February 28, 2024
Nuclear Power Market

Clean Energy Demand to Drive Growth of the Global Nuclear Power Market

The global Nuclear Power Market is estimated to be valued at US$ 399.09 GW in 2023 and is expected to exhibit a CAGR of 1.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Nuclear power is a form of energy generated from nuclear fission or nuclear fusion. Nuclear power plants are used to generate electricity through these processes. Nuclear energy is considered a viable clean energy alternative to fossil fuels as it does not produce carbon dioxide emissions. Nuclear power plants can operate continuously for extended periods without limitations caused by weather or daylight. They can efficiently meet baseload electricity demand worldwide. The market is driven by the need for clean and reliable baseload power generation amid climate change concerns. Countries are investing in new nuclear plant construction and life extensions of existing plants to transition to low-carbon energy sources.

Market key trends:
Small modular reactors (SMRs) are gaining prominence in the nuclear power industry. SMRs are smaller in size (up to 300 MW electric), scalable, and factory-built for onsite or decentralized applications. This makes them less capital-intensive to build compared to large nuclear reactors. SMRs can be deployed as standalone power sources or clusters to meet varying electricity needs. Developed nations are supporting SMR technology R&D to make nuclear power more flexible and competitive. SMRs are expected to unlock new potential markets and support decentralization of energy infrastructure. Their deployment will be a significant trend shaping the future nuclear power industry landscape.
Porter’s Analysis

Threat of new entrants: The nuclear power market has very high initial capital requirements for setting up nuclear reactors which acts as a barrier for new entrants.

Bargaining power of buyers: Electric utilities forming the major buyers hold significant bargaining power due to huge demand and limited availability of nuclear reactor suppliers.

Bargaining power of suppliers: Major suppliers of nuclear reactors like Westinghouse, GE Hitachi hold strong bargaining power due to their technical expertise and market dominance in key regions.

Threat of new substitutes: Renewable energy sources like solar and wind pose a threat to nuclear power but have not replaced it completely due to reliability issues.

Competitive rivalry: Major global players compete intensely on the basis of technology, price and customer relationships leading to consolidation in the industry.

Key Takeaways

The global Nuclear Power Market Growth is expected to witness moderate growth, exhibiting a CAGR of 1.2% over the forecast period of 2023 to 2030, due to increasing focus on lowering carbon emissions. The market size for nuclear power was valued at US$ 399.09 GW in 2023.

The Asia Pacific region is expected to dominate the global nuclear power market during the forecast period. This is attributed to the increasing investments in nuclear energy by China and India to meet the growing need for electricity. China has the world’s largest number of nuclear reactors under construction.

Key players operating in the Nuclear Power market include GE-Hitachi Nuclear Energy Inc., Westinghouse Electric Company LLC, STP Nuclear Operating Company, SKODA JS AS, China National Nuclear Corporation, Bilfinger SE, BWX Technologies Inc., Doosan Heavy Industries & Construction Co. Ltd, Mitsubishi Heavy Industries Ltd, Bechtel Group Inc., Japan Atomic Power Co., and Rosatom Corp. These players are focusing on new product launches and partnerships to strengthen their market position.

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