SCRAP-BASED ELECTRIC ARC FURNACE MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Key Takeaways from Analyst

The scrap-based electric arc furnace market is poised to grow on account of rising steel recycling rates globally. The increasing focus on sustainability and reduction of carbon emissions will drive more companies to adopt the electric arc furnace route for steelmaking using scrap as the primary raw material input. North America and Europe currently dominate the market owing to stringent environmental regulations and established infrastructure for scrap collection in these regions. However, the Asia Pacific region is expected to witness the fastest growth in adoption of scrap-based electric arc furnaces in the coming years led by China, India, and other developing countries.

While rising ferrous scrap prices remain a major challenge, development of advanced furnace technologies that improve productivity and yield even with lower-grade scrap grades will help alleviate this constraint. Favorable government policies promoting a circular economy and recycling will further encourage electric arc furnace owners to boost scrap utilization. Obtaining a regular supply of quality scrap of required specifications needs addressing. The ability of electric arc furnace operators to quickly adapt production based on fluctuations in scrap availability will determine their resilience. High capital costs involved in setting up electric arc furnaces pose a barrier, although the availability of incentives in some regions mitigates this to an extent.