Market Research Report

North America Small Modular Reactor Market Research Report: Forecast (2023-2028)

By Type (Heavy Water Reactor [HWR], Light Water Reactor [LWR], Fast Neutron Reactor [FNR], Others), By Applications (Power Generation, Process Heat, Water Desalination, Other), By ...Country (The US, Canada, Mexico), By Company (Terrestrial Energy Inc., Candu Energy Inc (SNCLavalin Group), Westinghouse Electric Company LLC, NuScale Power, Moltex Energy, GE Hitachi Nuclear Energy, X-energy, Holtec International, General Atomics, Ultra Safe Nuclear, ARC Nuclear Canada, Inc., Others) Read more

  • Energy
  • Aug 2023
  • 154
  • PDF, Excel, PPT

Market Definition

A small modular reactor is an advanced nuclear reactor used for generating electricity in a power plant with an energy capacity of around 300 MW(e). The small modular reactor utilizes the nuclear fission mechanism to generate heat to produce electricity. The power capacity of the small modular reactor is generally one-third of the conventional nuclear power reactors. But its inexpensive installation & maintenance and ability to produce a large amount of low-carbon electricity improve its applicability in power generation, water desalination hydrogen production and other sectors.

Market Insights & Analysis: North America Small Modular Reactor Market (2023-28):

The North America Small Modular Reactor Market size is projected to grow at a CAGR of around 14% during the forecast period, i.e., 2023-28, due to its surging application in the industrial sector or remote areas with limited grid capacity. The cost-effectiveness benefits of the small modular compared to the conventional large-scale reactor have been the prime factor leading to the market growth in the region, thus aiding in enhancing the market size. The North American region countries such as the US & Canada have been one of the leading producers of nuclear energy across the globe. For instance:

  • In 2022, according to the US Department of Energy, the total electricity produced by the nuclear power plant was about 96.5 million KW, which held around 20% of the total electricity produced in the country. The demand for small modular reactors also grew due to surging government initiatives for promoting nuclear energy as a low-carbon emission source.
Report Coverage Details
Study Period Historical Data: 2018-21
Base Year: 2022
Forecast Period: 2023-28
CAGR (2023-2028) 14%
Country Covered The US, Canada, Mexico
Key Companies Profiled Terrestrial Energy Inc., Candu Energy Inc (SNCLavalin Group), Westinghouse Electric Company LLC, NuScale Power, Moltex Energy, GE Hitachi Nuclear Energy, X-energy, Holtec International, General Atomics, Ultra Safe Nuclear, ARC Nuclear Canada, Inc., Others
Unit Denominations USD Million/Billion

 

However, over the past few years, the nuclear energy industry has been facing challenges from extremely low generation costs of natural gas & renewable energy, which led to the closure of some nuclear power plants in the region. Thus, this has encouraged the countries to shift their focus & invest in research & developments for advanced nuclear technologies, as nuclear energy has been one of the most prominent sources of low-carbon energy. Countries such as the US & Canada are one of the global leaders in nuclear energy & also a prominent market for the development of small modular technologies in the region. Thus, the increasing application of this technology for electricity generation would support the regional countries in achieving the net-zero greenhouse gas emissions target by 2050, further amplifying the expansion of the North America Small Modular market in the forecast period.

North America Small Modular Reactor Market Driver:

Increasing Government Inclination Toward Production of Low-carbon Electricity – The rising global warming has been a matter of concern for all countries across the globe. The government of all North American countries has been focusing on several alternative ways to reduce the utilization of fossil fuel to generate electricity. The production of energy through nuclear power plants has been one of the leading sources for decrease in the consumption of fossil fuels but traditional nuclear reactor designed as large, single-unit installations requires immense capital and space.


North America Small Modular Reactor Market Research Report: Forecast (2023-2028)

Small modular reactor provides a way for these limitation in the traditional nuclear reactor as the SMR are built as smaller, self-contained units comprising less cost. Therefore, the growing need for the production of low-carbon electricity generation would augment the demand for installation of the SMR in the region, leading to the growth in the North America Small Modular Reactor Market in the upcoming period.

North America Small Modular Reactor Market Opportunity:

Conversion of Coal-based Power Plant to Nuclear Power Plant – Coal has been one of the leading sources of generating electricity in the North American region & has been a prime contributor to greenhouse gas emissions, particularly carbon dioxide (CO2). In order to limit the emission, the government is taking several initiatives to switch over to renewable sources, providing an opportunity to install a small modular reactor.

In 2022, the US Department of Energy announced to convert nearly 157 retired coal plants & 237 operating coal plant sites to nuclear power & help the country reach its net-zero emissions goals by 2050. It also announced that among the retired or active plant locations, 80% were suited to host advanced reactors smaller than the gigawatt scale. Thus, the conversion of coal-based power plants into small-sized nuclear power plants would provide an opportunity to expand the North America Small Modular Reactor Market in the coming years.

North America Small Modular Reactor Market Challenge:

Presence of Other Renewable Sources to Restrict the Market Growth – The growing government emphasis on limiting the dependence on fossil fuels for energy generation has led to a surge in renewable energy resources like wind, solar, etc. Government support like a 30% tax credit by the Canadian government on the capital cost of investments made by taxable entities in wind, solar PV, and energy-storage technologies would limit the construction of small modular reactors.

Solar & wind energy technologies have experienced significant cost reductions in recent years, making them increasingly cost-competitive with traditional power sources. SMRs, being a newer technology with upfront development costs, may struggle to compete on cost, especially in regions where solar & wind energy are already economically viable. Additionally, solar & wind energy is generally perceived as environmentally friendly & low-carbon energy sources.

On the other hand, nuclear power, including SMRs, still faces public perception challenges related to safety, nuclear waste, and decommissioning, thus hampering the North America Small Modular Reactor Market.

North America Small Modular Reactor Market Trend:

Rising Research & Development for the Promotion of Light Water-cooled Small Modular Reactor – The construction of light water-cooled small modular reactors is gaining traction in the region owing to the strong government support for the establishment of light water-cooled small modular reactors. Its simplified construction & enhanced safety features have been one of the prime factors for growing establishment in the region. In 2023, the US Nuclear Regulatory Commission (NRC) certified NuScale Power’s small modular reactor, which is an advanced light-water SMR with each power module capable of generating 50 megawatts of emissions-free electricity.

Additionally, the growing popularity of the light water-cooled SMR has forced various companies to enter into partnerships or collaborations to develop light water-cooled SMRs in the region. In 2022, Holtec signed an agreement with Mitsubishi Electric Power Products, Inc., to develop the smr-160 digital instrumentation system. The SMR-160 is a light-water-based pressurized small modular reactor, generating 160 MWe (525 MWth).

Thus, the adoption of light water-cooled small modular reactors is projected to proliferate during the forecast period due to the presence of enhanced features like below-grade siting, passive safety features, lessening of large coolant pipes, smaller source term, etc.

North America Small Modular Reactor Market (2023-28): Segmentation Analysis

The North America Small Modular Reactor Market study of MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2023–2028 at the national & country levels. Based on the analysis, the market has been further classified as:

Based on Type:

  • Heavy Water Reactor (HWR)
  • Light Water Reactor (LWR)
  • Fast Neutron Reactor (FNR)
  • Others (Molten Salt Reactor (MSR), High-Temperature Reactors (HTR), etc.)

Light Water Reactor (LWR) installation is expected to increase in the coming years across the North America Small Modular Reactor Market due to its simple & economical techniques for production & application as compared with other types of reactors. It uses normal water as a coolant & provides the lowest technological risk compared to high-water reactors & fast neutron reactors.

The light-water reactor is available in the market in two types, such as boiling water reactors (BWR) & pressurized water reactors (PWRs). Furthermore, the burgeoning launch of government initiatives & guidelines in support of electricity generation from nuclear power plants would further propel the demand for small modular reactors in North America. In 2020, the Energy Impact Centre launched a project called “OPEN 100” an open-sourced engineering design of a pressurized water reactor (PWRs) capable of producing 300 MWth/100 MWe of energy. The project aims at reducing the cost & duration for the construction of nuclear power plant.

Moreover, the project also aims at increasing the nuclear power supply by 100-fold till 2040. Thus, the rising popularity of light water reactor among the government of the US and developing companies coupled by rising research & development for enhancing its technical configuration would push the establishment of light water reactor in the forecast period.

Based on Application:

  • Power Generation
  • Process Heat
  • Water Desalination
  • Other (Hydrogen Production)

During the forecast period, the demand for small modular reactors is estimated to grow considerably for power generation purposes due to increased demand for electricity among industries such as oil & gas, manufacturing, chemical, etc. The offshore location or faraway location of these industries from the main grid has let these industries avail from diesel generators. The decarbonization target set by the government of the US, Canada, and Mexico would stress these industries to avail power from renewable sources instead of diesel generators.

The compact modular reactor has successfully met the demand for flexible power generation for a wide range of consumers, as well as replacing fossil fuel-based power plants. SMRs are also proposed as a replacement for coal-fired power plants in the US for significant deployment for power applications. In addition, when compared to conventional large-scale reactors, the usage of a compact modular reactor promotes safety through inherent & passive safety features & requires a low capital investment.

Hence, the strong demand for clean energy among the offshore industries along with government initiatives to establish nuclear power plants, would increase the deployment of small modular reactors for power generation purposes.

North America Small Modular Reactor Market Regional Projections:

Geographically, the North America Small Modular Reactor Market expands across:

  • The US
  • Canada
  • Mexico

The US is estimated to hold a significant share of the North America Small Modular market owing to the growing research & development for technological advancement & establishment of SMR in the country. Agencies such as the Department of Energy (DOE) have been providing financial assistance & research support to accelerate the commercialization of SMR technologies. The Department of Energy (DOE) has increased the SMR Licensing Technical Support (LTS) program till 2025 to accelerate the deployment & commercialization of SMR in the country. Hence, the expansion would be supported by an additional investment in the coming years.

Moreover, the strong effort by the small modular reactor developing companies such as NuScale Power and General Electric for developing SMR design, research & development. NuScale's reactor design has received significant attention & has progressed through the regulatory approval process. The company has signed agreements with several US utilities to explore the potential deployment of its SMR technology. Hence, the rising initiative and funding programs by the US government are projected to increase the deployment of SMR in the country in the coming years.

North America Small Modular Reactor Industry Recent Development:

  • 2023: Westinghouse Electric Company LLC announced the launch of AP300, a small version of its flagship AP1000 nuclear reactor. AP300 would generate about a third of the power as the flagship AP1000 reactor, enough to power about 300,000 homes.

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Frequently Asked Questions

   A. The North America Small Modular Reactor Market is projected to grow at a CAGR of around 14% during 2023-28.

   A. Increasing government inclination toward production of low-carbon electricity is expected to drive the North America Small Modular Reactor Market during 2023-28.

   A. Terrestrial Energy Inc., Candu Energy Inc (SNCLavalin Group), Westinghouse Electric Company LLC, NuScale Power, Moltex Energy, GE Hitachi Nuclear Energy, X-energy, Holtec International, General Atomics, Ultra Safe Nuclear, ARC Nuclear Canada Inc., and Others are the top players in the North America Small Modular Reactor Market.

   A. Light Water Reactor (LWR) is the leading segment based upon types in the North America Small Modular Reactor Market.

   A. The US would present growth prospects in the North America Small Modular Reactor Market during 2023-28

   A. Rising government support for the development of light water-cooled SMRs is the key trend shaping the growth of the North America Small Modular Reactor Market

   A. Conversion of coal-based power plant to nuclear power plant would provide an opportunity for the expansion of the North America Small Modular Reactor Market through 2028.

   A. Presence of other renewable sources in the region to restrict the growth of the North America Small Modular Reactor Market.

North America Small Modular Reactor Market Research Report (2023-2028) - Table of Contents

 

  1. Market Segmentation
  2. Introduction
    1. Product Definition
    2. Research Process
    3. Assumptions
  3. Executive Summary
  4. North America Nuclear Power Projects, By Countries, 2023
    1. The US
      1. By Development Phase
      2. Investments
      3. Power Generation Capacity
      4. Others
    2. Canada
      1. By Development Phase
      2. Investments
      3. Power Generation Capacity
      4. Others
    3. Mexico
      1. By Development Phase
      2. Investments
      3. Power Generation Capacity
      4. Others
  5. North America Small Modular Reactor Market Regulations & Policy
  6. North America Small Modular Reactor Market Trends & Insights
  7. North America Small Modular Reactor Market Dynamics
    1. Drivers
    2. Challenges
  8. North America Small Modular Reactor Market Hotspots & Opportunities
  9. North America Small Modular Reactor Market Outlook, 2018-2028
    1. Market Size & Analysis
      1. By Revenues (USD Million)
    2. Market Share & Analysis
      1. By Type
        1. Heavy Water Reactor (HWR)
        2. Light Water Reactor (LWR)
        3. Fast Neutron Reactor (FNR)
        4. Others (Molten Salt Reactor (MSR), High Temperature Reactors (HTR), etc.)
      2. By Applications
        1. Power Generation
        2. Process Heat
        3. Water Desalination
        4. Other (Hydrogen Production)
      3. By Country
        1. The US
        2. Canada
        3. Mexico
      4. By Competitors
        1. Market Revenues
        2. Competition Characteristics
  10. The U.S. Small Modular Reactor Market Outlook, 2018-2028
    1. Market Size & Analysis
      1. By Revenues
    2. Market Share & Analysis
      1. By Type
      2. By Application
  11. Canada Small Modular Reactor Market Outlook, 2018-2028
    1. Market Size & Analysis
      1. By Revenues
    2. Market Share & Analysis
      1. By Type
      2. By Application
  12. Mexico Small Modular Reactor Market Outlook, 2018-2028
    1. Market Size & Analysis
      1. By Revenues
    2. Market Share & Analysis
      1. By Type
      2. By Application
  13. North America Small Modular Reactor Market Key Strategic Imperatives for Success and Growth
  14. Competition Outlook (Whichever Applicable)
    1. Competition Matrix
      1. Brand Specialization
      2. Target Markets
      3. Target End Users
      4. Research & Development
      5. Strategic Alliances
      6. Strategic Initiatives
    2. Company Profiles
      1. Terrestrial Energy Inc.
      2. Candu Energy Inc (SNCLavalin Group)
      3. Westinghouse Electric Company LLC
      4. NuScale Power
      5. Moltex Energy
      6. GE Hitachi Nuclear Energy 
      7. X-energy
      8. Holtec International
      9. General Atomics
      10. Ultra Safe Nuclear
      11. ARC Nuclear Canada, Inc.
      12. Others
  15. Disclaimer


North America Small Modular Reactor Market Segmentation