February 28, 2024
Nuclear Power Market

Nuclear Power is Estimated to Witness High Growth Owing to the Opportunity to Reduce Carbon Emissions

Nuclear power plants utilize energy generated from nuclear fission to produce electricity while emitting little to no greenhouse gases. Nuclear energy provides a reliable and affordable base-load electricity without carbon emissions. One kilogram of uranium can produce as much energy as three million kilograms of coal and it helps countries meet their renewable energy targets economically. The global Nuclear Power Market is estimated to be valued at US$73 Billion in 2023 and is expected to exhibit a CAGR of 4.3% over the forecast period 2023-2031, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:
Reduction of carbon emissions presents a major market opportunity for the nuclear power industry. Transitioning to nuclear energy from fossil fuels can help countries and organizations meet their emission reduction targets effectively. According to the Intergovernmental Panel on Climate Change (IPCC), global greenhouse gas emissions need to be reduced by 45% by 2030 from the 2010 levels to limit global warming to 1.5°C. Expanding the use of nuclear power which has near-zero carbon footprint can play a vital role in achieving this target. Adoption of innovative small modular reactor technology also helps increase nuclear power capacity while reducing carbon footprint to address the growing demand for clean energy.

Porter’s Analysis
Threat of new entrants: The nuclear power industry requires massive capital investments and dealing with stringent regulations which make it difficult for new companies to enter this market.

Bargaining power of buyers: Electric utilities that generate electricity have significant bargaining power over nuclear power suppliers as there are only a few major suppliers for nuclear reactors globally.

Bargaining power of suppliers: Major suppliers of nuclear reactors like Westinghouse, Rosatom, and China National Nuclear Corporation have considerable bargaining power over buyers due to the niche nature of their products and services.

Threat of new substitutes: Sources of renewable energy like solar and wind power are becoming viable substitutes for nuclear power generation and pose a threat to the nuclear power industry.

Competitive rivalry: The nuclear power industry faces high competitive rivalry due to the presence of large global players and dependency on governments and public institutions for funding and approvals.

SWOT Analysis
Strength: Nuclear power is a reliable source of baseload power generation with zero carbon emissions. The technology is tried and tested over many decades.

Weakness: High capital costs and long construction periods. Risk of accidents and nuclear waste storage are major concerns.

Opportunity: Emerging small modular reactors are easier to finance and construct. Growing demand for clean energy in developing nations.

Threats: Subsidies for renewable energy are weakening the competitiveness of nuclear power. Public opposition due to safety and waste concerns.

Key Takeaways

The Global Nuclear Power Market Share is expected to witness high growth over the forecast period driven by rising electricity demand worldwide and emphasis on lowering carbon emissions.

Regional analysis: The Asia Pacific region dominates the global nuclear power market currently, accounting for over 50% of the share. China has the largest number of reactors under construction and plans extensive growth in nuclear capacity to meets its energy needs. In India, nuclear power generation is expected to grow rapidly to support the country’s economic development and replace fossil fuel-based capacity.

Key players: Key players operating in the nuclear power market are Rosatom, CNNC, Westinghouse, KEPCO, and GE Hitachi. Rosatom of Russia has emerged as the largest global supplier of nuclear power reactors. China National Nuclear Corporation (CNNC) is another major player driving nuclear expansion in China.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it