Small Modular Reactor Market by Reactor (HWR, LWR, HTR, FNR, MSR), Application (Power Generation, Desalination, Hydrogen Generation, Industrial), Deployment (Single, Multi), Connectivity, Location, Coolant, Power Rating & Region - Global Forecast to 2030
[265 Pages Report] The small modular reactor market is expected to grow from an estimated USD 5.8 billion in 2023 to USD 6.8 billion by 2030, at a CAGR of 2.3% during the forecast period. Benefits of modularization and factory construction is driving the demand of small modular reactor market. Modularization simplifies construction by splitting nuclear power plant structures, equipment, and/or components into modules that may be fabricated in a dedicated factory, transported, and installed on-site. SMRS can benefit from the advantages of modular building technologies, particularly in terms of cost savings. Construction or pre-assembly of modules in a factory away from the site of installation can result in cost savings due to increased labour productivity, quality control, and reduced project management risks. The degree of modularity may vary between designs, and it may have a better possibility to integrate additional modularity in the early stages of design.
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Small Modular Reactor Market Dynamics
Driver: Versatile nature of nuclear power
Nuclear energy's versatility may facilitate a shift to a cleaner society and a stronger global economy. Clean energy sources have seen remarkable innovation and cost reductions in recent decades. In the previous decade, solar photovoltaic, wind power, hydropower, dispatchable geothermal (both deep and shallow), biomass, and concentrated solar power have made rapid technological and economic breakthroughs. Nuclear energy has the potential to be synergistically combined with various other energy sources, resulting in integrated systems that are greater than the sum of their parts.
Restraint: Negative public perception of nuclear power technology
Several governments have reconsidered the role of nuclear energy in their national energy mix, although the issue of public acceptance is crucial for the successful development of SMRs. Severe nuclear accidents, such as the Three Mile Island accident in March 1979 and the much more severe Chornobyl accident in April 1986, have adversely impacted the public attitude toward nuclear power. In 1999, an operational error led to a radiation leak, killing two workers, and exposing 400 people to small doses of radiation in the Tokai Mura region of Japan. Incidents such as these have created a negative reputation for nuclear technologies and the concerned activities among the public, owing to which the adoption rate of SMR technologies and associated solutions might be hindered. Like any nuclear project, SMRs face public acceptance challenges. Nuclear energy, in general, has encountered public apprehension and concerns related to safety, waste management, and potential accidents. Engaging with communities and addressing these concerns is essential to gain public support for SMR projects.
Opportunity: Integration of SMRs with renewable energy sources
Wind and solar photovoltaics, for example, play critical roles in decarbonizing the power sector while meeting rising energy demand. This can be accomplished by increasing the deployment of renewable energy technologies. However, the growing use of renewable energy has an impact on the operation of the electrical system. Solar photovoltaic arrays produce varying amounts of energy depending on the weather, latitude, and season. Weather patterns, both seasonal and daily, have an impact on wind energy.
Challenge: Lack of standard licensing process
Licencing is a possible issue with SMRS because the expenses of design certification, building, and operating licences are comparable to those of big reactors. Current licencing systems in established nuclear markets are built for large nuclear power plants and may provide an obstacle to the eventual deployment of SMRS because they do not allow for cost-effective SMRS deployment. The site-specific constraints may make the repetitive build of identical units based on a reference standard design difficult.
Small Modular Reactor Market Ecosystem
Well-established, financially sound manufacturers of small modular reactor market are prominent players in this industry. These companies have been in the market for a number of years and have a diverse product range, cutting-edge technologies, and powerful global sales and marketing networks. NuScale Power, LLC. (US), (Canada), Moltex Energy (Canada), and GE Hitachi Nuclear Energy (US).
The heavy liquid metal segment by coolant holds the fourth largest segment in 2022
Lead, lead-bismuth, and sodium are heavy liquid metals considered in this segment. Lead, as a thick liquid, has good cooling capabilities as well as nuclear properties such as a low inclination to absorb or delay neutrons. Cooling with either lead-bismuth eutectic (LBE) or molten lead allows for low-pressure operation and is largely inert with good thermodynamic properties. Heavy liquid metals' supportive properties are propelling the market for this sector forward. The harsh operating conditions, which include high temperatures, quick neutron flux, irradiation exposure, and corrosiveness, create a hostile environment for these materials. Overcoming these obstacles necessitates careful evaluation of the materials' capacity to survive and perform dependably in such harsh environments.
Fast–neutron reactors segment by reactor type is estimated to be the fourth-largest segment for small modular reactor market
Fast-neutron-based SMRs use a fast neutron spectrum and commonly use liquid metal coolants such as sodium, lead-bismuth, or lead, as they have a high conductivity and boiling point. FNRs do not use moderators and rely on nuclear fuel to absorb neutrons traveling at higher speeds. These reactors are smaller and simpler than LWRs. Such reactors may have longer refueling intervals and have better fuel performance. The core can burn used LWR fuels, plutonium, and thorium fuels that are enriched to about 15–20%. It uses fuels that have a higher concentration of fissile material, which allows for increased power densities and, thus, results in a reduction in the size of the reactor core. FNRs have the potential to substantially reduce the radiotoxicity of nuclear waste, as most of the long-lived waste is recycled and burned as fuel.
Hydrogen Generation segment by application type is estimated to be the fourth largest segment for small modular reactor market
Hydrogen is essential in a variety of industrial applications. It can help to decarbonize electricity and transportation by being used for energy storage or as a fuel for hydrogen fuel-cell cars, trains, ships, and aeroplanes. Hydrogen can be produced using the fast-neutron reactor, molten salt reactor, and high-temperature reactor technologies. The type of reactor technology influences the choice of hydrogen technologies to be combined with the SMRS. Only electricity is required for a few hydrogen manufacturing systems, such as traditional electrolysis. In contrast, methods such as thermochemical cycles may just require process heat, whereas hybrid technologies, such as high-temperature steam electrolysis (HTSE) and hybrid thermochemical cycles, require both heat and electricity.
Off-grid segment by connectivity is estimated to be the largest segment for small modular reactor market
SMRs used for off-grid operations are not linked to a large-scale power infrastructure. Instead, they are closer to the demand. Most SMRS are built for isolated sites where larger nuclear power stations are not feasible. Off-grid SMRS can be utilised for power generation and other non-electric purposes in distant villages, islands, and mining locations. SMRS are also being used to generate power in naval vessels such as icebreakers and submarines. Most off-grid areas and installations are powered by diesel generators to provide a steady power supply; however, these reactors pose logistical and environmental challenges. The use of diesel generators in rural settlements and mine sites is offset by SMRS.
Multi-module power plant segment by deployment is estimated to be the largest segment for small modular reactor market
Multi-module plant designs permit a wide range of simultaneous applications, as some modules can be dedicated to electricity production, while others provide heat to support industrial processes or produce hydrogen. This characteristic of multi-module plant design is suited for hybrid energy applications, in which multiple energy sources are integrated with multiple energy consumption processes to form a highly optimized and efficient system. Multi-module SMR plants are cheaper to finance than large nuclear reactors since they require lower upfront inputs for a unit and may be expanded over time. The flexibility to add modules progressively in multi-module SMRS provides economies of series production. This, in turn, allows the investors and operators to respond to fluctuations in power demand and budgetary limits in order to avoid financial risks. These reasons are projected to fuel demand for SMRS for multi-module power plants.
Land segment by location is estimated to be the largest segment for small modular reactor market
Several reactor designs are being developed for land deployment to serve various applications, such as electricity generation, urban heating, urban cooling, industrial steam production, and seawater desalination. For instance, in July 2021, China National Nuclear Corporation (China) began constructing the ACP 100 at the Changjiang Nuclear Power Plant in Hainan Province, China. The demonstration SMR is being developed for multiple applications, such as electricity production, heating, steam production, and seawater desalination. A few of the major players developing land SMRs are Rolls-Royce plc (UK), China National Nuclear Corporation (China), NuScale Power, LLC (US), Holtec International (US), Westinghouse Electric Company LLC (US), and National Commission of Atomic Energy (CNEA) (Argentina).
Asia Pacific is expected to account for largest market size during the forecast period.
Key Market Players
The small modular reactor market is dominated by a few major players that have a wide regional presence. The major players in the Small modular reactor market are Westinghouse Electric Company LLC (US), NuScale Power, LLC. (US), Terrestrial Energy Inc. (Canada), Moltex Energy (Canada), and GE Hitachi Nuclear Energy (US) between 2019 and 2022, Strategies such as product launches, contracts, agreements, partnerships, collaborations, alliances, acquisitions, and expansions are followed by these companies to capture a larger share of the small modular reactor market.
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Report Metric |
Details |
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Market Size available for years |
2019–2030 |
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Base year considered |
2022 |
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Forecast period |
2023–2030 |
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Forecast units |
Value (USD Million/Billion) |
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Segments covered |
By Coolant, By Deployment, By location, By Application, By Reactor Type, By Power Rating, By Connectivity |
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Geographies covered |
Asia Pacific, Americas, Europe, and Middle East & Africa |
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Companies covered |
Westinghouse Electric Company LLC (US), NuScale Power, LLC. (US), Terrestrial Energy Inc. (Canada), Moltex Energy (Canada), GE Hitachi Nuclear Energy (US), X Energy, LLC. (US), X Energy, LLC. (US), General Atomics (US), ARC Clean Energy, Inc. (Canada), LeadCold Reactors (Sweden), Rolls-Royce (UK), Ultra Safe Nuclear (US), Toshiba Energy Systems & Solutions Corporation (Japan), Tokamak Energy Ltd. (UK), SNC-Lavalin Group (Canada), Afrikantov OKB Mechanical Engineering (Russia), China National Nuclear Corporation (China), Framatome (France), U-BATTERY (UK), and Seaborg Technologies (Denmark) |
This research report categorizes the Small modular reactor market based on coolant, deployment, location, application, reactor type, power rating, connectivity, and region.
By Coolant
- Heavy liquid metal
- Gases
- Molten salt
- Water
By Type
- Heavy–water reactors
- Light–water reactors
- High–temperature reactors
- Fast–neutron reactors
- Molten salt reactors
By Application
- Power Generation
- Desalination
- Hydrogen Generation
- Industrial
By End-Use Industry
- Transmission & Distribution Utilities
- Power Generation
- Industrial
- Others
By Connectivity
- Grid–Connected
- Off–Grid
By Location
- Land
- Marine
By Deployment
- Single–Module Power Plant
- Multi–Module Power Plant
By Region
- Americas
- Asia Pacific
- Middle East & Africa
- Europe
Recent Developments
- In June 2023, Fortum and Westinghouse Electric Company, one of world’s leading suppliers of safe and innovative nuclear technology, have signed a Memorandum of Understanding (MoU) to explore prerequisites for the development and deployment of new nuclear in Finland and Sweden. Any potential investment decisions will be made at a later stage. The collaboration with Fortum is to bring proven and industry-leading, nuclear technology to the Nordic region, delivering added energy security for many generations in the future.
- In May 2023, NuScale Power Corporation (NYSE: SMR) and Nucor Corporation (Nucor) announced the signing of a Memorandum of Understanding (MOU) to investigate co-locating NuScale's VOYGR small modular nuclear reactor (SMR) power plants to provide clean, reliable baseload electricity to Nucor's scrap-based Electric Arc Furnace (EAF) steel mills. The firms will also look into expanding their manufacturing partnership, in which Nucor, North America's largest steel producer and recycler of any form of material, would supply Econiq, its net-zero steel products, for Nuscale projects.
- In April 2023, SNC-Lavalin announced its strategic agreement with Moltex on Small Modular Reactor development, thereby extending nuclear energy in Canada. SNC-Lavalin's world-class network of expertise in engineering, licencing and regulatory affairs, cost estimation, supplier qualification and management, quality assurance, and construction and operation planning will be used by Moltex. SNC-Lavalin will work with Moltex to bring in new customers and advance Molter's commercial objectives.
- In Jan 2023, Hitachi Nuclear Energy (GEH), Ontario Power Generation (OPG), SNC-Lavalin, and Aecon inked a deal for the installation of a BWROC 300 small modular reactor (SMR) at OPG's Darlington New Nuclear Project site. This is North America's first commercial contract for a grid-scale SMR.
- In Feb 2022, Terrestrial Energy Inc. signed an agreement with the Australian Nuclear Science and Technology Organisation (ANSTO). Under this agreement, ANSTO will provide technical guidance to Terrestrial Energy Inc. for the conditioning of used reactor fuel from the Integral Molten Salt Reactor (IMSR) power plants in the United States, Canada, and the United Kingdom, and other global markets.
Frequently Asked Questions (FAQ):
What is the current size of the small modular reactor market?
The current market size of global small modular reactor market is estimated to be USD 5.8 billion in 2023.
What are the major drivers for small modular reactor market?
Flexible power generation for a wider range of users and applications, the ability to replace aging fossil fuel-fired power plants, and the possibilities for synergetic hybrid energy systems that combine nuclear and alternative energy sources, including renewables, are driving the development of such reactors. As the share of intermittent renewable energy in total energy production is increasing on all the continents, SMRs are considered a promising option to provide both baseload and flexible operations in synergy with renewables to ensure the security of supply with carbon-free energy systems. Integrating SMRs and renewable energy into a single energy system, coupled through smart grids, enables SMRs to run at high capacity while simultaneously addressing the need for the flexibility of generation rates. When coupled with variable energy sources such as wind, solar, wave, and tidal energy, SMRs can mitigate fluctuations that occur daily or seasonally fluctuations. SMRs offer the potential for improved economics. Their smaller scale and standardized designs can lead to cost savings in manufacturing, construction, and maintenance. The modular nature of SMRs enables phased deployment, reducing upfront capital costs and allowing for incremental capacity expansion based on demand.
What is the major restraint for small modular reactor market?
Stringent regulatory policies and standards to deploy SMRs. The set of potential sites for the deployment of SMRs comes down as the EPZ radius increases. Furthermore, SMRs would have to be constructed closer to population centers to serve applications such as desalinated water or industrial heat sources. A smaller EPZ enlarges the market of potential customers for SMRs. Potential operators of SMRs such as electric utilities are also interested in smaller EPZs, as the size of the zone directly impacts the overall complexity of the emergency plan. Utilities must pay for the various activities associated with the emergency plan to be implemented within the EPZ. These include the installation and maintenance of sirens, coordination with various local and state government offices during drill exercises, and the size of the staff associated with multiple emergency preparedness activities. Because utilities expect the facility's profits to be lower for an SMR compared with a traditional size nuclear unit, they seek to lower the cost and complexity of managing the emergency plan by reducing the size of the EPZ. The size of the EPZ has long been a source of conflict between the nuclear industry and federal and local governments. Such regulatory environments may hamper the growth of the small modular reactor market.
Which is the largest-growing region during the forecasted period in small modular reactor market?
APAC is expected to account for the largest market size during the forecast period. Investments for the development of SMRs and the shift toward the use of clean energy to combat climate change are increasing the opportunities for the deployment of SMRs in Europe. For instance, in November 2020, the government pledged USD 298 million to SMRs in 2021 as a part of the UK Research and Innovation (UKRI) through the Low-Cost Nuclear (LCN) program. In November 2019, UKRI provided an initial match funding of USD 23 million to the UK SMR consortium, led by Rolls-Royce, for the development of a conceptual SMR design. In June 2021, Rosatom (Russia) announced its plans to invest USD 7 billion in new nuclear technologies by 2030.
The plan includes the development of four floating power units using RITM-200 reactors (55 MWe each) by the end of 2028 for the Baimskaya Mining and Refining Plant in Chukotka. It also aims to commission a land nuclear power plant that utilizes RITM-200 SMR technology by 2030 for the Kyuchusskoye gold deposit in Yakutia. Rosatom also has plans to launch pilot units, including SHELF and ELENA, in remote regions of the country. It intends on concluding the first export contract for its SMR power plants at the end of 2026. Factors such as the integration of SMRs with intermittent renewable energy and the decarbonization of the energy sector enhance the growth of the small modular reactor market in Europe.
Which is the least-growing segment, by reactor type during the forecasted period in small modular reactor market?
The heavy-water reactors segment, by insulation type, is projected to hold the highest market share during the forecast period. The heavy-water reactor segment accounted for a 5.4% share of the small modular reactor market in 2022. Heavy-water Reactors (HWRs) are moderated and may also be cooled by heavy water (deuterium oxide, D2O). A few HWRs may have a separate coolant and moderator circuit. The heavy-water coolant is kept under pressure to avoid boiling, allowing it to reach higher temperatures without forming steam bubbles, like pressurized-water reactors. The key benefit of these reactors is that heavy water has better moderating properties compared with light water. Compared with LWRs, the lattices moderated by heavy water can attain criticality for lower uranium enrichments such as natural uranium, which has only ~0.7% of U-235.
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This study involved major activities in estimating the current size of the Small modular reactor market. Comprehensive secondary research was done to collect information on the market, peer market, and parent market. The next step involved was validation of these findings, assumptions, and market sizing with industry experts across the value chain through primary research. The total market size was estimated through country-wise analysis. Then, the market breakdown and data triangulation were performed to estimate the market size of the segments and sub-segments.
Secondary Research
The secondary research involved the use of extensive secondary sources, directories, and databases, such as Hoover’s, Bloomberg BusinessWeek, Factiva, and OneSource, to identify and collect information useful for a technical, market-oriented, and commercial study of the global small modular reactor market. The other secondary sources comprised press releases & investor presentations of companies, white papers, certified publications, articles by recognized authors, manufacturers, associations, trade directories, and databases.
Primary Research
The Small modular reactor market comprises several stakeholders, such as product manufacturers, service providers, distributors, and end-users in the supply chain. The demand-side of this market is characterized by industrial end-users. Moreover, the demand is also fueled by the growing demand of underground distribution systems. The supply side is characterized by rising demand for contracts from the industrial sector, and mergers & acquisitions among big players. Various primary sources from both the supply and demand sides of the market were interviewed to obtain qualitative and quantitative information.
Following is the breakdown of primary respondents:
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Market Size Estimation
- The bottom-up approach has been used to estimate and validate the size of the Small modular reactor market.
- In this approach, the Small modular reactor production statistics for each application have been considered at a country and regional level.
- Extensive secondary and primary research has been carried out to understand the global market scenario for various types of Small modular reactors.
- Several primary interviews have been conducted with key opinion leaders related to Small modular reactor system development, including key OEMs and Tier I suppliers.
- Qualitative aspects such as market drivers, restraints, opportunities, and challenges have been taken into consideration while calculating and forecasting the market size.
Small modular reactor Market Size: Tow-Down Approach
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Small modular reactor Market Size: Bottom-Up Approach
Data Triangulation
The overall market size is estimated using the market size estimation processes as explained above, followed by splitting of the market into several segments and subsegments. To complete the overall market engineering process and arrive at the exact statistics of each market segment and subsegment, data triangulation, and market breakdown procedures were employed, wherever applicable. The data was triangulated by studying various factors and trends from both the demand and supply sides in the Small modular reactor market ecosystem.
Market Definition
The growth of the small modular reactor market during the forecast period can be attributed to the increasing modularization of SMR, its versatile nature, and increasing construction of nuclear reactors the Americas, Europe, Asia Pacific, and the Middle East & Africa. "Small modular reactors (SMR) are defined as nuclear reactors generally 300 MWe equivalent or less, designed with modular technology using module factory fabrication, pursuing economies of series production and short construction times," according to the World Nuclear Association. The size and thermal output of SMRD varies. These reactors can be used for a variety of purposes, including power generation, process heating, desalination, and industrial applications. Light water or other coolants, such as gases, liquid metals, or molten salts, may be used in their designs. Small modular reactors have several advantages, including small physical footprints, lower capital investments as compared to standard nuclear power plants, the ability to site in locations that larger nuclear facilities cannot, and options for incremental power enhancements.
Key Stakeholders
- Consulting companies in the energy & power sector
- Government and research organizations
- Investment banks
- Nuclear power plant operators
- Power and energy associations
- Small modular reactor support service providers
- Manufacturers of small modular reactors
- Small modular reactor component manufacturers and fuel fabricators
- Power generation companies
- Heavy industries
Objectives of the Study
- To define, describe, and forecast the size of the Small modular reactor market by application, location, deployment, reactor type, coolant, connectivity, and power rating, in terms of value
- To estimate and forecast the global Small modular reactor market for various segments with respect to 4 main regions, namely, Americas, Europe, Asia Pacific (APAC), Middle East & Africa, in terms of value
- To provide comprehensive information about the drivers, restraints, opportunities, and industry-specific challenges that affect the market growth
- To provide a detailed overview of the Small modular reactor value chain, along with industry trends, use cases, security standards, and Porter’s five forces
- To strategically analyze micromarkets with respect to individual growth trends, prospects, and contribution to the total market
- To analyze the opportunities in the market for stakeholders by identifying high-growth segments and detail the competitive landscape for market players
- To strategically profile key players and comprehensively analyze their market rankings and core competencies
- To analyze competitive developments, such as joint ventures, mergers and acquisitions, contracts, and agreements, and new product launches, in the Small modular reactor market
- To benchmark players within the market using the proprietary competitive leadership mapping framework, which analyzes market players on various parameters within the broad categories of business strategy excellence and strength of product portfolio
- This report covers the Small modular reactor market size in terms of value and volume.
Available Customizations:
With the given market data, MarketsandMarkets offers customizations according to the specific requirements of companies. The following customization options are available for the report:
Product Analysis
- Product Matrix, which provides a detailed comparison of the product portfolio of each company
Company Information
- Detailed analyses and profiling of additional market players
Generating Response ...
Growth opportunities and latent adjacency in Small Modular Reactor Market
Our report is primarily a demand-based coverage that states the Historic, Current and Future revenues of SMR at a regional and country level for which we had contacted several primary respondents from supply and demand side of the business to obtain the qualitative and quantitative information. We have forecasted the market size in terms of Value ($ Million) till year 2026, which is broken down by Reactor Type, Connectivity, Deployment, Location, and Application, and Region. Contracts awarded to key players for the 2020, 2021 and 2022 till date, market share analysis of key player for the year 2021, including their financials and revenues for the last 3 years, will be studied to derive the market share for top players and ranked them based on their product portfolio strength, global reach, and business strategy excellence. Also, we will profile each player including their service portfolio, regional ranking, key customers, organic and in-organic growth strategies, and SWOT analysis.
Interested in the profile key players and comprehensively analyze their market ranking and core competencies in the global small modular reactor market.