Global Small Modular Reactor Market - 2024-2031

Report Overview

The Global Small Modular Reactor Market size was worth US$ 5.72 billion in 2023 and is estimated to reach US$ 6.48 billion by 2031, growing at a CAGR of 1.6% during the forecast period (2024-2031).

The International Atomic Energy Agency (IAEA) explains small as less than 300 MWe and medium as up to 700 MWe, including several active units from the twentieth century. The International Atomic Energy Agency (IAEA) has dubbed small and medium reactors (SMRs). However, 'SMR' is most generally used as an acronym for the small modular reactor,' a nuclear reactor built for serial building and utilized to make up a big nuclear power plant.

For units under 15 MWe, a subtype of very small reactors called vSMRs has been proposed, especially for rural populations. Small modular reactors (SMRs) are nuclear reactors with a power output of 300 MWe or less constructed with modular technology and built in a module factory to achieve cost savings and fast building timeframes.

The World Nuclear Association's definition is based on the IAEA and U.S. Nuclear Energy Institute's definitions. PWRs may feature built-in steam generators, which necessitate a larger reactor pressure vessel, limiting transportation from factory to site. As a result, external steam generators are used in many larger PWRs, such as the Rolls-Royce UK SMR.

Market Dynamics

The market will be boosted by the flexibility and reliability of nuclear power and net-zero goals of decarbonization of energy. However, the stringent regulations on the deployment of small modular reactors are expected to hinder market growth.

Flexibility and reliability of nuclear power

Nuclear energy's adaptability may make it possible to transition to a cleaner planet and a stronger global economy. Clean energy sources have undergone remarkable innovation and cost reductions in recent decades. In the recent decade, solar photovoltaic, wind power, hydropower, dispatchable geothermal (both deep and shallow), biomass, concentrated solar power and fossil energy with carbon capture have made significant technological and economic progress.

Nuclear energy has the potential to be synergistically combined with a variety of other energy sources, resulting in integrated systems that are more than the sum of their parts. Small Module Reactors could be the most effective source of CO2-free electricity to supersede aging fossil fuel-powered plants, according to the participating member states at the International Conference on Climate Change and the Role of Nuclear Power, the IAEA in October 2019. With an output of 300 MWe, SMRs could be the most effective source of CO2-free electricity to supersede aging fossil fuel-powered plants.

The capacity to replace old fossil fuel-fired power plants and the potential for synergetic hybrid energy systems that mix nuclear and alternative energy sources, such as renewables, are pushing the development of such reactors. SMRs are a promising alternative for providing baseload and flexible operations in conjunction with renewables to assure supply security with carbon-free energy systems as the percentage of intermittent renewable energy grows on all continents.

SMRs can run at high capacity while satisfying the demand for production rate flexibility and creating energy, ancillary services and low-carbon co-products when SMRs and renewable energy are combined into a single energy system and connected through smart grids. SMRs can mitigate daily and seasonal oscillations with variable energy sources such as wind, solar, wave and tidal energy.

Net-zero goals of decarbonization of energy

With the passage of the Paris Agreement in 2015, the globe will be required to harness all low-carbon energy sources to manage greenhouse gas (GHG) emissions and keep global mean surface temperature increase below 2° C. On a life cycle basis, nuclear power, hydropower and wind energy deliver one of the lowest GHG emissions per unit of electricity generated, including construction, operation, decommissioning and waste disposal.

During operation, SMR-based nuclear power plants release essentially no greenhouse gas emissions or air pollutants and they emit very minimal emissions during their entire life cycle. Decarbonization measures may aid SMR growth. SMRs, for example, could be a good fit in terms of reactor capacity to replace a fraction of the power industry's retiring coal-fired power stations.

SMRs could also help decarbonize other energy sectors that require output temperatures between 80 and 200 degrees Celsius, such as district heating and process heating. Small modular reactors using light water can be utilized for district heating. For example, Finland's VTT Technical Research Centre launched a project in February 2020 to manufacture SMRs for applications of district heating to decarbonize the heat sector.

Regulations for small modular reactor deployment

The primary regulatory concern in the case of SMRs is the reduction in the size of the Emergency Planning Zone (EPZ). The EPZ is a zone where, according to the IEAE, preparations are made to promptly implement urgent protective action based on environmental monitoring data and facility circumstances to avoid doses prescribed by international standards. The plant site is surrounded by two EPZs, according to U.S. Nuclear Regulatory Commission (NRC).

For any nuclear facility, the first zone, known as a Plume Exposure Pathway, is meant to minimize or reduce the dose from potential exposure to radioactive materials from the plant and is typically around 10 miles (16.1 km) in radius. The Ingestion Exposure Pathway, around 50 miles (80.5 kilometers) from any nuclear facility, is meant to decrease or avoid exposure from potential ingestion of food contaminated by radioactive contaminants.

As a result, the size and structure of each Emergency Planning Zone are determined by various criteria, including the operating characteristics of the nuclear facility, the geographical features of the plant site and the populated regions surrounding the plant. According to the IAEA, an EPZ radius of 5-25 km is preferred for reactors with thermal power outputs between 100 and 1,000 MWth to avoid radiation exposure to the population in the case of an accident.

Market Segment Analysis

By application, the small modular reactor market is segmented into multi-module power plants and single-module power plants.

Ease of financing additional modules in small modular reactors

SMRs can be implemented in scalable, multi-module designs to give grid operations more flexibility, allow for renewable integration and help replace aging nuclear power plants and coal-fired power plants. The ease with which new SMRs can be financed, resulting in series production economics, is driving the segment's growth.

Multi-module power plants also help avoid protracted outages by allowing for staggered refueling and unit-by-unit maintenance. The multi-mode structure also provides better grid flexibility, allowing for renewable integration and facilitating the replacement of existing nuclear power facilities and the retirement of coal-fired units. Furthermore, the SMR plant with multi-mode deployment helps to reduce financial costs by minimizing upfront expenditure. As a result, power companies are implementing multi-mode SMR in large numbers, likely to lead to strong segmental growth.

Market Geographical Share

The rapid economic growth of Asia-Pacific countries

Geographically, Asia-Pacific is predicted to dominate the worldwide small modular device industry, accounting for a major revenue share because of increased investments in SMR deployment in countries like China and India. The country's recent economic expansion has resulted in a rapid increase in energy demand. Energy companies are looking for new power solutions to fulfill the rising electricity demand. As a result, demand for innovative tiny modular devices in the region will likely increase dramatically.

Furthermore, China intends to encourage the development of Generation III coastal nuclear power facilities and SMRs and offshore floating nuclear reactors. At the same time, Japan's government has implemented several legislative reforms and taken steps to hasten decarbonization in the energy industry. For example, the Japanese government announced in October 2020 its ambitious ambition to cut greenhouse gas emissions (GHGs) to zero by 2050, putting the country on track to become a carbon-neutral society. The method is critical in assisting Japan in achieving this lofty aim. The adoption of the small modular device sector is predicted to be aided by such a strategy.

Furthermore, the region has a wide pool of market suppliers with large operations and customer bases, resulting in greater availability of such solutions. For example, in July 2021, China began commercial construction of an onshore nuclear power plant employing a small modular reactor called Linglong One. The strategy is also responsible for the region's strong adoption of small modular reactors.

Market Competitive Landscape

Fortifying their positions, recreational boating market participants are working on various strategies such as mergers and acquisitions, sales channel development and product innovation. Major global small modular reactor market companies include Westing House Electric, Nuscale Power, Terrestrial Energy, Moltex Energy, X-Energy, Holtec International, General Atomics, Arc Clean Energy, Rolls-Royce and Lead-Cold Reactors.

COVID-19 Impact Analysis

The COVID-19 pandemic has impacted the growth of several enterprises. Businesses and governments' efforts to stop the virus from spreading have resulted in a considerable and rapid fall in demand for power generation. The demand for power systems had declined due to large-scale shutdowns and disruptions in global trade.

The epidemic has slowed investments in small modular reactor technologies and threatens to stifle the industry's progress toward commercialization. In the short term, the impact is greatest on the uranium supply side, as several mines and nuclear fuel cycle facilities have shut down due to health concerns.

The reductions have taken place in several important uranium-mining countries, including Kazakhstan, Canada and Namibia, producing nearly two-thirds of the world's uranium. Workers' health is causing extended outages at conventional nuclear power facilities. During the projection period, delays in small modular reactor design, licensing and construction, and a decline in electricity demand could negatively impact SMR development.

Russia-Ukraine War Impact

The war between Russia and Ukraine has had a major impact on the Small Modular Reactor (SMR) market due to the introduction of a lot of geopolitical uncertainty. The conflict has greatly affected global supply chains, causing prices to rise for important raw materials and components required for SMR construction. The recent instability has caused project delays and increased financial risks for investors, which has made the market less appealing in the short term. In addition, the relationships between Russian entities and global partners have been adversely impacted by international sanctions and trade restrictions, which has further complicated the market landscape.

On the other hand, the war has actually sparked more interest in energy security and diversification. This could potentially benefit the SMR market in the future. Nowadays, many countries are looking for ways to reduce their dependence on unpredictable energy sources. As a result, they are considering Small Modular Reactors (SMRs) as a reliable and eco-friendly alternative. There is a shift in focus happening that could cause more people to want SMRs. This would lead to more money being invested and more development happening in the sector. Countries are looking to improve their energy resilience because of ongoing geopolitical tensions.

By Reactor

• Light-weight Reactor
• Heavy-weight Reactor
• High-temperature Reactor
• Others

By Connectivity

• Off Grid
• Grid Connected

By Location

• Land
• Marine

By Application

• Power Generation
• Desalination
• Process Heat
• Industrial
• Hydrogen Production

By Deployment

• Multi-module Power Plant
• Single-module Power Plant

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In June 2023, Fortum and Westinghouse Electric Company, a prominent provider of secure and groundbreaking nuclear technology, entered into a Memorandum of Understanding (MoU) to investigate the necessary conditions for the advancement and implementation of new nuclear technology in Finland and Sweden. The partnership with Fortum aims to introduce established and top-performing nuclear technology to the Nordic region, ensuring enhanced energy stability for future generations.
• In May 2023, NuScale Power Corporation and Nucor Corporation (Nucor) announced the signing of a Memorandum of Understanding (MOU) to explore the possibility of placing NuScale's VOYGR small modular nuclear reactor (SMR) power plants in close proximity to Nucor's scrap-based Electric Arc Furnace (EAF) steel mills. Nucor, the largest steel producer and recycler in North America, will provide Econiq, its net-zero steel products, to Nuscale projects.
• SNC-Lavalin stated in April 2023 that it has entered into a strategic partnership with Moltex to collaborate on the development of Small Modular Reactors, with the aim of expanding the use of nuclear energy in Canada. Moltex will utilize SNC-Lavalin's extensive and highly skilled network of professionals in engineering, licencing and regulatory affairs, cost estimation, supplier qualification and management, quality assurance and construction and operation planning.
• In January 2023, Hitachi Nuclear Energy (GEH), Ontario Power Generation (OPG), SNC-Lavalin and Aecon signed an agreement to install a BWROC 300 small modular reactor (SMR) at OPG's Darlington New Nuclear Project site. It marks the inaugural commercial agreement for a grid-scale Small Modular Reactor (SMR) in North America.

Why Purchase the Report?

• Visualize the composition of the small modular reactor market segmentation by reactor, connectivity, location, application, deployment and region, highlighting the critical commercial assets and players.
• Identify commercial opportunities in the small modular reactor market by analyzing trends and co-development deals.
• Excel data sheet with thousands of small modular reactor market-level 4/5 segmentation points.
• Pdf report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
• Product mapping in excel for the key product of all major market players

The global small modular reactor market report would provide access to an approx. 77 market data tables, 72 figures and 221 pages.

Target Audience 2024

• Small Modular Reactor Service Providers/ Buyers
• Industry Investors/Investment Bankers
• Education & Research Institutes
• Emerging Companies
• Small Modular Reactor Manufacturers