End-users in Canada face varying electricity costs, with a national monthly average of **** Canadian cents per kilowatt-hour, as of September 2023. Due to their remote location, electric energy is most expensive in the Northwest Territories, where the price per kilowatt-hour stands at ** Canadian cents. Electricity generation in the Northwest Territories is largely reliant on hydropower and petroleum. How is electricity produced in Canada? Canada’s electricity generation employs a diverse array of energy sources; however, the country is primarily reliant on hydroelectric power. Hydraulic turbines, propelled by flowing water, drive generators that produce electricity. The widespread use of hydroelectricity, particularly in the province of Quebec, has contributed to the province having the cheapest electricity prices nationwide, at *** Canadian cents per kilowatt-hour. In 2022, Canada generated nearly *** terawatt-hours of hydroelectric power. Average industrial and residential electricity prices in Canada Industry electricity prices within Canadian cities differ, and the average industrial electricity price in Canada fluctuated between **** and ***** Canadian cents per kilowatt-hour in 2022. By comparison, the average residential electricity prices in Canada oscillated between **** and ***** Canadian cents per kilowatt-hour, depending on the city. Notably, residential energy costs across the country tend to be higher when compared to the industrial sector.

Electric power selling price index (EPSPI). Monthly data are available from January 1981. The table presents data for the most recent reference period and the last four periods. The base period for the index is (2014=100).

Industrial electricity prices vary significantly across Canada. As of April 2023, the large industrial price of electricity in Edmonton averaged ***** Canadian cents per kilowatt-hour. In contrast, Winnipeg recorded an average of **** cents per kilowatt-hour at the time.

Renewable power producers have endured declines, largely because of drought conditions impacting hydroelectric generation in provinces like British Columbia and Manitoba. These challenges have led to increased reliance on electricity imports and have raised operational costs, hindering profit. However, Hydro-Québec's resilience, because of more favourable conditions, has allowed it to maintain stability and even expand its market share. Industry revenue has been decreasing at a CAGR of 1.9% over the past five years to total an estimated $39.1 billion in 2025, including an estimated increase of 1.6% in 2025 as the price of electric power climbs and pushes up revenue. Over the past five years, renewable power producers have faced volatility, mainly because of environmental factors and market dynamics. For example, surging natural gas prices in 2021 and 2022 favoured renewable power producers, but these prices have begun to normalize. Also, drought conditions forced some producers to purchase additional electricity, raising costs and squeezing profit. While renewable projects have expanded, the industry has also contended with rising land and maintenance costs, which have put additional pressure on profitability. Tariffs on steel, aluminum and electrical equipment may hike costs and lead to project delays for renewable power producers. Still, investments in solar and wind energy have been very strong, as technological advancements and supportive policies provided momentum. Looking ahead, renewable power producers are set for growth, driven by supportive government incentives and advancements in technology. Investments in solar and wind projects are expected to increase. Growing power needs alongside the construction of energy-intensive AI data centres will benefit power producers. Also, growth in residential housing as well as return to office trends will hike energy needs and boost the performance of renewable power producers. Significant investments in infrastructure and grid updates in provinces like British Columbia and Manitoba are on the horizon to support growing energy needs and modernize systems. Still, drought conditions may persist and impact provinces more reliant on hydro power generation. Industry revenue is forecast to increase at a CAGR of 1.3% to total an estimated $41.8 billion through the end of 2030.

The hourly electricity price in Ontario amounted to an average of about **** Canadian cents per kilowatt hour in 2023. This was very close to Ontario's electricity prices in 2021, but was a decrease of **** Canadian cents per kilowatt hour in comparison to the average prices in 2022.

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Electric Arc Furnaces Market Size 2025-2029

The electric arc furnaces market size is forecast to increase by USD 855.3 million, at a CAGR of 11% between 2024 and 2029. The market is witnessing significant advancements in technology, driving growth and innovation. New developments in electric arc furnace design and operation are enhancing energy efficiency, reducing production costs, and expanding the scope of applications.

Major Market Trends & Insights

APAC dominated the market and contributed 68% to the growth during the forecast period.
The market is expected to grow significantly in Europe region as well over the forecast period.
Based on the Type, the AC arc furnace segment led the market and was valued at USD 767.70 million of the global revenue in 2023.
Based on the Product, the 100 to 200 tons segment accounted for the largest market revenue share in 2023.

Market Size & Forecast

Market Opportunities: USD 125.2 Million
Future Opportunities: USD 855.3 million
CAGR (2024-2029): 11%
APAC: Largest market in 2023



The market continues to evolve, driven by diverse applications across various sectors. However, the high cost of electric arc furnace technology remains a significant challenge for market expansion. Despite this obstacle, opportunities exist for companies to capitalize on the growing demand for cost-effective and sustainable steel production. Electric arc furnaces are increasingly replacing traditional blast furnaces due to their flexibility, energy efficiency, and lower production costs. The integration of advanced automation and control systems is enabling furnace operators to optimize production processes, reduce energy consumption, and improve product quality.
Additionally, the growing trend towards electric vehicles and renewable energy sources is creating new opportunities for electric arc furnaces in the automotive and renewable energy industries. However, the high initial investment required for electric arc furnace technology remains a significant barrier to entry for new market entrants. The cost of advanced automation and control systems, as well as the high cost of electricity, can make electric arc furnaces a financially challenging investment for some steel producers. To navigate this challenge, companies must focus on optimizing their production processes, reducing energy consumption, and exploring cost-effective financing options. By addressing these challenges and capitalizing on market opportunities, electric arc furnace manufacturers and operators can position themselves for long-term success in this dynamic and evolving market.

What will be the Size of the Electric Arc Furnaces Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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The electric arc furnace market continues to evolve, driven by advancements in steelmaking efficiency and the expanding applications across various sectors. Electrode consumption and wear rate are critical factors influencing furnace performance and cost. For instance, a leading steel producer reduced electrode consumption by 15% through optimized arc furnace power management and furnace tilting mechanism adjustments. Off-gas analysis and voltage regulation play essential roles in maintaining electrical resistivity and energy consumption rate, while alloying element additions and melt temperature control ensure quality. A recent industry report projects a 6% annual growth expectation for the electric arc furnace market, fueled by advancements in process automation, current transformer technology, and plasma diagnostics.

Oxygen lance injection, slag foaming control, and refractory materials contribute to furnace lining life and emission monitoring. Furnace power factor correction, dust collection efficiency, and effluent treatment are crucial for reducing energy consumption and environmental impact. Arc stability, tap hole drilling, and metal recovery rate are essential for optimizing the arc length and arcing phenomena. Temperature gradients and arc stability are closely monitored to maintain consistent chemical composition control and improve heat transfer efficiency. Innovations in emission monitoring systems, fume treatment, and furnace lining materials are transforming the electric arc furnace market, ensuring a sustainable and efficient future for steel production.

How is this Electric Arc Furnaces Industry segmented?

The electric arc furnaces industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Type

  AC arc furnace
  DC arc furnace
  Submerged arc furnace


Product

  100 to 200 tons
  200 to 300 tons
  More than 300 tons
  Upto 100 tons