USD 704.01 Million
Report ID:
SQMIG20I2377 |
Region:
Global |
Published Date: May, 2025
Pages:
195
|Tables:
88
|Figures:
68
Global Electric Arc Furnace Market size was valued at USD 704.01 Million in 2023 and is poised to grow from USD 792.8 Million in 2024 to USD 1853.54 Million by 2032, growing at a CAGR of 11.2% during the forecast period (2025-2032).
Surge in demand for steel, increasing scrap metal availability, advancements in electric arc furnace equipment, rising adoption of mini mills, and environmental regulations are slated to drive revenue generation.
Global urbanization and industrialization have led to increasing steel consumption across construction, automotive, and infrastructure sectors. Stringent environmental regulations are pushing steel manufacturers toward cleaner production technologies such as electric arc furnaces. As more industries embrace circular economy principles, scrap collection systems and recycling infrastructure are expanding thereby promoting the adoption of electric arc furnaces. Rising number of mini mills and their heavy reliance of electric arc furnaces are also contributing to electric arc furnace market growth.
On the contrary, high initial capital investment, limited raw material flexibility, technical limitations for certain steel grades, and infrastructure and energy supply constraints are predicted to inhibit the global electric arc furnace market penetration across the forecast period and beyond.
Can Digital Technologies Influence Electric Arc Furnace Demand?
Digital transformation is reshaping electric arc furnace operations through Industry 4.0 technologies like AI, IoT, and predictive analytics. Smart sensors monitor furnace conditions in real time, enabling precise temperature control, slag management, and energy optimization. Machine learning algorithms are improving electrode consumption patterns and minimizing downtimes through predictive maintenance. Data-driven decision-making enhances productivity while reducing costs and environmental impact. Cloud-based systems also facilitate remote operations and diagnostics, increasing efficiency and safety. These innovations are making EAFs more competitive with traditional methods. As digital adoption accelerates, modern EAFs are evolving into highly automated, intelligent systems that optimize performance while ensuring compliance with sustainability targets.
Market snapshot - 2025-2032
Global Market Size
USD 704.01 Million
Largest Segment
DC Arc Furnace
Fastest Growth
AC Arc Furnace
Growth Rate
11.2% CAGR
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Global electric arc furnace market is segmented by capacity, type, application, and region. Based on capacity, the market is segmented into up to 100 Tons, 100 – 300 Tons, and above 300 Tons. Based on application, the market is segmented into ferrous metals and non-ferrous metals. Based on type, the market is segmented into DC Arc Furnace and AC Arc Furnace. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
DC arc furnaces are estimated to lead the global electric arc furnace market revenue generation potential going forward. Superior energy efficiency, lower electrode consumption, and reduced power fluctuations are key factors allowing this segment to hold sway over others. These arc furnaces are especially popular among companies focused on improving sustainability and reducing operational costs.
Meanwhile, the demand for AC arc furnaces is anticipated to hold the second-largest share of the market as per this electric arc furnace industry analysis. Lower installation costs are primarily helping boost revenue generation via this segment. These furnaces are particularly favored in developing economies for producing carbon and alloy steels from scrap.
The ferrous metals segment is slated to account for the largest global electric arc furnace market share in the future. Growing adoption of electric arc furnaces for making steel with scrap materials is helping this segment maintain its dominant stance. Growing global focus on circular economy practices and the demand for lower-emission steel are also helping this segment generate more revenue in the long run.
On the other hand, the use of electric arc furnaces for non-ferrous metals is slated to rise at a notable pace over the coming years. Need for efficient and precise melting solutions for materials such as aluminum, copper, and nickel is helping this segment generate new opportunities. As global industries shift toward lightweight, high-performance materials, the recycling and production of non-ferrous metals via electric arc furnaces is slated to rise rapidly.
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Presence of a vast steel production base, rapid urbanization, and increasing scrap metal availability are helping cement the dominance of Asia Pacific in the global electric arc furnace industry. High investments in modernization of steel production plants in Asian countries and growing emphasis on infrastructure development are further boosting revenue generation for market players. Growing electricity infrastructure and environmental mandates are also estimated to crucially boost the adoption of electric arc furnace in this region.
Japan’s carbon neutrality goal for 2050 is expected to play a crucial role in governing the adoption of electric arc furnaces in the country. Japan’s limited natural resources and high scrap collection efficiency favor the transition to electric arc furnaces from traditional blast furnaces. Government incentives and collaboration between academia and industry accelerate research in low-carbon steelmaking. As Japan seeks to decouple from fossil fuel-based production, electric arc furnace adoption is becoming central to its steel industry decarbonization strategy.
High investments in modernization and carbon reduction of steel industry by companies such as Hyundai Steel and POSCO are driving electric arc furnace sales in South Korea. Government climate policies and global pressure to reduce emissions from heavy industries are driving a shift from blast furnaces. Presence of a strong scrap recycling infrastructure and emphasis on smart manufacturing are also predicted to promote the demand for electric arc furnaces in the long run.
Imposition of strict sustainability mandates, high scrap availability, and technological innovation are making North America a rewarding region for electric arc furnace providers. High preference for mini mills and growing availability of scrap steel in the region are also creating new opportunities for market players over the coming years. Strong digital infrastructure and clear roadmap for decarbonization are helping boost the demand for electric arc furnaces in North America through 2032.
United States is a leading country for electric arc furnace adoption in North America as around 70% of its steel production is done via electric arc furnaces. Government initiatives under the Inflation Reduction Act and Infrastructure Investment and Jobs Act are promoting cleaner technologies and local manufacturing. The dominance of mini mills, such as those operated by Nucor and Steel Dynamics, are further helping boost revenue generation. Use of automated and advanced technology integrated electric arc furnaces is also rising rapidly in the country.
Strong environmental policies, abundant scrap supply, and integration with the United States steel industry are driving the sales of electric arc furnaces in Canada. The Canadian government supports decarbonization through grants and clean energy incentives, making EAFs a favored technology. Additionally, Canada's stable electricity grid, largely powered by renewables makes electric arc furnaces more economically viable. These factors position Canada as a key player in the green steel transformation of North America.
Europe can be characterized as a mature but high-growth potential market for electric arc furnace companies in the long run. Stringent carbon emission reduction regulations and the EU’s Green Deal policies are helping boost the adoption of electric arc furnaces in this region. Europe's focus on circular economy principles and decarbonization accelerates the shift from blast furnaces to electric ones. Europe’s regulatory pressure and climate-conscious consumers make it a prime region for green steel innovations.
The steel industry of the United Kingdom is focusing on meeting climate targets and improve cost-efficiency, which leads to high demand for electric arc furnaces. British Steel and Tata Steel UK are key companies leading the adoption of electric arc furnaces backed by government decarbonization funds. The availability of scrap and push for local, low-carbon steel for construction and defense sectors are expected to open up new avenues of business for market players in the country through 2032 and beyond.
Emphasis on attaining EU decarbonization targets and reduction of industrial emissions are making Germany a key adopter of electric arc furnaces. German steelmakers like thyssenkrupp and Salzgitter are investing in hydrogen-compatible to take advantage of the country’s strong recycling culture and engineering excellence. Germany leads in high-tech EAF installations and is piloting hybrid furnaces to improve feedstock flexibility.
Electric arc furnace adoption is a crucial part of France’s broader energy transition and industrial decarbonization agenda. France’s well-established nuclear and renewable energy mix ensures low-carbon electricity supply for electric arc furnace operations. Circular economy policies support scrap collection, boosting feedstock availability. The French government’s climate plans, including France 2030, prioritize green industrial infrastructure, which is turn is slated to boost the demand for electric arc furnaces.
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Environmental Regulations and Carbon Neutral Goals
Shift Toward Mini Mills
Limited Raw Material Flexibility
Technical Limitations for Certain Steel Grades
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Electric arc furnace providers should focus on developing electric mixers to stand out from the competition and stay in line with sustainability trends. Targeting developing economies is slated to be more rewarding for companies as per this global electric arc furnace market forecast.
Use of innovative technologies to improve efficiency and electrification of mixers are popular trends among startups. Here’s a startup that is focusing on augmenting the operational efficiency of mixers.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, growing demand for steel and rising adoption of mini mills are forecasted to drive the demand for electric arc furnaces going forward. However, technical limitations for certain steel grades and limited raw material flexibility are anticipated to slow down electric arc furnace adoption in the future. High scrap material availability and presence of leading steel manufacturing companies are helping Asia Pacific lead sales of electric arc furnaces on a global level. Launch of green steel initiatives and growing adoption of EAF-based mini mills are slated to be key trends driving the electric arc furnace sector on a global level.
Report Metric | Details |
---|---|
Market size value in 2023 | USD 704.01 Million |
Market size value in 2032 | USD 1853.54 Million |
Growth Rate | 11.2% |
Base year | 2024 |
Forecast period | 2025-2032 |
Forecast Unit (Value) | USD Million |
Segments covered |
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Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
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Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Electric Arc Furnace Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Electric Arc Furnace Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Electric Arc Furnace Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Electric Arc Furnace Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
Global Electric Arc Furnace Market size was valued at USD 704.01 Million in 2023 and is poised to grow from USD 792.8 Million in 2024 to USD 1853.54 Million by 2032, growing at a CAGR of 11.2% during the forecast period (2025-2032).
Electric arc furnace providers should focus on developing electric mixers to stand out from the competition and stay in line with sustainability trends. Targeting developing economies is slated to be more rewarding for companies as per this global electric arc furnace market forecast. 'JFE Steel Corporation', 'Danieli', 'Nippon Steel Corporation (Japan)', 'Danieli & C. Officine Meccaniche SpA (Italy)', 'ArcelorMittal (Luxembourg)', 'Tenova S.p.A. (Italy)', 'SMS Group GmbH (Germany)', 'Electrotherm (India)', 'Paul Wurth IHI Co., Ltd. (Japan)', 'Primetals Technologies (U.K.)', 'Wuxi Dongxong Heavy Arc Furnace Co., Ltd. (China)', 'JP Steel Plantech Co. (Japan)'
Stringent environmental regulations are pushing steel manufacturers toward cleaner production technologies. Traditional blast furnaces emit large quantities of CO₂, whereas EAFs offer a more sustainable alternative by using scrap and renewable electricity. As governments set ambitious carbon neutrality targets, industries are investing heavily in low-emission technologies. The European Union’s Green Deal and similar policies in the United States and Asia are also expected to favor the global electric arc furnace market outlook in the long run.
Growth of EAF-Based Mini Mills in Emerging Economies: Lower capital requirements, modular scalability, and shorter construction times compared to integrated steel plants are promoting the popularity of mini mills. High investments in decentralized steel production to meet local demand efficiently is also making this a key electric arc furnace market trend for companies in the long run. These mini mills often use locally sourced scrap and renewable power, making them both cost-effective and environmentally friendly. Governments are also promoting domestic recycling and infrastructure development, which supports mini mill expansion.
Why Electric Arc Furnace Manufacturers Focus on Asia Pacific?
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Report ID: SQMIG20I2377
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