Global Nuclear Power Reactor Decommissioning Market Extends at a Healthy CAGR of 14.80% by 2031

Introduction

The term "nuclear decommissioning" refers to the technical and administrative process of gradually destroying nuclear facilities until they no longer require radiation protection. It involves the removal of radioactive materials, followed by the dismantling of contaminated materials from the plants and the safer shipping of hazardous components, much like some of the conventional techniques. Decommissioning nuclear facilities aid in lowering radiation risks and nuclear energy accidents. As a result, the procedure is frequently used in commercial nuclear power facilities after careful planning, radioactive element characterization, and nuclear facility release. The three categories of nuclear-decommissioning services available today are immediate, safe enclosure, and entombment.

Market Dynamics

Nuclear Reactors Reaching Operational Retirement Drives the Global Market

Despite the increased capacity in developing economies, the rate of commissioning of new nuclear reactors in developed countries has drastically decreased in recent years, which has raised the average age of the world's fleet of reactors. Early in the 1970s, hydropower produced 20% of the nation's electricity, with the remaining 80% coming from coal, oil, and gas. Most nuclear power reactors in wealthy nations were constructed in the 1970s and 1980s to reduce reliance on fossil-based generating. In the 1960s and 1970s, nuclear reactor building skyrocketed. More than 30 GW was generated annually during the peak years of 1974–1975, which corresponded to around 3.5% of the total power used globally and roughly twice the amount of electricity produced by renewable energy sources.

By the end of 2020, 296 power reactors with a combined capacity of 256.3 GW would have an operational age of more than 30 years, or approximately 67% of them, according to the International Atomic Energy Agency (IAEA). 20% of the nuclear capacity in use today, or 104 reactors, have been operational for more than 40 years; only 1% have been operational for more than 50 years. The need for their decommissioning is growing due to the large number of reactors that are aging and getting close to their operational retirement age, which is predicted to drive the market for the entire forecast period.

Intense Competition from Renewable Energy Sources Creates Tremendous Opportunities 

The development of renewable energy is soaring everywhere. As a result, the nuclear power industry receives fewer FDIs and investments in several places. The installed nuclear power capacity will have increased by about 40 GW since 2000, or 2.1 GW/year, to reach roughly 392.61 GW by the end of 2020. More than 700 GW of wind power and 700 GW of solar power capacity have been added since 2000, compared to nuclear power. Another factor promoting the growth of renewable energy capacity is the potential for simple and distributed technologies to be adopted more quickly than sophisticated and enormous centralized nuclear power stations. Due to the rise of renewable energy, nuclear power is no longer an economically viable way to provide electricity. Throughout the projection period, this is expected to require sites to be prematurely decommissioned, which would drive the market under study.

Regional Analysis 

Europe is the most significant revenue contributor and is expected to grow at a CAGR of 14.09% during the forecast period. Growing public support, environmental concerns that have led to the closure of nuclear power plants in France, Lithuania, the United Kingdom, and Germany, rising demand in Germany, public concerns, the existence of stringent government regulations that govern the decommissioning process, and an increase in the number of nuclear power plants in South Korea and Japan are all factors that are causing the region's share of the global nuclear decommissioning market to grow. The region has experienced exceptional market growth due to stringent government rules that support nuclear-decommissioning activities.

Due to its strict reliance on nuclear energy for electricity production, Europe is attempting to diversify its energy mix by lowering the share of nuclear energy generation in total electricity production from 75% to 50% by 2025. These elements suggest that the nuclear decommissioning business will grow significantly during the next few years. Europe has the largest market for nuclear decommissioning because the region's switch to renewable energy has resulted in the decommissioning of numerous nuclear reactors. Germany, France, and the UK are the leading nations involved.

In South Korea and Japan, the nuclear decommissioning market is anticipated to grow at the fastest rate in Asia-Pacific. The presence of numerous nuclear power plants that are currently operational, which places a high demand on nuclear decommissioning procedures, as well as the growing usage of nuclear decommissioning, the ongoing nuclear-decommissioning activity, and government initiatives for reducing nuclear energy are all contributing to the growth of the region's nuclear decommissioning market. In the recent past, Asia-Pacific has emerged as a formidable rival in the worldwide nuclear-decommissioning industry. There are more modern nuclear power plants in the area. Therefore, nuclear-decommissioning procedures are more critical. The area's nuclear-decommissioning sector is expanding due to increased accidents and political pressure to shut down nuclear-generating reactors before they are finished. South Korea and Japan have taken the lead in the recent nuclear decommissioning in the Asia-Pacific region. Given that nuclear reactors and power plants will soon end their valuable lives, China and India may present opportunities for the nuclear-decommissioning business.

Key Highlights

• The global nuclear power reactor decommissioning market was valued at USD 4.9 billion in 2022. It is projected to reach USD 16.97 billion by 2031, growing at a CAGR of 14.80% during the forecast period (2023-2031). 
• Based on reactor type, the global nuclear power reactor decommissioning market is bifurcated into pressurized water reactors, pressurized heavy water reactors, boiling water reactors, high-temperature gas-cooled reactors, liquid metal fast breeder reactors, and other reactor types. The pressurized water reactor segment is the highest contributor to the market and is estimated to grow at a CAGR of 13.2% during the forecast period.
• Based on application, the global nuclear power reactor decommissioning market is bifurcated into commercial power reactors, prototype power reactors, and research reactors. The commercial power reactor segment is the highest contributor to the market and is estimated to grow at a CAGR of 12.90% during the forecast period.
• Based on capacity, the global nuclear power reactor decommissioning market is bifurcated into below 100 MW and above 1000 MW. The 100-1000 MW segment is the highest contributor to the market and is estimated to grow at a CAGR of 13.6% during the forecast period.
• Europe is the most significant revenue contributor and is expected to grow at a CAGR of 14.09% during the forecast period.

Competitive Players

Competitive Players

1. Babcock International Group PLC
2. James Fisher and Sons PLC
3. NorthStar Group Services Inc.
4. Fluor Corporation
5. GE Hitachi Nuclear Services
6. Studsvik AB
7. Enercon Services Inc.
8. Orano Group
9. AECOM
10. Bechtel Group Inc.
11. Westinghouse Electric Company

Recent Developments

Market News

• In September 2022, The IAEA launched a global initiative aimed at boosting the role of new and emerging technologies in the decommissioning of nuclear facilities, as the industry seeks to streamline the process with the more than two-hundred nuclear power reactors shut down for decommissioning and several of the world’s 438 operating ones expected to phase out over the coming decades.
• In December 2022- The IAEA delivered the final report of a peer review of Indonesia’s program for decommissioning and storage of radioactive waste and spent fuel.

Segmentation

Global Nuclear Power Reactor Decommissioning Market: Segmentation

By Reactor Type

• Pressurized Water Reactor
• Pressurized Heavy Water Reactor
• Boiling Water Reactor
• High-temperature Gas-cooled Reactor
• Liquid Metal Fast Breeder Reactor
• Other Reactor Types

By Applications

• Commercial Power Reactor
• Prototype Power Reactor
• Research Reactor

By Capacity

• Below 100 MW
• 100-1000 MW
• Above 1000 MW

By Regions

• North America
• Europe
• Asia-Pacific
• LAMEA