Submerged Arc Furnaces Market Size - By Product (DC Submerged Arc Furnaces, AC Submerged Arc Furnaces), By Application (Ferroalloy, Silicon Metal, Fused Alumina, Calcium Carbide, Yellow Phosphorus), Regional Outlook & Global Forecast, 2024 - 2032

Submerged Arc Furnaces Market Size - By Product (DC Submerged Arc Furnaces, AC Submerged Arc Furnaces), By Application (Ferroalloy, Silicon Metal, Fused Alumina, Calcium Carbide, Yellow Phosphorus), Regional Outlook & Global Forecast, 2024 - 2032

Submerged Arc Furnaces Market Size

Submerged Arc Furnaces Market was valued at around USD 1 billion in 2023 and is estimated to register a CAGR of around 4.3% between 2024 and 2032.

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The adoption of advanced manufacturing technologies such as additive manufacturing and metal 3D printing, is driving demand for high-performance metal components. Ferroalloys produced in SAFs serve as feedstock materials for these technologies which in turn drives business growth.

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Submerged arc furnace setup comes at a high cost, requiring expenditures in labour, machinery, and infrastructure. This expensive initial outlay discourages businesses from growing or building new facilities and serves as a barrier to entry for smaller operators. Operations using submerged arc furnaces are energy-intensive and require a significant amount of electricity. Increased energy prices or interruptions in the supply chain can have a big effect on operating costs and lower firms' profit margins..

Submerged Arc Furnaces Market Trends

Government initiatives in infrastructure development projects, such as bridges, power plants, and highways, are anticipating growth in the submerged arc furnace market. For instance, according to the American Society of Civil Engineers (ASCE), the United States will be required to spend approximately $4.5 trillion on infrastructure enhancements by 2025. This amount of investment increases the need for steel used in infrastructure projects, which in turn drives the requirement for ferroalloys made in SAFs, thus it will enhance business demand.

Submerged Arc Furnaces Market Analysis

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Based on the product type, the the AC submerged arc furnaces segment accounted for revenue of around USD 800 million in 2023 and is expected to reach USD 1.2 billion by 2032. AC-submerged arc furnaces can be 20-30% cheaper than DC SAFs due to their simpler design and lack of complex rectifier circuits. AC SAFs can handle a variety of feed materials, including different types of ores, alloys, and recycled materials. This adaptability allows manufacturers to adjust their feedstock compositions based on availability and market demand.

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In 2023, the ferroalloy segment emerged as the dominant, commanding a market share of around 38% and expected to reach 39% by 2032. Increasing demand for ferroalloys across several industries such as steel production, aerospace, automotive, and construction. The steel manufacturing benefits greatly from the use of ferroalloys, which improve the steel's resistance to heat, corrosion, and other factors. The need for submerged arc furnaces to produce ferroalloys is driven by the expansion of these industries and the resulting demand for market demand.

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Asia Pacific region acquired 55% share of the submerged arc furnaces market in 2023 and will reach USD 800 million by 2032. Increasing infrastructure development, such as the creation of bridges, roads, and transportation networks, is a result of the Asia Pacific region's rapid urbanization and industrialization. For the production of ferroalloys used in structural steel and reinforced concrete, among other infrastructure materials, submerged arc furnaces are essential. Trillions of dollars are being invested in infrastructure projects by Asian Pacific governments.

Submerged Arc Furnaces Market Share

The submerged arc furnaces industry is fragmented, with several regional companies operating on a global scale. In 2023, the SMS Group, Siemens AG, Metso Outotec, Danieli, and Shanghai Electric Group Co., Ltd. were the leading players in the market. To expand their customer base, broaden their product offerings, and establish a stronger foothold in the market, these corporations strategically deploy mergers, acquisitions, partnerships, and facility expansions. They also leverage their vast distribution networks and resources to investigate new markets.

Submerged Arc Furnaces Market Companies

Major players operating in the submerged arc furnaces industry are

• Danieli Group
• Doshi Technologies Pvt. Ltd.
• Electrotherm
• Hatch Ltd.
• Metso Outotec Corporation
• Outotec Oyj
• Paul Wurth S.A.
• Primetals Technologies Limited
• Shanghai Electric Group Co., Ltd.
• Siemens AG
• SMS Group GmbH
• Tenova
• Thermtronix Corporation
• Thyssenkrupp Industrial Solutions AG
• Xi’an Abundance Electric Technology Co., Ltd.

Submerged Arc Furnaces Industry News

• In May 2022, Tenova entered into two contracts with Tenaris, a global manufacturer and supplier of steel pipes and related services, for its mill in Dalmine (Italy). Both contracts are related to the steelmaker’s new investment in special steel production.
   
• In May 2021, Danieli announced to build new EAF and ladle furnace for Russian mining & metallurgy company, Metalloinvest selected Danieli to supply a new electric arc furnace to be installed at the Alexey Ugarov OEMK plant in Stary Oskol, in southwest Russia, to produce quality steel grades, including SBQ (special bar quality) steel for the automotive and bearing industries.

This submerged arc furnaces market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Billion) Volume (Thousand Units) from 2021 to 2032, for the following segments

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Market, By Product Type

• DC Submerged Arc Furnaces
• AC Submerged Arc Furnaces

Market, By Application

• Ferroalloy
• Silicon Metal
• Fused Alumina
• Calcium Carbide
• Yellow Phosphorus

The above information is provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Malaysia
  • Indonesia
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA