July 15, 2024
Nuclear Power Market Size

Nuclear Power Market :High Focus on New Plant Projects

The Nuclear Power Market is estimated to be valued at US$ 400 Bn in 2023 and is expected to exhibit a CAGR of 1.2% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Nuclear power is a low-carbon energy source that generates electricity with no direct greenhouse gas emissions during operation. Nuclear power plants use the heat generated from nuclear fission in a contained environment to convert water to steam, which drives turbines that generate electricity. Nuclear power provides about 10% of the world’s electricity and is expected to grow further owing to efforts to reduce carbon emissions.

Market key trends:
One of the major trends is the growing number of new nuclear power plant projects globally. While developed economies in the West are gradually phasing out nuclear energy, emerging economies in Asia are ramping up investments in new nuclear power projects to meet rising electricity demand. Countries like China, India, Russia, South Korea and United Arab Emirates are actively involved in constructing new nuclear reactors. For instance, China had under construction 47 new nuclear reactors as of 2021, more than the rest of the world combined. The growing new plant projects are expected to drive the nuclear power market substantially over the coming decade.

Porter’s Analysis
Threat of new entrants: Low capital requirement and established suppliers in the industry pose a moderate threat of new entrants. The nuclear power industry requires high capital investments and strict regulatory approvals, lowering the threat of new entrants.
Bargaining power of buyers: Utilities and grid operators have moderate bargaining power over existing nuclear power plant providers due to the few available suppliers and need for stable baseload power.
Bargaining power of suppliers: Established equipment manufacturers and service providers in the nuclear industry possess significant bargaining power over buyers as switching costs are high for utilities.
Threat of new substitutes: Growing investment in renewable energy technologies like solar and wind power poses a major threat of substitution to nuclear power over the long-run.
Competitive rivalry: Intense competition exists among major nuclear power plant manufacturers and service providers globally to gain new contracts.

SWOT Analysis
Strength: Nuclear power provides reliable baseload electricity without carbon emissions. Established global supply chain for nuclear equipment and parts.
Weakness: High capital cost of setting up nuclear plants. Public opposition over radioactive waste disposal. Safety concerns linked to incidents.
Opportunity: Emerging small modular nuclear reactor designs promise lower costs. Growing targets for decarbonization drive demand.
Threats: Subsidies and policies support renewable energy limiting nuclear growth. Stricter financing environment increases project risks.

Key Takeaways
The Global Nuclear Power Market is expected to witness moderate growth, exhibiting CAGR of 1.2% over the forecast period, due to increasing decarbonization targets set by governments and growing demand for clean baseload power. In 2021, the total global nuclear power generation capacity stood at 389.68 GW.
Regionally, Asia Pacific dominates the nuclear power market led by countries like China, India, and South Korea. China has the world’s largest installed nuclear generation capacity and is set to witness fastest growth through new reactor constructions. In Europe, countries like France, UK, and Russia are major nuclear power producers though overall growth is stagnating in the region. North America is witnessing replacement of aging reactors and construction of first-of-its-kind small modular nuclear power plants.
Key players operating in the nuclear power market are 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. The market is consolidated in nature with top players accounting for bulk of the existing and new build projects globally.

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