Small Modular Reactor Market Size, Share, Analysis, Growth, Forecasts, 2032

Small Modular Reactor Industry Prospective:

The global small modular reactor market size was worth around USD 5.84 billion in 2023 and is predicted to grow to around USD 52.02 billion by 2032 with a compound annual growth rate (CAGR) of roughly 27.50% between 2024 and 2032.

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Small Modular Reactor Market: Overview

Small modular reactors (SMRs) are advanced forms of traditional large-size nuclear reactors. The main characteristics of small modular reactors are small size, modular functionality, and generation of energy through nuclear fission technology. Large quantities of low-carbon electricity can be produced using small modular reactors. The compact size of SMRs makes them highly popular for applications in areas that are otherwise disconnected from main power grids. In addition to this, the overall structure of small modular reactors can be prefabricated at the production site and transported to the construction area for installation. They provide access to clean energy with limited nuclear waste as compared to large-scale nuclear reactors. Market leaders claim that the energy-generating system can be used to meet the rising global power demands. Moreover, SMRs can be considered safer as compared to larger counterparts due to lower operating pressure and power used for operating the system. In recent times, the number of public and private companies investing in small modular reactors has grown at a steady pace in growing economies and the forecast period is expected to deliver exceptional growth opportunities.

Key Insights:

• As per the analysis shared by our research analyst, the global small modular reactor market is estimated to grow annually at a CAGR of around 27.50% over the forecast period (2024-2032)
• In terms of revenue, the global small modular reactor market size was valued at around USD 5.84 billion in 2023 and is projected to reach USD 52.02 billion, by 2032.
• The market is projected to grow at a significant rate due to the rising power demand across the globe
• Based on the application, the power generation segment is growing at a high rate and will continue to dominate the global market as per industry projection
• Based on the reactor type, the heavy water reactor (HWR) segment is anticipated to command the largest market share
• Based on region, Asia-Pacific is projected to dominate the global market during the forecast period

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Small Modular Reactor Market: Growth Drivers

Rising power demand across the globe will drive adoption of SMRs during the forecast period

The global small modular reactor market is projected to grow due to the increasing power demand worldwide. Energy is one of the basic needs of the modern world as all essential infrastructure is powered by a constant energy supply. The leading sources of the majority of energy production are fossil fuel energy reserves including oil, natural gas, and coal among others. However, these resources are depleting as the demand continues to soar at an exceptional rate. In 2022, the global energy consumption was over 24,900 terawatt-hour (TWh) as both industrial and residential demand for power reached new heights. Furthermore, during the projection period, as the world population rises, energy requirements will receive a higher boost making it difficult for energy providers to keep up with the perpetual rise in power consumption. While large reactors are considered effective solutions to achieving a balance between demand and supply of energy, such enormous structures are not possible to deploy across regions. Small modular reactors can prove beneficial in such cases as they are relatively easy to install and operate, especially in remote locations that are not connected to the main power grid. For instance, large reactors typically have higher fuel requirements which are around 1 to 2 years. However, small modular reactors require refueling every 3 to 7 years thus making them more cost-effective as compared to large reactors.

Rising shift toward clean energy to reduce the environmental impact of energy generation and consumption will aid in market growth

The impact of energy exploitation and excessive consumption is evident in the form of drastic changes in climate conditions and unpredictable weather. Higher dependence on nonrenewable energy sources is a leading cause of global warming. Environment agencies in tandem with regional governments are working on mitigating these changes with the deployment of ways to generate clean energy. These measures are likely to promote the adoption of the global small modular reactor market. In May 2024, the international segment of the international development policy in the UK announced plans to increase investments in Africa to promote the region’s renewable energy segment.

Small Modular Reactor Market: Restraints

Poor management of nuclear waste generated by SMRs will restrict the market expansion

The global small modular reactor industry has several limitations that restrict its mass adoption. One of the leading limitations is in the form of managing nuclear waste generated by small modular reactors. Although the quantity of nuclear waste is small when compared to waste coming from large reactors, the intrinsic quality of nuclear waste remains the same irrespective of the quantity it is produced. A study published by a researcher at Stanford's Center for International Security and Cooperation (CISAC) claimed that SMR studies in the project can produce higher volumes of nuclear waste by factors of 2 to 30.

Small Modular Reactor Market: Opportunities

Increasing investments in the development of novel SMRs will generate exceptional growth opportunities

The global small modular reactor market is projected to generate high growth opportunities due to the increasing investments in the development of novel SMRs with higher performance and application. For instance, Russia has deployed a floating nuclear power plant leveraging the advantages of small modular reactors. The model is deployed off the Siberian coast and sends energy to more than 200,000 people. SMRs are steadily finding applications in the underwater ecosystem as well since several submarines are propelling using the technology. In February 2024, the European Commission announced the launch of a new partnership encouraging industry players to enter a joint effort in the development of SMRs and their effective deployment. The call for partnership is a part of the region’s objective to achieve carbon neutrality by 2050. In May 2023, Westinghouse Electric Company launched the P300™ small modular reactor (SMR). It is a single-loop pressurized water reactor and takes its predecessor AP1000® reactor one step ahead in the power generation game.

Rising investments in nuclear energy may prove beneficial for industry leaders

Among other forms of clean energy, nuclear power sources have gained excellent momentum in the last few years. As per the Department of Energy (DOE), around 20% of electricity in the US is provided by nuclear power plants. India is gearing up to improve nuclear power production by collaborating with private companies and offering them more incentives. The region is planning on exploring the offerings of the global small modular reactors market to capitalize on the growing energy demands in the emerging economy.

Small Modular Reactor Market: Challenges

High cost of capital and increasing design complexities may challenge the market expansion rate

The global small modular reactor industry is expected to be challenged due to the high cost of initial investment. Although the expense associated with SMRs is relatively lower as compared to traditional reactors, the cost is significantly high. Moreover, modern SMRs are becoming more complex in terms of design and operation as per official reports. The cost may further increase due to the varying conditions of different sites. The lack of sufficient skilled resources to build safe and functional SMRs will further impact the market growth rate.

Small Modular Reactor Market: Segmentation

The global small modular reactor market is segmented based on application, reactor type, and region.

Based on the application, the global market segments are power generation, desalination, and process heat. In 2023, the highest demand was observed in the power generation segment. Small modular reactors are used to meet the rising global power demands. These reactors produce sufficient quantities of clean energy resulting in higher segmental demand. Moreover, the growing focus on decarbonization in the energy sector will help the segment receive more revenue in the coming years. During the forecast period, the global clean energy market is expected to grow at a CAGR of around 10%.

Based on the reactor type, the global market divisions are light reactor type (LWR), heavy water reactor (HWR), and fast neutron reactor (FNR). In 2023, the highest demand was witnessed in the heavy water reactor (HWR) segment. One of the primary reasons for the higher adoption rate is the improved neutron economy delivered by HWR. Heavy water reactors do not need extensive refueling and can use alternate fuel cycles. Moreover, HWR delivers less waste as compared to other alternatives. SMRs have a power capacity of 300 MW(e) per unit thus producing around one-third of the total power generation capacity of conventionally used nuclear power reactors.

Small Modular Reactor Market Report Scope

Small Modular Reactor Market: Regional Analysis

Asia-Pacific will rule the market growth rate during the projection period

The global small modular reactor market is projected to witness the highest growth in Asia-Pacific. China is expected to lead the regional market growth trend owing to the country's dominance in harnessing nuclear power. China is one of the leading countries that have managed to develop a robust infrastructure in support of nuclear energy and continues to invest in further upgrading the regional architecture. As per official reports, China had around 55 nuclear plants in the country as of February 2023 and around 5% of the country’s electricity is generated using nuclear energy. China has aimed to generate 18% of its total power using nuclear technology by 2060. Russia, on the other hand, owns a majority stake in the small modular reactor fuel sector. In January 2024, Russia extended its help to India to build small modular reactors with capacities between 75 MW to 300 MW. In April 2024, reports suggested that the Indian Oil company was holding talks with Nuclear Power Corporation of India Limited (NPCIL) for the construction of small nuclear reactors for powering the former’s refineries. North America is expected to generate significant revenue during the projection period. The US is currently working on developing SMRs at a large scale however the country is facing issues with commercial deployment of the technology on land.

Small Modular Reactor Market: Competitive Analysis

The global small modular reactor market is led by players like:

• Ultra Safe Nuclear Corporation (USNC)
• Holtec International
• Rolls-Royce Small Modular Reactors
• Kairos Power
• Seaborg Technologies
• Westinghouse Electric Company
• NuScale Power LLC
• ThorCon Power
• General Atomics
• Moltex Energy
• GE Hitachi Nuclear Energy
• X-energy
• Terrestrial Energy Inc.
• Oklo Inc.
• BWX Technologies Inc.

The global small modular reactor market is segmented as follows:

By Application

• Power Generation
• Desalination
• Process Heat

By Reactor Type

• Light Water Reactor (LWR)
• Heavy Water Reactor (HWR)
• Fast Neutron Reactor (FNR)

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa