Global Electric Arc Furnaces Market Introduction
- Electric arc furnace is a high-temperature furnace that is primarily used to produce crude steel with high voltage electric arcs in steel mini-mills
- Electric arc furnace recycle steel scrap and direct reduced iron and mixture of scrap iron into new steel products
Global Electric Arc Furnaces Market Dynamics
- Expansion of power supply infrastructure is considered to be a key factor promoting the demand for electric arc furnaces
- In emerging countries, including China and India, capacities of power generation installations have been rising prominently since 2010 owing to the installation of ultra-supercritical thermal power plants and modernization of existing power plants. Therefore, most leading steel producing countries have surplus electric power that is used to cater to the electricity needs of mini-mills.
- Globally, steel is produced using two routes, namely BF-BOF (blast furnace- basic oxygen furnace) route and EAF (electric arc furnaces) route. Steel production through BF-BOF route requires huge capital investment to meet the rising demand for iron ore, coking coal, and limestone. Moreover, large investments are required in railroads to carry raw materials to integrated steel plants and to ship finished products to end-user industries.
- EAF requires comparatively less capital investment to produce steel, as mini-mills use scrap steel as raw material. EAF route eliminates all other investment requirements associated with storage, transportation, and processing facilities of cooking iron ore and coal.
- Therefore, the low investment requirements associated with material handling and processing of raw materials to produce steel through EAF route, as compared to BF-BOF route, is expected to fuel the demand for electric arc furnaces and thereby, drive the market in the near future.
- Downsizing of the steel production industry in China poses a serious threat to the adoption of electric arc furnaces and thereby hamper the market
- The Government of China has closed down several illegal and outdated steel plants to reduce pollution levels in various Chinese cities including Hebei and Beijing
- China is a major producer, consumer, and exporter of steel, globally, thus downsizing of the steel industry in the country is expected to restrain the electric arc furnaces market
To understand how our report can bring difference to your business strategy, Ask for a brochure
Global Electric Arc Furnaces Market: Segmentation Analysis
- Based on type, the global electric arc furnaces market can be segmented into DC arc furnace and AC arc furnace.
- The DC arc furnace segment accounted for a major share of the market in 2018. The segment is estimated to gain market share and thereby maintain its leading position in the electric arc furnaces market during the forecast period.
- In terms of application, the electric arc furnaces market can be categorized into ore smelting, metal smelting, and others.
Asia Pacific to Lead the Global Market for Electric Arc Furnaces
- In terms of region, the global electric arc furnaces market can be divided into North America, Europe, Asia Pacific, South America, and Middle East & Africa
- Asia Pacific is likely to dominate the global electric arc furnaces market from 2019 to 2027 followed by Europe and North America. Increasing demand from the steel industry has driven the electric arc furnaces market in Asia Pacific.
- The market in Asia Pacific is anticipated to expand significantly in the near future. The steel industry in countries in Asia Pacific, such as China and India, is witnessing significant expansion. This is expected to be a major factor that drives the demand for electric arc furnaces, and thereby boost the electric arc furnaces market in the region.
Key Manufacturers Operating in Market
The global electric arc furnaces market was fairly fragmented in 2018, owing to the presence of multiple established market players who held a prominent market share. The market is witnessing expansion and hence, electric arc furnaces manufacturers are focused on innovations, product development, and are adoption of advanced technologies to produce innovative products at low cost in order to meet the changing need of end-users; consequently, creating a competitive environment in the electric arc furnaces market. Key manufacturers operating in the global market are:
- Danieli Group
- DescriptionIHI Corporation
- Electrotherm Limited
- Primetals Technologies Limited
- Sinosteel Corporation
- SMS Group
Stuck in a neck-to-neck competition with other brands? Request a custom report
Global Electric Arc Furnaces Market: Research Scope
Global Electric Arc Furnaces Market, by Type
- DC Arc Furnace
- AC Arc Furnace
Global Electric Arc Furnaces Market, by Application
- Ore Smelting
- Metal Smelting
Global Electric Arc Furnaces Market, by Region
- North America
- Rest of North America
- Russia & CIS
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- South America
- Rest of South America
- Middle East & Africa
- South Africa
- Rest of Middle East & Africa
Interested in this report?
Get a FREE Brochure now!