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The nuclear reactor construction market is estimated to grow at a CAGR of 3.56% between 2022 and 2027. The size of the market is forecast to increase by USD 9.8 billion. The growth of the market depends on several factors, including a rising focus on clean energy technologies, increasing dependency on nuclear power, and government incentives supporting nuclear power generation.
This report extensively covers market segmentation by type (PWR and others), service (equipment and installation), and geography (APAC, Europe, North America, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report consists of historic market data from 2017 to 2021.
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Technavio categorizes the global nuclear reactor construction market as a part of the global construction and engineering market. The global construction and engineering market cover companies that are primarily engaged in non-residential construction, including engineering service providers and EPC contractors. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The rising focus on clean energy technologies is notably driving the market growth, although factors such as cyber threat challenges may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Nuclear Reactor Construction Market Driver
The rising focus on clean energy technologies is notably driving the market growth. To reduce carbon emissions, the demand for clean energy technologies such as nuclear power has been growing at a global level. Unlike fossil fuel-powered plants, nuclear power plants do not produce CO2, methane, or other toxic emissions, which significantly contribute to the greenhouse gas effect. According to the IEA, global energy-related CO2 emissions increased by 6% in 2021 compared to 2020. This is owing to the rise in global energy demand and the extensive use of fossil fuels, which accounted for 70% of the global energy demand growth in 2021.
Nuclear power reactors cause radiation around the plants. However, such radiations are less than the radioactivity released by coal-fired power plants. Moreover, per ton of uranium is approximately equivalent to 1,000 tons of coal, 42,000 gallons of oil, or 17 million cubic feet of natural gas for a certain Kilowatt of power generation. Hence, a very small amount of uranium needs to be mined from the ground, reducing the environmental impact of mining uranium compared with mining and drilling for fossil fuels. Hence, these factors will drive the global market during the forecast period.
Significant Nuclear Reactor Construction Market Trend
International cooperation for nuclear safety and security is an emerging trend in the market. Nuclear power has been experiencing continuous demand since the 1990s. However, the world witnessed safety concerns related to nuclear power generation after disasters such as the Fukushima and the Chernobyl accident. Such accidents have led to the realization of significant measures that must be taken up by government bodies around the world. As a result, governments around the globe have agreed to cooperate with each other to safely and effectively manage the different steps involved with the management and construction of nuclear plants, including nuclear reactors.
Organizations such as the Organization for Economic Co-operation and Development (OECD) Nuclear Energy Agency (NEA), IAEA, and the commission of the European communities share technology, experience, and knowledge about reactors across various countries. Furthermore, the UK is providing support to Japan through seminars and R&D in various technically challenging areas to deal with the radioactive wastes generated within the Fukushima Daiichi nuclear power station. This is a positive trend for the market in focus, which is anticipated to drive the growth of the market during the forecast period.
Major Nuclear Reactor Construction Market Challenge
Cyberthreat challenges are major challenges impeding the market. Data hacking, alteration of data, and security breach issues hamper the smooth functioning of the process and lead to operational failure. Cyberattacks on nuclear infrastructure halt operations and lead to catastrophic damage.
With the rise in the number of connected devices and dependency on web-based communication, the vulnerability of networks to cyberattacks has increased. Multiple access points for the use of several connected devices enable easy access for hackers. For instance, in April 2021, the Natanz nuclear reactor in Iran witnessed a cyberattack resulting in damage to centrifuges. Hence, the rise in cyber threats will hamper the market growth during the forecast period.
Key Nuclear Reactor Construction Market Customer Landscape
The report includes the market's adoption lifecycle, covering the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Nuclear Reactor Construction Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Ansaldo Energia Spa - The company operates under one segment. The company under this segment offers various opportunities for the diversification of the product portfolio in the renewable energy sector, such as wind and solar, hydrogen production technologies, energy storage solutions, and the construction of hybrid plants. The key offerings of the company include the construction of nuclear reactors.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the PWR segment will be significant during the forecast period. PWRs are the most widely used reactors. The segment constituted the dominant share of the total global market in 2022.
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The PWR segment was valued at USD 41.90 billion in 2017 and continued to grow until 2021. PWRs are the most preferred reactors for the generation of nuclear power by virtue of their design. During the forecast period, the PWR segment is expected to witness steady growth as many countries have plans to, or are building, new power reactors. According to the world nuclear association, about 30 countries are considering, planning, or starting nuclear power programs during the forecast period. For example, in 2023, Rooper 1 reactor construction will be held in Bangladesh, Ostrovets 2 in Belarus, Shin Hanul 2 and Shin Kori 5 in Korea, and Vogtle 3 and 4 in the US. Apart from this, ongoing projects such as Kaiga 5 and 6 Pressurized Heavy Water Reactors were sanctioned by the Indian government in 2022. Therefore, all such developments are expected to drive the PWR segment growth, which, in turn, is expected to propel the growth of the market in focus during the forecast period.
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APAC is estimated to contribute 53% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
APAC is one of the main regions wherein the installed capacity for electricity production, particularly nuclear power, has been growing. The number of countries that are planning and building new nuclear power reactors to meet their increasing demand for clean electricity is increasing in APAC. According to WNA, as of May 2021, there are about 135 operating nuclear power reactors in APAC, with about 30-35 under construction, and plans to build an additional 50-60. Currently, about two-thirds of the nuclear reactors under construction worldwide are in APAC. Hence, all such factors are expected to drive the growth of the regional market during the forecast period.
India has achieved independence in the nuclear fuel cycle, which includes activities that range from power production to waste management. Additionally, the Government of India has committed to increasing the nuclear power capacity in the country as a part of its massive infrastructure development program. The country expects its nuclear capacity to reach about 22.48 GW by 2031-2032 from 6.7 GW. For this, the country (India) has proposed nine nuclear power reactors. These reactors are at various stages of construction, targeted for completion by 2024-25. Furthermore, twenty-one nuclear power reactors, with an installed capacity of 15700 MW, are under implementation, envisaged for progressive completion by the year 2031. All such factors are expected to drive the regional market during the forecast period.
The market in APAC witnessed certain challenges in 2020 due to the outbreak of COVID-19. However, the regional market has been recovering since 2021, with the initiation of the vaccination drive and the resumption of normalcy in the region. Vendors resumed their production, and other activities, and also reduced supply chain disruptions. Furthermore, the growing investment and focus on clean energy are anticipated to increase the demand for nuclear reactors, thereby driving the growth of the regional market during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Nuclear Reactor Construction Market Scope |
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Report Coverage |
Details |
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Page number |
161 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 3.56% |
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Market growth 2023-2027 |
USD 9.8 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
2.88 |
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Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 53% |
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Key countries |
US, China, Japan, France, and Russia |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
AECOM, Ansaldo Energia Spa, AREVA SA, Bechtel Corp., China National Nuclear Corp., EDF Energy Holdings Ltd, Emirates Nuclear Energy Corp., General Electric Co., Hindustan Construction Co. Ltd., Hitachi Ltd., Korea Electric Power Corp., Larsen and Toubro Ltd., Mitsubishi Heavy Industries Ltd., NTPC Ltd., Siemens AG, SKODA JS AS, State Atomic Energy Corp. Rosatom, THE BOUYGUES GROUP, Toshiba Corp., and Westinghouse Electric Co. LLC |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Service
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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