May 18, 2024
Nuclear Power Market

Nuclear Power Is Estimated To Witness High Growth Owing To Advancements In Small Modular Reactors

Nuclear power refers to the commercial use of nuclear fission reactors to generate electricity. Nuclear power plants produce heat through fission in a uranium-filled reactor. This heat is then used to power steam turbines that generate electricity. Nuclear power offers low carbon electricity without direct greenhouse gas emissions. It can provide baseload electricity, which is power available at all times. Additionally, nuclear power is a stable source of energy and provides long-term price stability as fuel costs constitute a small portion of the total cost of nuclear electricity generation.

The Global Nuclear Power Market is estimated to be valued at US$ 459.76 Mn  in 2024 and is expected to exhibit a CAGR of 4.3%  over the forecast period 2024 to 2030.

Key Takeaways

Key players operating in the Nuclear Power Market include GlaxoSmithKline plc, Merck & Co., Inc., Sandoz International GmbH, AstraZeneca, LEO Pharma, Cipla Inc., Bristol-Myers Squibb Company, Almirall, S.A., Bausch Health, and Sanofi SA. The key players are focusing on developing advanced small modular reactor technologies to drive the efficiency and safety of nuclear power generation.

The Nuclear Power Market Demand is expected to witness key opportunities due to rising investments by various countries and private players in advanced nuclear technologies. Countries worldwide are implementing policies and undertaking initiatives to expand their nuclear power capacities to meet growing energy demands sustainably.

Advancements in small modular reactor technologies are boosting the adoption of nuclear power. Small modular reactors are more flexible and economical compared to conventional large reactors. They offer passive safety features, enhanced proliferation resistance, and modular construction techniques for reduced costs.

Market Drivers

Supportive government policies and initiatives towards nuclear power generation is a key factor driving the nuclear power market growth. Many countries are undertaking long-term projects and providing financial assistance to develop new nuclear power plants. For instance, initiatives like the US Nuclear Power 2010 Program and Generation IV International Forum are aiding the development of innovative reactor designs. This is expected to boost the nuclear power market size during the forecast period.

Current Challenges in Nuclear Power Market

The nuclear power market currently faces various challenges. One of the major challenges is maintaining safety and security of nuclear plants and radioactive waste disposal. Proper safety measures need to be established to prevent incidents like nuclear reactor meltdowns. Another challenge is obtaining public support for new nuclear power projects. Over the years, negative perception about the risks of radiation exposure has reduced public trust in nuclear energy. High initial investment cost for setting up nuclear plants is also a roadblock, as it requires massive capital investments and has long gestation periods. Sustaining operation of aging reactors is an ongoing challenge as they require high maintenance costs. Decommissioning of old reactors needs proper planning and allocation of funds to ensure environmental safety.

SWOT Analysis

Strength: Nuclear energy is a low carbon source that produces negligible greenhouse gas emissions. It can provide reliable baseload power for decades.
Weakness: High upfront investment and decommissioning costs. Public concerns over safety and radioactive waste disposal.
Opportunity: Growth in emerging markets due to rising energy demand. Developing small modular reactors with improved safety features.
Threats: Stiff competition from renewable resources and natural gas. Regulatory challenges and delays in project approvals.

Geographical regions

North America dominates the global nuclear power market with the United States accounting for the largest share currently. Asia Pacific is identified as the fastest growing regional market due to increasing energy needs of rapidly developing economies in the region like China and India. Countries like China, Russia, South Korea also have robust domestic nuclear power programs and are major contributors to the Asia Pacific market. Western Europe is another major revenue generating region, led by countries such as France, UK and Germany with well-established nuclear industries.

The fastest growing regional market for nuclear power is expected to be Asia Pacific between 2024-2030. This is due to sustained high economic growth rates and rising energy demand in developing nations like China, and India which have ambitious nuclear power capacity expansion plans in place. China, being the world’s second largest economy is aggressively developing its domestic nuclear sector with the largest nuclear power construction pipeline globally. Other Asian countries are also investing more in nuclear to meet their ‘clean energy’ targets and transition away from fossil fuels.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it