Nuclear Power Is Anticipated To Witness High Growth Owing To Rising Focus On Low-Carbon Energy Development

Nuclear Power Market

Nuclear power utilizes the heat energy released from nuclear fission to produce steam which drives turbines that produce electricity. Nuclear power is considered one of the most viable sources of low-carbon electricity as it generates a high amount of electricity with minimal carbon emissions. The nuclear power plants have been estimated to produce less than 10 grams of carbon dioxide emissions per kilowatt-hour of electricity produced. The technology has proven to be an important part of the overall energy mix and energy security for countries that deploy it at scale. It also provides a stable source of baseload power that complements intermittent renewable sources like solar and wind. Many countries around the world are focusing on developing low-carbon energy sources to meet their commitments under the Paris Agreement and curb climate change. This is expected to drive growth in the adoption of nuclear power plants in the coming years.

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 from 2024 to 2030.

Key Takeaways

Key players operating in the nuclear power 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. These players are focusing on capacity expansion and new product development to capitalize on growth opportunities.

There is a growing demand for clean and reliable energy around the world. Transition to nuclear energy presents significant opportunities for industry players to help countries achieve their renewable energy and decarbonization targets. Countries with an aging nuclear fleet also provide opportunities for fleet modernization and life extension programs.

Many nuclear technology companies are also focusing on global expansion into new markets through partnerships, joint ventures, and deals with governments and utilities. Emerging economies in Asia Pacific and Middle East & Africa are expected to witness high investments in nuclear energy projects to meet base-load power demands, presenting lucrative expansion opportunities.

Market drivers:
- Government policies and investments supporting low-carbon energy development are expected to drive growth of nuclear power plants worldwide. Many countries have announced plans to increase their nuclear energy capacity.
- Rising focus on energy security is prompting many nations to diversify their energy mix and reduce dependence on fossil fuel imports, thus boosting demand for nuclear energy.
- Growing power demands along with need to reduce carbon emissions are compelling utilities to invest in new nuclear reactors as a replacement for retiring coal-fired plants.

Market restraints:
- High capital investment required for setting up nuclear power plants and lengthy construction periods pose challenges.
- Public opposition over safety concerns related to nuclear accidents and long term storage of nuclear waste limits expansion in some markets.
- Regulatory delays and issues obtaining financing and licenses can impact growth targets of nuclear programs in some countries.

Segment Analysis
The Nuclear Power Market Demand can be segmented based on reactor type into boiling water reactors (BWR), pressurized water reactors (PWR), and others. Among these, the PWR segment dominated the market in 2024 and is expected to continue its dominance during the forecast period. PWRs are considered safer than BWRs as pressurized water acts as both coolant and neutron moderator.

The nuclear power market can also be segmented based on end user into utilities and non-utilities. The utilities segment held a larger share of the nuclear power market in 2024 as a majority of nuclear power plants are owned and operated by electric utility companies. Non-utility nuclear power plants, though rare, are operated by governments or research institutions for specialized purposes such as nuclear propulsion for military vessels or research reactors.

Global Analysis
Regionally, the nuclear power market was dominated by Asia Pacific in 2024 with China, India, and Japan accounting for a major share of the regional market. Asia Pacific is expected to continue its dominance during the forecast period owing to strong government support for nuclear power and growing electricity demand in the region's developing economies. Within Asia Pacific, China holds the largest number of operational nuclear power reactors while several more are under construction. This makes China the fastest growing regional market.

Europe is another major regional market for nuclear power driven by heavy reliance on nuclear energy for electricity generation in countries like France. However, the market is stagnating in Europe due to phasing out of nuclear power plants in Germany, Belgium, and Switzerland after the Fukushima disaster.

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