Nuclear Power Market

In the Nuclear Power market, the total net electrical capacity was valued at 371.5 GW in 2023 and is projected to reach 430.1 GW by 2029 with a CAGR of 2.5% during 2024 - 2029. Nuclear power is derived from the energy that is released during the process of nuclear fission. Most nuclear power plants use enriched uranium as their fuel to generate electricity. This fuel contains a certain kind of uranium known as U-235. Its atoms split apart much more easily in a nuclear reactor. Nuclear Power is key to the Net Zero Emissions by 2050 Scenario because the nuclear power plants generate lesser greenhouse emissions at operation. According to the IEA, Nuclear power has prevented nearly 70 Gt of CO2 emissions during the past 50 years. Nuclear power plant generates carbon equivalent emissions per unit of electricity, which is similar to that of wind and only one-third of carbon emissions than that from solar power.

“Power generation, by application, is expected to be the largest-growing segment during the forecast period.”

Power generation application is expected to account largest market share during the forecast period.  Nuclear power plants produce enormous amounts of electricity uninterruptedly and thus are the choice option for increased energy production based on increasing urbanization, industrialization, and technological development. Their baseload capability to produce stability and reliability in power is essential, especially in emerging economies where electricity consumption keeps rising. Since the energy generation from wind and sun is intermittent, a high output by nuclear power ensures constant energy generation while reducing dependence on fossil fuel as energy needs expand more globally.

“Large (>1000 MW) by capacity, is expected to be the largest-growing segment during the forecast period.”

The installed nuclear capacity has been classified by capacity into small (<500 MW), medium (500-1000 MW), and large (>1000 MW). Global nuclear capacity is expected to rise with the new construction of nuclear plants worldwide. Some of these countries like Russia, France, US, China, India among others contribute towards the growth of installed nuclear capacity. After the Fukushima disaster, the Japanese had to step back their nuclear capacity but still had about 11 GW installed in 2023 as reactors have been phased back online. Large reactors generate a lot of electricity, hence achieving economies of scale. Their high output helps to cover increasing energy demand in a much better way that brings the economies in the long term. The plants become favorites because they provide a constant and stable power supply for big industrial sectors and urban centers. Moreover, Large nuclear reactors create stable baseload power, hence stabilizing the grid, primarily because of the growing integration of renewables in countries. This helps ensure a stable, consistent supply of energy, and, as such, large reactors are capable of supplying a long power system demanding a constant generation of electricity.

“EPC, by plant lifecycle stages, is expected to be the largest-growing segment during the forecast period.”

By Plant Lifecycle stages, the Nuclear Power market has been categorized into Engineering, Procurement, and Construction (EPC), Maintenance & Operation, and Decommissioning. Each of these phases is critical in determining the long-term performance, safety, and economic viability of the plant. Demand for EPC services is being driven upward by the increasing number of nuclear projects globally, particularly in emerging markets. In countries where nuclear energy is a sure bet to enable reliable, green power, it requires not only heavy-duty design and construction and commissioning but EPC companies that can compete with huge projects - safe, regulatory, and operationally sound. Such advances in nuclear reactor technologies, for example, SMRs, Generation IV, and other types, are driving the EPC market. The EPC contractors are centrally involved in facilitating the changing designs into operational plants while incorporating new technologies and responding to growing demands for cost-efficient, safer, and more flexible nuclear energy solutions.

A few of the players operating in the Nuclear Power market include EDF (France), The State Atomic Energy Corporation ROSATOM (Russia), MITSUBISHI HEAVY INDUSTRIES, LTD. (Japan), Atkins Réalis (Canada), Bilfinger SE (Germany), Westinghouse Electric Company LLC (US), Southern Company (US), Duke Energy Corporation (US), among others.

“Europe, by Region, is expected to be the largest region during the forecast period.”

Europe has a firm regulatory framework that promotes nuclear safety and efficiency. The regulatory bodies ensure there are high standards of safety, which in turn increases public confidence to invest in nuclear power projects and thus maintain and expand the nuclear energy pool in the region. In addition, Europe uses existing nuclear infrastructure as most of its plants are already operational. This existing capacity affords to increase in nuclear power with a relatively smaller investment at inception as compared to building new plants, hence more easily or quickly gaining the growth in energy output.

Drivers: Rising Demand for Clean Energy:

Growing demand for clean energy is a main driver in the nuclear power industry, fueled by the fact that countries are increasingly finding nuclear energy as one appropriate solution toward meeting both energy security and climate change challenges. The IAEA reports that global nuclear energy capacity projections have been upward revised, and the agency now expects to reach 25 percent more nuclear energy capacity by 2050 compared to the projection made in 2020. A trend is expected as countries continue to agree on nuclear energy as a reliable source of low-carbon energy to continue contributing toward the goal of decarbonization and increase energy security in the face of fluctuations in fossil fuel prices and tension in the political arena.

Restraints: High Initial Capital and Maintenance Costs:

Nuclear power plants are among the most capital-intensive types of electricity production. High startup costs and some very expensive upkeep bills typify nuclear-powered electricity generation. Capital Cost including Financing (at a high discount rate) for nuclear power (2200 MWe plant) is estimated to be in the range of USD 7675 to USD 12,500 per kilowatt, and correspondingly, the LCOE in a similar range depends upon location-specific, regulatory environment-specific, and technology-specific considerations. Such an enormous investment is largely because of the advanced engineering and safety systems that should ensure a long plant lifetime of over 60 years without risking anyone's life.

Opportunities: Integration with Renewable Energy Systems:

A new concept is being developed: nuclear-renewable hybrid energy systems (NRHES), which integrate nuclear power with solar, wind, or hydropower sources to leverage the best strengths of both and help overcome some of the major challenges in the energy transition: reliability, sustainability, and decarbonization in general across sectors. Nuclear power, in baseload, offsets the natural intermittency of sources that depend on weather patterns for their availability. Tying those sources together means that NRHES will deliver steady levels of electricity supply to the grid no matter when renewable sources are low. Those hybrid systems also enable low-carbon supplies not just for electricity grids but also for industrial processes, desalination, and hydrogen production. SMRs are integral to these hybrid systems. Approximately 50 concepts for SMR are currently being developed worldwide; SMRs provide near-term, low-carbon alternatives to existing aging fossil fuel plants and can be used for both electric and non-electric applications, such as heating and water desalination. SMRs may further enhance the stability of the grid and reduce the cost of transitioning to low-carbon energy systems.

Challenges: Decommissioning & costly upgrades:

High demolition and upgrade costs challenge the nuclear power market. Decommissioning includes from a broad view, the entire process of de-radiation clean-up and step-by-step dismantling of a nuclear facility. It normally starts with the owner's retirement of the operational use of a plant. The process normally involves defueling and coolant removal. NRC defines it only after those elements are removed. It concludes with the revocation of license after demonstrating the discharge and eliminating radioactive wastes. According to the IAEA as of April 2023, the decommissioning cost for a nuclear reactor that includes radioactive waste is put at about USD 500 million up to 2 billion. Gas-cooled graphite-moderated reactors are the costliest to decommission because they are prone to be larger in size and are typically complicated compared to the pressurized or boiling water reactor. It generally takes around 15 to 20 years for decommissioning to be completed, although this is not always a prerequisite.

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Scope of the Report

This research report categorizes the nuclear power market based on type, plant lifecycle stages, capacity, connectivity application, and region.

On the basis of type, the nuclear power market has been segmented as follows:

• Nuclear Power Plants
  • Pressurized Water Reactor (PWR)
  • Pressurized Heavy Water Reactor (PHWR)
  • Boiling-Water Reactors (BWR)
  • Others
• Small Modular Reactor
  • Heavy-Water Reactors
  • Light-Water Reactors
    • Pressurized-Water Reactors
    • Boiling-Water Reactors
  • High-Temperature Reactors
  • Fast-Neutron Reactors
    • Lead-Cooled Reactors
    • Lead-Bismuth Reactors
    • Sodium-Cooled Reactors
  • Molten Salt Reactors

On the basis of plant lifecycle stage type, the nuclear power market has been segmented as follows:

• Engineering, Procurement, And Construction (EPC)
  • Type
    • New build
    • Refurbishment & Modernization
  • Equipment type
    • Nuclear Island
      • Reactor Pressure Vessel
      • Steam Generator
      • Control Rod Device Mechanism
      • Others
    • Conventional (Turbine) Island
      • Turbine
      • Generator
      • Instrumentation And Control System
      • Others
        • Condensor
        • Cooling Systems
        • Moisture Separator Reheater (MSR)
        • Condensate-Feedwater System
    • Balance Of Plant
• Maintenance & Operation services
• Decommissioning

On the basis of capacity, the nuclear power market has been segmented as follows:

• Small (Less Than 500 MW)
• Medium (500 MW – 1000 MW)
• Large (Above 1000 MW)

On the basis of connectivity, the nuclear power market has been segmented as follows:

• Off-grid
• Grid-connected

On the basis of application, the nuclear power market has been segmented as follows:

• Power Generation
• Desalination
• Industrial

On the basis of region, the nuclear power market has been segmented as follows:

• Americas
• Europe
• Asia Pacific
• Middle East & Africa

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