Market Overview:
Nuclear power is a stable source of base-load electricity generation that provides reliable and affordable energy without carbon or other air emissions. Nuclear power plants use the heat generated from nuclear fission in a contained environment to convert water into steam, which powers generators to produce electricity. Countries around the world are focusing on scaling up their nuclear power capacity to achieve energy security and reduce dependence on fossil fuels. Nuclear energy accounts for about 10% of global electricity production and over 30 countries worldwide utilize nuclear power as a source for electricity generation. The major applications of nuclear power include electricity generation, heat generation, sea water desalination, and isotope production for medical applications.
Market Dynamics:
Driver 1: Growing focus on decarbonization of electricity grids
Deployment of nuclear power at a large scale is vital for many countries to achieve their carbon emission reduction targets and transition towards cleaner sources of energy. Advanced economies in Europe and North America are extending the operating life of existing nuclear reactors to lower carbon footprint. Developing economies like China and India are significantly boosting their nuclear power capacity as it provides a reliable solution for baseload electricity without emission of pollutants.
Driver 2: Advances in small modular reactor technology
Newly developed small modular reactor (SMR) technology offers avenues for improved economics and safety. SMRs can be constructed in factories and shipped to plant sites for assembly, reducing costs and construction timelines. Their small size also allows incremental capacity additions as and when needed. Countries worldwide are investing in pilot SMR projects to facilitate large-scale commercial deployment over the coming decade.
Segment Analysis
The Global Nuclear Power Market can be segmented into reactor type, application, by end use and region. By reactor type, the light water reactor (LWR) segment held the largest market share in 2021 owing to its advantages such as proven technology, safety and economic viability. By application, the commercial power generation segment accounted for the major share as nuclear power plants produce sustainable and affordable electricity across various countries globally. By end use, the utilities segment is projected to dominate the global market over the forecast period as the majority of commercial nuclear reactors across the world are located in key utility areas
PEST Analysis
Political: Governments of various countries are actively supporting nuclear power generation through favorable policies and regulations to reduce carbon emissions. Some nations have announced plans to add more nuclear reactors to boost clean energy production.
Economic: Investments in new nuclear power plants have increased due to the low operating costs of nuclear energy. However, high initial setup capital may impact market growth.
Social: Public opinion about nuclear power remains a concern in some parts due to safety and waste disposal issues. However, growing environmental concerns are positive factors.
Technological: Advanced technologies in small modular reactors are being developed to make nuclear power more flexible and competitive. Use of artificial intelligence for predictive maintenance is another trend.
Key Takeaways
The global nuclear power market is expected to witness high growth, exhibiting a CAGR of 1.2% over the forecast period, due to increasing investments to reduce carbon footprint from power generation. The market was valued at 389.68 GW in 2021.
By region, Asia Pacific held the largest market share in 2021 and is projected to maintain its dominance during the forecast period. This can be attributed to strong government support for nuclear energy especially in China and India to meet rising electricity demand.
Key players operating in the nuclear power market are GE-Hitachi Nuclear Energy Inc., Westinghouse Electric Company LLC, STP Nuclear Operating Company, SKODA JS AS, China National Nuclear Corporation, Bilfinger SE, BWX Technologies Inc., Doosan Heavy Industries & Construction Co. Ltd, Mitsubishi Heavy Industries Ltd, Bechtel Group Inc., Japan Atomic Power Co., and Rosatom Corp. Major players are investing in new technologies and exploring opportunities in foreign markets to strengthen their market position.
Read More: https://www.rapidwebwire.com/nuclear-power-market-size-and-scope/
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