HOME › Research Insight › New Product Launches and Expansions to Broaden Their Product Portfolio. Contracts & Agreements and Expansions Were the Most Widely Adopted Growth Strategies in Nuclear Decommissioning Services Market
New Product Launches and Expansions to Broaden Their Product Portfolio. Contracts & Agreements and Expansions Were the Most Widely Adopted Growth Strategies in Nuclear Decommissioning Services Market
Accidents at nuclear power plants and rising political pressure for their pre-closure are expected to drive the demand for nuclear decommissioning services market during the forecast period. The Chernobyl accident affected around six million people with one million still dislocated. Meanwhile, the after impact of the accident at the Fukushima Daiichi nuclear power plant in Japan was drastic on nuclear power programs in several countries across the world. The nuclear decommissioning services market is projected to reach a size of USD 8.55 Billion by 2021, from an estimated USD 4.84 Billion in 2016, at a CAGR of 12.1% during the forecast period.
Leading companies in the nuclear decommissioning services market are focusing on contracts & agreements, mergers & acquisitions, new product launches, and expansions to broaden their product portfolio. Contracts & agreements and expansions were the most widely adopted growth strategies in the market from 2012 till July 2016. Industry players that adopted this strategy include Areva Group (France), Babcock International Group PLC. (U.K.), Studsvik AB (Sweden), AECOM (U.S.), and Westinghouse Electric (U.S.), among others.
Babcock International Group PLC. designs, builds, manages, operates, maintains, and decommissions various complex and critical infrastructure across various industries, such as, oil & gas, nuclear, power, defense, transportation, and maritime. The company operates through four major business segments, namely, marine & technology, defense & security, support services, and international segment. The company provides nuclear decommissioning services under the support services segment. Through this segment, the company delivers services to public and private sector customers across three key areas including civil nuclear, asset management, and technical training. The company focuses on growth through organic developments such as contracts & agreements and strategic joint ventures or acquisitions. These have helped the company to expand geographically and increase its customer base. In August 2014, it entered into a joint venture, named CFP, between Cavendish Nuclear, part of Babcock International, and Fluor Corporation (U.S.). The ownership split is 65:35 Cavendish and Fluor respectively. This would help the company to deliver long-term nuclear services in the U.K.
Westinghouse Electric Company, acquired by Toshiba (Japan) in 2006 for USD 5.4 billion, offers a wide range of products and solutions for nuclear power plants; it is more focused on rendering services to utilities. Westinghouse has organized its business into three segments, namely, new plants, operating plants, and decommissioning & dismantling services. The company offers nuclear decommissioning services through the D&D segment. It offers its decommissioning services for pressurized water reactors, gas-cooled reactors, boiling water reactors, research reactors, sodium-cooled reactors, and fuel fabrication plants. . Westinghouse operates in Europe, Asia-Pacific, and Africa. Westinghouse and Bechtel (U.S.) entered into a multi-year alliance agreement to provide decommissioning, decontamination, and remediation services to the U.S. nuclear power plants. The acquisition of Westinghouse by Toshiba (Japan) has helped the company to increase its foothold in the Asia-Pacific region. The company is also looking into integrating with local bodies to help reach local customers through joint ventures and alliances. This strategy would help the company to strengthen its presence in the nuclear decommissioning services market.
Nuclear Decommissioning Services Market by Reactor Type (PWR, BWR, & GCR), Strategy (Immediate Dismantling, Deferred Dismantling, and Entombment), Capacity (Up to 800 MW, 801 MW-1,000 MW, and Above 1,000 MW), and Region - Global Forecast to 2021
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