Electric Arc Furnace Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented, 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), By Region, By Competition, 2020-2030F

Market Overview

The Electric Arc Furnace Market was valued at USD 1.61 Billion in 2024 and is expected to reach USD 3.08 Billion by 2030 with a CAGR of 11.25%.  The Electric Arc Furnace (EAF) Market refers to the global industry involved in the design, production, deployment, and maintenance of electric arc furnaces, which are high-temperature furnaces that utilize electrical energy to melt and refine metal—primarily steel—by creating an electric arc between graphite electrodes and the metal charge. These furnaces are widely used in the steelmaking sector, particularly for recycling scrap steel and producing specialty steels and alloys, offering a more energy-efficient and environmentally sustainable alternative to traditional blast furnace methods. The market encompasses various types of EAFs, including alternating current (AC), direct current (DC), and ultra-high power (UHP) furnaces, each suited for specific operational capacities and production needs. The EAF market is driven by growing global steel demand, the increased availability and recycling of scrap steel, and the push toward decarbonization in heavy industries.

Key Market Drivers

Rising Demand for Scrap-Based Steel Production to Drive Electric Arc Furnace Adoption

The growing global emphasis on sustainable and eco-friendly steel manufacturing practices is significantly boosting the demand for electric arc furnaces (EAFs), which primarily rely on scrap metal as a raw material rather than traditional iron ore. This shift is being driven by increasing environmental concerns, regulatory pressures to reduce carbon emissions, and the growing availability of steel scrap due to urbanization, construction demolition, and end-of-life vehicle recycling. EAFs emit significantly lower greenhouse gases compared to blast furnaces, making them a key technology in helping the steel industry transition to low-carbon operations. Furthermore, the circular economy model being adopted in many regions prioritizes material reuse and resource efficiency, with scrap steel recycling emerging as a pivotal practice. EAFs offer the flexibility to handle a wide variety of scrap grades and can produce high-quality steel with lower energy consumption, which is attractive to manufacturers aiming to improve energy efficiency and reduce operational costs.

This demand is particularly noticeable in developed regions like North America and Europe, where scrap steel is abundant and environmental regulations are stringent. Meanwhile, developing countries are also beginning to recognize the long-term cost benefits and sustainability of EAFs, leading to a gradual phasing out of older, polluting steelmaking technologies. The decarbonization commitments by major steel producers and government support through incentives and green policies further reinforce the transition to EAF-based steelmaking. As a result, the need for environmentally viable production techniques is creating robust market traction for electric arc furnaces across both integrated and mini-mill steel manufacturing operations. Over 600 million metric tons of steel are produced annually using electric arc furnaces (EAFs), which rely heavily on scrap. Scrap-based production currently accounts for approximately 30% of total global steel output. The global steel scrap market is projected to exceed 1 billion metric tons per year by 2030. By 2030, scrap-based steelmaking is expected to contribute 40–45% of global steel production due to decarbonization goals. Using scrap-based methods can reduce CO₂ emissions by up to 60–70% compared to traditional blast furnace routes.

Technological Advancements Enhancing Efficiency and Productivity of EAF Systems

Technological innovations in electric arc furnace systems are playing a pivotal role in driving their market growth by significantly enhancing operational efficiency, reducing power consumption, and enabling high-quality steel output. Modern EAFs are now equipped with advanced process control systems, real-time monitoring, automated slag handling, high-impedance power supplies, and preheating technologies that improve arc stability, shorten tap-to-tap times, and reduce overall energy requirements. These innovations translate into higher productivity, lower operational costs, and better consistency in steel quality, which are crucial for meeting the evolving demands of downstream industries such as automotive, construction, infrastructure, and appliance manufacturing.

Additionally, smart EAFs integrated with AI and digital twins allow for predictive maintenance, real-time optimization, and remote diagnostics, which greatly minimize unplanned downtime and enhance the lifespan of critical components. These improvements not only reduce operational expenditures but also lower the environmental footprint by optimizing the use of raw materials and energy. Furnace manufacturers are also focusing on modular designs and compact configurations that cater to space-constrained production facilities and enable flexible scaling according to production needs.

The adoption of direct reduced iron (DRI) as a feedstock alongside scrap in EAFs is another technological evolution, helping to further lower impurities and enable cleaner steel production. With these continued innovations and the increasing focus on digital transformation across the manufacturing sector, EAF systems are becoming more attractive to both new entrants and existing players upgrading their steelmaking infrastructure. As a result, the surge in technological advancements is acting as a strong catalyst propelling the global electric arc furnace market forward.

Expanding Steel Demand in Emerging Economies Fueling EAF Market Growth

The rapid industrialization and urban development occurring in emerging economies across Asia-Pacific, Latin America, and the Middle East are significantly contributing to the increasing demand for steel, thereby propelling the growth of the electric arc furnace market. Countries such as India, Brazil, Indonesia, and Turkey are witnessing massive investments in infrastructure development, residential and commercial construction, automotive production, and manufacturing capacity expansion, all of which require substantial volumes of steel. Electric arc furnaces offer an ideal solution for these regions due to their relatively lower capital investment requirements, shorter construction time, and ability to operate with flexible raw material inputs such as scrap metal and DRI.

This makes EAFs particularly suitable for mini-mills and regional steel producers who aim to quickly meet local demand without the need for integrated steel plants based on the traditional blast furnace route. Additionally, governments in these regions are increasingly focusing on reducing import dependency, promoting domestic manufacturing, and encouraging the recycling of materials, which aligns well with the capabilities of EAF technology. The rising availability of steel scrap due to growing urban consumption patterns and the strengthening of scrap collection systems also support the adoption of EAFs.

Moreover, the ongoing global energy transition is pushing industries in developing countries to adopt greener and more energy-efficient technologies, with EAFs emerging as a strategic alternative to reduce carbon intensity. The combination of expanding steel consumption, supportive policy environments, and evolving infrastructure needs in emerging economies continues to create a fertile ground for electric arc furnace adoption, further stimulating market expansion across these high-growth regions. Global steel demand is projected to surpass 2.3 billion metric tons annually by 2030, driven largely by emerging markets. Emerging economies account for over 70% of the incremental steel demand growth over the next decade. Countries across Asia, Africa, and Latin America are expected to see steel demand grow at 4–6% annually, outpacing global averages. Infrastructure and construction contribute to nearly 60% of steel consumption in emerging markets. Urbanization trends could add over 2.5 billion people to cities by 2050, fueling demand for steel in housing, transport, and utilities. Steel use per capita in emerging markets is still 40–50% lower than in developed nations, indicating significant growth potential.

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Key Market Challenges

High Energy Consumption and Volatility in Electricity Prices

One of the most significant challenges facing the Electric Arc Furnace (EAF) market is the high and volatile cost of electricity, which directly impacts the operational efficiency and overall profitability of EAF steelmaking. Unlike traditional blast furnaces that rely primarily on coke as an energy source, EAFs consume substantial amounts of electricity to melt scrap steel or direct reduced iron (DRI). In many regions, the industrial tariff for electricity is subject to frequent fluctuations due to changes in government policy, fuel costs, and grid capacity constraints. These variations create uncertainty for EAF operators, making it difficult to forecast production costs or commit to long-term pricing strategies. Additionally, peak hour demand charges can dramatically increase the cost per ton of steel produced, especially in markets with underdeveloped energy infrastructure.

The problem is exacerbated in developing countries or regions with unstable grids, where power outages, poor voltage quality, or supply shortages can result in costly production halts. Furthermore, EAFs require a consistent and reliable power supply to maintain the integrity of the metallurgical process; any disruptions not only delay production but can also damage equipment, leading to higher maintenance costs and operational risks. Compounding this challenge is the growing global pressure to shift toward green and renewable energy sources, which, while environmentally beneficial, can introduce intermittency issues into power supply systems. Wind and solar energy, for example, are not always available on demand, and unless properly balanced with energy storage or grid management systems, they may not provide the consistent, high-load electricity required for EAF operation.

These energy-related challenges compel steel producers to invest in costly energy management technologies or enter into power purchase agreements (PPAs) to secure more stable pricing—options that may not be feasible for smaller players. As the global push for electrification and decarbonization continues, the demand for electricity is set to rise across multiple sectors, further intensifying competition for energy resources and potentially inflating prices. All of these factors place significant financial pressure on EAF manufacturers and operators, requiring strategic responses such as geographic diversification of plants, the integration of energy-efficient technologies, or the establishment of in-house power generation facilities. In the absence of long-term, affordable, and reliable energy solutions, the growth of the EAF market could be significantly restrained, especially in regions where electricity infrastructure is either overburdened or not adequately developed.

Scrap Quality and Availability Constraints

Another pressing challenge for the Electric Arc Furnace market is the growing issue of scrap steel quality and availability, which poses operational, economic, and environmental implications. EAF technology primarily relies on steel scrap as its raw material input, and the quality of this scrap has a direct influence on the efficiency, output quality, and cost-effectiveness of steel production. However, with increasing global demand for recycled steel and the expansion of EAF-based facilities across both developed and emerging markets, the competition for high-quality, uncontaminated scrap has intensified. This surge in demand has led to rising scrap prices and greater volatility in supply chains, especially in regions with limited scrap recycling infrastructure or stringent export regulations.

Additionally, the composition of scrap has changed over time; modern scrap increasingly contains a higher proportion of impurities such as copper, tin, and other residual elements that are difficult to remove in the EAF process. These contaminants can adversely affect the mechanical properties of the finished steel, making it less suitable for high-grade applications in industries like automotive, aerospace, or infrastructure. As a result, EAF operators are often forced to blend scrap with more expensive virgin iron sources such as DRI or pig iron to meet quality requirements, thereby undermining the cost advantage traditionally associated with EAF production. Furthermore, inconsistency in scrap size, density, and contamination levels complicates furnace operations and may increase melting times, energy consumption, and wear and tear on furnace linings and electrodes. The logistics of scrap collection, sorting, and transportation also present significant bottlenecks, particularly in countries where recycling rates are low or informal sectors dominate the supply chain.

Environmental regulations related to scrap handling and processing add further complexity, requiring capital investments in compliance systems and environmentally friendly processing equipment. Moreover, as nations strive to adopt circular economy principles and reduce reliance on primary resources, the pressure on domestic scrap ecosystems intensifies, especially in densely populated and industrially advanced regions where scrap generation may not keep pace with EAF demand. These challenges are particularly acute in rapidly industrializing countries that aim to transition from traditional blast furnace methods to EAF-based production for sustainability goals but lack sufficient local scrap availability.

Consequently, the global imbalance between scrap-rich and scrap-deficient regions could reshape trade flows, introduce supply chain vulnerabilities, and make the EAF market more sensitive to geopolitical tensions and trade policy shifts. Without effective strategies to ensure a stable and high-quality scrap supply—such as advanced sorting technologies, improved recycling systems, or the development of secondary raw material markets—the EAF industry may face persistent operational inefficiencies and margin pressures that hinder its widespread adoption and sustainable growth.

Key Market Trends

Shift Toward Sustainable Steel Production Driving Demand for Electric Arc Furnaces

The global push toward decarbonization and environmental sustainability is significantly reshaping the steel manufacturing industry, with electric arc furnaces gaining traction as a cleaner and more energy-efficient alternative to traditional blast furnaces. This shift is driven by the rising pressure on steel manufacturers to reduce carbon emissions, as EAFs rely primarily on electricity and recycled scrap steel, thereby emitting far less CO₂ than blast furnace-based steelmaking. The growing enforcement of carbon pricing mechanisms and emissions trading systems, especially in developed economies, is making carbon-intensive technologies increasingly costly to operate, which further accelerates the transition to EAFs.

Additionally, multinational steel producers are aligning their strategies with environmental, social, and governance (ESG) goals and integrating low-carbon technologies into their manufacturing facilities to meet investor expectations and regulatory requirements. This trend is also reinforced by the rising availability of renewable electricity, allowing EAFs to further reduce their carbon footprint when powered by solar, wind, or hydro energy. As countries implement green steel initiatives and incentivize low-emission production methods through tax benefits or funding grants, EAFs are becoming the preferred choice for modern steel plants.

Furthermore, the circular economy principles are gaining momentum, and EAFs perfectly align with these by utilizing scrap steel, reducing the need for virgin ore extraction, and minimizing waste. The expanding urban mining practices and improvements in scrap sorting technologies have enhanced the quality and availability of steel scrap, which is essential for EAF operations. All these developments indicate a clear trend toward increased EAF installations, retrofitting of older steel plants with electric arc systems, and a growing share of global steel production shifting to this greener and more sustainable approach.

Technological Advancements Enhancing Efficiency and Automation in EAF Operations

The electric arc furnace market is witnessing a strong trend toward digitalization and automation, with advanced technologies being integrated into furnace operations to boost efficiency, safety, and process control. Innovations such as real-time process monitoring, advanced control systems, and artificial intelligence are transforming EAF performance by enabling precise temperature control, optimized energy consumption, and predictive maintenance. These enhancements are particularly important in an industry that is highly energy-intensive and cost-sensitive.

The adoption of Industry 4.0 technologies such as digital twins, smart sensors, and machine learning algorithms is helping operators detect inefficiencies, prevent downtime, and fine-tune the melting process for various scrap qualities. Moreover, the integration of robotics for material handling, slag removal, and electrode regulation is minimizing human intervention in hazardous environments and improving worker safety. Leading furnace manufacturers are also introducing modular EAF designs that can be scaled or adapted to different production capacities and raw material inputs, which increases operational flexibility. Innovations in refractory materials and cooling systems are extending furnace life, reducing maintenance requirements, and allowing for higher productivity cycles.

Furthermore, advanced energy recovery systems are now being incorporated to capture and reuse heat, which significantly reduces the net energy demand of EAF operations. As competition intensifies and profit margins narrow, steel producers are increasingly investing in smart furnace technologies to enhance throughput, lower operational costs, and meet strict environmental norms. This trend is also supported by government funding and incentives for digital transformation in industrial manufacturing. As a result, technological innovation is playing a pivotal role in the evolution of the electric arc furnace market, making modern EAFs more intelligent, efficient, and environmentally aligned than ever before.

Growing Demand for Mini-Mills and Regional Steel Production Boosting EAF Adoption

The electric arc furnace market is experiencing a notable trend with the rise of mini-mills and regional steelmaking hubs, particularly in developing economies and industrializing regions. Mini-mills, which typically use EAFs to produce steel from scrap, offer greater flexibility, lower capital investment, and quicker operational startup compared to integrated steel plants. These advantages are proving attractive to investors and local governments aiming to establish localized steel production facilities to meet domestic infrastructure, automotive, and construction demands. The decentralization of steel production is also being driven by global supply chain challenges, fluctuating raw material prices, and the desire for countries to become more self-sufficient in critical industries.

EAF-based mini-mills are well-suited for this purpose because they can be built closer to end-users, reducing logistics costs and improving responsiveness to market needs. In addition, many regions are witnessing strong growth in urban redevelopment and construction recycling, which results in a steady supply of steel scrap—a crucial feedstock for EAFs. The rise of steel-consuming sectors such as wind energy, electric vehicles, and modular construction is also creating new markets for high-quality steel produced through environmentally cleaner EAF methods.

Countries in Southeast Asia, Latin America, and the Middle East are actively investing in EAF-based production capacities to modernize their steel sectors and reduce reliance on imports. Moreover, the modular nature of EAFs allows mini-mills to scale up or adjust operations based on market dynamics, offering greater economic resilience. As global steel production patterns continue to shift from centralized to regional models, the demand for compact, energy-efficient, and scrap-based EAF systems is expected to rise sharply, positioning mini-mills as a dominant force in the next phase of steel industry evolution.

Segmental Insights

Type Insights

The DC Arc Furnace segment held the largest Market share in 2024. The DC arc furnace segment in the Electric Arc Furnace (EAF) market is experiencing significant growth driven by its superior operational efficiency, energy savings, and ability to process a wide variety of raw materials including lower-grade scrap. One of the key drivers propelling the adoption of DC arc furnaces is their lower power consumption compared to traditional AC furnaces, which translates into reduced operating costs and enhanced economic feasibility for steel manufacturers. In addition, DC arc furnaces generate a more stable arc and require only a single electrode, minimizing electrode wear and improving overall furnace life.

This not only lowers maintenance and replacement expenses but also ensures smoother operations and greater production uptime. The increasing demand for sustainable and environmentally friendly steelmaking processes further accelerates the preference for DC arc furnaces, as they produce fewer greenhouse gas emissions, support the circular economy by enabling higher scrap utilization, and are compatible with renewable electricity sources. Furthermore, regulatory pressures aimed at reducing industrial carbon footprints are pushing steel producers to modernize their infrastructure, favoring energy-efficient technologies such as DC arc furnaces. The segment also benefits from growing investments in mini mills, which prefer EAF-based steel production due to its scalability and cost-effectiveness, and increasingly choose DC arc designs for their performance advantages.

Rapid urbanization and infrastructure development, particularly in emerging economies, are fueling the demand for steel, prompting manufacturers to enhance capacity with advanced technologies that align with global sustainability goals. Technological advancements, such as digital control systems and process automation in DC arc furnaces, are improving process consistency, productivity, and safety, making them more attractive to large- and mid-scale producers alike. Additionally, volatile raw material prices and energy costs are encouraging steelmakers to adopt flexible, adaptive systems like DC arc furnaces that allow for operational agility and better cost control. With industry players focusing on optimizing energy usage and maximizing output, the demand for DC arc furnaces is further catalyzed by their proven ability to handle fluctuating load conditions and offer precise temperature control.

Strategic expansions and retrofitting of existing plants with DC arc technology are also contributing to market growth, especially in regions with aging steel infrastructure that requires modernization. Moreover, government incentives and funding for green technologies in steel manufacturing are reinforcing market momentum for this segment. The resilience of DC arc furnace systems in the face of power quality fluctuations and their suitability for a wide range of alloyed steel products are enhancing their applicability across diverse end-user industries including construction, automotive, and manufacturing. Overall, the convergence of economic, environmental, and technological factors is creating a robust demand environment for the DC arc furnace segment, positioning it as a critical component in the future landscape of sustainable and efficient steelmaking.

Capacity Insights

The Up to 100 Tons segment held the largest Market share in 2024. The Electric Arc Furnace (EAF) market in the Up to 100 Tons segment is experiencing robust growth driven by several key factors, primarily due to the rising demand for small to medium-scale steel production facilities that prioritize flexibility, energy efficiency, and environmental sustainability. This segment is particularly favored by regional mini-mills and specialty steel producers that operate on a smaller scale but require high productivity with lower operational costs. The growing emphasis on decentralized steel manufacturing, especially in emerging economies, is pushing demand for compact and cost-effective EAF systems that can operate efficiently with lower batch sizes.

Additionally, these furnaces are well-suited for urban or peri-urban installations where space constraints and stricter environmental regulations necessitate compact, low-emission solutions. As global efforts toward decarbonization intensify, the Up to 100 Tons EAF systems are increasingly preferred due to their ability to use 100% scrap steel and renewable electricity, aligning with circular economy principles and carbon reduction targets. Moreover, advancements in digital technologies, such as automated control systems, AI-based process optimization, and remote monitoring, are enhancing the operational reliability and energy efficiency of small-capacity EAFs, further boosting their adoption. The construction boom in developing countries, coupled with rapid industrialization and infrastructure development, is also creating significant demand for localized steel production, encouraging the deployment of smaller EAF units that can quickly respond to regional market needs.

Furthermore, the relatively lower capital investment required for Up to 100 Tons EAF systems, compared to larger capacity or integrated steelmaking methods, makes them an attractive option for small and medium enterprises looking to enter the steel production sector. Government initiatives that promote green steel production through tax incentives and funding programs are also supporting the installation of smaller, energy-efficient EAFs, especially in countries focused on reducing their industrial carbon footprints. The rising global steel scrap availability, driven by increasing recycling rates, is another contributing factor that makes the use of EAFs economically viable and logistically advantageous. Overall, the convergence of technological innovation, regulatory support, and changing steel production dynamics is creating a favorable environment for the growth of the Up to 100 Tons segment in the Electric Arc Furnace market.

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Regional Insights

Largest Region

The North America region held the largest market share in 2024. The Electric Arc Furnace (EAF) market in the North America region is experiencing robust growth driven by a combination of technological advancement, regulatory support, and growing demand for sustainable steel production methods. One of the key drivers is the increasing emphasis on decarbonization and environmental sustainability, prompting steel manufacturers to shift from traditional blast furnaces to EAFs, which offer lower carbon emissions and higher energy efficiency. This shift is further supported by stringent government regulations aimed at reducing industrial carbon footprints, along with incentives for adopting energy-efficient technologies. Additionally, the growing availability and use of scrap steel, which is the primary raw material for EAFs, enhances their economic viability and operational efficiency.

The region's well-established scrap metal collection infrastructure and recycling systems contribute significantly to the increased adoption of EAF technology. Moreover, ongoing advancements in automation, digital control systems, and sensor-based technologies are enhancing furnace performance, safety, and output quality, encouraging more manufacturers to invest in these solutions. The resurgence of domestic manufacturing and the reshoring of key industries in the U.S. and Canada are also playing a pivotal role in boosting the regional steel demand, further amplifying the need for flexible, scalable, and cost-effective steelmaking methods like EAFs.

The push for infrastructure modernization under federal programs is another vital driver, as large-scale infrastructure projects require significant steel inputs, creating sustained demand for efficient steel production capabilities. Furthermore, North American steelmakers are increasingly focusing on producing high-quality specialty steel for automotive, aerospace, and energy applications, and EAFs allow better control over composition and quality, making them well-suited for producing value-added steel products. The integration of renewable energy sources, such as solar and wind, into EAF operations is also gaining momentum, reducing dependency on conventional electricity and aligning operations with broader sustainability goals.

Market players in the region are actively investing in new EAF facilities and upgrading existing plants to enhance productivity and environmental compliance, reinforcing the upward trajectory of the market. Strategic collaborations between steel producers, technology providers, and government bodies are facilitating knowledge sharing and accelerating innovation in furnace design and process optimization. Additionally, the economic viability of EAFs is improving due to fluctuating global iron ore prices and increasing costs of coking coal, which make blast furnace operations less attractive. Labor shortages and rising energy prices are also encouraging industries to adopt automation and energy-efficient technologies, where EAFs present a viable solution.

North America’s commitment to clean energy and advanced manufacturing practices, alongside favorable trade policies and investments in research and development, is creating a conducive environment for the EAF market to flourish. As industries across sectors move toward greener supply chains and reduced emissions, the demand for sustainable steelmaking solutions continues to rise, positioning electric arc furnaces as a central component in the transformation of North America's steel industry.

Emerging region:

South America is the emerging region in Electric Arc Furnace Market. The Electric Arc Furnace (EAF) market in South America is experiencing significant growth, driven by a confluence of economic, environmental, and industrial factors that are reshaping the region's steel production landscape. One of the primary market drivers is the increasing demand for cost-efficient and environmentally sustainable steel manufacturing processes. As South American nations strive to modernize their industrial infrastructure and reduce dependency on traditional blast furnace technology, EAFs are becoming a preferred solution due to their lower carbon footprint, energy efficiency, and flexibility in using recycled scrap metal as the primary raw material.

This aligns with the growing environmental regulations and carbon reduction targets being adopted by countries such as Brazil, Argentina, and Chile, prompting steel producers to shift toward greener technologies. Additionally, the region's abundant availability of scrap metal, combined with rising investments in recycling and circular economy initiatives, is creating a robust supply chain that supports the growth of EAF installations. The continued urbanization and infrastructural development across emerging South American economies are also generating strong demand for construction-grade steel, which is efficiently produced using electric arc furnaces. Government incentives and policy reforms aimed at revitalizing the manufacturing sector further support the transition to EAF technology, especially among small and medium-sized enterprises seeking cost-effective steel production solutions.

Moreover, the fluctuating global prices of iron ore and coking coal—key inputs in conventional blast furnace processes—are encouraging local steelmakers to diversify their production methods by integrating electric arc furnaces, which offer greater price stability and supply chain control. Technological advancements in EAF design, such as ultra-high-power (UHP) furnaces and digital automation, are also enhancing productivity, operational reliability, and energy optimization, making EAFs more attractive to regional producers aiming to boost competitiveness. Furthermore, foreign direct investments and joint ventures with international metallurgical equipment providers are introducing advanced EAF systems into the South American market, facilitating technology transfer and skill development.

These dynamics are contributing to a shift in industrial strategy, with leading players increasingly allocating capital toward modern EAF plants to cater to both domestic and export markets. Rising awareness of sustainable practices in steelmaking, driven by pressure from global trade partners and consumers, is reinforcing the momentum for EAF adoption. In parallel, energy sector improvements, including the expansion of renewable electricity generation in countries like Brazil, are making electric arc furnaces more viable and economically attractive. This convergence of supportive energy infrastructure, policy initiatives, and industry modernization efforts positions South America as an emerging hub for EAF-based steel production, with immense potential for long-term market expansion.

As regional economies continue to recover from past economic disruptions and embark on infrastructure-intensive growth trajectories, the adoption of electric arc furnaces is expected to accelerate, solidifying their role as a cornerstone of the South American steel manufacturing ecosystem.

Recent Developments

• In April 2025, Tata Steel confirmed the transformation of its Port Talbot facility to electric arc furnace operations, backed by government subsidy. Infrastructure upgrades, including grid enhancements, are in progress, with full commissioning expected by 2027.
• In May 2025, Resonac Holdings disclosed the closure of its graphite electrode plants in China and Malaysia, which is anticipated to tighten global supply. This move has created growth opportunities for alternative suppliers such as HEG and Graphite India, impacting input dynamics for EAF operators worldwide. 
• In April 2025, JFE Steel Corporation announced plans to construct and operate a next-generation, high-efficiency electric arc furnace (EAF) at its Kurashiki facility, part of the West Japan Works. This initiative supports Japan’s broader carbon neutrality goals. The announcement follows the Japanese government’s approval of a grant to support the EAF installation, after previously accepting JFE Steel’s proposal on December 20, 2024, to participate in a national project focused on the development of carbon-neutral steelmaking technologies.
• Meanwhile, in May 2024, ArcelorMittal began construction of an electric arc furnace for long products at its Gijón plant in Spain. The project, representing an investment of USD 250.99 million, is expected to deliver its first heat in the first quarter of 2026. This marks the company’s first major EAF project under its European decarbonisation program and serves as a significant milestone in the transition toward low-carbon steel production in the Asturias region.

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:

o   DC Arc Furnace

o   AC Arc Furnace  

• Electric Arc Furnace Market, By Capacity:

o   Up to 100 Tons

o   100-300 Tons

o   Above 300 Tons  

• Electric Arc Furnace Market, By Application:

o   Ferrous Metals

o   Non-Ferrous Metals  

• Electric Arc Furnace Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   Asia-Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

§  Kuwait

§  Turkey

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Global Electric Arc Furnace Market.

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