The global electric arc furnaces market was valued at USD 944.7 Million in 2025 and is projected to reach USD 1,721.9 Million by 2036. The industry is expected to grow at a CAGR of 5.5% from 2026 to 2036, driven by increasing demand for energy-efficient steel production and rising adoption of sustainable manufacturing technologies. Growing investments in infrastructure development, recycling-based steelmaking, and advancements in electric furnace technologies are further supporting market expansion worldwide.

The production of steel throughout the world currently offers both -better flexibility and greater environmental sustainability. The electric arc furnaces system supports this industrial change. The system can directly support industrial recycling efforts through its capacity to convert scrap metal into usable materials. The increasing environmental rules that companies must follow are driving up global demand for electric steelmaking technology.

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Electric arc furnacess provide operational flexibility as compared to traditional blast furnace routes. Producers can scale production depending on scrap availability and market demand conditions. The flexibility enables steel producers to handle situations that involve changes in raw material availability.

Key Findings of the Market Report

• AC EAF Leadership: Alternating Current (AC) furnaces remain the most common configuration, holding roughly 70% of the installed base due to their proven reliability and lower initial capital cost.
• Secondary Steel Surge: Recycled scrap-based EAF production now accounts for over 30% of global steel output in 2026, up from 25% in the early 2020s.
• Hydrogen Readiness: Approximately 45% of EAFs sold in 2026 are marketed as "Hydrogen-DRI Ready," allowing steelmakers to future-proof their investments.
• Energy Efficiency Gains: New "Super-High Power" (SHP) furnaces are achieving energy consumption levels below 350 kWh per ton of steel, a new industry benchmark for 2026.

Global Market: Growth Drivers

• Global Decarbonization Targets: Stricter CO2 taxes and "Green Steel" procurement policies from automotive and construction giants are forcing the shift from coal to electricity.
• Circular Economy Initiatives: Growing global scrap availability, particularly in China and the US, is making the EAF route more economically viable than ore-based smelting.
• Renewable Energy Expansion: The falling cost of industrial-scale solar and wind power is making EAF operation competitive with traditional blast furnaces in many regions.
• Modular and Flexible Production: Unlike blast furnaces, EAFs can be easily powered down or ramped up, making them ideal for modern, volatile energy markets.

Global Market: Key Players

The landscape is dominated by heavy industrial engineering firms and specialized metallurgical technology providers.

• SMS group GmbH (A global leader in "Green Steel" plant engineering and DRI-EAF integration)
• Primetals Technologies (Mitsubishi Heavy Industries) (Pioneer in high-efficiency EAF Quantum technology)
• Danieli & C. S.p.A. (Leader in "Digi-Melter" technology and modular EAF systems)
• Tenova S.p.A. (Specializing in Consteel® systems and high-efficiency scrap pre-heating)
• Electrotherm (India) Ltd. (A major player in the high-growth South Asian and MEA markets)
• Steel-Tech
• Berry Metal Company
• Inductotherm Group (Dominant in the induction furnace and small-to-medium EAF segment)
• TENOVA (Techint Group)

Global Market: Segmentation

By Type

• AC (Alternating Current): The versatile industry standard for standard scrap melting.
• DC (Direct Current): Preferred for large-capacity, high-efficiency plants with stable power grids.

By Raw Material

• Scrap-based: The traditional EAF route, maximizing recycled content.
• DRI/HBI-based: Using Direct Reduced Iron; critical for high-quality "flat steel" production.
• Pig Iron-based: Utilizing hot metal in "Hybrid" EAF configurations.

By Application

• Construction & Infrastructure: The largest consumer of EAF-produced rebar and long products.
• Automotive: Growing demand for EAF-produced "Green" high-strength steels.
• Machinery & Equipment: Utilizing EAFs for specialized alloy and stainless steel production.
• Transportation: Demand for high-quality recycled steel for rail and shipbuilding.

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