Nuclear Energy Market Size, Share, Growth, And Industry Analysis By Type (Nuclear Fission, Nuclear Fusion, Nuclear Decay), By Application (Electricity, Other), Regional Insights, and Forecast To 2032

Updated On: 22 April 2024

Report Overview

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The global nuclear energy market size was USD 33080 million in 2022. As per our research, the market is expected to reach USD 37850 million by 2028, exhibiting a CAGR of 2.3% during the forecast period. The COVID-19 pandemic has been unprecedented and staggering, with the nuclear energy market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

Nuclear energy comes from the energy produced by the splitting of an atom during the fission reaction. The technology was derived from a nuclear weapon that was created during World War II. Nuclear fission in a nuclear power plant takes place in a controlled environment that produces huge amounts of heat. It used to generate electricity then converts that heat into steam. Different reactors are used in a nuclear power plant.

The global market is expected to expand in the coming years as more and more countries switch to cleaner energy production methods. The start of the nuclear renaissance is expected to further expand nuclear power generation capacity. Nuclear energy uses the energy produced when an atom splits apart in a fission reaction. Nuclear fission takes place in a controlled atmosphere in a nuclear power plant and produces a significant amount of heat. A heat exchanger used to generate electricity converts that heat into steam. The list of nuclear power plant equipment includes a variety of reactors, including pressurized water reactors, boiling water reactors, pressurized heavy water reactors, fast booster reactors, and others.

COVID-19 Impact: Due to industrial operations and supply chain disruptions COVID-19 leads to reduction in market growth

Several industries have been affected by COVID-19 due to the shutdown of various industrial operations and supply chain disruptions. Most of the companies closed due to reduced workforce. However, the equipment segment of the nuclear power plants and equipment market is experiencing a gradual decline due to the impact of COVID-19. The COVID-19 pandemic has affected the nuclear power and nuclear fuel industry on both the supply and demand sides. Soon the impact will be greatest on the supply side of uranium, as several mines and nuclear fuel reciprocating facilities will close for health reasons. As a result, the price of uranium has risen from the lowest point recorded in mid-March 2020. The demand for nuclear power is directly proportional to the demand for nuclear fuel, which has been hit hard by COVID-19, but not nearly as much as by COVID -the nature of electricity demand compared to oil. The share of the consumption of the electricity industry was significant during the global restriction. Electricity consumption was boosted by large declines in services and industry, only partially offset by growth in domestic consumption, which increased demand for nuclear power plants and equipment.

Latest Trends

"Rising use of energy in research and development is expected to dominate the market "

Nuclear energy is released from the nucleus or nucleus of an atom of protons and neutrons. Nuclear energy can be produced either by nuclear fission (when atomic nuclei split into several parts) or by fusion (when nuclei fuse together). In today's world, nuclear fission produces electricity, while nuclear fusion technology is in the research and development (R&D) phase. The growing population and economy, as well as rapid global urbanization, will significantly increase energy demand in the coming years. Move over, millennials; a new generation should be born by 2030, including the U.S., are cooperating to build four-generation nuclear reactors. These developments offer great prospects for the market in the coming years. Currently, the US Department of Energy and its national laboratories are funding the research and development of several new advanced reactor technologies that have the potential to transform the nuclear industry.

Segmentation

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• By Type Analysis

According to type, the market can be segmented into Nuclear Fission, Nuclear Fusion, Nuclear Decay. Nuclear Fission is anticipated to be the leading segment.

• By Application Analysis

Based on application, the market can be divided into Electricity, Other. Electricity will be the dominating segment.

Driving Factors

"Rising Technological development boosting the market growth"

Technological development applied in daily activities has recently increased the demand for energy. Energy problems are expected to be caused by the increase in demand for clean electricity and the depletion of fossil fuel reserves. These concerns encourage energy companies and governments to invest in the nuclear energy market. The industry is expected to grow rapidly due to the rapidly increasing demand for energy, which could meet the need created by the growing infrastructure without adversely affecting the environment. The increasing development of the energy policy law and the increase in the awareness of energy conservation is expected to boost the nuclear energy market growth.

"Rising demand for nuclear energy and its versatility will fuel the market growth"

Growing demand for nuclear energy is a key factor fueling the nuclear energy market growth. During the forecast period, many nuclear power projects will be set up in various countries with the aim of reducing dependence on fossil power generation and carbon dioxide emissions. The versatility of nuclear energy can enable the transition to a cleaner world and a stronger global economy. In recent decades, there has been rapid innovation and savings in clean energy sources. Photovoltaic, wind, hydro, portable geothermal, biomass and concentrated solar power have experienced rapid technological and economic development over the past decade. Nuclear energy has the potential to combine synergistically with many other energy sources, potentially leading to integrated systems that are greater than the sum of their parts. It produces energy through fission, which is the splitting of uranium atoms to release energy for free due to the toxic effects of burning fossil fuels, electricity is produced using the heat of fission to generate steam that turns a turbine.

Restraining Factors

"High cost of nuclear energy and increasing incidents may restrain the market growth"

Nuclear power costs are often divided into capital costs and operating costs. Site preparation, design, construction, fabrication, commissioning and financing are all capital costs. Fuel costs, decommissioning, maintenance and waste disposal are all part of operating costs. Nuclear power plants have much higher start-up costs than other energy sources such as coal and natural gas, and their annual break-even costs are much higher than their annual operating costs. Fierce competition from renewable energies is reducing direct investment, and investments in nuclear power in several regions are expected to slow market growth. For example, the South Korean government has promised to stop the expansion of nuclear power and focus on renewable energy sources. Japan is still reeling from the aftermath of the 2011 Fukushima nuclear disaster. It is abandoning plans to restart its older reactors amid public opposition and the cost of safety improvements. Increasing number of accidents related to nuclear power plants is expected to curb the market growth. Previous accidents and their long-term effects on human health have strained the control bodies during the construction of nuclear power plants.

Regional Insights

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"North America dominated the market growth during the forecast period"

North America dominated the market in 2020 and is anticipated to have the largest nuclear energy market share during the forecast period. This is due to the rapid growth of electricity demand in the region. The increase in investment in nuclear power plants is the main growth engine of the region. Additionally, increasing electricity consumption and awareness of renewable energy is likely to fuel market expansion. Additionally, government investment in nuclear power projects in the region is expected to boost the regional market. The technology makes it possible to use a clean version of hydrogen as a source of carbon-free electricity, as well as a critical economic product for nuclear power plants. This is due to the availability of nuclear reactors for large production facilities and the increasing demand for energy.

Key Industry Players

"Key Players Focus on Partnerships to Gain a Competitive Advantage "

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolios.

List of Market Players Profiled

• Bruce Power (U.S.)
• CEZ (Europe)
• E.ON SE (Germany)
• Nukem (Germany)
• China General Nuclear Power (China)

Report Coverage

This research profiles a report with extensive studies that take into description the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, and restraints. This analysis is subject to alteration if the key players and probable analysis of market dynamics change.