The global electric arc furnace market size was estimated at USD 3,616.8 million in 2024 and is projected to reach USD 5,726.0 million by 2033, growing at a CAGR of 5.4% from 2025 to 2033. The market growth is primarily driven by the increasing demand for steel across key industries such as construction, automotive, and manufacturing, where high-quality and cost-effective steel production is essential.

The rising focus on sustainable steel production and the recycling of scrap metal has further accelerated the adoption of electric arc furnace technology. Modern electric arc furnaces incorporate advancements in automation, digital monitoring, and energy-efficient designs, which enhance operational performance, optimize resource utilization, and help reduce overall production costs. These technological improvements are making electric arc furnaces increasingly attractive to steel manufacturers seeking efficiency and sustainability.

As governments and industries worldwide emphasize decarbonization and environmental sustainability, electric arc furnaces are gaining preference over traditional blast furnaces. Their ability to utilize renewable electricity and recycled scrap metal as feedstock significantly lowers greenhouse gas emissions, reduces dependence on raw iron ore, and supports circular economy initiatives. Consequently, electric arc furnaces are emerging as a crucial solution for achieving environmentally responsible, cost-efficient, and sustainable steel production in the coming years.

Key Market Trends & Insights:

• The Asia Pacific region dominated the global electric arc furnace (EAF) market in 2024, capturing the largest revenue share of 44.0%. This strong position is largely attributed to the region’s robust steel production capacity, rapid industrialization, and the increasing adoption of modern and energy-efficient steelmaking technologies across key countries.

• Within Asia Pacific, the electric arc furnace market in China is expected to grow at the fastest CAGR of 6.5% from 2025 to 2033. China’s growth is driven by rising steel demand in construction, automotive, and manufacturing sectors, alongside government initiatives to promote sustainable steel production and the use of recycled materials in steelmaking processes.

• By furnace type, the DC electric arc furnace (DC EAF) segment is projected to register the fastest CAGR of 5.9% from 2025 to 2033. DC EAFs are increasingly preferred due to their higher energy efficiency, precise control over temperature and melting processes, and ability to produce high-quality steel with lower operational costs.

• By application, the non-ferrous metals segment is expected to experience the fastest growth, with a CAGR of 9.6% from 2025 to 2033. The rising use of EAF technology in non-ferrous metal production, such as aluminum and copper, is driven by the demand for lightweight metals in automotive, aerospace, and electronics industries, where energy-efficient and sustainable production methods are critical.

• By technology, the energy-efficient EAF segment is projected to expand at the fastest CAGR of 6.2% from 2025 to 2033. Energy-efficient furnaces reduce electricity consumption, lower greenhouse gas emissions, and enable cost-effective operations, making them increasingly attractive for manufacturers aiming to align with sustainability goals and regulatory standards in steel and metal production.

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Market Size & Forecast:

• 2024 Market Size: USD 3,616.8 Million

• 2033 Projected Market Size: USD 5,726.0 Million

• CAGR (2025-2033): 5.4%

• Asia Pacific: Largest market in 2024

Key Companies & Market Share Insights:

Some of the key players operating in the electric arc furnace market include Danieli & C. Meccaniche S.p.A. and SMS group GmbH, both of which play a significant role in advancing technologies and solutions for the metals industry.

• Danieli & C. Meccaniche S.p.A. is a leading player in plant engineering for the metals sector, specializing in the design and supply of turnkey plants and advanced equipment for ironmaking, steelmaking, and aluminum and non-ferrous metal production. The company maintains wholly owned manufacturing and engineering centers in Austria, China, India, and Thailand, ensuring consistent product quality and reliable service across all regions. By combining extensive engineering expertise with state-of-the-art equipment, Danieli supports steelmakers and metal producers in enhancing operational efficiency, reducing energy consumption, and achieving higher-quality output.

• SMS group GmbH is a global provider of plant and machinery solutions for the metals industry, emphasizing forward-looking technologies and comprehensive lifecycle support. The company integrates advanced equipment, automation, digitalization, and process expertise to help manufacturers address sustainability challenges in steel and non-ferrous metal production. With over 150 years of experience, SMS group operates more than 100 locations worldwide, offering end-to-end solutions spanning metallurgy, casting, and both flat and long product finishing. The company’s extensive global presence and technical expertise enable it to deliver innovative, energy-efficient, and sustainable solutions that improve productivity and support long-term operational goals for metal producers.

Key Players

• Danieli & C. S.p.A.

• SMS group GmbH

• Primetals Technologies

• Tenova S.p.A.

• Electrotherm

• JP Steel Plantech Co.

• Paul Wurth IHI Co., Ltd. (IHI Corporation)

• SARRALLE

• Xiye

• CHNZBTECH Co. Ltd

• Xi'an Taoyuan Metallurgical Equipment Engineering Co.,Ltd

• Daido Steel Co., Ltd

• Rose Corporation

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Conclusion:

The Grand View Research report concludes that the global electric arc furnace market is expected to grow steadily driven by rising demand for sustainable and cost effective steel production across construction, automotive, and manufacturing sectors. Market expansion is supported by the increasing emphasis on recycling scrap metal, adoption of energy efficient and automated furnace technologies, and expanding infrastructure in emerging regions. With governments and industries focusing on decarbonization and environmental compliance, electric arc furnaces are becoming a preferred alternative to traditional steelmaking methods, reinforcing their importance in the transition to greener and more efficient steel production.