Small Modular Reactor Market Size, Share & Industry Analysis, By Module (Single Module and Multi Module), By Technology (Water Cooled and Gas Cooled), By Power Output (Up to 100 MW, 101 to 200 MW, and 201 to 300 MW), By Application (Power Generation, Industrial, Desalination, and Others), and Regional Forecast, 2025-2032

The global small modular reactor market size was valued at USD 5.81 billion in 2024. The market is projected to grow from USD 5.96 billion in 2025 to USD 8.37 billion by 2032, exhibiting a CAGR of 4.98% during the forecast period.

Small modular reactors (SMR) are a type of small nuclear reactors developed in a workshop, sent to operational sites for deployment, and then used to power buildings and other commercial processes. These reactors can produce a maximum output of 300 Megawatt electric (MWe). The reactors are well known for their reliability, efficiency, and functionality and are poised to record significant application driven by the growing demand for nuclear energy.

General Electric Company is one of the major players in the global market. The company delivers various modular reactor solutions to incorporate the latest nuclear technology.

MARKET DYNAMICS

MARKET DRIVERS

Rising Demand For Clean Energy Sources to Boost Market Development

Clean energy is one of the major aspects of electrification in recent years. This is owing to the growing focus of governments on renewable energy sources. Unlike fossil fuels, clean energy sources have many advantages for the climate. Additionally, nuclear energy is one of the solutions that use SMR systems to generate electricity. The growing demand for nuclear energy is anticipated to influence the market growth. Moreover, the market share is continuously increasing globally in reactor market, making it ideal for renewable energy applications.

Growing Uses of Reactors in the Industrial Sector to Drive Market Growth

Energy consumption by variety of sectors has seen an upsurge in recent years. This is driven by the growing demand for electricity globally. Being very efficient in terms of energy generation, light water reactors have become extensively used in a majority of industrial areas such as power generation, utility, and data centers. Companies are progressively seeking to endorse more sustainable sources of energy that are, at the same time, more cost-effective.  This is owing to the growing demand for electricity in multiple countries globally.

MARKET RESTRAINTS

Lack of Standard Licensing May Hamper the Market Growth

The growth of the market is stimulated based on the demand for the nuclear energy, which is being propelled on the basis of government standards. Therefore, licensing for the reactors is more challenging due to the rules and regulations. The designs, manufacturing, certifications, and cost of deployment are all the factors that negatively impact the market growth. Consistent different licensing methods are likely to be important in the deployment of SMR technologies.

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MARKET OPPORTUNITY

Growing Demand for Data Centers that Influence SMR Technology

In the modern era, data centers has become one of the active fields owing to the involvement of AI and other technologies. Moreover, data centers, AI, and other technologies are boosting the electricity demand in multiple countries. According to the International Energy Agency (IEA), they accounted for over 2% of global electricity consumption in 2022 and it could double by 2026. Hence, businesses are inclining toward renewable technology and working on SMR technologies to stabilize electricity consumption.

MARKET CHALLENGES

Higher Initial Costs to Challenge Market Growth

The market growth technically undergoes various processes that can fluctuate the cost of projects. On the ground level, the cost has shifted more than 100%, owing to several barriers, such as construction and technological advancement. Moreover, prices of materials, labor costs for a long period, electricity generation costs, and inflation over the projection period have changed, which influenced the cost of SMR installation. For instance, four SMRs are currently in operation globally—two in Russia, one in China, and one in Japan. Project costs for all four have been suggestively higher than originally estimated.

SMALL MODULAR REACTOR MARKET TRENDS

Focus on Nuclear Power Deployment Associated with SMR Technologies

Countries such as Russia, China, and Argentina are already working on nuclear technologies. This is owing to the growing demand for electricity generated by nuclear sources. Further, businesses are inclined toward nuclear power, due to the growing demand worldwide. The trail to advanced nuclear power positioning may well pass through major corporate end users such as tech and manufacturing companies. Hence, SMRs and other advanced nuclear reactors are well-suited for playing an important role in these businesses, delivering the reliable and flexible low-carbon energy needed to run smooth operations.

Investment Analysis and Opportunities

Industry Players to Initiate High Investments 

Many manufacturers as well as the investors are already increasing their investments in the small modular reactor. This is owing to the necessity of the efficient energy solution in the market.

For instance, On February 5^th, 2025, India to invest millions in the five small modular reactor that will be in operation from 2033. In addition, this is in line with the goals of achieving 100 GW nuclear power capacity by 2047. This can create new opportunities in the market.

IMPACT OF COVID-19

Launch of Industrial Shutdowns Negatively Impacted the Market Growth

The COVID-19 pandemic negatively impacted the global market and its components. This is due to disruptions in the global supply and demand. In addition, there was a pause in operations in industrial sectors, such as manufacturing and packaging, which led to the low production of related components and devices. The major factors which hampered the market growth were the inaccessibility of raw materials, the unavailability of workers, the slow supply chain, the closing of borders, and the import and export of goods.

SEGMENTATION ANALYSIS

By Module

Application of Multiple Modules at Single Nuclear Production Plants to Drive Market Growth

Based on module, the market is segmented into multi module and single module.

The multi module segment dominated the global small modular reactor market as the reactors are designed to be deployed in multiple units to meet the evolving energy demands and an upsurge in operational flexibility. They are also used in association with alternative energy sources such as renewables. They are used in nuclear production plants to generate energy.

The single module segment is the fastest-growing segment driven by the surging demand for energy in transportation and commercial areas. Moreover, it is also used in the grid technology, heating solutions, hydrogen production, and industrial processes for multiple applications.

By Power Output

101 to 200 MW Segment Dominates Backed by the Higher Energy Demand

Based on application, the market is segmented into Up to 100 MW, 101 to 200 MW, and 201 to 300 MW.

The 101 to 200 MW segment is considered the dominating segment, driven by the higher power generation annually. 101 to 200 MW reactors generally deliver higher outputs as they are heavily used in industrial applications.

The up to 100 MW reactors are used to deliver power in commercial sectors and buildings. The segment is one of the fastest growing segments owing to multiple applications such as desalination, heat generation, and others.

By Technology

Water Cooled Segment Dominates the Market Owing to Various Advantages

Based on technology, the market is segmented into water cooled and gas cooled SMRs.

The water cooled segment is the dominant technology for multiple reasons. They have an extensive operating temperature variety, high thermal dissipation efficiency, and are quiet in operation.

The gas cooled segment is the fastest-growing segment and many upcoming projects are deploying gas-cooling reactors owing to their small and compact design.

By Application

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Growing Product Application in the Industrial Sector to Boost the Market Expansion

Based on application, the market is segmented into power generation, industrial, desalination and others.

The industrial segment is the dominant segment in the small modular reactor market share owing to the heavy use of reactors in industrial applications such as heating, petrochemicals, steelwork, and others. Heating solution is one of the major sources holding the notable market share for applications of small modular reactors.

The power generation segment is the fastest-growing segment globally. This is due to the growing demand for energy consumption across multiple sectors. Moreover, focus towards the energy efficient solution is also influencing the small modular reactor market growth.

Desalination technologies is mostly used for removal of salt content from water and small modular reactors are used in desalination technology, hence contributing ample amount of share in Russia and China, driving the demand for SMRs.

SMALL MODULAR REACTOR MARKET REGIONAL OUTLOOK

The market has been studied geographically across the countries: Russia, China, Japan, and the rest of the world.

China

Rapid Growth in SMR Technology to Boost the Market Development

China is one of the leading countries in the development of small modular reactors and is expected to dominate over the upcoming years. Moreover, China's political determinations and state-backed tactics toward nuclear power are pouring into its leadership into SMR development. Currently, the country has a single project that delivers around 200 MW of output to multiple applications.

Russia

Demand from Energy Sector to Influence Market Growth

The Russia market is witnessing substantial growth owing to the strong demand for power generation and industrial processes. Currently, the country has 35 MW of twin reactors in operation that caters to applications in power generation and the industrial sectors. The country is planning for multiple uses of SMRs, such as emergency power sources, powering remote areas, and others.

Japan

Increase Use of Nuclear Power to Boost SMR Adoption in the Country

Japan depicts a high demand for SMRs owing to its plan to surge the use of nuclear power and reduce its reliance on fossil fuels. The country’s approach to reducing carbon emissions has fully influenced the SMR sector in recent years. For instance, Japan's new energy policy aims to upsurge nuclear power's share of the country's energy supply to 20% by 2040, up from 8.5% in 2023.

Rest of the World

Growing Demand for Nuclear Energy to Influence Market Growth

Globally, many countries are already developing new reactors for several applications, such as molten salts. Countries such as Australia, the U.K., the U.S., and Canada are already in line to deploy projects over the upcoming years. These projects are anticipated to install 35 MW to 300 MW of small modular reactors that will deliver power to industrial applications. U.S. is continuously trying to develop efficient technology to deliver energy efficient solutions for end-users. For instance, The U.S. is the world's major producer of nuclear energy, accounting for around 30% of the global nuclear electricity.

COMPETITIVE LANDSCAPE

KEY INDUSTRY PLAYERS

Focus On The Technological Developments to Boost Market Growth

The global market is highly fragmented, with key players and some medium-scale regional players delivering a wider focus on compressors. Manufacturers are increasingly focusing towards their technological advancements, helping countries regulate requirements and making it easier for them to boost the efficiency in the applications.

For instance, in January 2024, Electricite de France SA shared plans to abridge the design of its small modular nuclear reactors, embattled to swap coal-fired power plants. The small modular rector will be adopted in multiple industries owing to the technological requirements within the nuclear sector.

List of Key Small Modular Reactor Companies Profiled:

• NuScale Power (U.S.)


• ThorCon Power (U.S.)


• Terrestrial Energy (U.S.)


• ARC Nucleare (Canada)


• Xenergy (U.S.)


• Babcock International Group (U.K.)


• Kurion (India)


• Westinghouse Electric Company (U.S.)


• Assystem (France)


• RollsRoyce plc (U.K.)


• Oklo Inc. (U.S.)


• Holtec International (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• In January 2025, ANItA (Academic-industrial Nuclear Technology Initiative) nuclear project, in partnership with the Swedish Energy Agency, recognized SMR designs appropriate for electricity generation in Sweden and highlighted the need for further research.


• In November 2024, Google signed an agreement to design and develop a fleet of small modular reactors to power Google's AI data centers. The company plans to deploy the first reactor in 2030 to deliver power.


• In October 2024, Amazon signed agreements for innovative nuclear energy projects involving a new small modular reactor for innovative nuclear energy projects to address growing energy strains. Amazon has signed an agreement with Energy Northwest a consortium of State public utilities, which will enable the development of advanced SMRs.   


• In October 2024, NucNet introduced a global database for subscribers of advanced nuclear reactors and small modular reactors (SMRs) that are under progress and possibly moving toward deployment.


• In September 2024, India shared plans to develop around 50 nuclear reactors in the coming years to expand its small modular reactor sector. The government will support the plans to enhance economic and industrial requirements.

REPORT COVERAGE

The report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product/service process, competitive landscape, and leading source of the reactors. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several factors that have contributed to the growth of the market in recent years.

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REPORT SCOPE & SEGMENTATION