Global Nuclear Power Plant Equipment Market Research Report: Forecast (2023-2028)

Market Definition

Nuclear power plant equipment refers to the sector that deals with the manufacturing, distribution, and supply of various types of equipment used in nuclear power plants. Nuclear power plants generate electricity through nuclear reactions, involving the splitting of uranium atoms in a process called nuclear fission. The equipment used in nuclear power plants is categorized into reactor components, turbines, generators, cooling systems, etc.

Market Insights & Projections: Global Nuclear Power Plant Equipment Market (2023-28):

The Global Nuclear Power Plant Equipment Market is estimated to grow at a CAGR of around 3.76% during the forecast period, i.e., 2023-28. The market growth is attributed to the rising requirement for electricity, coupled with the growing need for reliable and sustainable energy sources across the globe. Also, the increasing government initiatives to decarbonize industrial sectors including industrial processes that require combustion and transport, especially heavy-duty, maritime, and air transport.

Governments in countries like the US, India, Vietnam, Brazil, etc., are planning to go carbon-neutral shortly, i.e., to reduce carbon emissions in their countries, further driving the demand for nuclear power. Nuclear power plants provide a significant contribution to baseload power generation, meeting the electricity needs of residential, commercial, and industrial sectors globally. For instance, in 2022, around 33 countries had commercial nuclear power plants, and in 17 countries, nuclear energy supply formed at least 20% of their total annual electricity generation.

Moreover, the US has the largest nuclear electricity generation capacity and produces more nuclear electricity than any other country in 2023. Along with this, France, with the second-largest nuclear electricity generation capacity and second-highest nuclear electricity generation, had the largest share about 69% of total annual electricity generation from nuclear energy.

Besides the United States and France, other countries, such as China, Russia, Japan, and South Korea, have emerged as key players in the global nuclear power sector in recent years. These nations are actively expanding their nuclear power capacities, contributing to the growing demand for nuclear power plants globally. In the coming years, as countries attempt to achieve their clean energy goals, nuclear power plants continue to gain prominence as a key component of the energy mix, contributing to a more sustainable & diversified global energy landscape.

In addition, nuclear power plants have avoided around 55 Gt of CO₂ emissions over the past 50 years, nearly equal to 2 years of global energy-related CO₂ emissions. However, despite the contribution from nuclear and the rapid growth in renewables, energy-related CO₂ emissions hit a record high in 2018 as electricity demand growth outpaced increases in low-carbon power. This is mainly due to the combination of increasing electricity demand and the insufficient growth of low-carbon power sources. To address this challenge, governments across the globe efforts to accelerate the deployment of low-carbon technologies, including nuclear power plant equipment, alongside renewable energy sources, while prioritizing energy efficiency measures and promoting sustainable energy practices in the forthcoming years.

Global Nuclear Power Plant Equipment Market Drivers:

Addressing the Growing Demand for Clean Electricity - During the historical years, nuclear energy has remained a leading source of clean electricity across the globe. Also, nuclear power made up about 10% of global electricity generation in 2021, and this share has declined from 18% in the late 1990s, but nuclear is still the second-largest source of low-emissions electricity (i.e. non-fossil-based) after hydroelectricity and the leading source in advanced economies. Countries such as the US, Germany, the UK, etc., have set ambitious targets to reduce carbon emissions and combat climate change.

While renewable energy plays a vital role in achieving these goals, it is not sufficient alone to meet the increasing electricity demand globally. Thus, to achieve net zero targets, nuclear power plants, with their low-carbon footprint and ability to generate large-scale electricity, are considered an important part of the decarbonization strategy. Hence, the growing adoption of clean energy across the globe is expected to increase the requirement for nuclear power plant equipment to support the transition to a low-carbon economy in the coming years.

Global Nuclear Power Plant Equipment Market Opportunities:

Government 2030 Initiative for Sustainable Development & Decarbonization - Increasing sustainable energy approach and decarbonization goals, countries require a reliable & consistent power supply to meet the growing energy demands globally. Nuclear power plants provide baseload power and help to generate electricity continuously without being affected by weather conditions during the day or night time. Along with this, governments transition to clean energy systems, the need for a mix of renewable energy sources and low-carbon baseload power, with nuclear power plants serving as a stable and emissions-free option to cater to the growing demand for energy in the coming years.

Furthermore, rising government initiatives for sustainable development and decarbonization encourage technological advancements in the energy sector. These initiatives led to an increase in the research and development efforts in nuclear power, leading to the development of advanced reactor designs, improved safety systems, and increased operational efficiency. Thus, in the coming years, new & innovative nuclear power technologies develop, and there is an increased demand for the corresponding equipment to support the deployment of these advanced systems which is further expected to escalate the market growth in the forecast period.

Global Nuclear Power Plant Equipment Market Challenges:

High Upfront Cost & Long Construction Timelines - Nuclear power plant projects are capital-intensive and mostly require a significant upfront investment for development such as design, construction, and commissioning. Thus, the high upfront costs associated with building and operating nuclear plants resulted in declining investment and financing in the power industry. Also, Nuclear power plants often face significant delays and extended construction timelines owing to several factors such as regulatory processes, environmental assessments, and complex engineering requirements. Hence, prolonged construction periods increase project risks, capital costs, and financing challenges, leading to hampering the demand for nuclear power plant equipment in the coming years. As, delays in nuclear power projects also impact the economic viability of projects, making them less attractive compared to other energy sources across the globe,

Global Nuclear Power Plant Equipment Market Trends:

Technological Advancement in Nuclear Power Reactor - The upsurge in the technological advancement in nuclear power reactors such as Generation III and Generation III+ led to an escalation in the market in recent years. These new reactors incorporate passive safety systems that rely on natural phenomena like gravity, convection, and reactivity. In addition, government across the globe aims to lower greenhouse house emission, thus nuclear energy has become a major player in the energy mix in recent years. These technologically advanced reactors improve overall efficiency and the performance of nuclear reactors. Also, advanced fuel designs such as accident-tolerant fuels (ATFs), offer improved fuel utilization and enhanced safety of the nuclear power plant. Hence, such technical improvement is anticipated to increase the demand for the specialized nuclear reactor during 2023-2028.

Global Nuclear Power Plant Equipment Market (2023-28): Segmentation Analysis

The Global Nuclear Power Plant Equipment Market study of MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2023–2028 at the global, regional, and national levels. Based on the analysis, the market has been further classified as:

Based on Type of Reactor:

• Pressurized Water Reactor (PWR)
• Pressurized Heavy Water Reactor (PHWR)
• Boiling Water Reactor (BWR)
• Others (Gas Cooled Reactor (GCR), Light Water Graphite Reactor (LWGR), etc.)

During the historical period, Pressurized Water Reactor captured a nominal share in the Global Nuclear Power Plant Equipment market. The market growth to the increasing energy demand, clean electricity, and rising investment related to pressurized water reactors across the globe. These types of reactors offer high stability at different temperatures, which makes it easier to operate the reactor from a stability standpoint. Moreover, developing countries such as China, India, and Russia are continuously investing in PWR technology to meet their growing electricity demand. Additionally, countries that previously relied on coal or fossil fuel-based power generation are actively looking to transition to cleaner energy sources and PWRs which is expected to propel the market growth in the forthcoming years. provide a viable option to achieve this transition.

Based on Equipment Type:

• Island Equipment
• Auxiliary Equipment

In the Global Nuclear Power Plant Equipment market, Island Equipment is expected to hold the major share in the upcoming years, as is vital for maintaining the resilience of nuclear power plants in islanded or isolated conditions. Also, these types of equipment allow plants to operate independently from the external power grid during disruptions in grid supply across the globe. The demand for island equipment is majorly driven by the growth of nuclear power plants located in remote areas across the globe. These regions have limited and variable grid connectivity, making islanded operations essential. In the coming years, countries seek to enhance their energy security and expand nuclear power generation, and the need for island equipment is expected to rise.

Global Nuclear Power Plant Equipment Market (2023-28): Regional Analysis

Geographically, the Global Nuclear Power Plant Equipment Market expands across:

• North America
• South America
• Europe
• The Middle East & Africa
• Asia-Pacific

Asia-Pacific region is expected to witness significant growth in the Global Nuclear Power Plant Equipment market in the upcoming years. The market growth imputes to the rapid urbanization, population growth, and rising industrialization in the region accelerating the growing energy demand. This has been leading to the increased installment of renewable energies in the region, along with the transition to cleaner energy generation. According to the International Energy Agency (IEA), the demand for power in India grew by about 8% in 2022 from the previous year. These high demands for energy resulted in the energy transition in the countries like China, India, Indonesia, etc. in the coming years. Hence, the rising energy transition and initiatives towards lowering carbon emissions are expected to boost the development of nuclear power plants equipment’s in the region during 2023-2028.

Global Nuclear Power Plant Equipment Industry Recent Development:

• 2023: GE Hitachi Nuclear Energy (GEH), Ontario Power Generation (OPG), SNC-Lavalin and Aecon have signed a contract for the deployment of a BWRX-300 small modular reactor (SMR) at OPG’s Darlington New Nuclear Project site. This is one of the first commercial contract for a grid-scale SMR in North America.
• 2022: GE Steam Power signed a contract of around USD165 million with BHEL for the supply of three nuclear steam turbines out of six units for NPCIL’s domestic nuclear program. The domestic program includes nearly 12 units of 700 MWe being developed by NPCIL with their own nuclear reactor technology i.e., Pressurized Heavy Water Reactors (PHWR).

Gain a Competitive Edge with Our Global Nuclear Power Plant Equipment Market Report

• Global Nuclear Power Plant Equipment Market Report by Markntel Advisors provides a detailed & thorough analysis of market size, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
• This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
• Global Nuclear Power Plant Equipment Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.