Small Modular Reactor Market: Current Analysis and Forecast (2021-2027)

Report Description

Small Modular Reactor Market is expected to exceed the market valuation of more than US$ ~12 billion in 2027 and is expected to grow at a significant CAGR of ~3% during the forecast period (2021-2027). Small and Medium-sized or modular reactors are a good option to fulfil the need of flexible power generation for a wider range of users and applications. Small modular reactors which are deployable either as single or multi-module plant, offer the possibility to combine nuclear with alternative sources of energy including renewables. Many Member States are focusing on developing of small modular reactors which are defined as advanced reactors which produce electricity of up to 300 MW per module. These reactors have advanced engineered features, are deployed either as a single or multi-module plant and are designed to be built in factories and shipped to utilities for installation as the demand arises. There are about 50 SMR designs and concepts globally. Most of them are in various developmental stages and some are claimed as being near-term deployable. Currently there are four SMRs in advanced stages of construction in Argentina, Russia and China and several existing and newcomer nuclear energy countries are conducting SMR research and development. The IAEA is coordinating the efforts of its Member States to develop SMRs of various types by taking a systematic approach to the identification and development of key enabling technologies, with the goal to achieve competitiveness and reliable performance of such reactors. The Agency also helps them address common infrastructure issues which could facilitate the SMRs’ deployment.

The flexible nature of nuclear energy could enable the transition to a cleaner world and a stronger global economy. During the recent decades, clean energy sources have seen rapid innovations and cost reductions. Solar photovoltaic, hydropower, wind power, dispatchable geothermal (both deep and shallow), concentrating solar power, biomass, and fossil energy with carbon capture have experiences rapid technological and economic advances in the last decade. Nuclear energy has the potential to be coupled with many other energy sources in a synergistic fashion, which could result in integrated systems that are more than the sum of their parts. At the International Conference on Climate Change and the Role of Nuclear Power, organized by the IAEA in October 2019, the participating member states expressed that with a typical output of up to 300 MWe, SMRs could be the most effective source of CO2-free electricity to supersede aging fossil fuel-powered plants. The technology development of SMRs for immediate and near-term deployment is progressing globally.

Small Modulator Reactor (SMR) vs. Typical Pressure Water Reactor

Westinghouse Electric, NuScale Power, General Electric-Hitachi Nuclear Energy, Terrestrial Energy, Moltex Energy, X-energy, Hotec International, Genral Atomics, LeadCold Reactors, and ARC Clean Energy are some of the prominent players operating in the Small Modular Reactor market. Several M&As along with partnerships have been undertaken by these players to facilitate customers with hi-tech and innovative products/technologies.

Insights Presented in the Report

“Amongst Reactor Type, Light-Water Reactor segment holds the major share”

Based on Reactor Type, the Small Modular Reactor Market is segmented into Light-water Reactor, Heavy-water Reactor, High-temperature Reactor, Fast-neutron Reactor, Molten Salt Reactor. Light Water Reactors are sub segmented into Pressurized-water Reactor and Boiling-water Reactor. Amongst Reactor Type, the Light-Water Reactor segment of the market was valued at US$ XX billion in 2020 and is likely to reach US$ XX billion by 2027 growing at a CAGR of XX% from 2021-2027. Light-water reactors (LWRs) are power reactors that are cooled and moderated with ordinary water. In the PWR, water at high pressure and temperature removes heat from the core and is transported to a steam generator.

“Amongst Connectivity, Off-Grid Segment holds the major share”

Based on Connectivity, the Small Modulator Reactor Market is segmented into Grid-connected and Off-grid. Amongst Connectivity, Off-Grid segment accounted for a market valuation of US$ XX billion in 2020 and is expected to reach US$ XX billion by the year 2027, at a CAGR of XX% over the analyzed period. Off grid modulator reactors are beneficial as they can be used in remote locations where setting up of large nuclear power plants is not feasible. This helps provide remote communities with a non-fossil fuel alternative and other non-electric application in remote communities, isolated grid systems, islands and mining sites.

 “Amongst Deployment, Multi-Module Power Plant segment holds the major share”

Based on Deployment, the Small Modular Reactor market is segmented into Single-module Power Plant, and Multi-Module Power Plant. Amongst Deployment, the Multi-Module Power Plant segment of the market was valued at US$ XX billion in 2020 and is likely to reach US$ XX billion by 2027 growing at a CAGR of XX% from 2021-2027. SMRs may be deployed in scalable, multi-module configurations which provide greater flexibility to grid operations, enable integration with renewables and helps replace existing nuclear power plants and retiring coal-fired power plants. The growth of this segment is driven by the ease of financing additional units of SMRs, which leads to series production of the economies.

“Amongst Land, Land segment holds the major share”

Based on Land, the Small Modular Reactor Market is segmented into Land and Marine. Amongst Land, the XXXX segment of the market was valued at US$ XX billion in 2020 and is likely to reach US$ XX billion by 2027 growing at a CAGR of XX% from 2021-2027. The key reason for the domination of the land segment is due to the high potential of the underground deployment, high protection from natural hazards, improved capability of seismic reactions, and higher thermal efficiencies. Furthermore, they also have a simpler licensing process as compared to the marine SMRs.

“Amongst Application, Power Generation Segment holds the major share”

Based on Application, the Small Modulator Reactor Market is segmented into Power Generation, Process Heat, Desalination, Hydrogen Production, and Industrial. Amongst Application, Power Generation segment accounted for a market valuation of US$ XX billion in 2020 and is expected to reach US$ XX billion by the year 2027, at a CAGR of XX% over the analyzed period. The generation of power accounts for the largest market due to its ability to be integrated with renewable energies which provides flexible and baseload power. The ease of siting and operating flexibility drives the demand for small modulator reactors in the power generation application. The global use of renewable energy was 1.5% higher in Q1 2020 than Q1 2019.

“Asia-Pacific represents one of the largest markets of Small Modular Reactor market”

For a better understanding of the market dynamics of the Small Modular Reactor market, a detailed analysis was conducted for different regions across India including North America (US, Canada, Rest of North America), Europe (Germany, UK, France, Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Australia, Rest of Asia-Pacific), Rest of World. Asia-Pacific dominated the market and grabbed around XX% market share owing to increasing energy demand.

Reasons to buy this report:

• The study includes market sizing and forecasting analysis validated by authenticated key industry experts
• The report presents a quick review of overall industry performance at one glance
• The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolio, expansion strategies, and recent developments
• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry
• The study comprehensively covers the market across different segments
• Deep dive regional level analysis of the industry

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Research Methodology

Analyzing the historical market, estimation of the current market, and forecasting the future market of the Small Modular Reactor market were the three major steps undertaken to create and analyze the adoption of Small Modular Reactor in major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the Small Modular Reactor market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments the industry pertains to. Detailed methodology is explained below:

Analysis of Historical Market Size

Step 1: In-Depth Study of Secondary Sources:

Detail secondary study was conducted to obtain the historical market size of the Small Modular Reactor through company internal sources such as annual report & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.

Step 2: Market Segmentation:

After obtaining the historical market size of the Small Modular Reactor market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments included in the report as Reactor Type, Connectivity, Deployment, Land and Application. Further country-level analyses were conducted to evaluate the overall adoption of Small Modular Reactor in that region.

Step 3: Factor Analysis:

After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of Small Modular Reactor. Further, we conducted factor analysis using dependent and independent variables such as increasing awareness of renewable energy and energy demand. A thorough analysis was conducted for demand and supply-side scenarios considering top partnerships, merger and acquisition, business expansion, and product launches in the Small Modular Reactor sector across the globe.

Current Market Size Estimate & Forecast

Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the Small Modular Reactor market, and market shares of the segments. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.

Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., top-down/bottom-up approach was applied to arrive at the market forecast about 2027 for different segments and subsegments across the major markets globally. The research methodology adopted to estimate the market size encompasses:

• The industry’s market size, in terms of value (US$) and the adoption rate of Small Modular Reactor across the major markets domestically
• All percentage shares, splits, and breakdowns of market segments and sub-segments
• Key players in the Small Modular Reactor market in terms of products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market

Market Size and Share Validation

Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, and Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.

Split of Primary Participants in Different Regions

Market Engineering

Data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers of each segment and sub-segment of the Small Modular Reactor market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of type and their type of the Small Modular Reactor market.

The main objective of the Small Modular Reactor Market Study

The current & future market trends of Small Modular Reactor were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments from the qualitative and quantitative analysis performed in the study. Current and future market trends were determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit as a first-mover advantage. Other quantitative goals of the studies include:

• Analyze the current and forecast market size of Small Modular Reactor in terms of value (US$). Also, analyze the current and forecast market size of different segments and sub-segments
• Segments in the study include areas of type and their subtypes
• Define and analysis of the regulatory framework for the Small Modular Reactor industry
• Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry
• Analyze the current and forecast market size of the Small Modular Reactor market for the major region
• Major regions studied in the report include North America (US, Canada, Rest of North America), Europe (Germany, UK, France, Rest of Europe), Asia-Pacific (China, Japan, India, Australia, Rest of Asia-Pacific), Rest of World.
• Company profiles of the Small Modular Reactor market and the growth strategies adopted by the market players to sustain in the fast-growing market
• Deep dive regional level analysis of the industry