Oman electric arc furnace market report Size, Share, Growth Drivers, Trends, Opportunities & Forecast 2025–2030

Oman Electric Arc Furnace Market Overview

• The Oman Electric Arc Furnace market is valued at USD 950 million, based on a five-year historical analysis. This growth is primarily driven by the increasing demand for steel production, fueled by infrastructure development, urbanization, and the country’s strategic focus on industrial diversification. The shift towards electric arc furnaces is further supported by their energy efficiency, lower carbon emissions compared to traditional blast furnaces, and alignment with Oman’s sustainability objectives .
• Key players in this market include Muscat Steel, Oman Steel Industries, and Gulf Steel Industries. These companies maintain a competitive edge through established production capabilities, adoption of advanced electric arc furnace technologies, and ongoing investments in process automation and energy efficiency, supporting the sector’s modernization and capacity expansion .
• The “Regulation for the Rationalization of Energy Consumption in Industrial Facilities, 2023” issued by Oman’s Ministry of Energy and Minerals requires steel manufacturers to implement energy-efficient technologies, including electric arc furnaces, and mandates a 30% reduction in carbon emissions by 2030. This regulation is a key component of Oman’s Vision 2040 strategy, supporting environmental sustainability and economic diversification through enforceable compliance thresholds and regular reporting requirements .

Oman Electric Arc Furnace Market Segmentation

By Type:The electric arc furnace market in Oman is segmented into four types: AC Electric Arc Furnaces, DC Electric Arc Furnaces, Ultra-High Power Electric Arc Furnaces, and Others. AC Electric Arc Furnaces are the most widely used, favored for their cost-effectiveness, operational reliability, and suitability for processing a wide range of steel scrap and direct reduced iron. DC Electric Arc Furnaces are gaining prominence due to their ability to produce high-quality steel with reduced electrode consumption and lower energy use. Ultra-High Power Electric Arc Furnaces are increasingly adopted for large-scale, high-throughput operations, while the 'Others' category includes specialized furnaces for niche metallurgical applications .

By End-User:The end-user segmentation comprises Steel Manufacturing, Alloy Production, Foundries, and Others. Steel Manufacturing remains the dominant segment, driven by robust demand from construction, infrastructure, and industrial projects. Alloy Production is significant, reflecting the rising need for specialized and high-performance steel grades. Foundries utilize electric arc furnaces for precision casting and recycling operations, while the 'Others' segment includes diverse industrial users requiring flexible steel and metal processing solutions .

Oman Electric Arc Furnace Market Competitive Landscape

The Oman Electric Arc Furnace Market is characterized by a dynamic mix of regional and international players. Leading participants such as Oman Steel Industries, Gulf Steel Industries, Al Jazeera Steel Products Co. SAOG, Oman Cables Industry, Sohar Steel LLC, Muscat Steel, Al Anwar Holdings, Oman National Engineering & Investment Co. SAOG, Al Batinah International LLC, Oman Metal Industries, Al Hodaifi Group, Al Muna Group, Al Fajr Al Muneer, Al Mufeed Trading, Al Mufeed Steel, Jindal Steel Duqm, Vale Oman, Meranti Green Steel, Mitsui & Co. (Oman), Kobe Steel (Oman), ACME Group (Oman), Danieli Middle East, CHNZBTECH (Oman Projects) contribute to innovation, geographic expansion, and service delivery in this space.

Oman Electric Arc Furnace Market Industry Analysis

Growth Drivers

• Increasing Demand for Steel Production:The demand for steel in Oman is projected to reach 2.5 million tons in future, driven by infrastructure projects and urbanization. The construction sector, which accounts for approximately 60% of steel consumption, is expected to grow by 4.5% annually. This surge in demand for steel directly influences the electric arc furnace market, as these furnaces are essential for efficient steel production from scrap metal, aligning with the country's industrial growth objectives.
• Technological Advancements in Electric Arc Furnaces:The electric arc furnace technology has seen significant advancements, with energy consumption decreasing by 20% over the past five years. Innovations such as improved electrode materials and automation have enhanced operational efficiency. In Oman, the adoption of these technologies is expected to increase, as manufacturers seek to optimize production processes and reduce operational costs, thereby driving market growth in the electric arc furnace sector.
• Government Initiatives Promoting Sustainable Manufacturing:The Omani government has set a target to increase the share of renewable energy in its energy mix to 30% in future. This initiative supports the electric arc furnace market, as these furnaces can utilize renewable energy sources, reducing carbon emissions. With investments of approximately $1.5 billion in green technologies, the government is fostering an environment conducive to sustainable manufacturing practices, further propelling the electric arc furnace market.

Market Challenges

• High Initial Investment Costs:The initial capital required to set up electric arc furnaces can exceed $10 million, which poses a significant barrier for new entrants in Oman. This high investment is often a deterrent for smaller companies, limiting competition and innovation in the market. Additionally, the long payback period associated with these investments can further discourage potential investors, impacting overall market growth.
• Fluctuating Raw Material Prices:The prices of scrap metal, a primary input for electric arc furnaces, have shown volatility, with fluctuations ranging from $300 to $500 per ton in recent years. This unpredictability can severely impact profit margins for manufacturers, making it challenging to maintain stable production costs. As a result, companies may face difficulties in pricing their products competitively, hindering market expansion in Oman.

Oman Electric Arc Furnace Market Future Outlook

The Oman electric arc furnace market is poised for significant transformation, driven by technological advancements and a strong push towards sustainability. As the government continues to invest in infrastructure and renewable energy, the demand for efficient steel production will rise. Furthermore, the integration of smart manufacturing technologies is expected to enhance operational efficiencies. These trends indicate a robust future for the electric arc furnace market, with opportunities for growth and innovation in the coming years.

Market Opportunities

• Expansion of Recycling Initiatives:With Oman generating approximately 1.2 million tons of scrap metal annually, there is a significant opportunity to enhance recycling initiatives. By increasing the recycling rate, manufacturers can secure a steady supply of raw materials for electric arc furnaces, reducing dependency on imported metals and promoting a circular economy within the region.
• Growth in Renewable Energy Integration:The integration of renewable energy sources into electric arc furnace operations presents a unique opportunity. With the government’s commitment to achieving 30% renewable energy in future, manufacturers can leverage this shift to reduce operational costs and carbon footprints, positioning themselves as leaders in sustainable steel production in Oman.