The 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.
The nuclear power market is majorly driven by increasing investments made by governments and private investors to expand nuclear energy generation capacity. Nuclear power is a low carbon and stable source of electricity. Several countries are focusing on increasing share of nuclear energy in their total energy mix to meet rising electricity demand as well as reduce dependence on fossil fuels for power generation. For instance, China has planned to increase its nuclear generation capacity to 68 GW by 2023 from the current capacity of 46 GW. The country aims to get 10% of total electricity from nuclear sources by 2030. Furthermore, factors such as rising demand for reliable base load power and government initiatives and policies supporting deployment of new nuclear reactors are also contributing to growth of the nuclear power market.
Market Overview:
The nuclear power market covers products and technologies associated with generation of electricity through controlled nuclear fission in nuclear reactors. Key products include Pressurized Water Reactors (PWR), Boiling Water Reactors (BWR), Pressurized Heavy Water Reactors (PHWR), and Generation IV reactors such as Molten Salt Reactors (MSR) and Very High Temperature Reactors (VHTR). Nuclear energy provides reliable baseload power to meet residential, commercial and industrial electricity needs.
Market Dynamics:
The nuclear power market is primarily driven by increasing investments towards expanding nuclear energy generation capacity. Additionally, rising demand for steady baseload electricity from industrial and commercial sectors is also boosting the nuclear power market growth. Further, factors like favorable government policies and initiatives promoting deployment of new nuclear reactors create a positive outlook for the nuclear power industry. However, high capital costs involved in setting up nuclear power plants as well as rising concerns over nuclear waste management may hinder the market growth.
SWOT Analysis
Strength: Nuclear power provides reliable baseload power generation with very low greenhouse gas emissions. It allows countries to gain energy independence by using domestic fuel resources. Nuclear power plants can operate continuously for several months before refueling is required.
Weakness: Building nuclear power plants requires very high upfront costs and long construction periods. There are also challenges in safely storing radioactive nuclear waste for thousands of years.
Opportunity: Many countries are focusing on increasing the share of non-fossil fuels in their energy mix to reduce carbon emissions. Nuclear power provides a viable low-carbon alternative to fossil fuels for baseload power. The development of safer small modular reactors can also provide new opportunities.
Threats: Public opposition towards nuclear power due to safety and waste concerns pose challenges. Stricter regulatory requirements after accidents like Fukushima have increased compliance costs for plant operators.
Key Takeaways
The global Nuclear Power Market Growth is expected to witness high growth, exhibiting CAGR of 1.2% over the forecast period, due to increasing focus on reducing dependence on fossil fuels and curbing greenhouse gas emissions from the power sector. The market size is projected to reach US$ 399.09 GW by 2030 from US$ 399.09 GW in 2023.
Regional analysis: North America dominates the global nuclear power market currently, owing to the large installed base of nuclear reactors in countries like the US and Canada. However, the Asia Pacific region is expected to grow the fastest due to significant planned additions of new nuclear capacity in China, India and South Korea. Countries in this region are focusing on nuclear power to meet the rapidly rising electricity demand while limiting emissions.
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. These companies are focusing on developing cost-effective small modular reactors and offering nuclear plant construction and maintenance services.
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