Electric Arc Furnace Market To Surge Globally As Steel Industry Embraces Green Solutions

(MENAFN- GlobeNewsWire - Nasdaq) “Report reveals how technological innovations, environmental regulations, and rising scrap metal recycling are driving demand for efficient steel production, with regional leaders and competitive strategies shaping future opportunities in an increasingly urbanized and industrialized world.”

Boston, Feb. 20, 2026 (GLOBE NEWSWIRE) -- According to the latest study from BCC Research,“ Global Market for Electric Arc Furnace

The report provides a comprehensive analysis of the electric arc furnace (EAF) market, segmenting it by type, capacity, function, application, and end user. It covers four major regions: North America, Europe, Asia Pacific, and the Rest of the World and further breaks down the market by key countries such as the U.S., China, India and Germany. The study uses 2024 as the base year, 2025 as the estimated year, and projects market values through 2030 in nominal U.S. dollars, offering historical, current, and future market scenarios with detailed tables and figures.

Additionally, the report includes profiles of leading companies, highlighting their product portfolios, recent developments, and financials (for public companies). It examines emerging technologies, patents, companies' ESG initiatives, and the competitive landscape, including market rankings and strategic moves by leading companies. This makes the report valuable for understanding industry trends, technological advances, and sustainability efforts shaping the global EAF market.

The factors driving the market include:

Increasing Use of EAFs in Steel Production: Electric arc furnaces are becoming the preferred choice for steelmaking because they offer more flexibility and efficiency than traditional blast furnaces. EAFs can produce high-quality steel using electricity rather than relying on coke and iron ore, which reduces dependency on raw materials and lowers operational costs. This trend is driven by the growing demand for specialty steels and the ability of EAFs to quickly adjust production to market needs.

Growing Emphasis on Scrap Recycling: EAF technology primarily uses scrap metal as its raw material, making it a cornerstone of the circular economy in steel production. With global demand for steel rising and environmental regulations tightening, recycling scrap reduces waste, conserves natural resources, and lowers carbon emissions. This emphasis aligns with sustainability goals and cost efficiency, as scrap is often cheaper than virgin iron ore.

Retrofitting and Modernization of Existing Steel Plants: Many steel plants worldwide are upgrading their facilities to incorporate EAFs or improve existing EAF systems. Retrofitting allows older plants to meet stricter environmental standards, improve energy efficiency, and enhance productivity without building entirely new facilities. Modernization also involves integrating advanced automation, digital monitoring, and energy recovery systems, which make operations more competitive.

Increasing Focus on Sustainability and Environment: Governments and industries are prioritizing green technologies to reduce greenhouse gas (GHG) emissions. EAFs are inherently more eco-friendly than blast furnaces because they use electricity and recycled materials, significantly reducing carbon footprints. This aligns with global initiatives like carbon neutrality targets and ESG (Environmental, Social, and Governance) compliance, making EAF adoption a strategic move for steel producers.

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Report Synopsis

Report Metric	Details
Base year considered	2024
Forecast period considered	2025-2030
Base year market size	$798.5 million
Market size forecast	$1.1 billion
Growth rate	CAGR of 5.6% from 2025 to 2030
Segments covered	Type, Capacity, Function, Application, End User and Region
Regions covered	North America, Europe, Asia-Pacific and the Rest of the World (South America, and the Middle East and Africa)
Market drivers	Increasing use of EAFs in steel production. Growing emphasis on scrap recycling. Retrofitting and modernization of existing steel plants. Increasing focus on sustainability and environment.

Innovations

• In 2025, Hyundai Steel invested nearly $5.8 billion to build an EAF-based integrated steel mill in Louisiana Targeted for commercial production by 2029, the mill will primarily manufacture automotive steel plates, supporting major automakers like Hyundai Motor and Kia. The mill will have an annual production capacity of 2.7 MMT.

• In 2025, Tata Steel U.K. invested $1.6 billion in constructing a new EAF facility at its Port Talbot site. The facility will have an annual production capacity of 3 million tonnes of steel and is expected to reduce carbon emissions at Port Talbot by approximately 90%, equivalent to 5 million tonnes of CO2 per year. This facility aims to support the U.K.'s ambitions for low-carbon steel production.

Emerging startups

• Casey Equipment Corp.
• CHNZBTech Co. Ltd.
• Erdogan Endustri

AI Impact on Electric Arc Furnace Market

AI is transforming EAF operations by enabling precise real-time monitoring and optimization throughout the steelmaking process. AI-powered systems enhance energy efficiency, reduce operational costs, and help predict equipment failures for proactive maintenance, minimizing downtime. AI integration promotes sustainable steel production with lower carbon emissions and improved productivity.

For an in-depth analysis of AI's impact on this sector, explore the complete AI Impact on Electric Arc Furnace Market - BCC Pulse Report

The report addresses the following questions:

What are the projected market size and growth rate?

• The EAF market is expected to reach $1.1 billion by the end of 2030, at a CAGR of 5.6%.

What factors are driving the growth of the market?

• Key drivers include:

• Increasing use of EAF in steel production.
• Growing emphasis on scrap recycling.

What are the challenges and opportunities of the market?

• Key challenges include:

• Fluctuating energy prices.
• High initial investment and operational costs.

• Key opportunities include:

• Retrofitting and modernization of existing steel plants.
• Increasing focus on sustainability and the environment.

Which market segments are covered in the report?

• The market is segmented by type, capacity, function, application, end user, and region.

Which function segment will be dominant through 2030?

• The automatic function segment will continue to dominate the market through the end of 2030. The demand for automatic function is primarily driven by increasing adoption of smart manufacturing technologies, enhanced operational efficiency, and the rising need for energy-efficient, automated steel production processes in response to sustainability regulations and growing industrialization.

Which region has the largest market share?

• Asia-Pacific is the leader in the global EAF market due to rapid urbanization, industrialization, and large-scale steel production in countries such as China, India and Japan. The region's strong manufacturing base, abundant scrap metal availability, and supportive government initiatives are expected to drive its growth.

Market leaders include:

• DANIELI & C.S.P.A.
• HANI METALLURGY
• INTECO MELTING AND CASTING TECHNOLOGIES GMBH
• NIKKO INDUSTRY CO. LTD.
• PAUL WURTH IHI CO. LTD.
• PRIMETALS TECHNOLOGIES
• SARRALLE
• SMS GROUP GMBH
• TENOVA S.P.A
• XI'AN SANRUI ELECTRIC FURNACE CO. LTD.

Related reports:

Global Green Steel Market

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