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Electric Arc Furnace Market Size, Share & COVID-19 Impact Analysis, By Type (DC Arc Furnace and AC Arc Furnace), By Capacity (Up to 100 Tons, 100 – 300 Tons, and Above 300 Tons), By Application (Ferrous Metals and Non-Ferrous Metals), and Regional Forecast, 2023 – 2030

Region : Global | Format: PDF | Report ID: FBI104745



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The global electric arc furnace market size was USD 730.3 million in 2023 and is projected to reach USD 1,473.8 million by 2030, exhibiting a CAGR of 10.6% during the forecast period. Growing demand for steel and alloys across various industries to boost the growth of electric arc furnace market globally.

The global electric arc furnace market has been experiencing significant growth in recent years due to several key factors. EAFs provide an efficient and cost-effective method for steel production, making them increasingly popular among manufacturers.

Additionally, the push toward sustainable and environment-friendly practices has contributed to the growth of this market. Compared to traditional blast furnaces, EAF produces lower greenhouse gas emissions and consumes less energy, aligning with global efforts to reduce carbon footprints. In 2022, the global electric arc furnace market size was valued at USD 676.5 million.


Disrupted Supply Chain Due to Pandemic Impacted the Market for a Short Time

The pandemic negatively impacted this market, especially in the second quarter of 2020. The end-users of the steel industry were hit hard by the shutdowns and disrupted supply chains. The demand for electric arc furnace across several growing economies was declining significantly.

Commenting on the COVID-19 pandemic effects, the Chairman of the Worldsteel Economics Committee reported that they expect the situation to improve in the coming years gradually; however, the recovery rate was estimated to grow slowly. Post-pandemic, there was a rise in the adoption of EAFs.


Companies' Inclination toward Sustainability Goals in Steel Production 

Key players operating in the market and mining companies are taking steps to curb Scope 1, i.e., direct emissions from controlled or owned sources, and Scope 2, i.e., emissions that are indirect from generating obtained energy, greenhouse emissions arising from their operations. However, they are under increasing pressure to tackle downstream Scope 3 emissions. These emissions are responsible for around 90% of the mining industry’s emissions.

Thus, steel producers and miners realize the need to transform their existing technologies into sustainable ones that reduce carbon emissions. These players are formulating their emission control strategies. This has created a set trend of transforming the traditional blast Scope 1 and Scope 2 greenhouse gas emissions furnace to EAFs.

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Increasing Usage of DRI in Steelmaking to Aid Market Growth

Increasing Direct Reduced Iron (DRI) technology utilization in the steelmaking industry will be a major driving factor for the electric arc furnace market growth. DRI technology is extensively used for steelmaking, reflecting remarkable advantages compared to traditional blast furnace techniques. The DRI process has gained traction for steelmaking that addresses the CO2 emission restriction. Changing production dynamics require the start-and-go action, accomplished with DRI technology, as it can be stopped and restarted immediately and efficiently.

DRI manufacturing and products have developed throughout the years to keep up with expanding needs of the steelmaking industry. As EAF steelmaking expands, DRI gives EAF steelmakers the flexibility to customize their furnace charges to market conditions and the capacity to produce higher-quality steel due to their adjustable carbon level, high metallic iron content, and consistent physical & chemical characteristics.

DRI exhibits several benefits, such as low tramp material content, lower capital and operating costs, predictable chemistry, and relatively uninterrupted & continuous iron making. Increasing steel consumption in various end-use industries is further anticipated to bolster the market.


Initial Capital Investment to Set Up the Capacity to Restrain Market Growth

Electric arc furnaces are complex systems that require specialized equipment such as the furnace itself, transformers, electrodes, charging systems, and off-gas treatment facilities. The cost of procuring and installing these components can be substantial. Building and setting up the physical infrastructure for the electric arc furnace operation, including the furnace building, foundation cooling system, and power distribution networks, add to the initial investment. This financial barrier can impact a company’s decision to enter the market, expand its operation or upgrade its existing facilities.


By Type Analysis

DC Arc Furnaces to Dominate the Market Due to their Higher Energy Efficiency

Based on type, the market is segmented into DC arc furnaces and AC arc furnaces.

The DC arc furnaces segment dominated the market share and is anticipated to continue its dominance during the forecast period. DC arc furnaces are generally more energy efficient than AC arc furnaces. They provided better control over electrical energy supplied to the furnace resulting in higher efficiency and reduced energy consumption. Therefore, they hold the majority of the global market share and are expected to dominate the global market throughout the forecast period.

The AC arc furnaces segment also holds considerable market share, owing to the lower initial cost of investment compared to DC arc furnaces making them more accessible for smaller operations or businesses with budget constraints. In addition, AC arc furnaces are well-suited for melting certain types of alloys and materials.

By Application Analysis 

High Adoption of EAF in Steelmaking to Boost Ferrous Metals Segment

Based on application, the market is categorized into ferrous metals and non-ferrous metals.

The ferrous metals segment constitutes the highest market share within the global market. It majorly encompasses the production of iron and steel. EAFs have gained prominence in this sector due to their economic advantages as they offer a cost-effective and environmentally conscious alternative to traditional blast furnaces. Their ability to efficiently recycle scrap steel and accommodate different steel grades gives manufacturers the flexibility to respond to demands swiftly. In addition, their reduced carbon emissions contribute to sustainable goals and align with the global shift toward greener industrial practices.

The non-ferrous segment metals segment caters to materials such as copper, aluminum, and other non-iron-based metals. While EAFs are majorly associated with ferrous metals, this segment also holds considerable market share. Through processes, such as copper recycling and secondary aluminum production, EAFs contribute to the non-ferrous metals segment.

By Capacity Analysis 

Up to 100 Tons Segment Holds the Highest Market Share due to Higher Flexibility

Based on capacity, the market is divided into up to 100 tons, 100-300 tons, and above 300 tons.

The up to 100 tons segment to hold the highest market share and grow at the highest CAGR over the forecast period since they strike a balance between production capacity and operational flexibility, making them well suited for a diverse range of applications ranging from foundry to integrated steel plants.

The 100-300 tons segment also holds significant market share due to their capacity to handle larger production volumes compared to smaller EAFs, while still offering operational efficiency and cost-effectiveness.

The above 300 tons segment holds the least market share as they require substantial investment in terms of infrastructure, energy consumption, and maintenance, which hinder the segment’s growth.

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The scope of the study is further segmented across five major regions, North America, Europe, Asia Pacific, the Middle East & Africa, and South America. They are further categorized into countries.

Asia Pacific dominated the global electric arc furnace market share in 2022 and is expected to hold the highest market share throughout the forecast period due to large-scale production of steel in the region. Further, rapid urbanization and increased industrialization in China, India, and Japan have significantly driven the demand for steel and other metals produced using EAF.

Asia Pacific Electric Arc Furnace Market Size, 2022 (USD Million)

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China is the world’s largest producer of steel, producing more steel than the rest of the countries combined. This has been a significant driver in the growth of this market in the country. In addition, the strong manufacturing base of the country and government support are contributing to the market growth. As China continues to evolve its steel production methods, the adoption of EAFs is expected to support the market growth.

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In Europe, this market has evolved with a focus on technological innovation, sustainability, and stringent environmental regulation. The region holds the second-highest market share after Asia Pacific in 2022. With a strong emphasis on reducing carbon emissions, many European countries have adopted EAFs as green alternatives to blast furnaces. Italy and Germany are the major contributors to the market.

The North America market is characterized by its integration of EAF technology with scrap recycling and minimills operations. The U.S. is the major contributing country in the region. The steel produced in the country by EAF steelmakers has carbon intensity that is approximately 75% lower than traditional blast furnace steelmakers. The growing trend toward electric vehicles in the region is influencing the steel demand and consequently the market.

In the Middle East & Africa, the market is growing steadily due to increasing demand for steel for construction activities.

South America has a smaller market share due to relatively higher reliance on blast furnaces. However, Brazil and Argentina are beginning to embrace EAFs to meet their sustainable goals.


Major Manufacturers in the World are committed to Sustainability to Reduce Carbon Emissions

The key market players in the industry exemplify a dynamic landscape marked by technological innovation, sustainability efforts, operational efficiency, and diversification. With a global reach, the major electric arc manufacturers play a pivotal role in shaping the modern steelmaking landscape.

List of Key Companies Profiled:


  • July 2023: Tenova supplied its electric arc furnace to ORI Martin, a European steel group that specializes in manufacturing steel for the automotive, fastener, mechanical, and building sectors. Tenova replaced the EAF at the mill in Brescia, Italy.

  • June 2023: ArcelorMittal has planned to invest in a new electric arc furnace production capacity at Belval, Luxembourg. The company planned to invest approximately USD 16.4 million.

  • January 2023: Shinkansai Steel Co. Ltd., a Japanese flat-steel manufacturer, came into contract with Danieli to build its Q-One digital power electronics technology to operate Electric Arc Furnaces and maintain the power factor close to unity.

  • August 2022: Primetals Technologies and Salzgitter Flachstahl GmbH have undergone a contract for the engineering, supply, and installation of an electric arc furnace where the company has made a capital investment for a low carbon dioxide (CO2) steelmaking facility.

  • December 2020: The American steel manufacturer Big River Steel expanded the second construction stage of its steel plant with the help of electric arc furnaces supplied by SMS Group.


The report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product/service types, and leading applications of the product. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years.

An Infographic Representation of Electric Arc Furnaces Market

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Report Scope & Segmentation



Study Period


Base Year


Estimated Year   


Forecast Period


Historical Period


Growth Rate

CAGR of 10.6% from 2023 to 2030


Value (USD Million)


By Type, Capacity, Application, and Region












By Type

  • DC Arc Furnace

  • AC Arc Furnace

By Capacity

  • Up to 100 Tons

  • 100 – 300 Tons

  • Above 300 Tons


By Application

  • Ferrous Metals

  • Non-Ferrous Metals

By Region

  • North America (By Type, By Capacity, By Application, and By Country)

    • U.S. (By Capacity)

    • Canada (By Capacity)

    • Mexico (By Capacity)

  • Europe (By Type, By Capacity, By Application, and By Country)

    • Germany (By Capacity)

    • U.K. (By Capacity)

    • France (By Capacity)

    • Italy (By Capacity)

    • Rest of Europe

  • Asia Pacific (By Type, By Capacity, By Application, and By Country)

    • China (By Capacity)

    • India (By Capacity)

    • Japan (By Capacity)

    • South Korea (By Capacity)

    • Rest of Asia Pacific

  • Middle East and Africa (By Type, By Capacity, By Application, and By Country)

    • Turkey (By Capacity)

    • GCC (By Capacity)

    • South Africa (By Capacity)

    • Rest of Middle East and Africa

  • South America (By Type, By Capacity, By Application, and By Country)

    • Brazil (By Capacity)

    • Argentina (By Capacity)

    • Rest of South America


Frequently Asked Questions

The market is projected to reach USD 1,473.8 million by 2030.

In 2022, the market was valued at USD 676.5 million.

The market is projected to grow at a CAGR of 10.6% during the forecast period.

The DC arc furnace segment is expected to lead the market.

Increasing usage of DRI in steelmaking is a key factor driving market growth.

Danieli & C. Officine Meccaniche SpA, Nippon Steel Corporation, ArcelorMittal, SMS Group GmbH, Tenova S.p.A., Electrotherm, Primetals Technologies, Paul Wurth IHI Co., Ltd., JP Steel Plantech Co., and Wuxi Dongxong Heavy Arc Furnace Co., Ltd are the top players in the market.

Asia Pacific is expected to hold the highest market share.

By application, the ferrous metals segment is expected to grow with a remarkable CAGR during the forecast period.

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