Nuclear Decommissioning Services Market

Market Overview

The Global Nuclear Decommissioning Services Market Size was valued at USD 6.13 billion in 2021 and is predicted to reach at USD 9.86 billion by 2030, increasing at a CAGR of 5.42% from 2022 to 2030.

Dismantling or destroying a nuclear facility over time to maintain safety and eliminate the need for radiation protection is known as nuclear decommissioning. These sites contain radioactive elements, which necessitate nuclear decommissioning, a procedure that is time-consuming, expensive, hazardous, and poses environmental dangers. Radioactive materials must be transported or stored safely during the process. Decommissioning is the process of removing radioactive materials from a facility and then gradually dismantling it in order to eliminate any potential radiological hazards. The plant licensee is no longer responsible for the plant's nuclear safety after nuclear decommissioning has been completed.

Several factors, including plant service life, political decisions, and radiation risk, influence the necessity to decommission a nuclear facility. Upon reaching the end of their usable life, all nuclear power plants have a set lifespan of 30-60 years and must be shut down. It is necessary to decommission, dismantle, and clean up any facilities that are no longer operationally or economically viable. Many nuclear power plants with commercial generating reactors, prototype or experimental reactors, and research reactors have been decommissioned in the last few decades. Decommissioning of commercial, early commercial, and prototype equipment is becoming increasingly common as these devices face retirement. As a result of major incidents, accidents, or decisions made by politicians, certain facilities have been forced to close. Most of these nuclear facilities can be reused because most of the components are not radioactive.

Market Dynamics

Market Drivers

• Increasing Support from The Government to Drive the Market

The increased support for nuclear decommissioning from the governments of a variety of countries in the aftermath of nuclear accidents has led to a significant increase in the demand for nuclear decommissioning. The elimination of nuclear power is rapidly becoming an urgent issue as a result of increasing pressure from both the general public and political authorities. It is projected that rising concerns about safety, particularly in regions like as Europe and North America, will have a beneficial impact on the expansion of the industry.

Moreover, the growing number of nuclear reactors reaching operational retirement, the decline in the price of renewable power generation sources such as solar and wind, growing political pressure for the pre-closure of nuclear power plants, growing support from the government, increasing concerns about sustainability, the trend toward the transition toward renewable energy, favorable government regulations, and the initiation of new projects are all additional factors that contribute to the value of the global nuclear decommissioning market.

• Public Safety Worries Will Support Market Expansion

In the coming years, the size of the worldwide nuclear decommissioning industry may increase as a result of rising public safety concerns related to the potentially dangerous effects of nuclear accidents. One of the key aspects driving the market's expansion globally is the escalating risk and safety concerns around nuclear decommissioning services. Less nuclear power is being used as a result of increased attention being paid to renewable energy sources like wind, solar, and others, which is fueling growth in the global market for nuclear decommissioning services. According to estimates from the Energy Information Administration (EIA), the total amount of renewable energy used in the power sector would rise by 6.5 percent in 2022 and 8.7 percent in 2021, respectively. Between 2015 and 2021, it was anticipated that the capacity of solar PV would rise from 10 GW to 27 GW.

• The worldwide shutdown of outdated nuclear reactors

The global retirement of older nuclear reactors due to aging and the shift toward renewable energy sources due to their low environmental impact are projected to be the main factors propelling the market's expansion in the ensuing years. Covid-19 presented various difficulties for the nuclear industry, including a lack of labor, limitations on the number of on-site staff, and disruptions in supply lines. Due to the shortage of workers and specialists, travel restrictions and government regulations hampered the completion of some nuclear decommissioning programs. The project's completion deadlines ran the possibility of being delayed.

Market Restraints

• The Market Restraint of Price Challenges

Market restraints due to nuclear waste disposal, decommissioning, and reliance on nuclear power may be a factor in the anticipated time period. Decommissioning costs are a key hindrance to market expansion. Cost estimates range from $1 billion to $1.5 billion for each 1,000-megawatt plant to decommission. Aside from decommissioning 17 nuclear reactors, Germany has put aside US$ 44.08 billion, while the UK Nuclear Decommissioning Authority predicts that cleaning up the UK's 17 nuclear sites will cost between $ 126-290 billion over the next few decades.

The world's nuclear power plants provide more than 12% of its electricity to meet base load demand without emitting any carbon dioxide. Power plants' lifespans are being extended in several nations through the development of long-term plans. Many reactors are now expected to last longer than they were initially intended. The nuclear decommissioning services business is expected to suffer greatly as a result of this. 

• Indissoluble nature

Nuclear decommissioning can take years since radioactive material deteriorates slowly over time. A reactor's lifespan is often predicted to be between 40 and 60 years, beyond which it becomes challenging to operate. Power plants must be shut down or destroyed after their useful lives are over to make the location usable for other purposes.

Market Key Future Opportunities

• A Rise in The Amount of Demand for The Generation of Electricity

The ever-increasing need for the generation of electricity drives nuclear power plants to produce ever-increasing amounts of electricity despite maintaining the same quantity of pressure vessels throughout the facility. This is thought to provide a rising burden on the pressure vessels that are utilized in nuclear power plants, which results in the requirement for the reactors to have their fuel replenished. Because of this, the nuclear power station needs to be shut down and dismantled. It is anticipated that this would present an opportunity for the expansion of the market for nuclear decommissioning services during the period covered by the forecast. Due to the catastrophe that occurred at the Fukushima nuclear power plant, the German government has mandated that all of its nuclear power facilities must be shut down by the year 2022. During the time frame of the forecast, this is anticipated to have a positive impact on the market for nuclear decommissioning services.

Regional Analysis

The Global Nuclear Decommissioning Services Market is segmented by geography into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

In the market for nuclear decommissioning services in 2021, Europe held the highest share, accounting for about 50 percent of the total. With a compound annual growth rate (CAGR) of 5.32 percent over the course of the projected period, it is also likely to be the second-fastest expanding region, behind only North America. In 2021, its value was estimated at USD 2.85 billion, and it is projected that by 2030, its value will be estimated at USD 4.50 billion.

The number of nuclear power plants is highest in the European region, which is located all over the world. Countries such as Germany, France, the United Kingdom, and Russia are some of the world's leaders when it comes to the amount of nuclear power plants that they have. In recent years, as a result of the expiration of the nuclear power stations' operating licences, the governments of various countries have been steadily accelerating the process of phasing out the nuclear power facilities. The increasing emphasis placed on winding down operations at nuclear facilities is driving up demand for decommissioning services, which in turn is driving growth in the market for nuclear decommissioning services. The major countries of Europe have made public their intentions to end their reliance on nuclear power by the year 2030 and to decommission all of their nuclear power installations.

Canada currently maintains several research and prototype power reactors decommissioned as of August 2022. These reactors are ready for ultimate decommissioning and are in a safe storage state. The WR-1, the NRX reactor at Chalk River Laboratories (CRL), the MAPLE-1 and MAPLE-2 reactors (Multipurpose Applied Physics Lattice Experiment) at CRL, the Gentilly-1 nuclear-generating station in Bécancour QC, the Nuclear Power Demonstration (NPD) reactor in Rolphton, ON, and the Douglas Point nuclear-generating station in Kincardine, ON are a few of these reactors. During the projected period, these are anticipated to fuel demand for the Canadian nuclear power reactor decommissioning market. Consequently, North America's nuclear power reactor decommissioning market is predicted to have significant expansion.

In 2021, the market in North America was worth USD 1.77 billion, and it is predicted that the region will achieve the quickest growth of 5.51 percent over the forecast period. It is expected that multiple reactors will be shut down in the United States by the year 2030. This is because the United States is a big market in the region. During the time covered by this estimate, the market in Asia-Pacific is projected to be propelled forward by the expansion of nuclear decommissioning services in Japan and other Asian nations.

Within the global market for nuclear decommissioning services throughout the course of the projection period, it is anticipated that the market in Asia Pacific would have the most rapid expansion. The nuclear decommissioning services market in Asia Pacific is growing rapidly due to a number of causes, the most important of which are the ongoing nuclear decommissioning activities and the measures taken by the governments in this region to limit their use of nuclear energy. For example, in May of 2018, the government of Taiwan announced intentions to replace nuclear power with more environmentally friendly forms of energy such as wind and solar power.

Segmental Analysis

The Global Nuclear Decommissioning Services Market is divided into different segments according to the Reactor Type, Strategy, and Region (Geography).

By Reactor Type Analysis

The Global Nuclear Decommissioning Services Market is segmented into, Pressurized Water Reactor (PWR), Boiling Water Reactor (BWR), Pressurized Heavy Water Reactor (PHWR), Gas Cooled Reactor (GCR), and Others. There are two primary categories that can be applied to nuclear reactors; these are water-cooled reactors and gas-cooled reactors. Pressurized water reactors, sometimes known as PWRs, are one type of water-cooled reactor, along with pressurised heavy water reactors and boiling water reactors. In 2021, the global market for nuclear decommissioning services was dominated by pressurised water reactors in terms of market share.

PWRs are highly favoured by operators in the sector due to a number of features including a high level of stability and ease of operation. Because of its pervasive application and installation, it is anticipated that this market segment would record the highest growth rate throughout the course of the analysis period.

By Strategy Analysis

The Global Nuclear Decommissioning Services Market is segmented into Immediate Dismantling, Deferred Dismantling, and Entombment. The process of decommissioning nuclear sites can be carried out in a variety of ways, including immediate dismantling, postponed dismantling or safe enclosure, and entombment. Among these methods, quick dismantling is the most common. These approaches each have their own set of advantages and disadvantages. However, as a result of an increase in the number of nuclear reactors being shut down around the world, particularly in Europe, the market has been dominated by the immediate dismantling of reactors shortly after they have been shut down.

However, as the global energy crisis continues to worsen, key nations have come to the realisation that nuclear power is an essential component of their overall energy portfolio. As a result, they are working to extend the amount of time that reactors may remain operational. As a result of the lower levels of radiation produced by deferred dismantling in comparison to other methods, this market segment is anticipated to experience the greatest rate of expansion over the course of the projected period.

The nuclear power facility is going to have to be buried underground as part of the entombment concept. In comparison to the other two options, this one is both significantly quicker and more cost-effective. On the other hand, the vast majority of business owners and managers in this sector have not yet adopted this tactic due to the environmental and several other public concerns.

By Region Analysis

The Global Nuclear Decommissioning Services Market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. In 2021, Europe held about 50% of the nuclear decommissioning services industry. It's expected to increase at a 5.32 percent CAGR, second only to North America. It was worth $2.85 billion in 2021 and might reach $4.50 billion by 2030.

North America's market is expected to expand 5.51 percent during the projected period, reaching $1.77 billion in 2021. The U.S., a significant regional market, may close several reactors by 2030. Rising nuclear decommissioning services in Japan and other Asian countries would boost the Asia-Pacific industry.

Recent Developments

• In January 2023, Westinghouse will direct the decommissioning project in Lithuania and demolish RBMK reactors in a first for the sector.
• In December 2022, Westinghouse's VVER-1000 Nuclear Fuel Fabrication Agreement reinforced Bulgaria's Energy Security.
• In December 2022, Orano removed the American Vermont Yankee reactor's core.
• In January 2023, Babcock created the first 3D metal parts for the British Army to combat obsolescence.
• In January 2023, Velocys and Bechtel worked to develop a SAF project delivery solution for international markets.