The Rising Nuclear Power Market is Trending Towards Sustainability

 

 Nuclear Power Market

The global nuclear power market is a multi-billion industry and is estimated to be valued at US$ 459.76 Mn in 2024. Nuclear power as an electricity source provides reliable baseload power while emitting little to no greenhouse gases during operation, presenting itself as a viable alternative to fossil fuels for reducing carbon emissions. Nuclear reactors utilize heat from nuclear fission to generate electricity in carbon-neutral way and also offer energy security due to the large nuclear fuel resource base.

Nuclear power plants convert the kinetic energy released from the splitting of uranium atoms into usable thermal energy that is further used to produce steam and generate electricity through steam turbines. With continued innovations and growing appreciation for carbon-free sources of energy, nuclear power has proven to be an advantageous option to meet global electricity demand in sustainable manner.

The Global Nuclear Power Market is expected to exhibit a CAGR of 4.3% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the nuclear power market are GlaxoSmithKline plc, Merck & Co., Inc., Sandoz International GmbH, AstraZeneca, LEO Pharma, Cipla Inc., Bristol-Myers Squibb Company, Almirall, S.A., Bausch Health, and Sanofi SA. Increasing awareness about climate change and carbon footprint of fossil fuel-based power plants has propelled the demand for alternative clean sources of energy. Continuous growth in global electricity consumption alongside policies supporting development of carbon-free sources are further fueling adoption of nuclear energy worldwide. Major players are engaged in new reactor builds and expanding operations overseas to tap into emerging nuclear power markets like China, India, Middle East and Africa.

Market Key Trends

One of the key trends witnessed in the global Nuclear Power Market Demand is growing investment in small modular reactors. Small modular reactors or SMRs are smaller in size, offer greater safety, can be manufactured at factories and be deployed at sites with lower infrastructural requirements. Their small physical footprint and modular design make SMRs well-suited for hybrid energy systems involving other renewable sources. With standardization and factory assembly, SMRs have potential to lower capital costs of nuclear units significantly and revitalize the nuclear sector. This is expected to proliferate new build activity globally over the coming decade.

Porter’s Analysis

Threat of new entrants: Nuclear Power Market Size And Trends requires huge capital investments and stringent regulatory norms that limit new entrants.

Bargaining power of buyers: Buyers have moderate bargaining power due to lack of substitutes and dependence on nuclear energy.

Bargaining power of suppliers: Suppliers of nuclear fuel and services have significant bargaining power due to requirement of specialized expertise and resources.

Threat of new substitutes: Alternate sources of energy like renewable sources are emerging as viable substitutes but cannot fully replace nuclear power currently.

Competitive rivalry: Intense competition exists among nuclear power plant operators and service providers to gain long term contracts for operation and maintenance.

Geographical Regions

North America accounts for the largest share in the nuclear power market currently due to presence of major economies and high nuclear energy generation. The United States alone generates over 50% of its total energy from nuclear power and operates around 99 nuclear power reactors.

Asia Pacific region is expected to witness the fastest growth during the forecast period owing to rising energy demand from emerging economies of China, India and Southeast Asian countries. China currently leads the world in construction of new nuclear power plants and has the ambitious target of increasing its nuclear installed capacity five folds by 2030.

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About Author:

Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)