The nuclear power market is dominated by electricity generation from nuclear fission reactors. Nuclear power provides reliable baseload electricity without greenhouse gas emissions. Nuclear power plants also help ensure energy security by reducing reliance on imported fossil fuels. Advantages of nuclear power include low carbon emissions during power generation compared to fossil fuels. However, nuclear power faces challenges related to high capital costs, radioactive waste disposal, and safety concerns related to accidental radioactive release.
The global nuclear power market is estimated to be valued at US$ 459.76 Mn in 2024 and is expected to exhibit a CAGR of 4.3% over the forecast period of 2024 to 2030.
Key Takeaways
Key players operating in the nuclear power market are GlaxoSmithKline plc, Merck & Co., Inc., Sandoz International GmbH, AstraZeneca, LEO Pharma, Cipla Inc., Bristol-Myers Squibb Company, Almirall, S.A., Bausch Health, and Sanofi SA. Nuclear power has significant potential for clean energy generation. The global demand for reliable and clean energy is driving investments in new nuclear power projects across regions. Countries around the world are increasing investments in nuclear energy to reduce dependence on fossil fuels and meet climate change commitments. Emerging economies are investing heavily in adopting nuclear power to meet rising electricity demands.
Market drivers
The key driver fueling growth of the Nuclear Power Market Demand is rising investments by governments worldwide to expand nuclear power generation capacities. Many countries view nuclear power as a strategic energy resource for energy security and are launching new initiatives to boost investments. For example, investment commitments of over US$ 150 billion have been made by China, India, Russia, South Korea and United Arab Emirates for new nuclear power projects through 2030. Rising government investments in nuclear energy infrastructure is expected to significantly drive the market during the forecast period.
PEST Analysis
Political: The government policies towards nuclear power generation significantly impacts the market. Stringent regulations and safety compliance standards have been established for nuclear power projects.
Economic: Factors such as initial capital requirements, operating costs influence the economics of nuclear power projects. Government incentives and budget allocations support market growth.
Social: Public acceptance and demand for clean energy solutions drives the social factors. Environmental concerns and hazards perceptions affect social viewpoints.
Technological: New reactor designs, advanced fuel technologies and modular construction techniques enhance project economics. Innovation in waste management aids long-term sustainability.
North America accounts for over 30% value share led by active nuclear energy programs in the US. The Asia Pacific region emerged as the fastest growing market on account of large-scale investments in nuclear power plants by China and India. Europe currently holds a share of 25% in the overall demand given the presence of established nuclear industries in countries such as Russia, France and UK. Domestic industries coupled with policy led expansion plans are expected to strengthen the position of these geographical territories in the worldwide revenue over the coming decade.
The fastest growing regional market for nuclear power is anticipated to be Asia Pacific at a projected CAGR of around 6% during the forecast period. This positive outlook stems from increasing energy requirements of rapidly developing economies like China and India which are undertaking aggressive capacity additions through new build programs. Moreover, favorable government initiatives supporting clean energy goals and economic development missions would continue stimulating nuclear sector investments across Asia Pacific
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1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it