PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1290798
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1290798
Nuclear Decommissioning Services Market size was valued at USD 6,807.1 million in 2022, expanding at a CAGR of 6.2% from 2023 to 2030.
Nuclear decommissioning is an administrative and technological operation that involves the gradual dismantling of nuclear plants until they no longer require radiation protection measures. Some of the usual procedures include cleanup of radioactive chemicals, dismantling of contaminated materials from plants, and safer shipping of hazardous components.
The market for nuclear decommissioning services is expanding rapidly as a result of increased use of renewable energy sources. Natural resources are a source of renewable energy because they regenerate more quickly than they are depleted. The expanding usage of renewable energy sources is being fueled by a number of issues, including the depletion of natural resources, rising fuel costs, rising pollution, and carbon dioxide levels. Nuclear decommissioning services safely decommission these nuclear power facilities and make them available for other uses. Nuclear energy is a non-renewable source of energy. For Instance, in 2020, the use of renewable energy increased by 3%, according to a report by the International Energy Agency, an independent international organization with headquarters in Paris.
Additionally, from 27% in 2019 to 29% in 2020, renewable energy made up a larger part of the world's electricity production. As a result, the market for nuclear decommissioning services is anticipated to rise as renewable energy sources are increasingly adopted.
By application, the commercial power reactor segment is expected to dominate the market during the forecast period. 437 commercial nuclear power reactors were operational in 32 countries as of October 2022. The United States had the most nuclear power generation capacity and produced more nuclear power than any other country. France has the second-largest nuclear power capacity and the second-highest nuclear power generation. Economic, governmental, and societal aspects are all involved in the closure and decommissioning of commercial nuclear power reactors. Nuclear energy's cost-competitiveness was decreased by a number of major factors, including the end of its operating life and the decline in the price of renewable energy sources like solar and wind. Nuclear safety regulations have been updated globally since the Fukushima tragedy in 2011, which has resulted in higher expenses for infrastructure upgrades as well as for operations and maintenance. As a result, many older commercial reactors are being decommissioned. These reactors have an operating life of 40 years and an additional 20 years might be added with infrastructure enhancements.
North America is expected to dominate the market during the forecast period. The demand from the United States, Canada, and Mexico is likely to lead to a large increase in the nuclear power reactor decommissioning industry. With 30% of the world's nuclear power generated in nuclear power in 2021, the United States is one of the largest nuclear power producers. In 2021, the nation's nuclear reactors generated 778.15 TWh of electricity, a modest decrease of 1.48% from 2020. In 30 states and 92 operating nuclear power reactors with a combined 94.7 GWe capacity, there are 92 nuclear power reactors in operation in the United States as of August 2022. There are now two 2.23 GWe reactors being built. Thus, the aforementioned fact drive the market growth in the region.
In March 2022, in order to take part in the decommissioning of a nuclear reactor in the United States, Hyundai Engineering & Construction and Holtec inked a contract. After 45 years of service, the Indian Point Energy Center nuclear power facility in Buchanan, New York, was shut down in April 2021. The decommissioning project, which involved removing active components from nuclear reactors and transporting old nuclear fuel from pools into a dry storage system, will be managed by Hyundai Engineering & Construction.
In May 2022, the nuclear power reactor at Palisades on Lake Michigan was shut down by Entergy Corporation. The nuclear power facility may produce 800MW of electricity. The reactor's fuel was taken out and put in the spent fuel pool to cool. The fuel will be moved to the station's secure independent spent fuel storage facility following the cooling process. By 2041, the nuclear plant's decommissioning should be finished, according to the firm.
The scope of this report covers the market by its major segments, which include as follows: