Electric Arc Furnace (EAF) and Components Market
Electric Arc Furnace and Components Market Study by AC EAF and DC EAF Current for EAF, Furnace Transformers, Arc Furnace Vacuum Circuit Breakers, Graphite Electrodes, and Others from 2023 to 2033
Analysis of Electric Arc Furnace (EAF) and Components Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
Electric Arc Furnace (EAF) and Components Market Outlook (2023 to 2033)
Newly-released electric arc furnace and components market analysis report by Fact.MR reveals that global sales in 2023 were held at US$ 1.7 Billion. With 2.7% projected growth from 2023 to 2033, the market is expected to reach a valuation of US$ 2.2 Billion by the end of the forecast period.
Electric arc furnace and components in DC EAF is expected to be the highest revenue-generating current type in the Market, projected to grow at a CAGR of over 3.1% from 2023 to 2033. Electric arc furnace and components in EAF by components type is expected to be the highest revenue-generating segment in the market, projected to grow at a CAGR of over 3.3% from 2023 to 2033
| Attributes | Details |
|---|---|
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Global Electric Arc Furnace and Components Market Size (2023) |
US$ 1.7 Billion |
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Global Electric Arc Furnace and Components Market Size (2033) |
US$ 2.2 Billion |
|
Global Electric Arc Furnace and Components Market CAGR (2023-2033) |
2.7% |
|
U.S. Electric Arc Furnace and Components Market CAGR (2023- 2033) |
2.2% |
|
Key Companies Covered |
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Revenue of the Electric Arc Furnace and Components Market from 2018 to 2022 Compared to Demand Outlook from 2023 to 2033
As per the electric Arc furnace and components market research by Fact.MR - a market research and competitive intelligence provider, historically, from 2018 to 2022, the market value increased by around 2.7% CAGR. With an absolute dollar opportunity of US$ 565.7 Million, the market is projected to reach a valuation of US$ 2.2 Billion by 2033.
What key factors are influencing the Electric Arc Furnace and Components Market's expansion?
The demand for electric arc furnace (EAF) and components in the steel industry has been growing steadily over the years due to several factors. EAF technology offers a more environmentally friendly alternative to traditional blast furnaces as it emits fewer greenhouse gases and reduces the carbon footprint in the steel-making process.
The shift from blast furnace (BF) to electric arc furnace (EAF) steelmaking, set to commence by 2025, presents a significant opportunity for the electric arc furnace and components industry. According to an independent study conducted by CRU Group, steel produced by EAF steelmakers in the US has a carbon intensity that is approximately 75% lesser than traditional blast furnace steelmakers.
EAF is a prominent component in the steel production process. Many steelmakers around the world are investing in EAF facilities to take advantage of the environmental benefits and cost advantages they offer. According to the World Steel Association, global investment in the steel industry is expected to reach US$ 1.5 trillion by 2025. Steel is the most widely used metal in the world, accounting for around 50% of global metal consumption.
In 2022, the demand for steel rose to around 1.86 million tons. Thus, to fulfill this increasing demand, manufacturers are investing heavily in new technologies. The growing investment in steel industries will further contribute to the growth of the EAF and components industry. For instance, Nucor Corporation, a leading steel producer in the US, has embraced EAF technology and has become the lowest-cost producer of steel domestically through the EAF process.
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Which Region is projected to offer the Largest Electric Arc Furnace and Components Opportunity?
East Asia had an electric arc furnace and components market size of US$ 678.8 Million in 2022. It is projected that East Asia will have a market worth US$ 975 Million in 2033.
East Asia's focus on technology and innovation is propelling the adoption of advanced EAF equipment and components. The Chinese government's initiatives to upgrade and modernize the steel sector have led to significant investments in EAF-based plants.
With the sanctioning of 16 additional EAFs, China's electric arc furnace (EAF) capacity increased in 2022 and reached 15.1 million tonnes of annual crude steel production. Along with supporting global environmental objectives, Japan and South Korea are also investing in EAF technology to meet their expanding steel needs.
Country-wise Analysis
United States Electric Arc Furnace and Components Market Analysis :
The market in the United States is expected to grow to be worth US$ 284.7 Million by 2033, with an absolute dollar growth of US$ 60.5 Million. The market in the United States is expected to grow at a CAGR of 2.2% from 2023 to 2033.
Annual iron and steel manufacturing revenue in the United States increased from over US$ 70 billion in 2009 to US$ 101 billion in 2022. The US steel industry has been experiencing growth and transformation, with a focus on sustainable steel production methods and thus there is rapid growth in demand for electric arc furnace (EAF) technology.
Japan Electric Arc Furnace and Components Market Analysis :
The market in Japan is expected to grow to be worth US$ 217.8 Million by 2033, with an absolute dollar growth of US$ 62.6 Million. The market in the country has grown at a CAGR of 1% from 2018 to 2022 and is expected to grow at a CAGR of 3.2% from 2023 to 2033.
As Japan continues to advance its steel production capabilities and prioritize greener manufacturing processes, the EAF sector is expected to play a vital role in shaping the future of the Japanese steel industry. For instance, Nippon Steel, one of Japan's significant steelmakers, is committed to transitioning towards more sustainable steel production methods and achieving carbon neutrality by 2050.
To accelerate its decarbonization drive, Nippon Steel is actively pursuing electric arc furnace (EAF) projects. Also, Nippon Steel is exploring the use of hydrogen in conjunction with EAF technology to further decarbonize its steel production. This innovative approach to steelmaking can reduce carbon emissions by up to 80%.
China Electric Arc Furnace and Components Market Analysis :
The market in China is expected to grow to be worth US$ 645.7 Million by 2033, with an absolute dollar growth of US$ 204.2 Million. The market in China has grown at a CAGR of 1.4% from 2018 to 2022 and is expected to grow at a CAGR of 3.5% from 2023 to 2033.
The building of 43 new EAFs with a combined annual capacity of 32.3 million tonnes of crude steel was approved by China for construction in 2021. The provinces with the most approvals were Hebei, with a capacity of 7.4 million tonnes annually, and Jiangsu, with a capacity of 4.8 million tonnes annually for new EAFs.
These new EAFs in China will be put into operation between the end of 2022 and the beginning of 2025, based on the closure of the 37.7 million tonnes per year of aging crude steelmaking plants that still follow the conventional process. As China continues to pursue its goals of reducing carbon emissions and advancing its steel production capabilities, the EAF sector is expected to play a pivotal role in shaping the future of the Chinese steel industry.
India Electric Arc Furnace and Components Market Analysis :
The market in India is expected to grow to be worth US$ 171 Million with an absolute dollar growth of US$ 44.9 Million. The market in India has grown at a CAGR of 0.3% from 2018 to 2022 and is expected to grow at a CAGR of 2.9% from 2023 to 2033.
It is evident that India's steel industry is a significant contributor to the country's economy, and the adoption of new technologies such as EAFs is likely to play a crucial role in achieving the country's steel production targets. For instance, Tata Steel, one of India's prominent steelmakers, signed a Memorandum of Understanding (MoU) with the Government of Punjab to establish a steel scrap-based electric arc furnace (EAF) steel plant in north India's Punjab state. Tata Steel's plans to set up an EAF-based steel plant demonstrate the potential for the adoption of new technologies in achieving India's target of producing 300 million tonnes of steel by 2030.
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Category-wise Insights
Why the demand for DC EAF Current Type in Electric Arc Furnace and Components is projected to Witness Significant Growth?
DC EAF as a current type in the market is projected to witness secure growth with a CAGR of 1.1% from 2018 to 2022 and is expected to grow at a CAGR of 3.1% from 2023 to 2033.
Direct Current (DC) Electric Arc Furnace (EAF) technology has been gaining traction in the EAF and components industry due to its potential for increased energy efficiency and productivity. DC EAFs offer advantages such as faster melting rates, better temperature control, and reduced electrode consumption compared to traditional alternating current (AC) EAFs. The arc in the DC EAF is stable and concentrated, resulting in a well-stirred molten pool. This can lead to more efficient and effective steelmaking.
Competitive Analysis
Key players in the market are Schneider Electric, Mitsubishi Electric Corporation, ABB, Siemens, Toshiba, Tavrida Electric AG, Xiamen Huadian Switchgear Co., Ltd., Nippon Steel & Sumikin Engineering, Danieli, Algoma Steel Group Inc. Companies are taking up the challenge and designing strategies to maintain the growth in the Electric Arc Furnace and Components sector and therefore this will help the market to grow.
Some of the recent developments in the market are :
- In July 2023, through the Catalyse program, Schneider Electric, Intel, and Applied Materials teamed together to help decarbonize the semiconductor value chain. Addressing sustainability concerns that are present in the semiconductor and technology industries is the aim of this alliance.
- In February 2023, for the new Algoma Steel Group Inc. Electric Arc Furnace (EAF) steelmaking facility in Sault Ste. Marie, the first structural steel columns have been put into place. The main EAF building and auxiliary structures were built and put up by the company in collaboration with Hamilton-based Walters Group Inc.
- In November 2021, Algoma Steel Group Inc. stated that it will build two cutting-edge Electric Arc Furnaces (EAF) to replace its current steelmaking operations and stop producing coke and iron. Algoma will be better positioned for long-term growth in the expanding market for low-carbon steel as a result of the conversion to a low-carbon manufacturing method, which is anticipated to reduce greenhouse gas emissions by roughly 70%.
- In December 2022, Steel Plantech announced the development of an Electric Arc Furnace (EAF) power supply system in collaboration with a Japanese power electronics company. The new EAF power supply system is expected to improve the efficiency of the EAF process and reduce energy consumption.
Segmentation of the Global Electric Arc Furnace and Components Market
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By Current Type :
- AC EAF
- DC EAF
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By Type :
- EAF
- Below 100 tons
- 100-300 tons
- Above 300 tons
- Power Cables
- Furnace Transformers
- Arc Furnace Vacuum Circuit Breaker
- Graphite Electrodes
- Refractory lining
- Water Cooled System
- Scrap Preheating System
- Vacuum Switches
- EAF
- FAQs -
What was the global market size for 2022?
The market was reported at US$ 1.65 Million in 2022.
What value is the market estimated to reach in 2023?
The market is estimated to be valued at US$ 1.68 Billion in 2023.
What valuation is the market expected to reach by 2033?
The market is expected to reach a valuation of US$ 2.2 Billion by 2033.
What value CAGR did the market exhibit over the last 4 years?
The market registered a CAGR of 0.9% over the last 4 years.
What is the projected CAGR growth of the market from 2023 to 2033?
The market is projected to witness a CAGR of 2.7% from 2023 to 2033.
Which top current type of the market will garner significant value share by 2033 and what is its projected CAGR from 2033 to 2033?
The DC EAF current type is expected to garner a significant value share by 2033 and is expected to grow at a CAGR of 3.1% from 2023 to 2033.
Which top component type will garner significant value share by 2033 in the market and what is its projected CAGR from 2033 to 2033?
The market revenue through Electric Arc Furnace (EAF) is expected to garner a significant value share by 2033 and is expected to grow at a CAGR of 3.3% by 2033.
Which top EAF steelmaking capacity in Electric Arc Furnace and Components will garner significant value share by 2033 and what is its projected CAGR?
EAF of capacity below 100 tons is projected to witness garner a significant value share by 2033 and is expected to grow at a CAGR of 3.5% from 2023 to 2033 while its market size is estimated at US$ 1.01 Billion in 2023.
What is the expected market size for the United States by 2033 and what is its projected CAGR?
The market in the United States is projected to witness a size of US$ 3.2 Billion and is expected to grow at a 2.2% CAGR from 2023 to 2033.
Which are the key companies operating in the Market?
The key companies in the market include Schneider Electric, Mitsubishi Electric Corporation, ABB, Siemens, Toshiba, Tavrida Electric AG, Xiamen Huadian Switchgear Co., Ltd., Nippon Steel & Sumikin Engineering, Danieli, and Algoma Steel Group Inc.
Electric Arc Furnace (EAF) and Components Market