Product Code: 29823
The Global Electric Arc Furnace Market was valued at USD 1.61 Billion in 2024 and is projected to reach USD 3.08 Billion by 2030, growing at a CAGR of 11.25%. Electric Arc Furnaces (EAFs) are high-temperature industrial systems that use electrical energy to melt and refine metals-primarily steel-by generating arcs between graphite electrodes and the metal charge. EAFs are increasingly adopted in the steelmaking industry due to their efficiency in recycling scrap steel and producing high-quality specialty steels and alloys. They offer a more sustainable and energy-efficient alternative to traditional blast furnaces and are available in various configurations, including AC, DC, and UHP variants, tailored to diverse production requirements. The market is gaining momentum as global steel demand rises, scrap metal availability improves, and industries intensify their efforts to decarbonize production processes.
Market Overview |
Forecast Period | 2026-2030 |
Market Size 2024 | USD 1.61 Billion |
Market Size 2030 | USD 3.08 Billion |
CAGR 2025-2030 | 11.25% |
Fastest Growing Segment | AC Arc Furnace |
Largest Market | North America |
Key Market Drivers
Rising Demand for Scrap-Based Steel Production to Drive Electric Arc Furnace Adoption
The shift toward environmentally conscious steel manufacturing is significantly boosting the adoption of electric arc furnaces. EAFs use recycled scrap steel as their primary raw material, which aligns with global goals to reduce carbon emissions and implement circular economy models. Urbanization, industrial demolition, and the recycling of end-of-life vehicles are increasing scrap steel availability, enhancing the feasibility of EAF operations. EAFs emit considerably fewer greenhouse gases than traditional blast furnaces, making them a preferred choice for low-carbon steelmaking. Their flexibility in handling different scrap grades and ability to deliver high-quality steel with reduced energy usage supports their growing adoption among manufacturers looking to reduce operational costs while meeting environmental targets.
Key Market Challenges
High Energy Consumption and Volatility in Electricity Prices
A key challenge facing the Electric Arc Furnace Market is the high and often unpredictable cost of electricity, which is the primary energy source for EAFs. Unlike blast furnaces that rely on coke, EAFs require large amounts of power to melt scrap or DRI (Direct Reduced Iron). Fluctuations in electricity pricing-caused by regulatory shifts, energy supply instability, and grid limitations-directly impact production costs and profit margins. In regions with underdeveloped power infrastructure or expensive energy tariffs, operational planning becomes complex, with peak-hour surcharges further inflating costs per ton of steel produced. This pricing volatility makes long-term forecasting difficult and challenges EAF operators to balance cost-efficiency with production reliability.
Key Market Trends
Shift Toward Sustainable Steel Production Driving Demand for Electric Arc Furnaces
The global movement toward sustainable manufacturing is accelerating the adoption of electric arc furnaces as a cleaner alternative to carbon-intensive blast furnaces. EAFs, which primarily use electricity and recycled steel, produce significantly less CO2, making them well-suited for companies aiming to meet tightening environmental regulations. The rising implementation of carbon taxes and emissions trading schemes in developed economies is making blast furnace operations more expensive, further supporting the shift to EAFs.
Steel producers are increasingly aligning with ESG goals, integrating low-carbon technologies, and investing in EAF facilities powered by renewable energy sources like wind, solar, or hydro. Government incentives for green steel production and funding support for low-emission technologies are reinforcing this trend. As green construction, auto manufacturing, and infrastructure projects demand sustainable inputs, EAFs are becoming the preferred option for steelmakers seeking long-term environmental and economic viability.
Key Market Players
- Danieli & C. Officine Meccaniche S.p.A.
- Primetals Technologies Limited
- SMS group GmbH
- Tenova S.p.A.
- Electrotherm (India) Ltd.
- Steel Plantech Co., Ltd.
- Inductotherm Corp.
- IHI Corporation
- Lindarc Systems Ltd.
- Doshi Technologies Pvt. Ltd.
Report Scope:
In this report, the Global Electric Arc Furnace Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:
Electric Arc Furnace Market, By Type:
- DC Arc Furnace
- AC Arc Furnace
Electric Arc Furnace Market, By Capacity:
- Up to 100 Tons
- 100-300 Tons
- Above 300 Tons
Electric Arc Furnace Market, By Application:
- Ferrous Metals
- Non-Ferrous Metals
Electric Arc Furnace Market, By Region:
- North America
- United States
- Canada
- Mexico
- Europe
- France
- United Kingdom
- Italy
- Germany
- Spain
- Asia-Pacific
- China
- India
- Japan
- Australia
- South Korea
- South America
- Brazil
- Argentina
- Colombia
- Middle East & Africa
- South Africa
- Saudi Arabia
- UAE
- Kuwait
- Turkey
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the Global Electric Arc Furnace Market.
Available Customizations:
Global Electric Arc Furnace Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:
Company Information
- Detailed analysis and profiling of additional Market players (up to five).
Table of Contents
1. Product Overview
- 1.1. Market Definition
- 1.2. Scope of the Market
- 1.2.1. Markets Covered
- 1.2.2. Years Considered for Study
- 1.3. Key Market Segmentations
2. Research Methodology
- 2.1. Objective of the Study
- 2.2. Baseline Methodology
- 2.3. Formulation of the Scope
- 2.4. Assumptions and Limitations
- 2.5. Sources of Research
- 2.5.1. Secondary Research
- 2.5.2. Primary Research
- 2.6. Approach for the Market Study
- 2.6.1. The Bottom-Up Approach
- 2.6.2. The Top-Down Approach
- 2.7. Methodology Followed for Calculation of Market Size & Market Shares
- 2.8. Forecasting Methodology
- 2.8.1. Data Triangulation & Validation
3. Executive Summary
- 3.1. Overview of the Market
- 3.2. Overview of Key Market Segmentations
- 3.3. Overview of Key Market Players
- 3.4. Overview of Key Regions/Countries
- 3.5. Overview of Market Drivers, Challenges, and Trends
4. Voice of Customer
5. Global Electric Arc Furnace Market Outlook
- 5.1. Market Size & Forecast
- 5.2. Market Share & Forecast
- 5.2.1. By Type (DC Arc Furnace and AC Arc Furnace)
- 5.2.2. By Capacity (Up to 100 Tons, 100-300 Tons, and Above 300 Tons)
- 5.2.3. By Application (Ferrous Metals and Non-Ferrous Metals)
- 5.2.4. By Region
- 5.3. By Company (2024)
- 5.4. Market Map
6. North America Electric Arc Furnace Market Outlook
- 6.1. Market Size & Forecast
- 6.2. Market Share & Forecast
- 6.2.1. By Type
- 6.2.2. By Capacity
- 6.2.3. By Application
- 6.2.4. By Country
- 6.3. North America: Country Analysis
- 6.3.1. United States Electric Arc Furnace Market Outlook
- 6.3.1.1. Market Size & Forecast
- 6.3.1.2. Market Share & Forecast
- 6.3.1.2.1. By Type
- 6.3.1.2.2. By Capacity
- 6.3.1.2.3. By Application
- 6.3.2. Canada Electric Arc Furnace Market Outlook
- 6.3.2.1. Market Size & Forecast
- 6.3.2.2. Market Share & Forecast
- 6.3.2.2.1. By Type
- 6.3.2.2.2. By Capacity
- 6.3.2.2.3. By Application
- 6.3.3. Mexico Electric Arc Furnace Market Outlook
- 6.3.3.1. Market Size & Forecast
- 6.3.3.2. Market Share & Forecast
- 6.3.3.2.1. By Type
- 6.3.3.2.2. By Capacity
- 6.3.3.2.3. By Application
7. Europe Electric Arc Furnace Market Outlook
- 7.1. Market Size & Forecast
- 7.2. Market Share & Forecast
- 7.2.1. By Type
- 7.2.2. By Capacity
- 7.2.3. By Application
- 7.2.4. By Country
- 7.3. Europe: Country Analysis
- 7.3.1. Germany Electric Arc Furnace Market Outlook
- 7.3.1.1. Market Size & Forecast
- 7.3.1.2. Market Share & Forecast
- 7.3.1.2.1. By Type
- 7.3.1.2.2. By Capacity
- 7.3.1.2.3. By Application
- 7.3.2. United Kingdom Electric Arc Furnace Market Outlook
- 7.3.2.1. Market Size & Forecast
- 7.3.2.2. Market Share & Forecast
- 7.3.2.2.1. By Type
- 7.3.2.2.2. By Capacity
- 7.3.2.2.3. By Application
- 7.3.3. Italy Electric Arc Furnace Market Outlook
- 7.3.3.1. Market Size & Forecast
- 7.3.3.2. Market Share & Forecast
- 7.3.3.2.1. By Type
- 7.3.3.2.2. By Capacity
- 7.3.3.2.3. By Application
- 7.3.4. France Electric Arc Furnace Market Outlook
- 7.3.4.1. Market Size & Forecast
- 7.3.4.2. Market Share & Forecast
- 7.3.4.2.1. By Type
- 7.3.4.2.2. By Capacity
- 7.3.4.2.3. By Application
- 7.3.5. Spain Electric Arc Furnace Market Outlook
- 7.3.5.1. Market Size & Forecast
- 7.3.5.2. Market Share & Forecast
- 7.3.5.2.1. By Type
- 7.3.5.2.2. By Capacity
- 7.3.5.2.3. By Application
8. Asia-Pacific Electric Arc Furnace Market Outlook
- 8.1. Market Size & Forecast
- 8.2. Market Share & Forecast
- 8.2.1. By Type
- 8.2.2. By Capacity
- 8.2.3. By Application
- 8.2.4. By Country
- 8.3. Asia-Pacific: Country Analysis
- 8.3.1. China Electric Arc Furnace Market Outlook
- 8.3.1.1. Market Size & Forecast
- 8.3.1.2. Market Share & Forecast
- 8.3.1.2.1. By Type
- 8.3.1.2.2. By Capacity
- 8.3.1.2.3. By Application
- 8.3.2. India Electric Arc Furnace Market Outlook
- 8.3.2.1. Market Size & Forecast
- 8.3.2.2. Market Share & Forecast
- 8.3.2.2.1. By Type
- 8.3.2.2.2. By Capacity
- 8.3.2.2.3. By Application
- 8.3.3. Japan Electric Arc Furnace Market Outlook
- 8.3.3.1. Market Size & Forecast
- 8.3.3.2. Market Share & Forecast
- 8.3.3.2.1. By Type
- 8.3.3.2.2. By Capacity
- 8.3.3.2.3. By Application
- 8.3.4. South Korea Electric Arc Furnace Market Outlook
- 8.3.4.1. Market Size & Forecast
- 8.3.4.2. Market Share & Forecast
- 8.3.4.2.1. By Type
- 8.3.4.2.2. By Capacity
- 8.3.4.2.3. By Application
- 8.3.5. Australia Electric Arc Furnace Market Outlook
- 8.3.5.1. Market Size & Forecast
- 8.3.5.2. Market Share & Forecast
- 8.3.5.2.1. By Type
- 8.3.5.2.2. By Capacity
- 8.3.5.2.3. By Application
9. South America Electric Arc Furnace Market Outlook
- 9.1. Market Size & Forecast
- 9.2. Market Share & Forecast
- 9.2.1. By Type
- 9.2.2. By Capacity
- 9.2.3. By Application
- 9.2.4. By Country
- 9.3. South America: Country Analysis
- 9.3.1. Brazil Electric Arc Furnace Market Outlook
- 9.3.1.1. Market Size & Forecast
- 9.3.1.2. Market Share & Forecast
- 9.3.1.2.1. By Type
- 9.3.1.2.2. By Capacity
- 9.3.1.2.3. By Application
- 9.3.2. Argentina Electric Arc Furnace Market Outlook
- 9.3.2.1. Market Size & Forecast
- 9.3.2.2. Market Share & Forecast
- 9.3.2.2.1. By Type
- 9.3.2.2.2. By Capacity
- 9.3.2.2.3. By Application
- 9.3.3. Colombia Electric Arc Furnace Market Outlook
- 9.3.3.1. Market Size & Forecast
- 9.3.3.2. Market Share & Forecast
- 9.3.3.2.1. By Type
- 9.3.3.2.2. By Capacity
- 9.3.3.2.3. By Application
10. Middle East and Africa Electric Arc Furnace Market Outlook
- 10.1. Market Size & Forecast
- 10.2. Market Share & Forecast
- 10.2.1. By Type
- 10.2.2. By Capacity
- 10.2.3. By Application
- 10.2.4. By Country
- 10.3. Middle East and Africa: Country Analysis
- 10.3.1. South Africa Electric Arc Furnace Market Outlook
- 10.3.1.1. Market Size & Forecast
- 10.3.1.2. Market Share & Forecast
- 10.3.1.2.1. By Type
- 10.3.1.2.2. By Capacity
- 10.3.1.2.3. By Application
- 10.3.2. Saudi Arabia Electric Arc Furnace Market Outlook
- 10.3.2.1. Market Size & Forecast
- 10.3.2.2. Market Share & Forecast
- 10.3.2.2.1. By Type
- 10.3.2.2.2. By Capacity
- 10.3.2.2.3. By Application
- 10.3.3. UAE Electric Arc Furnace Market Outlook
- 10.3.3.1. Market Size & Forecast
- 10.3.3.2. Market Share & Forecast
- 10.3.3.2.1. By Type
- 10.3.3.2.2. By Capacity
- 10.3.3.2.3. By Application
- 10.3.4. Kuwait Electric Arc Furnace Market Outlook
- 10.3.4.1. Market Size & Forecast
- 10.3.4.2. Market Share & Forecast
- 10.3.4.2.1. By Type
- 10.3.4.2.2. By Capacity
- 10.3.4.2.3. By Application
- 10.3.5. Turkey Electric Arc Furnace Market Outlook
- 10.3.5.1. Market Size & Forecast
- 10.3.5.2. Market Share & Forecast
- 10.3.5.2.1. By Type
- 10.3.5.2.2. By Capacity
- 10.3.5.2.3. By Application
11. Market Dynamics
- 11.1. Drivers
- 11.2. Challenges
12. Market Trends & Developments
- 12.1. Merger & Acquisition (If Any)
- 12.2. Product Launches (If Any)
- 12.3. Recent Developments
13. Company Profiles
- 13.1. Danieli & C. Officine Meccaniche S.p.A.
- 13.1.1. Business Overview
- 13.1.2. Key Revenue and Financials
- 13.1.3. Recent Developments
- 13.1.4. Key Personnel/Key Contact Person
- 13.1.5. Key Product/Services Offered
- 13.2. Primetals Technologies Limited
- 13.3. SMS group GmbH
- 13.4. Tenova S.p.A.
- 13.5. Electrotherm (India) Ltd.
- 13.6. Steel Plantech Co., Ltd.
- 13.7. Inductotherm Corp.
- 13.8. IHI Corporation
- 13.9. Lindarc Systems Ltd.
- 13.10. Doshi Technologies Pvt. Ltd.
14. Strategic Recommendations
15. About Us & Disclaimer