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Electric Arc Furnaces Market Size, Share, and Analysis, By Type (DC Arc Furnace and AC Arc Furnace), By Application (Ferrous Metals and Non-Ferrous Metals), By Capacity (Below 100 Tons, 100-300 Tons, and Above 300 Tons), and By Region (North America, Europe, Asia-Pacific, And Rest of the World) And Regional Forecast 2024-2034
Electric Arc Furnaces Market is anticipated to grow at a CAGR of 9.2% in the forecast period (2024-2034), with the market size valued at USD 0.93 billion in 2023 and projected to reach USD 2.45 billion by 2034.
Electric arc furnaces (EAFs) refer to essential equipment that are used in the production of steel and utilizes electric arcs between graphite electrodes and recycled steel scrap to reach temperatures as high as 3000°C. The process melts the scrap, which enables the elimination of impurities and offer precise control over the steel composition. EAFs have advantages over traditional blast furnaces, such as low emissions, less energy use, and more material flexibility. They play an important role in the production of specialty steels and alloys with specific compositions, which makes substantial contributions to modern steel manufacturing. Furthermore, EAFs play an important role in steel recycling, which supports sustainable practices through the efficient use of scrap metal. Therefore, EAFs are efficient alternative in steel manufacturing, which assures that the industry complies with environmental and economic requirements.
Electric Arc Furnaces Market is anticipated to reach USD 2.45 billion, growing at a CAGR of 9.2% during the forecast period, owing to high demand for steel and other metals due to infrastructure developments happening across developing economies. Additionally, technological improvements, along with the integration of AI and data visualization tools are assisting in using electric furnaces more effortlessly and efficiently. Moreover, electric furnaces are predominately used in the steelmaking and metal recycling industries. It is used to create steel and across the automobile, construction, and manufacturing sectors. In metal recycling, it is employed in recycling waste metals from landfills. Furthermore, continuous R&D initiatives to improve EAF technology, such as the integration of digitalization and automation, are projected to boost market growth.
Source: Fatpos Global
By Type, Electric Arc Furnaces are categorized into AC and DC arc furnaces. DC arc furnaces is expected to dominate the market due to their superior energy efficiency. When compared to AC furnaces, DC furnaces can save more than 10% of overall energy consumption. They often have high and faster melting durations, which immediately means that these furnaces can create more steels or metals in a shorter period of time, which improves their quality and work efficiency. DC furnaces usually come with a simpler and sleek design with less electrodes as compared to AC, which results in low maintenance and operational costs. Therefore, while AC furnaces have a low investment cost, the energy efficiency factors of DC furnaces make them better for melting and improving metal qualities.
By Capacity, Electric Arc Furnace Market can be categorised into Below 100 Tons, 100-300 Tons, and Above 300 Tons. The below 100 tons segment is anticipated to lead the market due to their larger demand and application in small steel mills, which usually help to address the needs of small size or local markets. Additionally, below 100 Tons variant can produce high quality steel in small batches, which is extremely useful for several industries. They require low initial investments to setup as compared to larger units, which becomes economically viable for more small businesses. Furthermore, in developing economies such as China and India, below 100 tons furnaces are more important for the regional growth in smaller markets. Therefore, despite the better producing capacities of larger variants, the below 100 variants dominates the market due to its cost effectiveness and flexibility.
Source: Fatpos Global
Surge In Global Steel Demand in Every Major Industry to Drive the Market
Steelmaking is one of the most important products in the Electric Arc Furnace Market. Rapid industrialization in developing economies, such as the Asia-Pacific Region, leads to high construction activities, which drives the demand for steel for construction and transportation networks. Moreover, growing industries such as automobile, manufacturing, aerospace, and shipbuilding, significantly depend on steel-based commodities, which raises the demand for steel across the market. The increase in demand for sustainable steel products makes Electric Arc a preferred choice as they can adjust to diverse scrap and different volumes of steel. Besides, governments around the world are investing in infrastructure projects such as roads, bridges, and renewable energy, which further drives up the usage of steel.
Advancement In Furnace Technology Is Leading the Way for Electric Furnace Market
Technological innovations across the industry are improving the production and output capacity of electric arc furnaces. Developments such as DC arc furnaces with better materials and automation systems are increasing the efficiency and performance of Electric Arc Systems. Additionally, the incorporation of new computer-oriented technology such as data analytics and AI processing aids in reducing energy usage while improving the general effectiveness of electric furnaces. Furthermore, electric arc furnaces are now equipped with advanced features such as off-gas collection and treatment systems, which directly contribute to reducing emissions and aligns with sustainability to meet the set environmental targets.
High Initial Investments for Setting Up the Industrial Plants Can Hinder the Financial Growth
Electric Arc Furnaces usually have low operational costs in the long term, but their high initial investments can be discouraging for some companies or manufacturers. Electric Arc Furnaces are usually a complex machinery which involves powerful automated systems and electrical components, which add up to high expenses. The auxiliary equipment required for EAFs, such as scrap handling systems, dust collection systems, slag processing facilities, and casting equipment, further increases the initial investment. EAFs need typical emission control systems, such as air and water treatment systems, to adhere to environmental regulations. Moreover, obtaining permits and licenses from the government can be an expensive task. These financial limitations can prevent companies from entering the market and adopting electric arc furnaces.
Electric Arc Furnaces Market is segmented based on regional analysis into five major regions: North America, Latin America, Europe, Asia Pacific and the Middle East and Africa. The Asia Pacific region dominated the Electric Arc Furnaces Market due to the swift growth in countries such as India, China, Vietnam, South Korea and Others. This region holds the largest scrap producing capability, which makes raw materials easily available in the market. Additionally, innovations in the steelmaking process improves the efficiency and environmental performance, which strengthens the position of Asia Pacific in the global EAF market. Furthermore, large infrastructure projects in the region, such as roads, airports and building, are responsible to significantly increase the demand for steel as well.
Concurrently, Europe has the second highest market share in the electric arc furnace market, but development is declining due to a maturing steel sector and more rigid environmental rules implemented by the European Union. However, Europe promotes technological innovation and sustainability, encouraging DC Electric Furnaces for greener manufacturing.
Source: Fatpos Global
Covid-19 pandemic led to disruptions in the supply chain and mitigated the demand for steel and related products, which affected the electric arc furnace market. Initially, manufacturing facilities and construction projects were temporarily closed due to lockdowns and restrictions, which led to a significant low demand for steel. However, as the global economies recovered, the electric furnace market also displayed significant recovery signs. Governments and Industrial organisations released financial relief packages in order to assist the steel and other manufacturing industries, which were affected by the pandemic. This immediately contributed to a slower but more positive increase in the overall electrical furnace market.
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ATTRIBUTE |
DETAILS |
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Study Period |
2018-2034 |
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Base Year |
2023 |
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Forecast Period |
2024-2034 |
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Historical Period |
2019-2022 |
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Growth Rate |
CAGR of 9.2% from 2024-2034 |
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Unit |
Value (USD Billion) |
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Segmentation |
Main Segments List |
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By Type |
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By Application |
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By Capacity |
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By Region |
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Electric Arc Furnaces Market size was values at USD 0.93 million in 2023 and is projected to reach the value of USD 2.45 billion in 2034, exhibiting a CAGR of 9.2% during the forecast period.
Electric Arc Furnaces are effective industrial furnaces, which play an important role in the metal industry, particularly steelmaking. These furnaces comprise of a solid heat-resistant shell, which consumes three graphite electrodes to initiate an electric arc, while creating intense heat within the melting chamber.
The DC Electric Arc and Below 100 Ton segment accounted for the largest Electric Arc Furnaces Market share.
Key players in the Electric Arc Furnaces Market include Danieli & C. Officine Meccaniche S.p.A., SMS group GmbH, Nippon Steel Corporation, Siemens AG, Electrotherm (India) Limited, Tenova S.p.A., Mitsubishi Heavy Industries, Ltd., China First Heavy Industries, Primetals Technologies Limited, Techint Group IHI Corporation, TENOVA LOI, Thermprocess GmbH, Doshi Technologies Pvt. Ltd., Inductotherm Corp., Mcwane, Inc., and Other Prominent Players.
Rising demand for steel due to infrastructure developmental projects and the incorporation of advanced technologies are the factors driving the Electric Arc Furnaces Market.
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