Submerged Arc Furnace Market Research Report By Product Type (Single Electrode Submerged Arc Furnace, Double Electrode Submerged Arc Furnace, Twin Electrode Submerged Arc Furnace), By Capacity (Less than 100 Tonnes, 100 to 200 Tonnes, 200 to 500 Tonnes, Above 500 Tonnes), By Application (Steel Manufacturing, Ferroalloy Production, Ferromanganese Production, Silicon Metal Production, Pig Iron Production), By Operation Mode (Manual, Semi-Automatic, Automatic) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and

Global Submerged Arc Furnace Market Overview

As per MRFR analysis, the Submerged Arc Furnace Market Size was estimated at 2.41 (USD Billion) in 2022. The Submerged Arc Furnace Market Industry is expected to grow from 2.52 (USD Billion) in 2023 to 3.8 (USD Billion) by 2032. The Submerged Arc Furnace Market CAGR (growth rate) is expected to be around 4.67% during the forecast period (2024 - 2032).

Key Submerged Arc Furnace Market Trends Highlighted

The Submerged Arc Furnace Market is poised to witness significant growth in the coming years. Key market drivers include increasing demand for steel in the construction, automotive, and manufacturing sectors, along with the need for cost-effective and energy-efficient steel production. Additionally, growing urbanization and infrastructure development in emerging economies are driving the demand for steel and, subsequently, submerged arc furnaces.

Opportunities for market exploration lie in the development of technologically advanced furnaces with improved energy efficiency and productivity. The adoption of automation and digitalization in furnace operations presents significant opportunities for process optimization and cost reduction. Trends in recent times indicate a focus on sustainability and reducing carbon emissions, leading to the increasing adoption of submerged arc furnaces with energy-saving features and the use of renewable energy sources.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Submerged Arc Furnace Market Drivers

Growing Demand for Steel in Construction and Infrastructure

The construction and infrastructure sectors are the biggest steel consumers, with the production primarily based on submerged arc furnaces. The growth of the demand for steel in these sectors is associated with the increasing rate of urbanization, global population growth, and the government’s willingness to expand infrastructure projects. Overall, the growing demand for steel is likely to promote the growth of the Submerged Arc Furnace Market Industry.

The demand for steel is growing due to the development of the country’s infrastructure in developing countries. The governments are also paying attention to the development of road, railway, housing, bridge, and other types of infrastructure to support economic growth and meet their population’s needs. All the steel that is needed in these cases can be transformed into the final product exclusively with the help of submerged arc furnaces.

The demand for steel is progressively increasing in developed countries as well, although the growth rate is not likely to be as impressive. The governments tend to focus on the replacement of the ineffective and old infrastructure and servicing the population growth. The other important factor is the widespread use of modern construction techniques in developed countries, such as modular construction and prefabrication of steel elements. To ensure that steel can satisfy the highest quality standards, it is essential to utilize submerged arc furnaces.In such a way, the increasing need for steel in the construction and infrastructure sectors appears to be a crucial factor promoting the growth of the Submerged Arc Furnace Market Industry.

Technological Advancements in Submerged Arc Furnaces

Technological improvements are ensuring the growing efficiency and capabilities of SAFs. This trend encompasses better furnace design, automation, and process control systems. Overall, modern SAFs are becoming much better in terms of efficiency and productivity, meaning that the operating costs will be lower and the product quality will be higher. The most important advancement in technology is high-power transformers, which allow furnaces to be highly productive and melt steel faster.

Moreover, as the automation and process control technology continues to develop, the SAF operation will become more optimized. In addition, certain new technologies are being developed to help with the task. Some of them are the use of alternative energy sources, such as hydrogen and biomass and the use of these energy sources. Another such advance is the development of new refractory materials that are able to withstand higher temperatures and longer working cycles.

Overall, the SAF’s technologies are becoming more efficient and cost-effective, which will drive the growth of the Submerged Arc Furnace Market Industry.

Increasing Focus on Sustainability and Environmental Regulations

The demand for more environmentally friendly steel production methods is being driven by increased emphasis on sustainability and environmental regulations. There are many benefits of SAFs over other steelmaking methods in terms of sustainability. Firstly, SAFs are more energy-efficient, leading to lower greenhouse gas emissions and less impact on the climate. Secondly, scrap steel can also be recycled by SAFs. 

More and more governments worldwide are adopting stricter environmental regulations to cut pollution and encourage greener methods.Hence, these regulations will also increase the demand for greener steel production, and the increase in the number of consumers striving for a cleaner environment will also increase the SAFs’ demand in the Submerged Arc Furnace Market Industry.

Submerged Arc Furnace Market Segment Insights:

Submerged Arc Furnace Market Product Type Insights

The Submerged Arc Furnace Market is segmented based on Product Type into Single Electrode Submerged Arc Furnace, Double Electrode Submerged Arc Furnace, and Twin Electrode Submerged Arc Furnace. Among these, the Single Electrode Submerged Arc Furnace segment recorded the highest market share in 2023 and is expected to retain its dominance during the forecast period. The growth of this segment can be attributed to the increasing demand for high-quality steel produced using Single Electrode Submerged Arc Furnaces. Single Electrode Submerged Arc Furnace has multiple advantages, such as higher energy efficiency, low operational cost, and consistency in product quality, which would further boost demand.

The Double Electrode Submerged Arc Furnace segment is projected to show a good growth rate during the forecast period. Double Electrode Submerged Arc Furnaces are predominantly used for the production of stainless steel, which is a high-value alloy and finds applications in various industries such as automotive, construction, and healthcare. The relatively high demand for stainless steel is expected to promote growth in the Double Electrode Submerged Arc Furnace segment. The Twin Electrode Submerged Arc Furnace segment is expected to witness sluggish growth during the forecast period.

These types of furnaces are used for the production of carbon steel, which is a versatile material used in various applications across the automotive, construction, and shipbuilding industries. The increasing demand for carbon steel in countries would promote growth in the Twin Electrode Submerged Arc Furnace segment. The Submerged Arc Furnace Market is expected to grow at a CAGR of 4% during the forecast period. The growth of the market can be attributed to the increasing demand for steel, stainless steel, and carbon steel. The market growth would be facilitated by the increasing investment in infrastructure development in countries.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Submerged Arc Furnace Market Capacity Insights

The Submerged Arc Furnace Market is segmented by capacity into Less than 100 Tonnes, 100 to 200 Tonnes, 200 to 500 Tonnes, and Above 500 Tonnes. The 200 to 500 Tonnes segment is expected to hold the largest market share in 2023, accounting for 35.6% of the global market. This is due to the increasing demand for steel from the construction and automotive industries. The Above 500 Tonnes segment is expected to witness the highest CAGR of 5.2% during the forecast period, as it is used in the production of large-scale steel structures and heavy machinery

Submerged Arc Furnace Market Application Insights

The Submerged Arc Furnace Market segmentation provides insights into the application areas of submerged arc furnaces. Steel Manufacturing holds the largest share of the Submerged Arc Furnace Market revenue, driven by high demand for steel in construction, automotive, and other industries. Ferroalloy Production is another significant segment, with submerged arc furnaces used to produce ferroalloys such as ferrosilicon, ferromanganese, and silicon metal. Ferromanganese Production and Silicon Metal Production also contribute to the market growth.

Pig Iron Production, used in steelmaking, is another key application segment. In 2024, the Submerged Arc Furnace Market for Steel Manufacturing is expected to be valued at around 1.34 billion USD, with a CAGR of 4.5%. The Ferroalloy Production segment is projected to reach 0.62 billion USD by 2024, exhibiting a CAGR of 4.2%.

Submerged Arc Furnace Market Operation Mode Insights

The Submerged Arc Furnace Market is segmented by operation mode into manual, semi-automatic, and automatic. The automatic segment is expected to account for the largest share of the market in 2024, owing to its ability to provide high levels of efficiency and productivity. The semi-automatic segment is expected to grow at the fastest rate during the forecast period, as it offers a balance between automation and manual operation. 

The growth of the market is attributed to the increasing demand for steel, which is a major application of submerged arc furnaces.The market is also expected to benefit from the growing adoption of electric arc furnaces, which are more environmentally friendly than traditional blast furnaces.

Submerged Arc Furnace Market Regional Insights

The Submerged Arc Furnace Market is segmented into North America, Europe, APAC, South America, and MEA. North America is the largest regional market for submerged arc furnaces, with the highest market share in 2023, and is expected to continue to dominate the market throughout the forecast period. 

The growth in this region can be attributed to the increasing demand for steel from various industries such as automotive, construction, and manufacturing. Europe is the second-largest regional market, followed by APAC. The APAC region is expected to witness significant growth in the coming years, owing to the rising demand for steel from developing economies such as China and India.South America and MEA are expected to witness moderate growth during the forecast period.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Submerged Arc Furnace Market Key Players And Competitive Insights:

Major players in the Submerged Arc Furnace Market are constantly striving to gain a competitive edge in the industry. The Leading Submerged Arc Furnace Market players are focused on developing innovative technologies and expanding their product portfolios to meet the evolving needs of customers. The Submerged Arc Furnace Market industry is characterized by intense competition, with leading players vying for market share through strategic partnerships, acquisitions, and product launches. Key factors influencing competition in the market include technological advancements, cost optimization, and environmental regulations.

Danieli is a leading company in the Submerged Arc Furnace Market industry, known for its innovative solutions and global presence. The company offers a comprehensive range of submerged arc furnaces, along with related technologies and services. Danieli's focus on research and development has enabled it to develop advanced furnace designs and automation systems, contributing to its strong market position. The company has a wide customer base across various industries, including steel, ferroalloys, and non-ferrous metals.

Inductotherm is another prominent competitor in the Submerged Arc Furnace Market. The company specializes in the design and manufacturing of induction melting and heating systems, including submerged arc furnaces. Inductotherm offers a range of furnace sizes and configurations to meet the specific needs of its customers. With a focus on energy efficiency and productivity, the company's products are designed to provide optimal performance and cost savings. Inductotherm has a global presence with manufacturing facilities in various locations, enabling it to serve a diverse customer base.

Key Companies in the Submerged Arc Furnace Market Include:

• FCT Combustion Inc.


• ABB Ltd.


• Voestalpine AG


• Siemens AG


• Mitsubishi Heavy Industries, Ltd.


• Eaton Corporation plc


• Tenova SpA


• Primetals Technologies


• Schneider Electric SE


• Paul Wurth S.A.


• Danieli C. Officine Meccaniche S.p.A.


• Harsco Metals Minerals Corporation


• Morgan Advanced Materials plc


• SMS group GmbH


• Hitachi Metals Ltd.

Submerged Arc Furnace Market Industry Developments

The Submerged Arc Furnace Market is projected to reach USD 3.8 billion by 2032, exhibiting a CAGR of 4.67% during the forecast period. The market growth is attributed to the rising demand for steel and the increasing adoption of submerged arc furnaces in various industries.In recent years, the market has witnessed significant advancements in technology. 

For instance, the introduction of high-power submerged arc furnaces has improved productivity and energy efficiency. Additionally, the growing use of automation and digitalization in manufacturing processes is expected to drive market growth in the coming years.

Key players in the Submerged Arc Furnace market are focusing on strategic partnerships and acquisitions to expand their market presence. For example, in 2023, Danieli Group acquired a majority stake in Fives CortX, a leading supplier of submerged arc furnace technology.

Submerged Arc Furnace Market Segmentation Insights

• 
  

  Submerged Arc Furnace Market Product Type Outlook

  
  
  
  
  • Single Electrode Submerged Arc Furnace
  
  
  • Double Electrode Submerged Arc Furnace
  
  
  • Twin Electrode Submerged Arc Furnace
  
  
  
  

• 
  

  Submerged Arc Furnace Market Capacity Outlook

  
  
  
  
  • Less than 100 Tonnes
  
  
  • 100 to 200 Tonnes
  
  
  • 200 to 500 Tonnes
  
  
  • Above 500 Tonnes
  
  
  
  

• 
  

  Submerged Arc Furnace Market Application Outlook

  
  
  
  
  • Steel Manufacturing
  
  
  • Ferroalloy Production
  
  
  • Ferromanganese Production
  
  
  • Silicon Metal Production
  
  
  • Pig Iron Production
  
  
  
  

• 
  

  Submerged Arc Furnace Market Operation Mode Outlook

  
  
  
  
  • Manual
  
  
  • Semi-Automatic
  
  
  • Automatic
  
  
  
  

• 
  

  Submerged Arc Furnace Market Regional Outlook

  
  
  
  
  • North America
  
  
  • Europe
  
  
  • South America
  
  
  • Asia Pacific
  
  
  • Middle East and Africa