Global nuclear power generation depends on utilization of radioactive nuclear materials to produce energy for electricity generation and other applications. Unlike renewable energy sources like solar and wind, nuclear energy provides reliable baseload power. Nuclear power plants generate electricity through a complex process that relies on harnessing the energy released from the splitting of uranium atoms in a controlled fashion. Nuclear power is a low-carbon emission source of electricity and plays a crucial role in decreasing reliance on fossil fuels.
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 are 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. Growing energy requirement and focus on reducing carbon emissions are the major factors driving the nuclear power market. However, high capital investment for setting up nuclear power plants and radioactive waste disposal challenges can hinder the market growth. Technological advancements such as small modular reactors are opening new growth avenues.
Market Trends
Asia Pacific dominates the Nuclear Power Market Demand due to increasing investments in new nuclear reactors in countries like China and India. The region is estimated to grow at the fastest pace during the forecast period owing to rapidly expanding power needs. Adoption of advanced technologies like molten salt reactors and sodium-cooled fast reactors allows greater efficiencies and resolution of issues like waste disposal. These next-gen nuclear technologies can drive the market growth in the coming years.
Market Opportunities
Rising focus on deploying alternative clean energy solutions to replace coal and petroleum for power generation is creating significant opportunities. Developed regions like North America and Europe are investing heavily in nuclear power plants to meet carbon neutrality goals. Countries worldwide are extending the operational lifetime of existing reactors to benefit from low-carbon electricity for a longer tenure. Sustained investments in R&D for developing next-gen nuclear systems will further stimulate the nuclear power market.
Impact of COVID-19 on Nuclear Power Market Growth
The COVID-19 pandemic has significantly impacted the global nuclear power market growth in 2020. International trade restrictions and supply chain disruptions led to delays in several ongoing and planned nuclear power plant construction projects across major markets such as the US, China, India, UAE, and Russia. This led to short-term decline in the demand for nuclear fuel, components, and engineering services.
However, the long-term outlook remains positive owing to emphasis on clean energy transition post COVID. Many countries have announced plans to boost investments in nuclear power to reduce dependency on fossil fuels and achieve decarbonization targets. For instance, the US and China have stepped up efforts to complete existing projects and start new ones. This will drive the demand for nuclear fuel, components, instrumentation and control systems over the coming years.
The industry is also adopting new safety protocols and engineering modifications to accelerate construction while ensuring protection of onsite workers from coronavirus. Adherence to social distancing and enhanced sanitization measures has helped resume operations at several project sites, albeit at a slower pace than pre-COVID levels. Technological advancements in modular construction techniques will help offset delays and complete delayed projects within deadline.
Geographical Regions with Highest Nuclear Power Market Value
North America dominated the global nuclear power market in terms of value in 2024 owing to a well-established nuclear energy sector in countries like the US and Canada. The US generates around 20% of its electricity from nuclear energy and several existing plants are undergoing capacity upgrades to extend their operational life. Planned new reactors will further boost the demand for nuclear components and fuel in the coming years.
The Asia Pacific region is expected to witness the fastest growth between 2024-2030. Countries such as China, India, and South Korea are aggressively undertaking new reactors to meet their expanding energy needs in an environment-friendly manner. Ongoing projects such as the 1100 MWe ACPR1000+ in China will drive the demand for nuclear materials, instrumentation, and engineering consultancy in this region.
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