Induction Furnace Market to Hit USD 1.7 Billion by 2035 — Growth Accelerates in Steel and Metal Manufacturing

According to the latest market analysis, the global Induction Furnace Market is estimated at USD 1.0 billion in 2025 and projected to reach USD 1.7 billion by 2035, registering a 5.0% CAGR during the forecast period. This steady growth reflects the ongoing global shift toward efficient, clean, and sustainable metal melting technologies across industries such as steel, copper, and aluminum manufacturing.

The surge in demand for energy-efficient furnaces is being accelerated by stricter environmental regulations and rising investments in modern steel production facilities. As manufacturers move away from coal-based furnaces, electric induction furnaces are becoming the preferred choice for their precision, energy savings, and ability to minimize carbon emissions.

Market Drivers and Growth Outlook

The Induction Furnace Market is witnessing strong momentum due to the global emphasis on reducing industrial emissions and optimizing energy usage. Induction furnaces enable faster melting cycles, improved metal purity, and reduced operational costs, making them indispensable in both ferrous and non-ferrous metal applications.

The market’s expansion is also fueled by growing construction activities, automotive production, and infrastructure development, which drive the demand for high-quality steel and alloy products. Technological advancements—such as automation and smart temperature control systems—are further enhancing the performance and efficiency of induction furnaces, making them more adaptable to modern manufacturing environments.

Segmental Insights

By Type – Coreless Induction Furnace Leads the Market

The Coreless Induction Furnace segment is expected to account for 45.0% of the total market share in 2025. Its dominance stems from superior energy efficiency, rapid melting capabilities, and flexibility in handling diverse metal alloys. The modular design allows seamless integration into automated production lines, enabling scalability and high productivity.

Coreless furnaces are also favored for their eco-friendly performance, helping manufacturers meet sustainability targets by reducing waste and emissions.

By Furnace Capacity – Between 1 to 100 Tons Segment Dominates

The 1 to 100 tons capacity range is projected to hold 50.0% of the global market share in 2025. This category is ideal for both medium- and large-scale industrial operations, offering an optimal balance between throughput and energy efficiency.

The segment’s adaptability to different production volumes and its ability to reduce operational costs make it particularly attractive for modern steel and alloy manufacturing units focused on flexible production lines.

By End Use – Steel Industry at the Forefront

The steel industry remains the leading end-use sector, projected to represent 40.0% of global market revenues in 2025. The rise in infrastructure development, housing projects, and industrialization across Asia-Pacific and the Middle East has significantly boosted steel demand.

Induction furnaces are increasingly being adopted in steel production due to their high precision, reliability, and lower environmental footprint compared to traditional blast furnaces. Their ability to ensure consistent quality and high metal yield continues to drive adoption across global steel manufacturing plants.

Regional and Country-Level Insights

Regionally, the market is segmented into North America, Europe, Asia-Pacific, and the Middle East & Africa.

• Asia-Pacific dominates the global landscape, supported by rapid industrialization and strong investments in steel infrastructure.
• China leads with a 6.8% CAGR, while India follows closely at 6.3%, driven by expanding foundry operations and government initiatives promoting electric furnace technology.
• Germany remains the key growth hub in Western Europe, registering a 5.8% CAGR, driven by its advanced metallurgy and industrial automation sectors.
• In North America, the U.S. market—valued at USD 393.7 million in 2025—continues to benefit from modernization in steel and automotive manufacturing.

Meanwhile, Japan and South Korea, though smaller markets, show steady demand as industries transition toward low-emission technologies and higher-quality alloys.

Key Market Players

Leading manufacturers shaping the global induction furnace market include:

Inductotherm Corporation, Electrotherm, Danieli Group, SMS Elotherm GmbH, Tenova S.p.A., Ajax TOCCO Magnethermic Corporation, IHI Machinery and Furnace Co., Ltd, and Otto Junker GmbH (Germany).

These companies are actively investing in R&D to introduce next-generation induction systems featuring AI-based control mechanisms, automated pouring, and smart monitoring capabilities that improve yield and reduce energy consumption. Strategic partnerships, facility expansions, and mergers are also defining the competitive landscape.

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Market Overview and Future Outlook

Induction furnaces operate using electromagnetic induction principles to melt metals efficiently, ranging in capacity from below one ton to over 100 tons. These systems provide a clean, oxidation-free melting process and are widely used in iron, steel, aluminum, copper, zinc, and precious metal manufacturing.

With industries prioritizing sustainability and precision, the adoption of smoke-free, energy-efficient induction systems continues to rise. The integration of digital monitoring systems and IoT-based controls is expected to further revolutionize furnace management, enhancing productivity and cost-efficiency.

By 2035, the Induction Furnace Market is projected to play a central role in supporting global energy transition goals, with steel and non-ferrous manufacturers increasingly turning to green melting technologies for their environmental and economic advantages.

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