Submerged Arc Furnace Market

Submerged Arc Furnace Market Size

The global submerged arc furnace market size was estimated at USD 1.04 billion in 2024. The market is expected to grow from USD 1.08 billion in 2025 to USD 1.66 billion in 2034, at a CAGR of 4.9%, according to latest report published by Global Market Insights Inc.

The submerged arc furnace market is experiencing tremendous growth due to the rising demand for steel, ferroalloys, and silicon metal. Steel production is at the center of industrial development globally and is a vital raw material in the construction, automotive, infrastructure, and manufacturing industries.

The demand for steel products continues to increase as urbanization and industrialization continue to advance rapidly, especially in the developing and emerging economies. If the demand for steel products rises, the need for those steel products to be of a high quality also rises. Furthermore, submerged arc furnaces are a vital equipment in the production of ferroalloys, such as ferrochrome, ferromanganese, and ferrosilicon, to name a few. Ferroalloys act as additives in steelmaking. Given the connection between the growing steel production and demand for SAFs, the demand for SAFs is also growing, which further denotes the position of the SAF in the supply chain and continues to boost the growth of the market.

Moreover, the increasing demand for silicon metal in electronics, solar panels, and aluminum alloys has supported the upward movement of the market. Silicon metal is produced using energy-intensive processing; submerged arc furnace (SAF) designs can greatly increase efficiencies and outputs.

The global transition to renewable energy needs silicon metal, and it will create sufficient requirements for both SAF technologies. Demand for traditional steel-related products and silicon metal has created market growth, detailing increased applications and furnace development opportunities.

Heightened global awareness over sustainability, combined with established regulation frameworks, will continue to influence the future growth of the submerged arc furnace market. Regulatory authorities globally are continuously tightening up emissions regulations, and energy efficiency requirements on a rolling basis for industrial processes, including metals.

Submerged arc furnaces are also more efficient from a production efficiency standpoint and consume less total energy-to-produce than other furnaces. Manufacturers want to reduce emissions while operating at near zero-cost sunset level emissions; therefore, submerged arc furnaces will become the preferred choice among manufacturers. Clean and sustainable metallurgical processes are improving investments in either the retrofitting of an existing SAF, or new, renewable furnace technologies. Further, the increased pressure to reduce carbon footprints and decrease hazardous waste creation is encouraging steel and ferroalloy producers to look for production methods that are less detrimental to the environment.

Modern SAF designs have incorporated more advanced level controls and alternative energy sources that allow companies to reduce greenhouse gas emissions and overall environmental performance. The combination of regulatory pressures coupled with a growing corporate commitment to sustainability is resulting in a global shift towards the utilization of submerged arc furnaces.

Submerged Arc Furnace Market Trends

• A key trend in the submerged arc furnace industry is the increasing emphasis on technological innovation and process automation. As industries demand higher productivity and better product quality, manufacturers are implementing advanced control solutions, with many seeing real-time monitoring technologies as an increase in automation which can help introduce a greater level of process control.
  
• The innovation in control technologies allows for better programming and approximate metering of operations, which allows for machinery operators to make better adjustments to operational guidelines in the furnace (temperature, power input, raw material feeding, etc.). By improving overall energy efficiency and operational stability, new developments in the traditional operational feeds support the level of automation and order to develop predictive maintenance to monitor furnace anomalies/minimize downtime and best operational costs.
  
• This trend reflects a strong movement toward not only improve furnace performance and reduce production volatility but also improve consistency in the production of ferroalloys and silicon metals to meet the increasingly higher quality expectations of steelmakers and other end users.
  
• A second main trend in the market is the increased focus on sustainability and state-of-the-art environmental compliance. There is mounting pressure on global industrial sectors to reduce their carbon footprint and limit harmful emissions, so the SAF market is experiencing a shift toward 'greener' and more energy-efficient solutions. Governments and industries have started to see a shift of interests by manufacturers toward developing furnace designs to reduce power consumption and recover excess waste heat in these designs.
  
• This trend has also seen an increased interest in alternative energy sources and better utilization and recycling of raw materials to limit environmental impacts. The shift to sustainability has resulted in manufacturers investing in the upgrades of current SAF plants and exploring new designs, based on stricter rules and regulations for compliance with industrial and corporate social responsibility policies.
  
• Submerged arc furnace (SAF) market values are also benefiting from a diversification of raw material usage along with advances in technology and the environment. SAF's have typically been utilized to smelt ferroalloys and silicon metal. Growing interest in blended alloys or special alloys and other niche materials has prompted new developments in flexibility of feedstock. This flexibility gives producers the opportunity to optimize production based on material availability and cost and improves supply chain resilience.
  
• The ability to utilize increasing varieties of raw materials that do not decrease efficiency of the furnace or quality of the final product is becoming increasingly important in competitive strategy in the cracked sulfur market.
  
• At the same time, the submerged arc furnace market is being shaped by regional factors, with respected evidence of growth in emerging economies in Asia, Africa, and the Middle East. The rapid industrialization, gainful infrastructure projects, and increasing levels of steel production in these regions have accelerated the demand for efficient and high capacity SAF technologies, while developed markets gear their focus toward the modernization and retrofitting of established furnace plants to achieve their energy efficient functioning and lower emissions status.
  
• Emerging markets are largely expanding their use of efficient SAF technologies, while developed markets are upgrading their aged plants to integrate energy saving SAF systems which both add to steady global growth and spur future innovation based on regional and special industrial needs.
  

Submerged Arc Furnace Market Analysis

Based on product type, the submerged arc furnace market is segmented into DC submerged arc furnaces and AC submerged arc furnaces. The AC submerged arc furnaces dominated the market accounting for USD 747.7 million in 2024 and is expected to grow at a CAGR of 5.1% through 2034.

• The submerged arc furnace market is currently dominated by AC submerged arc furnaces (AC-SAFs), which have the largest overall share, as they have a cheaper capital cost, widely accepted reliability, and ease of operation. AC submerged arc furnaces are more commonly deployed in the ferroalloy and silicon metal industries because they are flexible, reliable, and are a well-developed technology.
  
• For many manufacturers of ferroalloys or silicon metal, the most important aspect of a furnace is the capital cost, which means AC furnaces would be preferred (and are preferred where just about anything at a lower cost is desirable). In places that try to maintain a low total cost of ownership, AC furnaces are often preferred.
  
• DC submerged arc furnaces (DC-SAFs) energy to process metal more efficiently resulting in a higher productivity rate and improved efficiencies. There is potential for a greater portion of the feed materials and higher up-time with DC-SAFs, any upfront capital cost or existing installation will reduce the value of DC-SAFs to manufacturers of ferroalloys and silicon metal.
  
• Technology improvements are enabling DC-SAFs to be incremental in cost and market value in establishing greater efficiency, benefits are mainly seen at larger plants faced with reducing production costs and complying with increasingly stringent requirements concerning energy efficiency and environmental regulations.
  

Based on application, the submerged arc furnace market is categorized into ferroalloy, silicon metal, fused alumina, calcium carbide, and yellow phosphorus. The ferroalloy segment dominates the market with 38% share in 2024, and the segment is expected to grow at a CAGR of 5% from 2025 to 2034.

• The submerged arc furnace (SAF) industry has a number of different applications that drive demand, although ferroalloy production is the largest and most important. Ferroalloys such as ferrochrome and ferrosilicon, as used in steelmaking, require SAFs because they can generate higher temperatures in a safe environment while still consistently yielding a quality product. There is no question this application mostly drives demand for SAFs around the world.
  
• The second largest application is silicon metal production. The demand for silicon metal used in electronics, solar panels and tech related industries is rapidly advancing. Again, SAF can provide the heat and a stable environment to produce pure silicon metal.
  
• Other applications like fused alumina, which is used in abrasives and refractories as well as calcium carbide, which is vital in the manufacture of chemicals, contribute a stable, but not nearly as high volume aspect to the market. Although yellow phosphorus production is significantly lower in volume than other applications, it is a niche yet stable application for SAFs.
  
• The use of phosphorus in fertilizers and chemicals advances demand for more phosphorus and thus SAFs for its production. While the SAF industry leads in applying to various applications, the industry will continue to grow as industrial and technological needs evolve across many sectors.
  

US dominated the submerged arc furnace market in North America with around 76% share in 2024 and generated USD 208.8 million in revenue.

• The U.S. submerged arc furnace (SAF) market is an integral component for the U.S. steel and ferroalloy industry. A significant number of manufacturers utilize the SAF to manufacture high-quality metals for sectors such as construction, automotive, and other industries that are crucial to an economy. The market is reinforced by rejuvenated capital investment and interest in modernization as manufacturers will want to update facilities to manufacture higher volumes more efficiently.
  
• In the United States, the major focus is on decreasing carbon emissions while increasing energy efficiency. New investments are also directed toward automating manufacturing processes and implementing smarter controls to fulfill both environmental sustainability and production capacities.
  
• The industries continue to demand strong and reliable materials. This results in the U.S. SAF market to grow at a higher pace with ongoing designs, innovations, and improvements within the infrastructure in the years to come.
  

The submerged arc furnace market in the Germany is expected to experience significant and promising growth from 2025 to 2034.

• The submerged arc furnace (SAF) market within Germany is fundamentally a sector of the industrial area of Germany but focuses more specifically on the production of ferroalloys and specialty steels. The growth of the market in Germany is largely attributed to the high-volume consumption of specialty steels and ferroalloys. This trend is true for many other countries' steel and industrial sectors. Germany is well positioned for long-term growth based on its consummation of automotive, engineering, and manufacturing sectors along with its overall strong industrial base in conjunction to maintaining high standards in metallurgical processes.
  
• One of the things that Germany is doing is continuing to modernize its existing SAF facilities. Many manufacturers are undergoing upgrades and changes to their SAF processes with overall purposes of energy efficiency and emissions reduction. Many production facilities have committed to modernizing and automating processes, implementing real time electrode regulation control or waste heat recover systems, and even modern superflux designs. With increased digital monitoring and predictive maintenance opportunities, SAF operations as a whole are likely become more operationally efficient and safe by blending a traditional process with modern innovation.
  

The submerged arc furnace market in China is expected to experience significant and promising growth from 2025 to 2034.

• China's submerged arc furnace market is growing steadily, with much of the demand being driven by its large steel and ferroalloy industries. The constant demand for infrastructure project materials and the expansion of industry continues to create demand for high-quality materials, which would make the SAFs the prime component of production processes.
  
• The focus of the market in China is to advance the SAF technology to increase energy efficiency and lower emissions. Most manufacturers are taking more control over their systems and investing into automation, which are both advantageous for increased productivity while complying to environmental standards.
  
• This investment is in line with the broader initiatives China has enacted to further cleaner and smarter industrial operations. The outlook for the SAF market remains positive as industrial growth along with the sustainability initiatives will sustain demand for SAFs since it is a key component.
  

The submerged arc furnace market in Saudi Arabia is expected to experience significant and promising growth from 2025 to 2034.

• The submerged arc furnace (SAF) market in Saudi Arabia continues to grow with the expansion of the industrial base, especially in steel-making and specialty metal production. Government policy to diversify the economy is prompting investments in modern manufacturing processes, and SAFs represent an integral part of the industrial environment.
  
• Several Saudi companies have taken advantage of upgrading their SAF facilities by integrating options for automated processes, as well as other energy- and productivity-efficient technologies, that help implement the goals of sustainability and reduced negative environmental impact.
  
• The demand for SAFs in Saudi Arabia remains stable. Ongoing developments of infrastructure and modernization of the industrial sector will continue to encourage demand for SAFs, specifically in the construction, steel, and petrochemical industries.
  

The submerged arc furnace market in Brazil is expected to experience significant and promising growth from 2025 to 2034.

• The submerged arc furnace (SAF) sector in Brazil is experiencing a gradual expansion as the demand for ferroalloys continues to grow with the demand for cleaner steel production. As industries grow, including but not limited to construction and automotive the demand for the best craftsmanship and efficiency in metal processing is expected to intensify. SAFs facilitate this as Brazil is generally poised to take advantage of its rich mineral resources coupled renewable energy sources.
  
• These emerging sustainability goals and the decreasing emissions linked to new forms of manufacturing and industrialization have gained increased attention at the government level and financially incentivized in other countries that have industrialized without regard for sustainable practices. In general, there are greater pressures to invest in electric melting furnaces and technologies, and the SAF is cementing itself as an electric melting furnace of choice for many processes relating to ferroalloys and for metal producers making the evolutionary shift towards sustainability.
  
• Further pressure comes from various aspects plaguing the sector currently to consider. Constructing and operating SAFs within sets of specific costs requires upfront investment, SAFs may be economical in some regions, however inherent electrical costs are high in some jurisdictions hindering the overall cost structures.
  

Submerged Arc Furnace Market Share

• The top 7 companies in the submerged arc furnace industry are Danieli, Electrotherm, Metso Outotec, Shanghai Electric Group, Siemens, SMS Group, and Thermtronix contributing around 30% to 35% of the market in 2024.
  
• These companies continue to acquire and merge with others, expand facilities, and make various collaborations to increase their product offerings, access customer bases, and secure their market positions.
  
• Shanghai Electric Group is a large equipment manufacturer that focuses on the industrial and energy markets. In the submerged arc furnace (SAF) market, they provide large-scale furnace systems primarily for producing ferroalloys and silicon. Their SAF designs emphasize high performance, operating stability, and energy conservation. Shanghai Electric also provides complete system solutions by providing automation, power supply, after-treatment equipment, etc. All of which makes Shanghai Electric a valuable partner for furnace projects from start to finish.
  
• Siemens applies its global expertise of automation and electrical system improvement to enhance submerged arc furnace operation. Siemens does not build furnaces, instead they produce advanced control systems, power electronics, and monitoring technologies, which allow operators to operate furnaces more efficiently with an extra measure of safety. It is common practice for Siemens to be contracted to replace or upgrade existing controls or equipment in performance improvements, either smart features into a new plant install or performance improvement projects on an existing plant to improve energy expenditures and overall productivity.
  
• As a well-respected and established engineering company specializing in metallurgical equipment, SMS Group designs and delivers complete systems including submerged arc furnaces (SAFs) for producing ferroalloys, silicon metals, and specialist materials. They offer completely integrated solutions from the furnace itself, automation, fume and gas cleaning systems, material handling systems, and infrastructure. The Group focus on energy efficiency, operational reliability of thermal solutions, and environmental integrity and compliance for both new builds and upgrades.
  

Submerged Arc Furnace Market Companies

Major players operating in the submerged arc furnace industry are:

• Danieli
• Doshi Technologies
• Electrotherm
• Hatch
• Metso Outotec
• Outotec Oyj
• Paul Wurth
• Primetals Technologies
• Shanghai Electric
• Siemens
• SMS Group
• Tenova
• Thermtronix
• Thyssenkrupp Industrial
• Xi’an Abundance Electric Technology

• To improve the product and market share key players are constantly investing in technological activities and are also entering into partnerships to provide improved and better solutions for the customers. These investments are benefiting both companies and customers as they help develop and offer solutions as per the changing technological trends and thus the customer requirements.
  
  
• Danieli is a large company that builds submerged arc furnaces that are used to make ferroalloys, silicon metal, and other special metals. Their submerged arc furnaces are characterized by energy saving, flexibility, and reliability, including switchable output for productions with varying requirements. Danieli also builds in automation and safety in their equipment and normally is suitable for large industrial applications where long-term usage and durability are important.
  
• Metso Outotec has built a lot of submerged arc furnaces and normally produces the processes of ferrochrome or ferrosilicon amongst others. Their submerged arc furnaces are designed with energy saving aspects along with lower emissions for large volume production. Metso Outotec also has technologies for the treatment of gases and other waste from the furnace process. They often gain their advantages due to having solid technical knowledge and support for their products especially a large project or special project.
  
• Tenova designs and builds submerged arc furnaces for the production of ferroalloys and other metals. Tenova's submerged arc furnace systems are of the newest technology, efficient, and environmentally viable. Tenova has strong reputation for safety and automation, their submerged arc furnaces can be customized for either a new plant or just an upgrade to an existing plant. They also tend to be involved with larger projects where a long term, high performance system is wanted.
  

Submerged Arc Furnace Industry News

• In July 2025, Thyssenkrupp Industrial launched a new high tech facility at their production site in Duisburg, Germany. With investment of around USD 850 million the facility is poised to modernize the company’s production lines and automate the process. This new automated facility will help the company in maintaining its position as key player of the market.
  
• In October 2024, Tenova entered into a signed contract with Tata Steel for installation of an arc furnace in its Port Talbot facility in Wales. The furnace is poised to be operational by end of 2027 and is expected to boost production facility of Tata Steel in the Western Europe region.
  
• In January 2024, Mesto received a major order from FACOR’s Bhadrak site in Odisha India. This deal included two 75MVA submerged arc furnaces with preheating technology for smelting applications. These two furnaces are expected to have combined output of around 300,000 tons per year and the operations have begun in early 2025. This deal highlights Metso Outotec’s position as a key player of the market.
  
• In May 2022, Tenova secured two contracts from the Tenaris Dalmine, which is part of Techint Group which oversees its steel mill in Dalmine facility in Italy. These contracts were planned in two phases with first phase involving installation of latest shop ladle furnace for secondary metallurgical treatment of liquid steel and the second phase consisted of heat treatment furnace designed for steel bars of up to 12 meters in length.
  

The submerged arc furnace market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Billion) and volume (Thousand Units) from 2021 to 2034, 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
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Netherlands
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
• Latin America
  • Brazil
  • Mexico
  • Argentina
• Middle East and Africa
  • South Africa
  • Saudi Arabia
  • UAE