Nuclear Power Plant Equipment Market Size, Share & Trends Analysis Report By Equipment Type (Island Equipment, Auxiliary Equipment), By Reactor Type (Pressurized Water Reactor (PWR), Pressurized Heavy Water Reactor (PHWR), Boiling Water Reactor (BWR), Advanced Reactor) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global nuclear power plant equipment market size is expected to grow at a CAGR of 2.5% during the forecast period (2023–2031). In recent years, there has been a surge in the global population, elevated living standards, and enhanced regional manufacturing capabilities, increasing the demand for energy. This increasing energy demand can be fulfilled by nuclear power, and the increasing demand for nuclear power is anticipated to boost the global nuclear power plant equipment market. Moreover, the rising global warming has also increased the demand for clean energy sources like nuclear power, thereby boosting the market growth.

Nuclear power plant equipment refers to the various components and systems used in a nuclear power plant to generate electricity through nuclear reactions. These power stations convert the tremendous amount of energy generated when an atom's nucleus breaks into smaller pieces—a process known as nuclear fission—into usable electricity. The fundamental equipment in a nuclear power plant comprises the reactor, wherein the fuel rods and control systems are housed. The central component of a power facility, the reactor, is the site of nuclear fission reactions.

The core comprises fuel rods containing fissile material, including uranium-235 or plutonium-239. The controlled fission reactions produce heat. Control rods are constructed from materials capable of absorbing neutrons; as a result, they regulate the rate of fission reactions within the reactor's core. Through the manipulation of control rod positions, operators are capable of regulating the power output of the reactor. Other essential equipment includes a coolant system, steam generator, turbine and generator, cooling system, containment building, control room, fuel handling system, and waste storage and disposal.

Market Dynamics

Market drivers

Increased energy demand

According to projections, the global population is anticipated to increase by more than 8.5 billion in 2030 and 9.7 billion by 2050. Given the current exponential growth in the global population, it is projected that the globe would necessitate an abundance of energy twice the amount currently produced. Moreover, the increased regional manufacturing activities and improved living standards will increase energy consumption.

According to the EIA, it is projected that the global electric-power generating capacity will experience a growth ranging from 50% to 100% by the year 2050. Similarly, electricity generation is estimated to expand by 30% to 76% during the same period. According to projections, renewable energy sources and nuclear power have the potential to provide up to 66% of the total global electricity supply by the year 2050. Therefore, the increasing global energy demand drives the nuclear power industry, boosting the global nuclear power plant equipment market.

Global warming

Since 1880, the average annual increase in combined land and ocean temperature has been 0.14 degrees Fahrenheit (0.08 degrees Celsius), according to the NOAA's 2021 Annual Climate Report. Specifically, since 1981, the average rate of increase has more than doubled, reaching 0.32 °F (0.18 °C) per decade. The portion of carbon dioxide and other greenhouse gases released over the next few decades will directly correlate with future global warming.

Additionally, the combustion of fossil fuels and deforestation add approximately 11 billion metric tons of carbon annually. Each year, atmospheric carbon dioxide levels rise because natural processes cannot remove that much carbon. Thus, the escalating concerns regarding global warming and the need for low-carbon or carbon-neutral energy sources have sparked a resurgence in exploring nuclear power. This is mostly due to its characteristic of not generating greenhouse gas emissions during electricity generation. This, in turn, boosts the global market growth.

Market restraint

High initial costs

The construction of nuclear power facilities necessitates a high initial investment. Significant financial investments are required to construct the infrastructure, acquire land, and implement safety measures. The required capital expenditure is extremely high compared to wind and solar energy generation technologies.

A kilowatt-hour of coal-generated energy costs 1.88 cents to produce. In contrast, the construction and operation expenses of a fossil fuel power plant are less than those of a nuclear power plant. The construction costs of nuclear power plants in Europe and the United States range from USD 5,500 per kilowatt-hour to USD 8000 per kilowatt, or approximately USD 6 billion to USD 9 billion per 1,100 MW plant. However, solar power facilities are priced at approximately USD 2,000 per kilowatt. Therefore, the high expense is estimated to restrain the market growth.

Market opportunities

Increasing investments

In recent years, public and private players have grown their investment in deploying new nuclear power systems due to several advantages of nuclear energy. For instance, in July 2022, the US Department of Energy (DOE) granted three contracts early this year to three companies, each with an approximate USD 5 million value, in exchange for design proposals concerning deploying a nuclear fission surface power system on the moon. NASA anticipates deploying such a technology to the moon by the end of the current decade.

Additionally, the DOE contracts have allocated funds to develop preliminary design concepts for a 40-kilowatt fission power system intended for operation on the moon. The system's durability in the moon's harsh environment should last at least a decade. The contracted corporations are Lockheed Martin, Westinghouse, and IX; each will collaborate with the other for the design development. Consequently, such factors generate market growth opportunities.

Regional Analysis

Based on region, the global nuclear power plant equipment market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

Asia-Pacific's nuclear power plant equipment market share is expected to expand substantially during the forecast period. Rapid industrialization and urbanization drive up energy demand, and substantial opportunities exist to avoid long-term reliance on carbon-based energy technologies. The Asia-Pacific region accommodates more than 50% of the global population and has emerged as a significant economic entity. It is projected that energy demand in certain areas of this region will rise substantially to 80% by 2040. Further, the Indian government is prioritizing expanding its nuclear power capacity to support its extensive infrastructure-building program in the coming years. According to official projections, a capacity of around 22.5 GW is anticipated to be attained by the conclusion of 2031. Moreover, the Indian Government has set a target to increase the contribution of nuclear energy to 25% of the total electricity generation by the year 2050, representing a 2.5% increment from the existing proportion. Consequently, the project pipeline has been reinforced following these objectives, and it is anticipated that the industry will experience growth in the region.

Furthermore, the government and key players are taking initiatives to bring out new advancements in the nuclear power industry. For instance, the advancement of "advanced light-water reactors," regarded as a prototype for the next generation of nuclear reactors, is now underway in Japan. Mitsubishi Heavy Industries Ltd. is now engaged in the development of an advanced light-water reactor, known as the SRZ-1200, in collaboration with four prominent power utilities, namely Hokkaido Electric Power Co., Shikoku Electric Power Co., Kansai Electric Power Co., and Kyushu Electric Power Co. The project will focus on the use of pressurized water reactors (PWRs). This technology has been progressively revived. Such advancements are expected to boost the Asia-Pacific market growth.

In North America, the market is expected to grow in a promising manner. The region's increasing investment in nuclear power plants and efforts to advance nuclear technology are the main drivers of this growth. For instance, an outline for the advancement of nuclear technology, the SMR Roadmap, was published by Natural Resources Canada (NRCan) in 2018. It is based on small modular reactors (SMRs). New Brunswick and Saskatchewan reached a collaborative agreement with Ontario in December 2019 to promote the advancement and implementation of SMRs. The objective is to address challenges related to climate change, regional energy demand, economic growth, and opportunities for research and innovation. In response to the 53 recommendations in the SMR Roadmap, NRCan published its SMR action plan in December 2020. The plan outlines the steps necessary for the domestic and international development, demonstration, and deployment of SMRs. According to the strategy, the initial units are anticipated to become operational in the latter part of the 2020s. The Canadian government initiated the 'Enabling Small Modular Reactors Program' in February 2023. It allocated C$29.6 million (approximately USD 22 million) to aid in advancing and implementing SMRs.

Furthermore, there has been a rise in the development of new nuclear power plants and reactors to decrease reliance on fossil fuels and achieve net zero emission goals. For instance, in October 2023, as an alternative to fossil fuels, Bulgaria initiated the construction of two more reactors at its sole nuclear power plant to increase the nation's nuclear power generation. The two newly constructed reactors, with a combined output of 2,300 megawatts, will employ technology developed by Westinghouse, according to a statement from the government. Similarly, in June 2023, US EnergySolutions will enhance its capacities to facilitate the extension of the lifespan of US nuclear plants and the construction of new plants in alignment with the energy industry's objective of achieving net zero emissions by 2050. EnergySolutions asserts that it is capitalizing on its already nuclear services infrastructure and has developed a proficient and validated team of executives to provide an extended range of services. Such factors drive the regional market expansion.

Europe is predicted to expand at a steady pace. Climate change has caused a 2.3 °C increase in the mean temperature of Europe (2022) relative to pre-industrial levels. Europe is the continent with the quickest rate of global warming. As burning fossil fuels can further enhance this temperature by emitting CO2, there is an increasing emphasis on using alternative electricity generation technologies, like nuclear technology. In February 2023, a commitment was made by eleven European countries to enhance cooperation throughout the nuclear supply chain and foster joint industrial initiatives in the areas of new generation capacity and emerging technologies such as small reactors. The signatories signed a declaration in Stockholm with the objective of "jointly reaffirming their desire to strengthen European cooperation in the field of nuclear energy," according to a statement. Such measures are likely to spur the growth of the European market.

Segmental Analysis

The global nuclear power plant equipment market is segmented by equipment type and reactor type.

Based on equipment type, the global nuclear power plant equipment market is bifurcated into island equipment and auxiliary equipment. 

In the context of a nuclear power plant, the phrase "island equipment" generally pertains to the critical systems and components that are indispensable for ensuring the secure and dependable functioning of the nuclear reactor. A nuclear power plant is commonly partitioned into distinct functional zones, with one of these zones sometimes denoted as the "nuclear island" or "reactor island." The nuclear island encompasses the reactor core's primary location, along with many essential systems and equipment required to facilitate the nuclear fission process.

Key components of the nuclear island equipment include reactor core, cooling systems, control systems, instrumentation and monitoring systems, steam generators, and turbines. The engineering of these systems is meticulously designed to guarantee the safety and dependability of nuclear power facilities, using redundancy measures.

Based on reactor type, the global nuclear power plant equipment market is segmented into pressurized water reactors (PWR), pressurized heavy water reactors (PHWR), boiling water reactors (BWR), and advanced reactors. 

The pressurized water reactor (PWR) dominates the global market. A pressurized water reactor (PWR) is a nuclear reactor that operates with water as the neutron moderator and coolant. This is among the most prevalent nuclear power facility designs. The primary coolant (water) is transported to the reactor core under high pressure in a PWR, which is heated by the energy released by atomic fission. Subsequently, the heated water at high pressure is directed towards a steam generator, which converts the thermal energy into steam for the lower-pressure water in a secondary system. Following this, turbines are driven by steam to turn an electric generator.

Additionally, the safety features of pressurized water reactors have earned them widespread adoption in nuclear power facilities across the globe. Multiple barriers are incorporated into the design to prevent the escape of radioactive substances, while the high-pressure operation improves heat transfer and power generation efficiencies.

Recent Developments

• May 2023- Dominion Energy and Westinghouse Electric Company entered into a contract for the design, production, and delivery of replacement steam generators at the Surry Nuclear Power Station in Virginia, the company announced today.
• May 2023- Westinghouse Electric Company introduced the AP300™ small modular reactor (SMR), its newest nuclear technology, a 300-MWe single-loop pressurized water reactor. Scaled from the advanced, proven AP1000® reactor, the AP300 SMR is the only SMR to be based on an actual, one-of-a-kind operating facility.