SMALL MODULAR REACTOR MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024 - 2031)

Small Modular Reactor Market Size and Trends

Small modular reactor market is estimated to be valued at USD 5.89 Bn in 2024 and is expected to reach USD 7.34 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 3.2% from 2024 to 2031.

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Growing need for clean energy generation across the globe is boosting demand for small modular reactors. These reactors offer flexible, economic, and safer nuclear energy and can be deployed at locations where the construction of large nuclear power plants may not be feasible. Furthermore, their modular design allows the mass manufacturing of identical reactor units in factories, thereby offering economies of scale. The rising focus on sustainable energy sources to reduce dependence on fossil fuels is further expected to support the small modular reactor market growth in the coming years.

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Insights By Reactor Type- Technological Superiority Drives Heavy Water Reactor’s (HWR) Dominance

In terms of reactor type, heavy water reactor (HWR) segment is expected to contribute 37.20% share of the market in 2024, owing to its technological superiority against other reactor types. HWR utilizes natural uranium as fuel and heavy water as coolant and moderator. In addition, HWR has much higher neutron economy allowing it to extract more energy from a given amount of uranium fuel.

Insights By Conductivity- Remote Operations Drive Off Grid Connectivity Domination

In terms of connectivity, off grid segment is expected to contribute 56.3% share of the market in 2024, owing to its ability to enable remote operations. Small modular reactors used in off-grid settings do not require connection to existing electricity transmission grid infrastructure. This allows them to be deployed in remote, isolated areas with difficult terrain where grid extension is not feasible. Off-grid small modular reactor (SMR) can be easily transported through mobile methods like helicopters, ships, and trucks for rapid deployment.

Insights By Application- Cost-Competitiveness Drives Desalination Adoption

In terms of application, desalination segment is expected to contribute 28.5% share of the small modular reactor market in 2024, as small modular reactors are a cost-competitive solution. Traditional thermal desalination techniques such as multi-stage flash distillation plants require huge amounts of thermal energy input in the form of steam generation. Small modular reactors, due to their compact size, can be situated within desalination facilities to provide this high-grade process heat at competitive prices through attached steam generators.

Regional Insights

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Dominating Region: North America

In 2024, North America is estimated to dominate the small modular reactor market with 33.5% of the revenue share, driven by robust government support for nuclear energy and leading technology firms. Established nuclear supply chains and a skilled workforce in the U.S. and Canada create a favorable environment for adopting advanced SMR technologies, supporting market growth in the region.

Fastest-Growing Region: Europe

Europe exhibits the fastest growth in the adoption of SMRs. Rapid economic development and growing energy needs are driving countries like the U.K. and Germany to explore alternative baseload power options. Government initiatives to decrease carbon footprint and diversify energy mix and strategic programs to support local SMR manufacturing are boosting regional opportunities.

Small Modular Reactor Market Outlook for Key Countries

Advancing the U.S. Small Modular Reactor Market: Key Players, Innovations, and Policy Momentum

The U.S. small modular reactor market is led by early-stage projects from NuScale Power, X-energy, and BWXT. Existing nuclear supply chains and policy backing provide tailwinds. The U.S. is a leader in SMR technology development, with several companies actively working on designs. The Nuclear Regulatory Commission (NRC) is adapting its framework to facilitate SMR deployment. The federal government has allocated funding for the research and development of SMR technologies.

Canada's Leadership in Small Modular Reactors: Driving Innovation and Clean Energy Solutions

Canada continues to lead in the development and deployment of small modular reactors (SMRs) through the efforts of innovative companies like Terrestrial Energy and Global First Power. The country views SMRs as a critical tool for reducing greenhouse gas emissions and addressing the energy needs of remote and off-grid communities.

U.K. Government Champions Small Modular Reactors as Pillars of Energy Security and Green Growth

U.K. government is strongly supporting nuclear power as a cornerstone of its long-term energy strategy, recognizing the potential of small modular reactors (SMRs) to play a critical role in achieving energy security, decarbonization, and economic growth. For instance, as per the U.K. government in October 2024, The Ten Point Plan for a Green Industrial Revolution and the 2020 Energy White Paper confirmed the government’s commitment to developing large, small, and advanced nuclear projects.

Germany's Evolving Energy Landscape: Revisiting Small Modular Reactors Amid Energy Security Challenges

Germany has long been committed to phasing out nuclear energy, driven by policies such as the Energiewende (Energy Transition). However, recent discussions by Stockholm International Peace Institute about energy security and emissions reduction have sparked a renewed interest in small modular reactors (SMRs) as a potential transitional technology.

France Bets on Small Modular Reactors: Nuward Design and the Path to Nuclear Expansion by 2050

The French government has shown interest in developing SMRs as part of its energy transition plan. In 2022, the French government announced that the Nuward SMR design will be included in the France 2030 plan, granting it access to US$ 1.10 billion (€1 billion) in public funding. The government expects to see an SMR prototype by 2030, which will help the country reach its goal of 25 GW of new nuclear generation by 2050.

Market Concentration and Competitive Landscape

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Top Strategies Followed by Small Modular Reactor Market Players

• Established players focus extensively on research and development to innovate new products. Industry leaders like Westinghouse Electric Company and Rolls-Royce invest heavily in R&D, with Westinghouse spending over US$ 100 million annually. They conduct rigorous testing and simulations to enhance reactor designs. Leading companies also form strategic partnerships to solidify their presence.
• Mid-level players deliver competitive, cost-effective solutions. Companies like X-energy focus on minimizing costs through simplifying and standardizing designs. They aim to cut costs by 30-40% compared to traditional reactors.
• Small-scale entities grow by specializing in niche areas. BWXT Nuclear Energy Canada developed accident-tolerant fuels in 2022 with enhanced irradiation tolerance. It provides unique additive manufacturing capabilities. Toshiba's 4S reactor focuses on supplying energy for small electric grids or isolated regions unreachable by transmission lines.

Emerging Startups in the Small Modular Reactor Market

On the technology front, companies like Kairos Power are developing advanced fluence monitoring techniques using machine learning algorithms. This could optimize reactor performance and dynamics. Another startup, Oklo, plans to 3D print fuel assemblies and compact heat exchangers using high-density fuels like spent nuclear fuel for maximum energy yield.

Several startups contribute to sustainability. For instance, Moltex Energy works on recycling used fuel through its Stable Salt Reactor design. It aims to reduce nuclear waste volumes. TerraPower collaborates with various national labs such as Idaho National Laboratory on developing traveling wave reactors that can fully consume existing stockpiles of nuclear waste. Their innovative designs could pave the way for a greener, more environmentally-benign nuclear future.

Startups often fill market gaps through niche offerings. For example, NuScale Power caters to the needs of smaller utility providers by supplying scalable, modular units perfectly suited for replacement power. Its all-electric design achieves passive cooling without external power.

Small Modular Reactor Industry News

• In June 2024, KEPCO ENGINEERING & CONSTRUCTION COMPANY.INC signed a Memorandum of Understanding (MOU) with Rwanda at the Chosun Palace Hotel in Seoul for mutual cooperation in the technology and business areas related to Small Modular Reactors (SMRs) and Used Battery Energy Storage Systems (UBESS). The ceremony was attended by President Sung-Arm Kim, and Rwanda’s Minister of Infrastructure Jimmy Gasore, among other officials from both sides. KEPCO Engineering & Construction Company, Inc. (KEPCO E&C) is a South Korea-based firm specializing in the design, engineering, and construction of power plants, with a focus on nuclear and fossil fuel facilities.
• In May 2023, Westinghouse Electric Corporation announced the launch of AP300 which is a small modular nuclear reactor, and it will be available in the market by 2027. It is a smaller version of its AP1000 nuclear reactor. This product will generate around 300 megawatts of energy which will help in proving power to 3,00,000 houses. Furthermore, the aim for introducing a new product is to expand access of people to nuclear power as there is increasing demand for clean energy. Westinghouse Electric Corporation is a multinational company with a long history in the fields of electrical engineering and technology.

Key Takeaways from Analyst

• Small Modular Reactors (SMRs) are gaining attention due to their advantages over traditional large nuclear plants, such as lower initial investment requirements, faster construction timelines, and smaller physical footprints, which make them viable for deployment in a broader range of locations. SMRs also generate less nuclear waste and are designed with advanced safety features that enhance operational security.
• Despite these benefits, the adoption of SMRs faces challenges. A major hurdle is regulatory uncertainty, as many countries are still in the process of establishing suitable frameworks and licensing protocols for these innovative reactors. Additionally, high costs associated with building first-of-a-kind demonstration units and the difficulty of achieving economies of scale remain obstacles. However, as early commercial SMR projects become operational, cost reductions through experience and learning effects are expected to make them more economically competitive.
• The U.S., along with the rest of North America, is anticipated to lead early adoption, given its large number of SMR developers and favorable government policies supporting nuclear energy. Canada is also advancing multiple SMR projects. Beyond North America, Europe and the Asia Pacific region offer significant potential due to their growing demand for reliable, low-carbon electricity. However, more complex regulatory environments in these regions could slow progress.
• Interest in SMRs is growing globally, with an increasing number of countries exploring their potential as a cleaner and more flexible energy source. Although challenges remain, SMRs are poised to play a crucial role in meeting global energy demands and advancing the transition to sustainable energy systems.

Market Report Scope

Market Dynamics

Market Driver - Growing demand for low-carbon energy sources

As climate change becomes an increasingly pressing challenge, many governments are putting policies such as Energy Transition Roadmaps in place to transition to cleaner sources of energy and reduce dependence on fossil fuels. Small modular reactors offer a promising alternative that can help provide low-carbon baseload electricity. These reactors can deliver steady power with much lower carbon emissions than coal or natural gas plants. While renewable energy sources like solar and wind are growing rapidly, SMRs may be better suited to supply reliable power around the clock.

Market Challenge - High initial costs and financing challenges

One of the major challenges facing the development and adoption of small modular reactors is their high initial costs and financing challenges. While SMRs promise economics of mass production over time, the first few reactor units are likely to be very expensive due to lack of economies of scale during construction. For instance, as per the data published by Springer in September 2024, initial costs for smaller SMRs could be over US$ 2-3 billion each. Financing these first-of-a-kind, cutting edge nuclear reactors will be difficult.

Market Opportunity - Deployment in remote and off-grid areas

Small modular reactors (SMRs) offer a transformative solution for remote and off-grid locations, such as coastal and island communities reliant on imported fossil fuels. Their compact, transportable designs make them ideal for providing clean, reliable, and affordable baseload power, replacing diesel generators. SMRs enhance energy security in regions prone to climate events, as seen during Hurricane Ida in 2021, which caused prolonged fuel shortages in Louisiana. By ensuring resilient power supply, SMRs address energy challenges in vulnerable, isolated grids.

Market Segmentation

• By Reactor Type Insights (Revenue, USD Bn, 2019 - 2031)
• • Heavy Water Reactor (HWR)
  • Light water Reactor (LWR)
  • Fast Neutron Reactor (FNR)
  • Others
• By Connectivity Insights (Revenue, USD Bn, 2019 - 2031)
• • Off Grid
  • Grid Connected
• By Application Insights (Revenue, USD Bn, 2019 - 2031)
• • Desalination
  • Power Generation
  • Industrial
  • Hydrogen Production
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
• • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
• • Holtec International
  • General Atomics Corporation
  • Brookfield Asset Management
  • Terrestrial Energy Inc.
  • Fluor Corporation
  • TerraPower, LLC.
  • Moltex Energy
  • X Energy LLC
  • Rolls-Royce plc.
  • ULTRA SAFE NUCLEAR
  • Westinghouse Electric Company LLC.
  • Mitsubishi Heavy Industries Ltd.
  • NuScale Power, LLC.
  • General Electric Company