metals Company
Electric Arc Furnaces Market Industry Developments
The Electric Arc Furnaces Market is projected to grow from an estimated USD 5.87 billion in 2023 to USD 12.5 billion by 2032, at a CAGR of 8.75%. The market is driven by the increasing demand for steel and the need to reduce carbon emissions. Electric arc furnaces (EAFs) are more energy-efficient and environmentally friendly than traditional blast furnaces, as they use electricity to melt scrap metal rather than coke and iron ore.
As a result, EAFs are becoming increasingly popular in steel-producing countries around the world.Recent news developments in the electric arc furnaces market include the announcement by Tenova, an Italian company, of a new EAF technology that can reduce energy consumption by up to 15%. This technology is expected to make EAFs even more competitive with traditional blast furnaces. In addition, several steel companies are investing in new EAFs to meet the growing demand for steel. For example, Nucor, the largest steel producer in the United States, is investing USD 1.7 billion in a new EAF at its plant in Brandenburg, Kentucky.
Electric Arc Furnaces Market Segmentation Insights
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Electric Arc Furnaces Market By Furnace Type
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Direct Current Electric Arc Furnaces (DC EAF)
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Alternating Current Electric Arc Furnaces (AC EAF)
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Submerged Arc Furnaces (SAF)
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Electric Arc Furnaces Market By Application
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Steelmaking
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Ironmaking
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Nickelmaking
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Coppermaking
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Electric Arc Furnaces Market By Capacity
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Less than 50 Tons
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50-100 Tons
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100-150 Tons
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More than 150 Tons
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Electric Arc Furnaces Market By Energy Efficiency
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Electric Arc Furnaces Market By Regional
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North America
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Europe
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South America
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Asia Pacific
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Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
5.4 (USD Billion) |
| Market Size 2023 |
5.87 (USD Billion) |
| Market Size 2032 |
12.5 (USD Billion) |
| Compound Annual Growth Rate (CAGR) |
8.75% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Danieli C. Officine Meccaniche SpA, Evra Plc, Primetals Technologies Ltd., Constellium, Riva Acciaio SpA, Ferriere Nord SpA, Nucor Corporation, Tenova SpA, Arvedi SpA, Steel Dynamics, Inc., Tata Steel Ltd., SMS group GmbH, BlawKnox, CMEC Engineering Co., Ltd, Commercial Metals Company |
| Segments Covered |
Furnace Type, Application, Capacity, Energy Efficiency, Regional |
| Key Market Opportunities |
Rising demand for steel Increasing adoption of electric arc furnaces Government initiatives promoting renewable energy Growing infrastructure and construction sector Technological advancements |
| Key Market Dynamics |
Increasing demand for steel Stringent environmental regulations Technological advancements Fluctuating raw material prices Growing adoption of EAFs in developing countries |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The global Electric Arc Furnace market was valued at 5.87 billion USD in 2023 and is projected to grow to 12.5 billion USD by 2032, exhibiting a CAGR of 8.75% during the forecast period.
Asia-Pacific is expected to dominate the Electric Arc Furnaces Market over the forecast period. The region is home to numerous steel-producing countries, including China, India, and Japan, which are investing heavily in EAF technology to increase their steel production capacity and reduce their carbon footprint.
The growth of the Electric Arc Furnaces Market is attributed to the rising demand for steel, increasing adoption of EAF technology due to its environmental benefits, and government initiatives promoting the use of recycled scrap metal in steel production.
Electric Arc Furnaces are primarily used in the production of steel. They are also used in the melting and refining of other metals, such as copper, aluminum, and nickel.
Some of the key players in the Electric Arc Furnaces Market include Danieli, Primetals Technologies, SMS group, Tenova, and Hertwich.
The COVID-19 pandemic had a negative impact on the Electric Arc Furnaces Market in the short term. However, the market is expected to recover in the long term as governments and industries focus on economic recovery and sustainability.
Some of the challenges faced by the Electric Arc Furnaces Market include the high cost of EAF technology, the availability of scrap metal, and the environmental regulations associated with EAF operations.
The opportunities for the Electric Arc Furnaces Market include the growing demand for steel, the increasing adoption of EAF technology due to its environmental benefits, and the government initiatives promoting the use of recycled scrap metal in steel production.
Some of the key trends in the Electric Arc Furnaces Market include the increasing adoption of automation and digitalization, the development of new EAF technologies, and the growing focus on sustainability.
The future prospects of the Electric Arc Furnaces Market are positive. The market is expected to continue to grow over the forecast period, driven by the rising demand for steel, the increasing adoption of EAF technology, and the government initiatives promoting the use of recycled scrap metal in steel production.
