Small Modular Reactor Market - A Global and Regional Analysis: Focus on Application Type, Product Type, and Region - Analysis and Forecast, 2025-2035

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Small Modular Reactor Market Overview

The small modular reactor market was valued at $159.4 million in 2024 and is projected to grow at a CAGR of 42.31%, reaching $5,179.6 million by 2035. The increasing adoption of modular nuclear reactor technology, including factory fabrication, standardization, and modular deployment, is driving this market growth. As the energy sector transitions to low-carbon and resilient power sources, demand for SMRs that can serve remote sites and industrial facilities and supplement existing grids is expected to rise. Additionally, the growing focus on reducing greenhouse gas emissions, improving safety performance, and shortening project timelines are contributing factors. Recent progress in advanced reactor designs, digital system integration, and manufacturing efficiencies has positioned the SMR market for significant expansion in the coming decade.

Introduction to the Small Modular Reactor Market

The small modular reactor (SMR) market focuses on the adoption of modular nuclear power solutions designed to reduce project risk, enhance scalability, and optimize resource utilization. This market is driven by the demand for low-carbon, reliable energy sources across utility, industrial, and remote applications, including grid support, process heat, and microgrid integration. Modular fabrication and standardized components lower construction costs and shorten project schedules, reducing upfront capital requirements and supply chain complexity. The policy emphasis on decarbonization has prompted developers to advance SMR designs to deliver cost-competitive power, improve safety performance, and comply with stricter regulatory standards. These practices contribute to environmental sustainability by lowering greenhouse gas emissions and supporting national decarbonization objectives.

Market Introduction

The SMR market is experiencing significant growth as the energy sector transitions to low-carbon power solutions and strengthens energy resilience. This market is driven by the adoption of modular reactor technology, standardization, and factory fabrication, which reduce capital expenditures and accelerate project schedules. Ongoing advancements in reactor design and digital systems further reduce costs and improve safety. Utilities and industrial operators are increasingly deploying SMRs for remote sites, process heat applications, and grid support to meet decarbonization goals, control construction risk, and simplify supply chains. As global demand for reliable, low-emission energy sources rises, the SMR market is set to play a critical role in advancing sustainable power generation.

Industrial Impact

The industrial impact of the small modular reactor (SMR) market is transformative across multiple sectors, including energy production, manufacturing, and supply chains. By adopting modular reactor technology, the market is driving significant improvements in plant construction efficiency, reducing on-site assembly time, and enhancing safety standards in the nuclear industry. The use of factory-fabricated reactor modules, standardized components, and digital monitoring systems optimizes procurement, lowers capital costs, and expands accessibility for utilities and industrial operators. This transition promotes innovation in manufacturing methods, project management, and regulatory frameworks and encourages the growth of engineering firms and nuclear service providers.

The companies involved in the small modular reactor market include major industry players such as The State Atomic Energy Corporation ROSATOM, Tsinghua University, Japan Atomic Energy Agency, NuScale Power, LLC., JSC NIKIET, Westinghouse Electric Company LLC, China National Nuclear Corporation, Rolls-Royce plc, STATE POWER INVESTMENT CORPORATION LIMITED, BWX Technologies Inc., Terrestrial Energy Inc., MITSUBISHI HEAVY INDUSTRIES, LTD., EDF, Moltex Energy, and General Atomics. These companies are enhancing their capabilities through strategic partnerships, collaborations, and technology advancements to improve the resilience and performance of small modular reactors in demanding environments. Their continued investments in research and development are driving the growth of the market while supporting the broader trends in small modular reactors.

Market Segmentation:

Segmentation 1: by Application

• Electricity Production
• Combined Heat and Power
• Desalination
• Off-Grid Application

Electricity Production to Lead the Market (by Application)

Electricity production represents the largest application segment in the small modular reactor market, driven by growing requirements for clean and reliable energy. SMRs deliver efficient and safe electrical output, supporting diverse deployment scenarios. In August 2023, Canadian Nuclear Laboratories and Ultra Safe Nuclear Corporation announced a partnership to advance a commercially viable molten salt SMR, demonstrating industry commitment to next-generation reactor technology.

SMR site flexibility is a significant advantage for power applications. These reactors can operate in locations unsuitable for conventional facilities, including isolated areas and small communities. This capability addresses localized energy demands and strengthens energy security. In October 2023, NuScale executed a memorandum of understanding with Argentina's Investigacion Aplicada (INVAP) to assess the deployment of the VOYGR SMR system, reflecting global interest in SMR-based electricity solutions.

Expansion of the SMR sector in power generation is set to reshape the energy market by introducing a lower-emission, sustainable alternative to conventional power plants.

Segmentation 2: by Reactor Type

• Water-Cooled Reactors
• Liquid Metal-Cooled Fast Neutron Spectrum Reactors
• Molten Salt Reactors
• High-Temperature Gas-Cooled Reactors

Water-Cooled Reactors to Lead the Market (by Reactor Type)

Water-cooled reactors represent the largest product segment in the small modular reactor market by reactor type. Their dominance reflects a proven performance record in the nuclear sector, straightforward design, and robust safety features. An established supply chain for water-cooled components reduces development costs and accelerates project schedules compared to emerging reactor technologies. Regulatory agencies possess extensive experience in licensing and supervising water-cooled reactors, which streamlines approval processes for SMR deployments.

China demonstrated this trend in January 2024 when its ACP100 SMR, a pressurized water reactor, was connected to the national grid. Research into alternative reactor concepts, including molten salt and high-temperature gas-cooled designs, continues. Market projections indicate that water-cooled SMRs will maintain their leading position due to their reliability and proven technological base, ensuring their status as the preferred solution for low-emission electricity production.

Segmentation 3: by Power Generation Capacity

• <25 MW
• 25-100 MW
• 101-300 MW
• >300 MW
• 25-100 MW to Lead the Market (by Power Generation Capacity)

The small modular reactor market is shifting to reactors with a production capacity of 25 to 100 MW, establishing this segment as the leading category in power output capacity. Several factors contribute to this segment's prominence, including versatility, cost-effectiveness, and suitability for a variety of applications.

This capacity range delivers a strong balance between scalability, cost-effectiveness, and grid compatibility, positioning it as the industry's preferred segment. It supports a broader array of deployments than smaller units, delivering dependable power to remote communities and industrial sites and supplementing existing power grids. Modular design enables incremental capacity expansion by adding individual units, reducing upfront capital requirements compared to a single, large-scale reactor.

Recent developments highlight the 25-100 MW segment's lead. Government plans announced in November 2023 will deploy a fleet of next-generation SMRs rated between 40 and 70 MW, highlighting official support for this class of low-emission baseload power. Future SMR designs may diversify market offerings. Smaller units under 25 MW can serve niche requirements, and larger designs above 100 MW can cater to densely populated regions and major industrial complexes. The 25-100 MW segment is expected to maintain its leading position.

Its scalability, cost structure, and grid compatibility make 25-100 MW SMRs an adaptable and attractive choice for diverse power generation needs.

Segmentation 4: by Region

• North America: U.S., Canada
• Europe: Russia, France, and Rest-of-Europe
• Asia-Pacific: China, Japan, and Rest-of-Asia-Pacific
• Rest-of-the-World

North America is expected to lead the small modular reactor (SMR) market, supported by robust regulatory frameworks, technological advancements, and strategic investments in advanced nuclear projects. The U.S. Department of Energy and Canadian Nuclear Laboratories have sponsored SMR research, demonstration projects, and streamlined licensing initiatives. Strong public-private partnerships, federal funding programs, and growing interest in SMR applications for grid resilience and process heat are driving regional growth.

North America's focus on reducing greenhouse gas emissions, enhancing energy security, and modernizing power infrastructure positions it as the leading region for SMR deployment, setting the stage for a low-carbon energy future.

Recent Developments in the Small Modular Reactor Market

• Tsinghua University's Institute of Nuclear and New Energy Technology (INET) has demonstrated significant expertise in advancing innovative nuclear technologies, highlighted by the successful operation of the high-temperature gas-cooled reactor pebble-bed module (HTR-PM) demo project in December 2023.
• In September 2023, the Japan Atomic Energy Agency (JAEA) signed an agreement with the U.K.'s National Nuclear Laboratory to accelerate global SMR deployment, focusing on collaborative advancements in HTGR technologies. Continued innovation and strategic partnerships will be essential for JAEA to capitalize on the increasing demand for SMRs and strengthen its position in the global market.
• Westinghouse Electric Company LLC.'s agreements and acquisitions mark significant progress in the small modular reactor (SMR) market. The company's collaboration with Community Nuclear Power, Ltd. (CNP) in February 2023 to deploy the U.K.'s first privately funded SMR fleet highlights its commitment to developing innovative energy solutions. The expected commercial operation by the early 2030s reflects a long-term vision and dedication to expanding the SMR sector.

Demand - Drivers, Limitations, and Opportunities

Market Drivers: Advancements in Nuclear Technology

Advancements in nuclear technology are key drivers in the growth of the small modular reactor market. Technological innovations in reactor design, such as enhanced safety features, modular construction, and advanced fuel cycles, have made SMRs more efficient and safer compared to traditional nuclear reactors. These advancements have enabled SMRs to meet the growing demand for reliable and clean energy sources while addressing long-standing concerns related to nuclear energy, such as waste management and the risks associated with large-scale nuclear plants.

Several companies are already capitalizing on these technological advancements. For instance, NuScale Power has developed the NuScale Power Module (NPM), a small modular reactor that incorporates passive safety features, significantly reducing the risk of accidents. In addition, Rolls-Royce is advancing its SMR designs, incorporating innovative engineering to achieve a compact, scalable solution for nuclear energy. Furthermore, the integration of advanced technologies such as digital monitoring and automation is making it easier to manage the operation of SMRs, enhancing their economic viability.

Looking ahead, advancements in nuclear technology have the potential to transform the energy landscape. As further technological breakthroughs occur, SMRs are expected to become even more cost-effective, efficient, and safer. The development of new reactor designs, including molten salt reactors and high-temperature gas-cooled reactors, will likely open up new markets for SMRs, especially in industrial applications requiring high-temperature heat.

Market Challenges: High Initial Costs and Infrastructure Limitations

High initial costs and infrastructure limitations represent significant restraints in the small modular reactor market, hindering the widespread adoption of this technology. The capital required for research, development, and construction of SMRs is considerable, and despite the promise of long-term cost savings, the upfront investment can be a deterrent for potential investors and governments. Additionally, building the necessary infrastructure, such as specialized manufacturing facilities and qualified labor forces, requires substantial investment, which may be challenging for countries or regions without the financial resources or technical expertise.

Several industry players are facing these challenges as they attempt to develop and deploy SMRs. In some cases, government subsidies or financing models are needed to support initial costs, but these mechanisms are not always readily available, particularly in countries with budget constraints. The lack of existing infrastructure for SMR-specific components, such as specialized factories for reactor components, can also delay production timelines and further increase costs.

In the near future, the small modular reactor market has the potential to overcome these barriers through continued technological advancements and the development of standardized, cost-effective manufacturing processes. As the industry matures, economies of scale and more efficient construction methods are expected to reduce costs, making SMRs more affordable for widespread deployment.

Market Opportunities: Surge in Decarbonization Policies

The surge in decarbonization policies across the globe presents a significant opportunity for the small modular reactor market. As governments increasingly prioritize climate change mitigation, clean energy technologies are gaining attention. SMRs, offering a reliable and low-carbon power generation solution, align well with these policies. Their ability to provide a steady supply of energy without contributing to carbon emissions positions them as a key technology in achieving net-zero emissions targets.

Industry players are already responding to this opportunity by aligning their strategies with decarbonization goals. For instance, the U.S. Department of Energy (DOE) has shown strong support for SMR development through funding initiatives and collaboration with private industry. In Canada, the government's commitment to reducing carbon emissions has led to regulatory and financial support for SMR projects, such as Terrestrial Energy's efforts to deploy an Integral Molten Salt Reactor (IMSR). These industry efforts reflect the growing alignment between SMR technology and global decarbonization objectives, showcasing the increasing recognition of SMRs as a viable solution to meet emissions reduction targets.

Overall, the continued push for decarbonization is likely to create even greater demand for SMRs. As countries adopt stricter carbon reduction goals and implement more robust clean energy policies, SMRs are well-positioned to meet the need for reliable, scalable, and zero-emission energy sources. The integration of SMRs into national energy strategies is expected to contribute significantly to the transition from fossil fuels to cleaner energy alternatives. As governments continue to invest in low-carbon technologies, the SMR market is expected to expand, and SMRs will increasingly play a critical role in the global energy infrastructure.

How can this report add value to an organization?

Product/Innovation Strategy: The small modular reactor market has been segmented based on application, reactor type, power generation capacity, and end-user category, providing valuable insights into deployment strategies and technology preferences. Application segmentation includes electricity production, combined heat and power, desalination, and off-grid power. By reactor type, the market has been divided into water-cooled reactors, liquid metal-cooled fast neutron spectrum reactors, molten salt reactors, and high-temperature gas-cooled reactors. Capacity segmentation covers units under 25 MW, 25-100 MW, 101-300 MW, and above 300 MW. The end user segmentation includes utilities, industrial operators, off-grid microgrid providers, and desalination plant operators. This segmentation framework supports targeted market analysis and strategic planning by stakeholders across technology development, policy, and finance.

Growth/Marketing Strategy: The small modular reactor market has been growing at a rapid pace. The market offers enormous opportunities for existing and emerging market players. Some of the strategies covered in this segment are mergers and acquisitions, product launches, partnerships and collaborations, business expansions, and investments. The strategies preferred by companies to maintain and strengthen their market position primarily include product development.

Competitive Strategy: The key players in the small modular reactor market analyzed and profiled in the study include professionals with expertise in the small modular reactor domain. Additionally, a comprehensive competitive landscape, such as partnerships, agreements, and collaborations, is expected to aid the reader in understanding the untapped revenue pockets in the market.

Research Methodology

Factors for Data Prediction and Modelling

• The base currency considered for the market analysis is US$. Currencies other than the US$ have been converted to the US$ for all statistical calculations, considering the average conversion rate for that particular year.
• The currency conversion rate was taken from the historical exchange rate on the Oanda website.
• Nearly all the recent developments from January 2022 to June 2025 have been considered in this research study.
• The information rendered in the report is a result of in-depth primary interviews, surveys, and secondary analysis.
• Where relevant information was not available, proxy indicators and extrapolation were employed.
• Any economic downturn in the future has not been taken into consideration for the market estimation and forecast.
• Technologies currently used are expected to persist through the forecast with no major technological breakthroughs.

Market Estimation and Forecast

This research study involves the usage of extensive secondary sources, such as certified publications, articles from recognized authors, white papers, annual reports of companies, directories, and major databases, to collect useful and effective information for an extensive, technical, market-oriented, and commercial study of the small modular reactor market.

The market engineering process involves the calculation of the market statistics, market size estimation, market forecast, market crackdown, and data triangulation (the methodology for such quantitative data processes is explained in further sections). The primary research study has been undertaken to gather information and validate the market numbers for segmentation types and industry trends of the key players in the market.

Primary Research

The primary sources involve industry experts from the small modular reactor market and various stakeholders in the ecosystem. Respondents such as CEOs, vice presidents, marketing directors, and technology and innovation directors have been interviewed to obtain and verify both qualitative and quantitative aspects of this research study.

The key data points taken from primary sources include:

• validation and triangulation of all the numbers and graphs
• validation of reports segmentation and key qualitative findings
• understanding the competitive landscape
• validation of the numbers of various markets for market type
• percentage split of individual markets for geographical analysis

Secondary Research

This research study of the small modular reactor market involves the usage of extensive secondary research, directories, company websites, and annual reports. It also makes use of databases, such as Hoovers, Bloomberg, Businessweek, and Factiva, to collect useful and effective information for an extensive, technical, market-oriented, and commercial study of the global market. In addition to the aforementioned data sources, the study has been undertaken with the help of other data sources and websites, such as IRENA and IEA.

Secondary research was done in order to obtain crucial information about the industry's value chain, revenue models, the market's monetary chain, the total pool of key players, and the current and potential use cases and applications.

The key data points taken from secondary research include:

• segmentations and percentage shares
• data for market value
• key industry trends of the top players of the market
• qualitative insights into various aspects of the market, key trends, and emerging areas of innovation
• quantitative data for mathematical and statistical calculations

Key Market Players and Competition Synopsis

The companies that are profiled in the small modular reactor market have been selected based on inputs gathered from primary experts who have analyzed company coverage, product portfolio, and market penetration.

Some of the prominent names in this market are:

• The State Atomic Energy Corporation ROSATOM
• Tsinghua University
• Japan Atomic Energy Agency
• NuScale Power, LLC.
• JSC NIKIET
• Westinghouse Electric Company LLC
• China National Nuclear Corporation
• Rolls-Royce plc
• State Power Investment Corporation Limited
• BWX Technologies. Inc.
• Terrestrial Energy Inc.
• MITSUBISHI HEAVY INDUSTRIES, LTD.
• EDF
• Moltex Energy
• General Atomics

Companies not part of the aforementioned pool have been well represented across different sections of the report (wherever applicable).