Nuclear Reactor Construction Market Type, Service, and Geography - Forecast and Analysis 2023-2027

Nuclear Reactor Construction Market Forecast 2023-2027

The global nuclear reactor construction market is forecast to increase by USD 9.8 billion at a CAGR of 3.56% between 2022 and 2027. The market is driven by various factors, notably a growing emphasis on clean energy technologies worldwide. Additionally, the increasing reliance on nuclear power as a source of energy contributes significantly to market growth. Moreover, government incentives aimed at supporting nuclear power generation further propel the expansion of the nuclear reactor construction market. This report also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report consists of historic market data from 2017 to 2021.

What will be the size of the Nuclear Reactor Construction Market During the Forecast Period?

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The market is influenced by several factors, including the need for modernization in the aging infrastructure of the nuclear energy sector. As countries seek to upgrade existing facilities or explore potential replacements, construction projects for new reactors are on the rise. Additionally, evolving safety standards and the emphasis on efficiency drive investments in nuclear power, contributing to the growth of the market.

Market Segmentation

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). The type segment of the market encompasses a wide array of factors crucial to the world's electricity needs. With existing nuclear power programs and new power reactors emerging globally, nuclear power remains a significant player in low-carbon alternatives, especially amid rising energy demands. Construction projects for commercial nuclear power reactors are essential investments in meeting evolving safety standards and enhancing efficiency while curbing carbon emissions. As countries continue to prioritize electricity production, the demand for nuclear power plant equipment is expected to persist, driving further investments in the market.

By Type

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.

Key Regions

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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.

Market Dynamics and Customer Landscape

The market plays a vital role in the nuclear energy sector's evolution. Aging infrastructure necessitates upgrades or potential replacements, driving construction projects worldwide. Evolving safety standards emphasize efficiency and reduced carbon emissions, making nuclear power a key investment for meeting rising energy demands. Commercial Nuclear Power Reactors contribute significantly to global electricity production, with existing programs continually updated and new reactors being developed. As low-carbon alternatives gain traction, the market remains pivotal in providing safe and reliable solutions, supported by investments and access to an extensive information library for ongoing advancements in nuclear reactor technology. 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 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.

The 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 Market Trends

International cooperation for nuclear safety and security is an emerging trend in the market. It 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 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.

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.

Market Customer Landscape

Who are the Major Market Companies?

Companies 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. 

This market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• AECOM
• 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

Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Analyst Overview

The market is driven by the nuclear energy sector's need to address aging infrastructure through upgrades and potential replacements, especially with ongoing construction projects worldwide. As evolving safety standards drive demand for enhanced efficiency, substantial investments fuel the development of Commercial Nuclear Power Reactors. With a combined capacity of 390 GWe and generating 2545 TWh, nuclear power plays a vital role in meeting the world's electricity needs. Major players like GE-Hitachi Nuclear Energy, Inc, Westinghouse Electric Company LLC, and KEPCO Engineering & Construction are pivotal in advancing nuclear power plant equipment technology. As countries expand their existing nuclear power programs, the market adapts to serve low-carbon alternatives amidst rising energy demands.

The market is pivotal in addressing global electricity production needs, with a combined capacity of 390 GWe (combined capacity). It serves existing nuclear power programmes and supports the development of emerging nuclear energy countries through resources like the Information Library. Despite environmental concerns and high initial costs, stringent licensing and safety measures ensure the viability of nuclear projects. However, challenges such as financial resources, financial risk, and uncertainty persist. The market witnesses the widespread adoption and expansion of nuclear power, driven by advanced reactor technologies, innovative designs, and the emergence of Small Modular Reactors (SMRs) as promising solutions.

The global nuclear reactor construction industry plays a pivotal role in meeting evolving energy demands while aligning with sustainability objectives. With nuclear technology at its core, this sector attracts investors seeking to leverage next-generation technologies for reliable and clean energy sources. As countries aim to transition towards low-carbon economies, the demand for nuclear reactor construction remains steady, driven by the need for sustainable energy solutions. The industry's focus on innovation and advanced nuclear technologies underscores its commitment to addressing future energy challenges while mitigating environmental impact.

Segment Overview

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. 

• Type Outlook 
  • PWR
  • Others

• Service Outlook 
  • Equipment
  • Installation

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Chile
    • Brazil
    • Argentina

Market Scope
Report Coverage	Details
Page number	161
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 3.56%
Market growth 2023-2027	USD 9.8 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	2.88
Regional analysis	APAC, Europe, North America, Middle East and Africa, and South America
Performing market contribution	APAC at 53%
Key countries	US, China, Japan, France, and Russia
Competitive landscape	Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks
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
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.
Customization purview	If our market 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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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Market growth analysis across APAC, Europe, North America, Middle East and Africa, and South America
• A thorough analysis of the market’s competitive landscape and detailed information about companies
• Market forecasting of factors that will challenge the growth of the market companies

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