Nuclear Power Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

Global Nuclear Power Market Trends and Insights

Increase in Demand for Clean Baseload Power

Electric-sector decarbonization targets continue to tighten, and grid managers struggle to integrate large shares of variable renewable energy sources without eroding reliability. Governments, therefore, revisit nuclear as a 24/7 carbon-free source, especially for data-center clusters whose electricity use rises 15-20% each year. Several economies that once planned to phase out nuclear power, such as Japan and South Korea, are reversing course to safeguard energy security. Capacity-value payments and ancillary-service revenues now feature in nuclear business cases, narrowing the apparent cost gap with solar and wind. The nuclear power market thereby secures a policy floor even where spot electricity prices remain volatile. At the same time, regulators insist on stricter safety margins, which lengthen licensing reviews while also reinforcing public acceptance.

Lifetime Extension & Uprate Programs

Operators find that keeping a 40-year-old reactor running for 60 or even 80 years costs USD 500-1,000 per kW, a fraction of the USD 6,000-12,000 per kW needed for new construction.^{(1)U.S. Nuclear Regulatory Commission, “License Renewal Applications and Approvals,” NRC, nrc.gov} The U.S. Nuclear Regulatory Commission has granted 95 license renewals, while France’s EUR 49.4 billion grand carénage project strengthens containment structures and replaces key components. Uprating turbines and core internals typically adds 4-7% capacity per unit, making these projects the swiftest way to expand the nuclear power market without new siting battles. Operators must still address the embrittlement of reactor pressure vessels and the obsolescence of instrumentation. Uncertainty about regulations beyond 60 years weighs on longer-range planning; yet, most utilities view life extension as a bridge to advanced-reactor deployment in the 2030s.

Commercialization of Advanced SMRs

NuScale’s 77 MWe design won U.S. certification in 2024, and Rolls-Royce secured GBP 210 million to bring its 470 MWe unit through the UK Generic Design Assessment.^{(2)Rolls-Royce SMR Ltd, “UK SMR Programme Secures Additional Funding,” Rolls-Royce, rolls-royce.com} Factory fabrication, smaller footprints, and passive safety remain the main selling points. Early projects, however, confront rising first-of-a-kind costs and the need to stand up supply chains for large forgings, HALEU fuel, and specialized valves. Regulators in the United States, Canada, and the United Kingdom are piloting technology-inclusive, risk-informed licensing processes. International buyers weigh the appeal of SMRs against questions about long-term waste management and vendor-financing models. As several vendors converge on commercial service dates around 2029-2031, the nuclear power market gains a modular option that can fit within smaller grids or industrial campuses.

Industrial Decarbonization Process-Heat Demand

Steel, cement, and chemical plants emit roughly one-quarter of global CO₂, and many processes require steady heat above 700 °C. High-temperature gas reactors and molten-salt systems can meet these needs, positioning nuclear as a substitute for coal and natural-gas boilers. European steelmakers are testing nuclear-hydrogen schemes for direct-reduced iron, while North American chemical companies are exploring steam-supply contracts. Co-location reduces transmission losses and may lower capital costs by sharing infrastructure. Yet plant owners seek long contracts that match reactor lifetimes, and regulators must craft rules for multi-user nuclear sites. Pilot projects in Canada and the United Kingdom aim to validate techno-economic models and prove regulatory pathways by 2028.

Cost Overruns & Financing Challenges

The Vogtle 3-4 expansion in Georgia has more than doubled its initial budget to USD 35 billion, and Hinkley Point C in the United Kingdom now stands at nearly USD 43 billion.^{(3)Électricité de France, “EDF Announces Major Nuclear Investment Programme,” EDF, edf.fr} Such overruns stem from supply-chain gaps, design changes during construction, and the loss of skilled labor after decades of limited new build. Lenders, therefore, demand sovereign guarantees, regulated asset-based models, or long-term power-purchase agreements before committing funds. Developers pursue modularization to compress schedules; yet, first-of-a-kind SMRs must still demonstrate credible cost curves. Government loan guarantees and tax incentives mitigate risk, but merchant nuclear projects remain rare.

Competition from Low-Cost Renewables

Utility-scale solar now secures power-purchase contracts at USD 30-50 per MWh, while estimated levelized costs for new reactors range from USD 80 to USD 150 per MWh.^{(4) International Renewable Energy Agency, “Renewable Power Generation Costs in 2024,” IRENA, irena.org}Price-only comparisons overlook grid-integration expenses and the value of firm capacity. Even so, wholesale-market designs often fail to compensate nuclear for reliability and ancillary services. As battery prices fall, renewables contend more directly with baseload generation. Regions with high solar irradiance or onshore wind resources tend to favor renewables, which can depress the relative competitiveness of the nuclear power market unless policy mechanisms reward capacity attributes.

Segment Analysis

By Reactor Type: Dominance of Pressurized Water Reactors Sustains Capacity

Pressurized light-water reactors accounted for 74.5% of total capacity in 2024, solidifying their role as the backbone of the nuclear power market. Fast breeder reactors, however, are on track for a 20.0% CAGR through 2030, propelled by China’s 600 MWe CFR-600 and India’s prototype reactor programs. Although gas-cooled and molten-salt concepts remain at the pilot stage, their high-temperature capabilities attract industrial heat clients.

The nuclear power market, therefore, sees light-water designs maintaining share in the medium term, while demonstration fast reactors build the knowledge base for closed-fuel cycles. Regulators gain familiarity with sodium and lead-coolant systems, but commercial financing hinges on early successes that demonstrate safety and economic viability. Should the CFR-600 hit performance milestones, breeder technologies may capture a meaningful nuclear power market share in the 2030s.

Note: Segment shares of all individual segments available upon report purchase

By Reactor Size: SMRs Reshape Deployment Models

Medium-scale 500-1,000 MWe units held 48.6% of the installed capacity in 2024 and remain the preferred option for countries with mature grids. Small reactors under 500 MWe are forecast to expand at a 19.8% CAGR, reflecting utility interest in modular additions that lower capital at-risk. Micro-reactors with a capacity below 20 MWe target mining and defense applications, offering off-grid resilience.

Factory production is crucial to the economics of small reactors. Vendors pursue standardization so that the nuclear power market size for SMRs benefits from learning-curve cost declines after 10-12 units are in operation. Meanwhile, large reactors exceeding 1,000 MWe face cost headwinds and grid integration limits in smaller countries, curbing new orders outside China and India.

By Fuel Type: HALEU Gains Traction amid Supply Concerns

Low-enriched uranium preserved an 88.2% share in 2024, anchoring the nuclear power market size. High-assay LEU demand is slated to rise at a 10.5% CAGR, driven by SMRs and high-temperature concepts that need higher enrichment for compact cores. Thorium cycles remain experimental, although India maintains research and development lines for long-term strategic reasons.

The shift toward HALEU underscores the need for diversified enrichment and fabrication capacity. Until Western supply chains scale, project developers may use bridging strategies such as dual-fuel designs that start on LEU. Nevertheless, HALEU availability remains a swing factor for the advanced portion of the nuclear power market.

Note: Segment shares of all individual segments available upon report purchase

By Application: Industrial Heat Opens New Revenue Streams

Grid electricity kept 85.9% of capacity in 2024, yet process-heat applications could alter the revenue mix as they grow at a 14.3% CAGR. Nuclear-generated steam at 700-950 °C fits hydrogen, ammonia, and methanol production, while district heating and desalination add incremental margins for coastal plants.

Utilities thus assess cogeneration layouts that attach electrolysers or heat exchangers to existing sites. Industrial partners demand long-term offtake contracts aligned with reactor lifetimes, reshaping risk allocation. As demonstration projects prove techno-economic viability, industrial users may account for a larger slice of the nuclear power market in the 2030s.

By End-User Sector: Industrial Buyers Gain Influence

Utilities and independent power producers controlled 87.1% of installations in 2024, but industrial customers posted the fastest 11.7% CAGR through 2030. Off-grid mining ventures in Canada and Australia, along with hyperscale data-center operators, negotiate direct nuclear supply deals to anchor price stability and carbon-free credentials.

This diversification broadens the nuclear power market, requiring regulators to oversee plant ownership structures that deviate from traditional utility models. Vendor service packages now encompass reactor supply, fuel cycle support, and operations outsourcing to match the limited nuclear experience of industrial buyers.

Note: Segment shares of all individual segments available upon report purchase

Geography Analysis

Europe retained the largest 39.8% share of the nuclear power market in 2024, buoyed by France’s 56-reactor fleet, which supplies 65% of the country's electricity. The European Union includes nuclear energy as a transitional asset under its green taxonomy, unlocking sustainable finance channels. Yet lifetime-extension costs and post-Fukushima upgrades strain operator balance sheets, and Germany’s 2023 shutdown leaves Central Europe more reliant on French exports. The United Kingdom advances the 3.2 GW Hinkley Point C and explores a fleet of six EPRs that will sustain domestic nuclear skills through 2050.

Asia-Pacific delivers the fastest 6.8% CAGR, led by China’s pipeline of 24 reactors under construction and India’s indigenous PHWR and fast-reactor programs. China aligns its nuclear growth with its 2060 carbon neutrality pledge and targets 120 GW by 2030. Japan’s gradual restarts lift capacity factors but remain constrained by public skepticism, while South Korea maintains a 28-reactor fleet and exports APR-1400 units to the United Arab Emirates. Emerging economies, such as Vietnam and Indonesia, conduct feasibility studies; however, financing and regulatory readiness remain hurdles before they can join the nuclear power market.

North America opts for life extension and selective new build. The United States relies on nuclear power for 20% of its total generation and 50% of its carbon-free power. License renewals keep aging plants online, while federal tax credits and loan guarantees encourage SMR projects in Idaho and Wyoming. Canada refurbishes its CANDU fleet, adding 881 MWe from Darlington unit 2 in 2024, and advances SMR demonstrations for remote Arctic communities and heavy-oil sites. Mexico retains its two-unit Laguna Verde plant with no new build on the horizon. Across the region, deployment pathways for advanced reactors hinge on HALEU supply and streamlined licensing.