NUCLEAR DECOMMISSIONING SERVICES MARKET ANALYSIS

The global nuclear decommissioning services market size was valued at USD 198.67 billion in 2022 and is projected to register a CAGR of 9.40% during the forecast period. The worldwide shutdown of older nuclear reactors owing to aging and the transitioning trend toward renewable sources of energy due to minimal environmental impact is likely to be the major forces driving the growth of the market in the coming years. Due to the event of COVID-19, the nuclear sector faced a few challenges such as unavailability of the workers, restrictions on the number of on-site workers, and disruption in supply chains. Travel restrictions and government guidelines had an adverse impact on the progress of some nuclear decommissioning projects, owing to the limited availability of staff and experts. The end dates of project completion faced the risk of extension.

Nuclear Decommissioning Services Market: Growth Factors

Increased adoption of renewable sources of energy

The major market driver for the global nuclear decommissioning market is the increased adoption of renewable sources of energy such as wind and solar, which decrease the demand for other sources of energy generation and therefore, augment the nuclear decommissioning market growth. Also the increase in number of accidents and political pressure overuse of nuclear energy will positively impact the growth of global nuclear decommissioning market.

Growing sensitivity towards environmental issues

The growing sensitivity towards environmental issues is expected to propel the growth of the nuclear power reactor decommissioning market going forward. Environmental sensitivity refers to the growing awareness of environmental issues. Decommissioning is the process of removing nuclear fuel from a nuclear power plant and assisting in the termination of operating licenses. Therefore, growing sensitivity towards environmental issues is driving the growth of the nuclear power reactor decommissioning market has ensured the nuclear decommissioning market CAGR across the globe in recent years and thus is the another factor driving the growth of the nuclear decommissioning market revenue.

Nuclear Decommissioning Services Market: Market Restraints

Waste disposal and management issues

The key market restraint for the global nuclear decommissioning market is the waste disposal and management issues faced during decommissioning. Also, the high cost due to decontamination during decommissioning can hamper the growth of the global nuclear decommissioning market.

Figure 1. Nuclear Decommissioning Services Market, By Application 2022

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The pressurized water reactor segment accounted for the largest market share in the nuclear decommissioning services market in 2022. Pressurized water reactor (PWR) is a type of nuclear reactor used to generate electricity and propel nuclear submarines and naval vessels. It utilizes light water (ordinary water, as opposed to heavy water) as coolant and neutron moderator. According to the World Nuclear Association, PWR was originally designed for the U.S. Navy, however, it gained significant traction and became widely used reactor in nuclear power plants; with 297 in operation around the world as of 2018.

Nuclear Decommissioning Services Market: Regional Analysis

Europe accounted for the largest market share in the global nuclear decommissioning services market. Stringent government regulations in Europe to support nuclear decommissioning activities is a major factor driving growth of the market in the region. Europe is projected to become the world’s largest market for decommissioning and decontamination (D&D) in the next five years. Over half of the European Union’s 223 nuclear power plants are due for closure by 2025. The market in Asia Pacific is expected to witness the fastest growth in the global nuclear decommissioning services market over the forecast period. The ongoing nuclear decommissioning activities and initiatives of the governments in this region to reduce nuclear energy are major factors driving growth of the nuclear decommissioning services market in Asia Pacific. For instance, in May 2018, the government of Taiwan announced plans to diversify the energy mix and replace nuclear power with clean energy such as wind and solar power.

Figure 2. Nuclear Decommissioning Services Market, By Region 2022

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Nuclear Decommissioning Services Market: Recent Developments

• In September 2019, SNC Lavalin working in conjugation with the Canadian Nuclear Safety Commission completed the decommissioning of the SLOWPOKE-2 reactor which was in operation in 1981. The process for decommissioning was started in December 2017 and completed in September 2019. 
• In September 2019, UK’s Nuclear decommissioning authority completed the takeover of the nuclear decommissioning firm Magnox Ltd. owned by Cavendish Fluor Partnership (CFP). It is a management and operations contractor responsible for safely managing 12 nuclear sites and one hydroelectric plant in the UK.
• In January 2019, Comprehensive Decommissioning International LLC (CDI) which is a joint venture company of SNC Lavalin and Holtec International was awarded the contract to decommission the Oyster Creek Nuclear power plant in Lacey Township, Ocean County, New Jersey.

Nuclear Decommissioning Services Market: Key Companies

Major players operating in the global nuclear decommissioning services market include Orana Group, AECOM, Babcock International Group Plc, Westinghouse Electric Company LLC, Enercon Services Inc., KDC Contractors Limited, NUVIA Group, Onet Technologies SAS, Sogin S.p.A., and others.

Definition: Nuclear decommissioning is the process, in which a nuclear facility is dismantled so that it no longer requires to be protected from radiation. The challenges in nuclear decommissioning include technical, economic, and social factors. The process of removal of radioactive materials is occupationally hazardous, time-intensive, expensive, and also pose environmental risks that are to be addressed to ensure that radioactive materials are stored on-site in a safe manner or transported elsewhere for storage.