The Asia-Pacific nuclear power plant equipment market is expected to grow at a CAGR of more than 5% in the forecast period of 2020 - 2025. The significant contribution of nuclear energy in reducing GHG emissions worldwide, while fulfilling the increasing energy demands of a growing population and supporting sustainable development in the region is driving the market. Upcoming projects in China, Japan, and India are expected to create significant demand for different types of nuclear power plant equipment in the coming years. On the other hand, premature decommissioning of several plants across the region and delays in upcoming projects are restraining the growth of the market.
- With a significant share of pressurized water reactors, they are expected to dominate the reactor segment in the forecast period.
- The World Nuclear Association has set a target of 25% of global electricity in 2050, which is expected to be provided by nuclear energy. This requires roughly 1000 GW of new nuclear capacity to be constructed, creating ample opportunities for market players.
- China is anticipated to dominate the market in the upcoming period. With new projects, the demand for nuclear power plant equipment is expected to grow significantly in the country.
Key Market Trends
Pressurized Water Reactors to Dominate the Market
- A typical design of a commercial PWR is such that the core inside the reactor vessel creates heat. The core of the reactor pressure vessel (RPV) contains nuclear fuel, moderator, control rods, and coolant that is cooled and moderated by high-pressure liquid water. PWR consists of a reactor vessel, steam generators, reactor coolant pumps, control roads, a pressurizer, and other elements.
- In India, those nuclear projects already under construction are expected to come online over the next ten years, albeit delayed. Nuclear capacity is expected to reach a total of 10.6 GW by 2026.
- China is leading in terms of future pressurized water reactors nuclear plants. Forty-one new PWR plants are under construction, which is expected to be operational in the forecast period.
- As of May 2020, there are 44 under construction PWR, that are expected to add up the nuclear capacity by 48.474 GWe. China is the dominant country with nine under construction PWR, with a nuclear capacity of 10.12 GWe.
- The Japanese nuclear power industry has witnessed tremendous changes since the March 2011 Fukushima Daiichi accident. Out of the 42 operable reactors, only five are currently operational, and 19 are expected to restart in the future.
- With supporting policies and upcoming projects in the forecast period, PWR nuclear power plants are expected to dominate the market in the coming years.
China to Dominate the Market
- China is the largest electricity generators through nuclear power in Asia-Pacific. As of April 2020, there are 45 nuclear power plants operating in the country, and 12 are currently under construction.
- China is projected to be the second-largest nuclear market, globally, by capacity, in 2027. The government targets to have 58GW of nuclear capacity operating by 2020-21, and 150GW by 2030.
- Additionally, with China being one of the important suppliers of components for the nuclear power plant, the trade disruption due to the COVID-19 pandemic is likely to restrain the demand for the nuclear power plant equipment. It is thus expected to hinder the growth of the market till the mid of 2021.
- With a generation of 348.7 TWh of electricity from nuclear energy in 2019, China is dominating the market in Asia-Pacific. With upcoming projects, dominance is expected to continue in the forecast period.
- China is expected to play a vital role in the future expansion of the global nuclear industry, despite some negative sentiment toward the Chinese nuclear companies, in the form of concerns over safety standards and illegal technology sharing.
The Asia-Pacific nuclear power plant equipment market is moderately consolidated. Some of the major companies include Korea Electric Power Corporation, Framatome, Dongfang Electric Corporation Limited, Doosan Corporation, GE-Hitachi Nuclear Energy.
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