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The Government of China has closed down several illegal and outdated steel plants to reduce pollution levels in various Chinese cities including Hebei and Beijing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
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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.
