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The electric arc furnaces market size is forecast to increase by USD 855.3 million, at a CAGR of 11% between 2024 and 2029. The market is witnessing significant advancements in technology, driving growth and innovation. New developments in electric arc furnace design and operation are enhancing energy efficiency, reducing production costs, and expanding the scope of applications.
Major Market Trends & Insights
Market Size & Forecast
Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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The electric arc furnace market continues to evolve, driven by advancements in steelmaking efficiency and the expanding applications across various sectors. Electrode consumption and wear rate are critical factors influencing furnace performance and cost. For instance, a leading steel producer reduced electrode consumption by 15% through optimized arc furnace power management and furnace tilting mechanism adjustments. Off-gas analysis and voltage regulation play essential roles in maintaining electrical resistivity and energy consumption rate, while alloying element additions and melt temperature control ensure quality. A recent industry report projects a 6% annual growth expectation for the electric arc furnace market, fueled by advancements in process automation, current transformer technology, and plasma diagnostics.
Oxygen lance injection, slag foaming control, and refractory materials contribute to furnace lining life and emission monitoring. Furnace power factor correction, dust collection efficiency, and effluent treatment are crucial for reducing energy consumption and environmental impact. Arc stability, tap hole drilling, and metal recovery rate are essential for optimizing the arc length and arcing phenomena. Temperature gradients and arc stability are closely monitored to maintain consistent chemical composition control and improve heat transfer efficiency. Innovations in emission monitoring systems, fume treatment, and furnace lining materials are transforming the electric arc furnace market, ensuring a sustainable and efficient future for steel production.
The electric arc furnaces industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.
The AC arc furnace segment is estimated to witness significant growth during the forecast period. The segment was valued at USD 767.70 million in 2023. It continued to the largest segment at a CAGR of 11.67%.
The electric arc furnace market is driven by the efficiency and versatility of alternating current (AC) arc furnaces, which accounted for a substantial market share in 2024. AC arc furnaces employ alternating current to generate intense heat through electric arcs, enabling the melting and refining of steel and alloys. This technology offers several advantages, including the ability to efficiently process a range of raw materials, such as scrap metal and direct reduced iron (DRI,) to produce high-quality steel. The adaptability of AC arc furnaces to various steel grades makes them a preferred choice for steel producers catering to diverse markets.
For instance, a steel manufacturing company can utilize an AC arc furnace to process multiple grades of scrap steel, thereby enhancing operational flexibility and reducing the reliance on raw materials. Moreover, advanced technologies such as electrode consumption monitoring, off-gas analysis, and electrical resistivity measurement are increasingly being integrated into electric arc furnaces to optimize energy consumption, improve melt temperature control, and ensure consistent steel quality. The implementation of these technologies is expected to further boost the market's growth. According to recent industry reports, the electric arc furnace market is projected to expand at a steady pace, with increasing demand for energy-efficient and cost-effective steel production solutions.
For example, the implementation of process automation, current transformer technology, and plasma diagnostics has led to a significant reduction in energy consumption and improved heat transfer efficiency in electric arc furnaces. These advancements are expected to contribute to the market's growth in the coming years.
The AC arc furnace segment was valued at USD 557.40 million in 2019 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 68% to the growth of the global market during the forecast period. Data suggests that the future opportunities for growth in the APAC region estimates to be around USD 855.3 million. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The electric arc furnace market is significantly influenced by the extensive utilization of this technology in the Asia Pacific (APAC) region, particularly in countries like China, Japan, and South Korea. APAC's dominance in the global market is driven by its impressive steel production capacity, with a substantial portion relying on electric arc furnaces to meet the region's colossal steel demand. For instance, China, the world's largest steel producer, heavily relies on electric arc furnaces, accounting for a significant portion of its output. Electric arc furnaces offer several advantages, including improved steelmaking efficiency, reduced electrode consumption, and precise off-gas analysis.
These factors contribute to the technology's popularity, leading to a surge in demand for electric arc furnaces. The market is also witnessing advancements in areas such as electrode wear rate reduction, arc furnace power optimization, and voltage regulation. Alloying element additions, melt temperature control, and quality control systems ensure the production of high-quality steel. Fume treatment systems and emission monitoring help minimize environmental impact, while process automation and current transformers enhance operational efficiency. The market also focuses on enhancing heat transfer efficiency, plasma diagnostics, and dust collection efficiency. APAC's electric arc furnace market is expected to grow at a steady pace, with industry experts projecting a 15% increase in demand by 2026.
This growth can be attributed to factors such as the increasing adoption of advanced technologies, the need for energy efficiency, and the rising demand for high-quality steel in various industries.
Our researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The global electric arc furnace (EAF) market is experiencing significant growth due to the increasing demand for energy-efficient and cost-effective steel production. EAFs have become a preferred choice for steelmakers due to their flexibility in using various scrap materials as feedstock and their ability to produce a wide range of steel grades. EAF maintenance, particularly electrode maintenance, plays a crucial role in ensuring the furnace's optimal performance and longevity. Energy efficiency improvement is another key focus area, with innovations in off-gas cleaning technology, refractory material selection, and optimization of power supply systems. Advanced control algorithms and automation systems are also being employed to enhance process control strategies and improve steel quality. Moreover, emission reduction techniques and waste heat recovery systems are essential components of modern EAFs.
The electric arc furnaces market prioritizes efficiency and sustainability. Effective electric arc furnace electrode maintenance and electric arc furnace electrode consumption monitoring reduce operational downtime. Innovations in electric arc furnace energy efficiency improvement and electric arc furnace thermal efficiency analysis lower energy costs, while electric arc furnace waste heat recovery system enhances resource utilization. The electric arc furnace off-gas cleaning technology and electric arc furnace dust collection system design, alongside electric arc furnace emission reduction techniques, minimize environmental impact, supported by electric arc furnace environmental impact assessment. Optimized electric arc furnace power supply and advanced control algorithms electric arc furnace improve electric arc furnace process control strategies. High-quality output is ensured through electric arc furnace steel quality control and electric arc furnace steel grade production, with electric arc furnace scrap pre-treatment techniques. Electric arc furnace refractory material selection and electric arc furnace refractory lining design, paired with electric arc furnace process modeling and simulation, boost durability and performance. Electric arc furnace automation systems and electric arc furnace operational cost reduction drive market competitiveness.
The electric arc furnaces market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the electric arc furnaces market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, electric arc furnaces market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.
Danieli & C. Officine Meccaniche S.p.A - This company specializes in manufacturing and supplying electric arc furnaces, including a 150-ton model, utilizing advanced technology for steel production.
The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Dive into Technavio's robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Electric Arc Furnaces Market insights. See full methodology.
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Market Scope |
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Report Coverage |
Details |
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Page number |
204 |
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Base year |
2024 |
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Historic period |
2019-2023 |
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Forecast period |
2025-2029 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 11% |
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Market growth 2025-2029 |
USD 855.3 million |
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Market structure |
Fragmented |
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YoY growth 2024-2025(%) |
10.4 |
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Key countries |
US, Canada, Germany, UK, Italy, France, China, India, Japan, Egypt, Oman, Argentina, KSA, UAE, and Brazil |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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1 Executive Summary
2 Technavio Analysis
3 Market Landscape
4 Market Sizing
5 Historic Market Size
6 Qualitative Analysis
7 Five Forces Analysis
8 Market Segmentation by Type
9 Market Segmentation by Product
10 Market Segmentation by Application
11 Customer Landscape
12 Geographic Landscape
13 Drivers, Challenges, and Opportunity/Restraints
14 Competitive Landscape
15 Competitive Analysis
16 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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