Global Small Modular Reactors Market Research Report: Forecast (2022-2027)

Market Definition

Small Modular Reactors (SMRs) are nuclear fission reactors used for nuclear energy generation. They are usually much smaller than traditional reactors and have an electrical power output of less than 300MW. Apart from their standard use for power generation, these reactors are also deployed for industrial applications such as desalination of water & process heating.

The small modular reactor industry is likely to expand swiftly in the coming years on the back of its cost-effectiveness and minimal construction time for these units. When compared with a renewable energy resource like wind or solar, the energy derived from these SMRs takes up a smaller area & generates only a small carbon footprint. Although the concept of Small Modular reactors is still undergoing rigorous research & development, it is anticipated to offer an opportunistic future for the leading players during the forecast period.       

Market Insights

The Global Small Modular Reactor Market is projected to grow at a CAGR of around 14% during the forecast period, i.e., 2022-27. The growth of the market is likely to be driven primarily by the rapidly growing demand for SMRs in several applications for their flexible power generation capabilities.

With increasing levels of carbon emissions and the rising government focus across different countries on reducing dependency on fossil fuels, SMRs are witnessing an increasing demand for energy production using natural resources like wind & solar and, in turn, driving the global market.

Besides, growing awareness among several end-user industries about the benefits of SMRs like low to medium capital investment and small area consumption due to their compact size is another prominent aspect contributing to their surging need globally. SMRs offer higher safety, are an excellent alternative to fossil fuels, and generate a high energy rate owing to their development in controlled factory environments through the module fabrication process.

• In May 2020, Akademik Lomonosov, the world's first-ever floating nuclear power plant, got commissioned in Pevek, Chukotka (Russia), which harbors two 35 MW(e) KLT40S SMR units generating enough energy to cater to the power requirements of around 100 000 people.

Furthermore, with the growing urbanization, power requirements are mounting rapidly and infusing the demand for clean electricity generation. Hence, governments of different countries are utilizing SMRs & exercising their benefits and, in turn, contributing to the global expansion of the Small Modular Reactor Market.

Market Segmentation

Based on Reactor Type:

• Light Water Reactor
• Pressurized Heavy Water Reactor (PHWR)
• High-Temperature Reactor (HTR)
• Fast Neutron Reactor (FNR)
• Others (MST, Integral PWR)

Of all types, Light Water Reactors (LWRs), also known as thermal-neutron reactors, are projected to dominate the Global Small Modular Reactor Market with the largest share during 2022-27. It owes to the technological or environmental risks associated with them, coupled with their capabilities to be used as both reactor coolant & moderator. LWRs are the most prevalent among all types of nuclear reactors worldwide and use normal water instead of heavy water.

Besides, they also have easy licensing procedures & higher technological deftness for development & operations. Hence, their massive popularity & deployment globally are acting as significant growth contributors to the growth of the Global Small Modular Reactor Market.

Based on Application:

• Desalination
• Power Generation
• Process Heat 

Here, the power generation application is anticipated to hold the largest market share during 2022-27, owing primarily to the clean & eco-friendly development of SMRs for power generation purposes while reducing dependency on fossil fuels. Besides, with growing concerns over environmental deterioration, governments of different countries are seeking alternatives for fossil fuels like coal. It is where SMRs are likely to take over to enable clean energy generation and offer many affordable power options.

Moreover, SMRs also hold a significant potential to be utilized substantially for power generation across remote & rural areas where governments are portraying increasing installation of these reactors. Hence, their mounting demand for the primary application of power generation projects remunerative prospects for the Global Small Modular Reactor Market in the years ahead.

Based on Deployment:

• Single Module
• Multi-Module

Of both, the multi-module deployment of SMRs is projected to demonstrate the fastest growth in the Global Small Modular Reactor Market through 2027. It owes to the composition of these reactors in a way where each module can operate safely & independently while offering outcomes with full potential. Besides, the greater flexibility to grid operations and cost-effective replacement for existing nuclear & retiring coal-fired power plants are also augmenting the deployment of SMRs in multi-module plant systems and, in turn, generating lucrative opportunities for the leading players operating in the global market.

Moreover, since the multi-module plant module also allows the addition of new SMR plants in the same location and, in turn, reduces the upfront investment, its popularity is anticipated to rise significantly in the coming years. Furthermore, the ease of individually maintaining & repairing plants is another perk of multi-modal deployment of SMRs, i.e., augmenting the overall market growth.

Regional Landscape

Geographically, the Small Modular Reactor Market is categorized into the following regions:

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

North America dominates the Small Modular Reactor Market among all regions. It attributes to the US, i.e., massively investing in the enhanced development of this nascent technology, has the robust presence of leading SMR manufacturers, and research is being conducted rigorously on developing efficient nuclear technology. Several private sector companies across the country are receiving R&D approvals in order to commercialize the small modular nuclear reactor technology.

On the other hand, Asia-Pacific is projected to contribute significantly to the market expansion during 2022-27, principally due to countries like China, Japan, & India actively participating in bringing innovations in SMRs. Besides, the growing focus of governments of these countries on reducing carbon emissions and introducing renewable resources for power generation is another prominent aspect anticipated to augment the growth of the Asia-Pacific Small Modular Reactor Market in the years ahead.

Key Questions Answered in the Market Research Report

1. What are the overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares) of the Global Small Modular Reactor Market?
2. What are the region-wise industry size, growth drivers, and challenges?
3. What are the key innovations, opportunities, current & future trends, and regulations in the Global Small Modular Reactor Market?
4. Who are the key competitors, their key strengths & weaknesses, and how do they perform in the Global Small Modular Reactor Market based on the competitive benchmarking matrix?
5. What are the key results derived from surveys conducted during the Global Small Modular Reactor Market study?