Submerged Arc Furnace Market Size

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 5^th 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.