Nuclear Power Plant Equipment Market Size, Share & COVID-19 Impact Analysis, By Equipment Type (Island Equipment and Auxiliary Equipment), By Reactor Type (Pressurized Water Reactors (PWR), Boiling Water Reactors (PWR), Pressurized Heavy Water Reactors (PWR), and Others), and Regional Forecast, 2021-2028

The global nuclear power plant equipment market size was USD 31.72 billion in 2020 and is projected to grow from USD 32.44 billion in 2021 to USD 38.82 billion in 2028, growing at a CAGR of 2.6% in the 2021-2028 period. The global impact of COVID-19 has been unprecedented and staggering, with witnessing a negative impact on demand across all regions amid the pandemic. Based on our analysis, the global market will exhibit a lower growth of 1.21% in 2020 as compared to the average year-on-year growth during 2017-2019. The rise in CAGR is attributable to this market’s growth and demand, returning to pre-pandemic levels once the pandemic is over.  

The global market is projected to grow in the upcoming years as various nations are switching to cleaner techniques for generating power. Widely, the nuclear power generation capacity is anticipated to be pushed further by the outset of the nuclear renaissance. Nuclear power utilizes energy released during a fission reaction by splitting an atom. Nuclear fission is carried out in a nuclear power plant in a controlled environment, which produces a tremendous amount of heat. This heat is further transformed into steam by the heat exchanger utilized to generate electricity. Different types of reactors consist in a nuclear power plant equipment list, such as pressurized water reactor (PWR), boiling water reactor (BWR), pressurized heavy water reactor (PHWR), fast breeder reactor (FBR), and others.

Delay in Nuclear Power Projects has Harmed the Nuclear Power Equipment Market Growth Amid COVID-19

The global COVID-19 pandemic significantly impacted nearly every industry vertical. Major industries experienced substantial losses in revenue due to containment measures enforced to curb the spread of the COVID-19 outbreak.

The novel COVID-19 pandemic has impacted this industry. The nuclear power plant equipment market includes a slight growth with the commissioning of the new nuclear reactors in the Belarus and United Arab Emirates. Due to imposed lockdowns, ongoing work at different sites in the U.S. and Bangladesh witnessed delays in work and a rise in the cost of overall projects. Also, due to the low electricity consumption, various plants were halted amid the COVID-19 pandemic, which harmed the nuclear power plant equipment installation. Furthermore, the restrictions on social and economic activity during the outbreak led to a sustained and unprecedented decline in demand for electricity across countries compared to 2019.  

LATEST TRENDS

Technological Advancement in Nuclear Power Reactors to Enhance the Market Growth

Government across the globe are recognizing the urgent need to lower greenhouse gas emissions; nuclear energy is a rising major player in the energy mix of the upcoming years. The new technological advancements in nuclear power reactors across several industries are estimated to enhance the market of nuclear power equipment. For instance, in October 2021, U.K. Government announced a new technology under development, named small modular reactors (SMRs), for its new large-scale plant. SMR provides a huge cost-saving advantage over conventional large-scale reactors. In addition, the rising industrialization across various developed and underdeveloped countries and the ability of nuclear power plants to generate large amounts of energy and lower amount of greenhouse gas emissions, unlike thermal power plants, are expected to further boost the market growth.

Major Organic and Inorganic Expansions Across Key Players to Shape the Industry

Continuous efforts by various major players to boost their output efficiency across the globe are set to unveil new opportunities for the industry outlook. For instance, in October 2021, Toshiba America Energy Systems Corporation (TAES), an associate of Toshiba Energy Systems & Solutions Corporation (Toshiba ESS), announced the acquisition of one of the worldwide providers of workforce transformation solutions, EtaPRO® business of GP Strategies Corporation. Toshiba America Energy Systems Corporation, situated in Wisconsin, has a large manufacturing and service shop, delivers generator/turbine equipment and services for the energy industry, including hydropower, geothermal, thermal, and nuclear power plants. In addition, the company will bolster the competitiveness of new businesses while searching for new business opportunities for the future.

DRIVING FACTORS

Rising Energy Demand and Production of Clean Electricity to Foster the Market Size

Increasing energy demand and the production of clean electricity are expected to enhance the market outlook. Various nations across the globe are looking for efficient and clean ways, such as nuclear power stations, to overcome the energy demand that is fueling the market growth. For instance, in October 2021, Abu Dhabi National Oil Co. (ADNOC) announced the utilization of solar and nuclear energy to completely power its operations, declaring a supply contract with Emirates Water and Electricity Co. for clean electricity supply. ADNOC’s grid power will meet up to 100 % of its power requirements from nuclear and solar after the contract. After the agreement, ADNOC will become the first prime oil and gas company to decarbonize its power, according to the firm, and also claims to pump some of the least carbon-intensive crudes globally. Furthermore, according to a target by World Nuclear Association (WNA), 25% of the global electricity is to be provided by nuclear energy by 2050. This requires around 1000 GW of new nuclear capacity to be established, creating ample opportunities for major players.

Substantial Usage of Major Equipment to Propel Industry Growth

The unrepeatable and substantial usage of major equipment such as boiling water reactors (BWR), pressurized water reactors (PWR), and Canada Deuterium Uranium (CANDU) reactors in nuclear plants is predicted to offer ample opportunities for market players. As nuclear reactors are majorly powered by fuel assemblies, they can be a profit-making addition to the portfolio of nuclear power plant equipment manufacturers. With the increase in fuel assemblies, the demand for fuel rods is expected to rise substantially. Japan’s Fukushima Daiichi nuclear disaster has created negativity related to the employment of nuclear energy, thus making the adoption and commission of nuclear plants a bit difficult. Despite the pessimistic notions related to the disaster, there are permissible opportunities anticipated to grow on the back of the decommissioning of the old nuclear plants.

RESTRAINING FACTORS

Difficulty Associated with Funding of Nuclear Power Plants to Restrain the Market Growth

One of the key market restraints for the nuclear power plant equipment market is the difficulty associated with gaining funds for the nuclear power plant projects. Also, the lower cost of renewables generated with negligible emissions is expected to harm the market outlook. In addition, the difficulties related to the management of nuclear waste, which consists of radioactive waste, are further estimated to restrain the market growth over the forecast period.

SEGMENTATION

By Equipment Type Analysis

Island Equipment Segment is Likely to Observe Significant Growth Due to its Highest Adoption Rate

Based on the equipment type, the market is primarily bifurcated into the island equipment and auxiliary equipment segments. The island equipment segment dominates the market and is projected to hold a significant share in the market, owing to its significant role in operation safety and has various applications in a nuclear power plant. Besides, island equipment is cost-effective as compared to auxiliary equipment. According to National Renewable Energy Laboratory (NREL), island equipment holds around 12.6% of the total capital cost of a nuclear power plant.

The auxiliary equipment segment is expected to grow at a significant rate during the forecast period. The growth is attributed to the feature of auxiliary equipment to ensure reliability, as the safety of nuclear power plants is rising significantly. In addition, they ensure the radiation protection of power plants, safety nuclear power plant systems, and special water purification systems of nuclear plants.

By Reactor Type Analysis

Pressurized Water Reactors (PWR) Will Dominate the Market Owing to Their Large Fleet Size

Based on the reactor type, the global nuclear power equipment market is segmented into Pressurized Water Reactor (PWR), Boiling Water Reactor (BWR), Pressurized Heavy Water Reactor (PHWR), and others. The PWR segment dominates the market and is estimated to hold a major market share. The growth is majorly attributed to the rising number of projects and increasing investments related to pressurized water reactors. Also, PWR has stability at high temperatures, which makes them easy to operate the reactors from the stability standpoint. According to IAEA 2021 statistics, there are 442 operational reactors across the globe, of which 302 are PWR with a capacity of 287 GWe. The U.S. has 63 PWRs, followed by France and China with 56 and 47 respectively.

In Boiling Water Reactors (BWR), water boils inside the reactor itself, and the steam transfers directly to the turbine generator to generate electricity. BWR has greater overall thermal efficiency as compared to PWR as there is no separate heat exchanger or steam generator. On the other hand, BWR has a complex design, hence requiring a larger pressure vessel than the PWR owing to the amount of steam that should be released during an accident. The larger pressure vessel also increases the BWR cost. According to IAEA 2021 report, there are 63 BWRs across the globe, in which the U.S. has the highest number of 31 BWRs, followed by Japan which is 17. On the other hand, Canada has the most PHWR worldwide, that is 19, followed by 18 in India.

REGIONAL INSIGHTS

The market has been analyzed across major regions, including North America, Europe, Asia Pacific, and Rest of the World. The Asia Pacific currently holds the largest nuclear power plant equipment market share globally, and the market size in the region stood at USD 12.13 billion in 2020. China holds the maximum share in the market and dominates the regional market. According to the IAEA 2021 report, China accounts for 50 operating reactors across the region with a capacity of 47.52 GW. Furthermore, the Chinese Government aims to achieve 58 GW of nuclear capacity by the end of 2021 and 150 GW by 2030. The government has planned nuclear power drive-build program and a strong project pipeline, which further strengthens the market outlook. On the other hand, the Indian Government is focused on increasing its nuclear power capacity for its huge infrastructure development program in the coming years. The government estimates to achieve about 22.5 GW capacity by the end of 2031. Also, the Indian Government aims to provide 25% of the electricity from nuclear energy by 2050, 2.5% up from the current level.

North America is anticipated to witness promising growth in the market. The primary factor driving the growth in the region is the growing investment in nuclear power plants. Furthermore, an increase in power demand and rising awareness related to clean energy is expected to enhance the market growth. In addition, government funding for nuclear power plants in the region is estimated to boost the regional market. For example, in October 2021, The U.S. Department of Energy declared USD 20 million funding to exhibit technology that will generate clean hydrogen energy from nuclear power. The technology will allow a clean form of hydrogen as a zero-carbon electricity source and constitute a vital economic product for nuclear plants.

In Europe, the market for nuclear power plant equipment is expected to witness a healthy CAGR owing to the presence of key nuclear power industries in the region. Key industries such as Alstom and AREVA are estimated to propel the demand in the region during the forecast period. France holds the maximum share in the market and dominates the regional market. According to the IAEA 2021 report, France accounts for 56 operating reactors across the region with a capacity of 61.57 GW. Besides, the new technological advancements in the industrial sector coupled with the growth in the automotive sector in the region are further expected to boost the market outlook. Also, several ongoing contracts by the French Government are estimated to enhance the market in the region. For example, in October 2021, the President of France declared a shift to small modular nuclear reactors. He disclosed EUR 30 billion, around USD 34.20 billion, a five-year strategic plan to enhance France’s high-tech sectors, building the country’s nuclear power energy.

KEY INDUSTRY PLAYERS

General Electric, Shanghai Electric, Alstom, Mitsubishi Heavy Industries, Are Among the Leading Companies in Providing Nuclear Power Equipment to Various End-Users

The study of the competitive landscape of the global market has shown that it is highly fragmented with the presence of numerous competitive players. Alstom, Toshiba Corporation, Larsen & Toubro, and Mitsubishi Heavy Industries form a significant portion of the market for delivering nuclear equipment across the globe. These companies have invested in technological developments and are expected to remain the market leaders during the forecast period.

List of Key Companies Profiled:

• General Electric (U.S.)


• Alstom (France)


• Shanghai Electric (China)


• Toshiba Corporation (Japan)


• Korea Electric Power Corporation (South Korea)


• Larsen & Toubro Limited (India)


• Mitsubishi Heavy Industries, LTD. (Japan)


• Doosan Corporation (South Korea)


• Dongfang Electric Corp., Ltd. (China)


• The State Atomic Energy Corporation (India)


• BWX Technologies, Inc. (U.S.)


• AREVA (France)

KEY INDUSTRY DEVELOPMENTS:

• October 2021: Jacobs secured an extension to its Project Management Resources (PMR) agreement with one of the U.K.'s leading nuclear power plants, EDF Nuclear Generation. The contract involves supporting seven advanced gas-cooled reactors (AGR) stations, a long-term operation program for the Sizewell B pressurized water reactor, and the transition from generation to defueling. The firm estimates the extension at around USD 44 million for the period from April 2022 to March 2024.


• August 2021: Japan-based Hitachi-GE Nuclear Energy is a 300 MWe boiling water reactor (BWR) type of SMR, named ‘BWRX-300,’ in partnership with GE Hitachi Nuclear Energy based in the U.S. The contract will help the government to create new market research and achieve the goal of reducing greenhouse gas emissions to net-zero by 2050.

REPORT COVERAGE

The nuclear power plant equipment market report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading reactor types of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market over recent years.

REPORT SCOPE & SEGMENTATION