Small Modular Reactor Market – Trends Forecast Till 2030

Market Snapshot

Market Overview

The global Small Modular Reactor Market size was estimated at USD 6,700 million in 2023 and is projected to reach USD 8,698.7 million in 2030 at a CAGR of 3.80 % during the forecast period 2024-2030.

The scope of the SMR market encompasses various applications such as power generation, industrial uses, desalination, and hydrogen production. Power generation remains the dominant application, accounting for a significant share of the market revenue. SMRs are particularly attractive due to their ability to provide reliable energy with a smaller environmental footprint and lower capital investment compared to conventional nuclear plants. Their modular design allows for incremental capacity additions, facilitating integration into existing energy infrastructures and enhancing grid stability.

Several trends are shaping the SMR market, including increasing investments in nuclear technology, a shift towards cleaner energy sources, and the growing demand for decentralized power generation solutions. Regions like North America and Asia Pacific are leading the charge in SMR adoption, driven by regulatory support and a focus on achieving net-zero emissions targets. In North America, government initiatives and funding for nuclear research are further propelling market growth, while Asia Pacific is witnessing rapid industrialization and urbanization that heighten the demand for clean energy alternatives.

Key drivers of the SMR market include stringent environmental regulations, rising electricity demands, and the need for energy security amid fluctuating fossil fuel prices. As countries strive to reduce greenhouse gas emissions and transition away from fossil fuels, SMRs present a viable option due to their inherent safety features and ability to operate efficiently in diverse settings. The ongoing development of advanced reactor designs and international collaboration on nuclear technology will likely enhance the competitiveness of SMRs in the global energy landscape.

Delvens Industry Expert's Standpoint

Experts in the Small Modular Reactor Market highlight several key trends driving growth and innovation. The small modular reactor (SMR) market is an emerging segment of the nuclear energy industry, focusing on compact reactors that offer flexible, low-carbon energy solutions suitable for various applications such as power generation, industrial processes, and desalination. With a modular design that allows for factory fabrication and quicker deployment, SMRs are increasingly seen as a viable alternative to traditional large-scale reactors, particularly in regions with growing energy demands and a push for cleaner energy sources. Key trends driving the market include heightened investments in nuclear technology, regulatory support for sustainable energy initiatives, and a global shift towards decentralized power generation. As countries aim to meet stringent environmental targets and enhance energy security, SMRs are positioned to play a crucial role in the transition to a more sustainable energy future.

Market Portfolio

Key Findings

• The small modular reactor (SMR) market is categorized by application into power generation, desalination, industrial uses, and hydrogen production, with power generation holding the largest revenue share. This segment's growth is primarily due to SMRs' capability to deliver reliable, low-carbon energy while occupying a smaller physical footprint compared to conventional reactors. Their flexible deployment allows for incremental capacity increases, effectively addressing the rising energy demands. Additionally, the modular design facilitates easier integration into existing energy systems, making SMRs particularly suitable for remote or off-grid locations

• The small modular reactor (SMR) market is segmented by product into heavy water reactors, light water reactors, high-temperature reactors, and others, with heavy water reactors leading the market. This dominance is attributed to their efficient utilization of natural uranium, which minimizes the need for costly uranium enrichment processes. Consequently, heavy water SMRs are particularly appealing in regions rich in natural uranium but lacking in enrichment facilities. Additionally, these reactors exhibit superior neutron economy, enabling higher fuel burn-up rates and extended operational cycles, which enhance fuel efficiency and decrease waste production. These advantages are expected to drive increased demand for heavy water reactors in the coming years

• The market is also divided into various regions such as North America, Europe, Asia-Pacific, South America, and Middle East and Africa. North America is projected to hold the largest market share. Factors such as Energy security concerns, Regulatory support, Increasing electricity demand, Desire for carbon emission reduction, Need for decentralized power generation, Focus on clean energy solutions, Demand for flexible power generation options, Rising interest in nuclear power, Concerns about climate change, Expanding applications in industrial sectors, Enhanced safety features of SMRs, Lower initial capital investment, Scalability and siting flexibility, Modular construction reducing costs and time, Ability to complement renewable energy sources have triggered the Small Modular Reactor Market in the region.

Regional Analysis

North America to Dominate the Market

• North America leads the small modular reactor (SMR) market, holding a significant revenue share due to its commitment to transitioning to cleaner energy sources and achieving carbon reduction targets. The region views SMRs as a viable solution for replacing outdated fossil fuel infrastructure with low-carbon technology. Government support and substantial investments in nuclear research and development are expected to further drive demand for SMRs in the coming years.

• In the U.S., the SMR market is projected to grow at a compound annual growth rate (CAGR) of 3.8%, fuelled by supportive federal and state policies aimed at reducing greenhouse gas emissions and reaching net-zero goals. The government actively promotes SMR development through funding and research initiatives, recognizing their potential to enhance grid stability and facilitate renewable energy integration.

• Europe's SMR market is also expanding, with a CAGR of 3.5% anticipated from 2024 to 2030. The region is increasingly adopting SMRs as part of its strategy to decarbonize its energy system and ensure energy security, seeking reliable, low-emission power sources to complement renewable energy while phasing out coal and other high-emission fuels. Europe’s emphasis on technological innovation and international collaboration further supports the deployment of advanced nuclear technologies.

• In the Asia Pacific region, the SMR market is expected to experience a CAGR of 4.2% during the forecast period due to rising energy needs, rapid economic development, and significant investments in nuclear technology. Countries like China and India are exploring SMRs to bolster energy security, reduce air pollution, and sustainably meet their electricity demands. The diverse geographical landscape of the region makes SMRs an attractive option for providing reliable power in both remote and densely populated areas.

Competitive Landscape

• STATE ATOMIC ENERGY CORPORATION ROSATOM
• CHINA NATIONAL NUCLEAR CORPORATION
• WESTINGHOUSE ELECTRIC COMPANY LLC
• GE HITACHI NUCLEAR ENERGY
• MITSUBISHI HEAVY INDUSTRIES, LTD.
• ROLLS-ROYCE PLC
• ATKINSRÉALIS
• NUSCALE POWER, LLC.
• ULTRA SAFE NUCLEAR
• TERRESTRIAL ENERGY INC.
• MOLTEX ENERGY
• X-ENERGY, LLC.
• HOLTEC INTERNATIONAL
• GENERAL ATOMICS
• KEPCO ENGINEERING & CONSTRUCTION COMPANY.INC
• TOSHIBA ENERGY SYSTEMS & SOLUTIONS CORPORATION
• BLYKALLA
• KAIROS POWER LLC
• FRAMATOME
• ARC CLEAN TECHNOLOGY, INC
• SEABORG TECHNOLOGIES
• TOKAMAK ENERGY LTD.
• TERRAPOWER LLC
• FLIBE ENERGY, INC.
• OKLO INC.
• COPENHAGEN ATOMICS

Recent Developments

• In June 2024, KEPCO Engineering & Construction Company, Inc. signed a memorandum of understanding (MOU) with Rwanda during the Korea-Africa Summit to collaborate on small modular reactors (SMRs) and used battery energy storage systems (UBESS). The agreement focuses on providing technical support, fostering business cooperation, and facilitating personnel exchanges to enhance Rwanda's energy infrastructure and meet its increasing electricity demand. This partnership underscores Rwanda's commitment to developing its energy capabilities through innovative technologies.

• In July 2023, X-energy and Energy Northwest entered into a joint development agreement aimed at deploying up to 12 Xe-100 advanced small modular reactors in central Washington, which are expected to generate 960 megawatts of carbon-free electricity by 2030. This collaboration seeks to bolster the region's clean energy grid while also creating job opportunities to address the growing energy needs. The initiative highlights the potential of SMRs to contribute significantly to sustainable energy solutions in the area.

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