Submerged Arc Furnace Market size was USD 1.1 billion in 2024 and is estimated to reach USD 2.1 billion by the end of 2037, expanding at a CAGR of 4.6% during the forecast period, i.e., 2025-2037. In 2025, the industry size of submerged arc furnace is assessed at USD 1.2 billion.
Submerged arc furnace (SAFs) also referred to as electric arc furnaces are heating units utilized in the production of alloys, phosphorus, and various metals. The rising industrial activities and infrastructure development projects in high-potential economies such as Latin America, Asia Pacific, and the Middle East & Africa are creating lucrative opportunities for submerged arc furnace manufacturers. Steel is a vital component of industrial development and is widely used in the construction of buildings, bridges, and roads. Steel production relies on ferroalloys, which are manufactured through submerged arc furnace.
According to the Research Nester study, China is the largest producer of steel accounting for around 1,032,790 kilotons (kt) of production. Following China, India ranks second with 118,201 kilotons of steel production. Thus, as the need for steel increases, so does the demand for efficient production of alloys, subsequently driving the submerged arc furnace market growth. Latin America has the presence of several natural resources such as aluminum, iron ore, and copper. The increasing technological advancements in the field of mining and increasing expansion of metal producers in the region are pushing these raw materials for final product production, rather than exporting them. This is augmenting the high demand for submerged arc furnace in the production processes.
For instance, as per the analysis by the International Energy Agency (IEA), 40% of copper is produced in Latin America and 35% of Lithium is supplied across the world. Apart from these, the region is also well known for the production of nickel, graphite, manganese, and other rare elements. Brazil alone accounts 5th rank for global reserves for these resources. These statistics underscore that the high mining of these resources is estimated to have a positive influence on the demand for submerged arc furnace.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
4.6% |
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Base Year Market Size (2024) |
USD 1.1 billion |
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Forecast Year Market Size (2037) |
USD 2.1 billion |
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Regional Scope |
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Product Type (DC Submerged arc furnace, AC Submerged arc furnace)
In submerged arc furnace market, AC submerged arc furnace segment is poised to account for more than 71.4% revenue share by the end of 2037. AC submerged arc furnace are efficient in maintenance and effective in achieving high temperatures required for smelting and ore refining operations. AC SAFs are demanded for their low energy consumption compared to other furnace technologies. As these furnaces work using electric arcs the energy input can be adjusted according to the requirements, which aids in reducing operational costs. Also, AC submerged arc furnace are versatile for smelting various types of materials such as ferrous and non-ferrous metals. All the above-mentioned characteristics of AC submerged arc furnace are contributing to their sales growth.
Application (Ferroalloy, Silicon Metal, Fused Alumina, Calcium Carbide, Yellow Phosphorus)
In submerged arc furnace market, ferroalloy segment is projected to hold revenue share of more than 38.5% by 2037. The automotive, infrastructure, and construction sectors are significantly driving high demand for steel, which is directly fuelling the need for ferroalloys such as ferrochrome, ferrosilicon, and ferromanganese. These ferroalloys are vital components used in the production of steel to enhance its physical and chemical properties.
Construction is one of the biggest consumers of steel owing to its durability and strength. In the automotive sector, steel is used to produce vehicle bodies. These sectors' high steel demand fuels the consumption of ferroalloys, and for the efficient and large production of ferroalloys advanced submerged arc furnace technologies are gaining boom As SAF systems can handle vast production cycles their high energy efficiency makes them ideal for the production of energy-intensive ferroalloys, contributing to overall submerged arc furnace market growth.
Our in-depth analysis of the global submerged arc furnace market includes the following segments:
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Product Type |
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Application |
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Asia Pacific Market Forecast
Asia Pacific in submerged arc furnace market is set to capture over 47.6% revenue share by 2037. The booming industrial activities and rise in infrastructure development projects are boosting the use of ferrous alloys for steel production, which is augmenting the demand for advanced submerged arc furnace technologies for high production. India and China are witnessing robust industrial activities which are generating high-profit opportunities for submerged arc furnace market. The aging infrastructures in Japan and South Korea are creating a high demand for steel, which drives high investments in submerged arc furnace for metal smelting and refining processes.
In China, the strong presence of submerged arc furnace manufacturers such as Xi’an Abundance Electric Technology Co., Ltd., CHNZBTECH, Dalian Huarui Heavy Industry Group Co., Ltd, and Shanghai Electric Group Co., Ltd. are significantly augmenting the submerged arc furnace market growth. These key players have a strong potential to influence the demand and supply of submerged arc furnace. Also, China’s position as a top producer of steel is contributing to the revenue growth of submerged arc furnace manufacturers.
India is witnessing substantial metal and mining activities owing to the high presence of natural resources such as gold, iron ore, zinc, and more. For instance, according to the India Brand Equity Foundation, in 2022 around 1319 mining activities were recorded in the country. This underscores that the rise in mining activities is set to positively influence the demand for advanced submerged arc furnace for smelting and refining procedures.
North America Market Statistics
The North America submerged arc furnace market is expected to increase at a healthy pace, owing to the presence of a robust automotive sector, the existence of industry giants, and rising mining activities. As per Research Nester analysis, North America accounts for around 98,767.7 kt of steel production. This highlights that the rise in steel production is fuelling the demand for advanced submerged arc furnace for efficient operations.
In the U.S., the rising demand for steel in automotive, construction, and industrial companies is primarily fuelling the demand for submerged arc furnace technologies. These technologies are vital for the production of high-quality steel and alloys. The rise in the infrastructure development projects and industrial activities in the country is set to boost the steel demand, in turn contributing to SAF technology sales growth.
Canada being rich in natural resources such as gold, copper, zinc, iron ore, uranium, and titanium is increasing the demand for advanced submerged arc furnace for their smelting and refining processes. As the demand for these metals rises, especially for exports, the adoption of modern submerged arc furnace is set to gain boom. Furthermore, the rising steel application in the automotive and aerospace sectors is expected to fuel the demand for SAF technologies in the country.
Key players in the submerged arc furnace market are employing strategies such as continuous technological innovations, strategic collaborations, regional expansions, and mergers & acquisitions to earn high profits. Leading companies are integrating advanced sensors, process control systems, and smart technologies to enhance the capabilities of their submerged arc furnace. By this move, they are expected to attract a wider consumer base leading to high revenue growth.
Industry giants are collaborating with other players and tech firms to improve the design and features of submerged arc furnace. Strategic collaborations often aid in boosting submerged arc furnace market reach and in the introduction of advanced solutions. Furthermore, entering into high-potential markets is set to maximize their profits by tapping new opportunities.
Some of the key players include in submerged arc furnace market:
Author Credits: Richa Gupta
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