Nuclear power is a form of energy generated from nuclear fission or nuclear fusion. It comprises the generation of electricity through controlled use of nuclear fission in a nuclear reactor. Nuclear power reactors operate by using heat from nuclear fission to generate steam that drives steam turbines which further spin generators to produce electricity. The global nuclear power industry produces about 10% of the world's electricity as of 2023. Nuclear power is considered as a clean source of energy as it produces very low greenhouse gas emissions compared to fossil fuels.
The global nuclear power Market is estimated to be valued at US$63.4 billion in 2023 and is expected to exhibit a CAGR of 4.3% over the forecast period 2023-2027, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Growing demand for clean energy sources to mitigate environmental impact of fossil fuels has emerged as a key driver for nuclear power market. The two main drivers like growing demand for clean energy and government initiatives and investments are fueling the nuclear power market growth. Government schemes and subsidies to promote nuclear energy generation are encouraging industry players to undertake new projects. For instance, Russian government initiative to build 20 new reactors in next decade and Chinese government plans to increase nuclear share in total energy mix to 15% by 2030 from current 5% provides growth opportunities. However, high capital cost for setting up nuclear plants and stringent safety regulations are some factors restraining rapid growth of nuclear power market.
Segment Analysis
The nuclear power market can be segmented based on reactor type into boiling water reactors (BWR), pressurized water reactors (PWR), heavy water reactors (HWR), and fast breeder reactors (FBR). PWR dominates the market and holds around 65% share due to its compact design and ease of operation. PWR reactors are significantly safer compared to other reactors. The used nuclear fuel from PWR can also be reused to some extent by reprocesssing.
PEST Analysis
Political: Most countries are increasingly focusing on developing non-renewable energy sources due to environmental regulations to reduce carbon emissions. However, public opposition over nuclear safety remains a challenge.
Economic: Nuclear power is a viable base load power solution as it has lower greenhouse gas emissions and fuel costs compared to coal and natural gas over the plant lifetime. Continuous technology innovation is also helping reduce project costs.
Social: Safety concerns over the risk of accidents and nuclear waste disposal pose social and environmental challenges. Efforts are being taken to manage waste and improve plant safety.
Technological: Countries are working to develop small modular reactors and molten salt reactors that offer passive safety systems, lower costs, and minimize proliferation risks compared to conventional light water reactors.
Key Takeaways
The Global Nuclear Power Market Share is expected to witness moderate growth over the forecast period.
The Asia Pacific region dominates with over 60% share led by China, India and Japan. China has the world's fastest growing nuclear power program and targets increasing nuclear capacity to 58 GW by 2020 to abate heavy reliance on coal.
Key players operating in the nuclear power market are GE Hitachi, Mitsubishi, Areva, Westinghouse, and KHNP. GE Hitachi is a global leader in design, manufacturing, and servicing of nuclear reactors and nuclear fuels. Mitsubishi is a major supplier of nuclear power technologies and services. Westinghouse declared bankruptcy in 2017 but was later acquired by Brookfield Business Partners LP and has ongoing AP1000 reactor construction projects.
For more details on the report, Read- https://www.insightprobing.com/nuclear-power-market-demand-share-analysis-2/
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