The global nuclear power market is expected to grow at a CAGR of approximately 2% during the forecast period of 2020 - 2025. Factors such as the ability of nuclear energy to generate electricity with lower carbon emissions, as compared to that of fossil fuels has been driving the growth of market studied. Moreover, nuclear power generation is among one of the most reliable ways of generating electricity along with reduced carbon emission. Additionally, it provides long term certainty over electricity costs. However, the low initial cost of setting up of nuclear power plant along with the availability of alternative power generation sources such as renewable energy is likely to restrain the growth of the market during the forecast period.
- Owing to industrialization and urbanization, the demand for energy is increasing, globally. Additionally, due to the techno-economic benefits associated with the nuclear reactor technology the demand of nuclear energy for various applications is expected to increase over the forecast period.
- With the growth in the economies of the Middle East and Africa (MENA), electricity demand is increasing. Major countries in the region are investing in the non-fossil fuel-based power generation technologies, especially in a small nuclear reactor generated power. Jordan and a few more countries are in the initial phase of nuclear power plant construction which is likely to provide an opportunity to grow the global nuclear power market in the region after the forecast period.
- Asia-Pacific is the fastest-growing region in the nuclear power market owing to upcoming project majorly in China, Japan and India.
Key Market Trends
Energy Generation to Dominate the Market
- In the wake of growing environmental concerns and surging demand for energy, nuclear energy generation has become the most dependable option that can cater to the requirements of electricity and offset greenhouse gas emissions. The nuclear power generation is a clean power technology, which can meet the increasing demand for electricity efficiently.
- The technology advancement in the industry of nuclear reactor provides better fuel utilization and increase life span up to 60 years which further can be increased. The new small nuclear turbine is being used in many countries for its low maintenance and guaranteed power supply features, further advancement is likely to improve the safety and efficiency of various type of nuclear power plant.
- Moreover, in Asia, during 2018, nuclear energy generation rose by more than 10%, to reach 533 TWh, with total capacity accounting for more than one-fifth of the total global nuclear energy generation capacity.
- Many nuclear power projects are expected to come up during the forecast period in various countries trying to reduce the dependence on fossil-based power generation and decrease carbon emission. The upcoming nuclear power projects for energy are expected to dominate the growth of the market being studied during the forecast period.
North America to Dominate the Market Growth
- North America has a strong focus on nuclear power. The United States and Canada are focusing on nuclear power plant life extension while discovering the potential for small modular reactors. When looking at nuclear power in North America, the United States operates the largest fleet of nuclear power plants in the world, with 98 units in almost 30 states generating almost 20% of the country's electricity generation.
- The United States is building two new Westinghouse AP1000 reactors at Vogtle in Georgia, which are scheduled to start operating in November 2021 and November 2022, respectively. Additionally, some small modular reactor (SMR) demonstration units are planned in the 2020s.
- Furthermore, Canada has currently five plants in three provinces with 22 nuclear power reactors, and the country is planning to increase the number in the future for nuclear plants. In 2019, the Canadian Nuclear Safety Commission (CNSC) received an application for a new plant. Therefore, the nuclear reactor construction in the country is expected to be on the positive side. Similarly, the Mexican government is planning to expand the Laguna Verde plant's capacity to 4,408 MW.
- The government initiative for clean power from the nuclear power plant and high investment for the advancement of technologies are likely to drive the global nuclear reactor construction market and expected to be the largest market during the forecast period.
The nuclear power market is consolidated due to few companies operating in the industry because of the complex technology. The key players in this market include GE-Hitachi Nuclear Energy, Inc., Westinghouse Electric Company LLC (Toshiba), KEPCO Engineering & Construction, SKODA JS a.s.,China National Nuclear Corporation, and others.
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