Electric Arc Furnace Market size worth US$1,684.849 billion by 2029

electric arc furnace market

The electric arc furnace market is expected to grow at a CAGR of 5.64% during the forecasted period, with a market valuation of US$1,280.556 million in 2024, and is expected to reach US$1,684.849 billion by 2029.

Throughout the forecast period, steady growth in the electric arc furnace is expected. This industrial machinery melts and purifies metals by creating an electric arc using electricity. An arc is produced between two graphite and carbon electrodes. This arc can produce temperatures as high as 3500°C.

When making steel, aluminium, copper, lead, and other metal products, electric arc furnaces are used in the process. Utilizing electric arc furnaces has several advantages, such as lower capital costs, flexibility, and efficient steel production through the reduction of carbon emissions. The steel demand has driven the electric arc furnace market’s expansion, especially with increases in metallurgical coal prices and more individuals investing in these furnaces.

Since it is widely used in various industries, therefore steel demand is a significant contributor to the increment of electric arc furnace market. In infrastructure development or building construction, automobile manufacturing and other sectors that need heavy material extraction such as mining or quarrying, steel plays an important role. Urbanization and industrialization affect steel production. The main method for making steel is an electric arc furnace since it has better efficiency and flexibility.

Unlike the traditional blast furnace method, electric arc furnaces had a quicker production time, thus making it possible for the metal in an electric furnace could be heated more easily. For example, the Worldwide Steel Association reported a worldwide crude steel production of 1,888.2 million tons in January 2024 which is close to the year 2023.

Further, there is growing competition for electric arc furnaces as more investments go into creating the latest generation electrically powered furnaces which reduce carbon emissions, as well as research and development. Improved on all fronts, that is to say, better and bigger electric arc furnaces will be produced sometime later as a result of these R&D investments.

Additionally, one of the loops created over the market by offering environmentally friendly electric arc furnaces that would help manufacturers and the environment is the investment criteria. For example, ArcelorMittal invested 67 million euros in its Belval site in June 2023. The company views the new Belval electric arc as a significant project because it emphasizes efficiency and will increase production output, which is expected to reach 2.5 million tons annually.

The electric arc furnace market, by type, is divided into two types- DC arc furnace and AC arc furnace. Currently leading the industry, DC arc furnaces are anticipated to continue doing so throughout the projection period. DC arc furnaces are more energy-efficient than AC arc furnaces because they provide precise control over the electrical energy input, which raises efficiency and lowers energy consumption. As such, they hold a substantial portion of the worldwide EAF market and are expected to continue holding this position for some time to come.

Although they have a sizable market share as well, AC arc furnaces are more appealing to smaller operations or companies on a tighter budget because of their lower initial investment costs. Furthermore, some alloys and materials melt particularly well in AC arc furnaces.

The electric arc furnace market, by application, is divided into two types: Non–ferrous metal and ferrous metal. Due to their financial benefits, electric arc furnaces have grown in popularity in this industry, providing a sensible and affordable substitute for conventional blast furnaces. Manufacturers can quickly respond to market demands due to their ability to accommodate different steel grades and efficiently recycle scrap steel. Furthermore, their lower carbon emissions complement sustainability goals and fit in with the worldwide movement toward more environmentally friendly industrial processes.

The electric arc furnace market, by capacity, is divided into five types: Up to 100 Tons, 100-200 Tons, 200 – 300 Tons, 300 – 400 Tons, and more than 400 Tons.  Most likely, the electric arc furnace market share that is highest will be found in the up to 100 tons segment. This is because it can effectively balance production capacity and operational flexibility, which makes it ideal for a wide range of applications from integrated steel plants to foundries. Further, because they can handle higher production volumes than smaller EAFs while still providing operational efficiency and cost-effectiveness, 200-300 tons EAFs also hold a sizable portion of the market.

During the projected timeframe, it is anticipated that the market for electric arc furnaces will experience remarkable growth within North America. In this area, there is an important steel producer who manufactures steel which is utilized to create various products in various sectors. Among the different areas that are characterized by rapid urbanization and industrialization are China, India and Japan This has an impact on the growth of the electric furnace market in the region by necessitating increased steel production for infrastructure development and construction. In the coming years, the market for electric arc furnaces will be driven by increased investment in the area.

For example, Tata Steels announced in January 2024 that it would invest 1.25 billion British pounds (Brits) in electric arc technology in Port Talbot. The purpose of this investment is to switch from using traditional blast furnaces to producing green steel.

The research includes several key players from the electric arc furnace market, such as Danieli & C. S.p.A., SMS group GmbH, TENOVA, JP Steel Plantech Co., A Universe of Engineering, ArcelorMittal, ABB, Nippon Steel Corporation, Algoma Steel, Sinosteel India.

View a sample of the report or purchase the complete study at https://www.knowledge-sourcing.com/report/electric-arc-furnace-market

The analytics report categorizes the electric arc furnace market using the following criteria:

Segmentation:

  • By Type
    • DC Arc Furnace
    • AC Arc Furnace
  • By Application
    • Non – Ferrous Metal
    • Ferrous Metal
  • By Capacity
    • Up to 100 Tons
    • 100-200 Tons
    • 200 – 300 Tons
    • 300 – 400 Tons
    • More than 400 Tons
  • By Geography
    • North America
      • United States
      • Canada
      • Mexico
    • South America
      • Brazil
      • Argentina
      • Others
    • Europe
      • United Kingdom
      • Germany
      • France
      • Italy
      • Spain
      • Others
    • Middle East and Africa
      • Saudi Arabia
      • UAE
      • Others
    • Asia Pacific
      • Japan
      • China
      • India
      • South Korea
      • Taiwan
      • Thailand
      • Indonesia
      • Others