Europe Nuclear Reactor Decommissioning Market - Growth, Trends, and Forecasts (2023-2028)

The Europe nuclear reactor decommissioning market is projected to register a CAGR of over 10% during the forecast period.

The market was moderately impacted by COVID-19 in 2020. Presently, the market has reached pre-pandemic levels.

Key Highlights

• Over the medium term, the increasing number of nuclear reactors reaching operational retirement plants is expected to drive the market's growth.
• On the flip side, the lifetime extension of nuclear power plants with favorable government policies is expected to hinder the market growth.
• Nuclear phase-out policies in several countries, such as Germany and the United Kingdom, are expected to create several opportunities for foreign and domestic players to provide the necessary expertise that the countries need to develop their decommissioning market.
• France, one of the major decommissioning hotspots, is expected to be the fastest-growing nuclear power reactor decommissioning market.

Europe Nuclear Decommissioning Market Trends

Research Reactors to Dominate the Market

• The decommissioning of research reactors is in a phase where it's growing due to the reduced requirement of research reactors. The shifting focus from nuclear power has led to a reduction in research activities associated with nuclear technology.
• As of May 2022, there were 172 operational nuclear reactors in Europe. France has by far the most operational reactors, at 56 units. In contrast, the United Kingdom has the most significant number of permanently shut-down reactors, at 34 units.
• The decommissioning activities of several research reactors have been initiated because of the higher costs associated with regulatory compliances over time. Moreover, sometimes the cost of maintaining research reactors can be more than the decommissioning cost, and hence, the market for such reactors is likely to grow during the forecast period.
• Further, in early 2020, French multinational electric utility company ENGIE expanded its partnership on research & development of nuclear technologies with the French Alternative Energies and Atomic Energy Commission, CEA. The two partners are expected to focus on several aspects of nuclear energy, including decommissioning, dismantling, and decontamination of nuclear installations, control of radiation protection, and management of radioactive releases and waste.
• Moreover, the policy to curtail nuclear power generation in European countries will decimate the requirement for research reactors, which is expected to drive the decommissioning market in the near future.

France to Witness Significant Growth

• France is heavily dependent on nuclear power for its electricity generation, and the country has about 58 nuclear power reactors whose infrastructure’s overall average age is 30 years.
• In 2021, France had 56 active nuclear reactors. The number of nuclear reactors in France peaked from 2000 to 2005, with 59 nuclear reactors actively generating electricity.
• The country aims to diversify its energy mix by lowering nuclear energy generation from 75% to 50% of the total electricity generation by 2025. As a result, the country's nuclear decommissioning market is expected to grow.
• Moreover, the French government is aiming at nuclear decommissioning in its Multiannual Energy Programme, which aims to reduce the contribution of nuclear power in the French energy mix by 25% by 2035. As a part of the program, 14 power reactors will be shut down by 2035.
• In February 2020, the country began gradually shutting its aging Fessenheim plant. The removal of the fuel is expected to be completed by the summer of 2023, and the complete decommissioning is expected to be completed by 2040 at the earliest. The move fits into the government's broader energy strategy to reduce French dependence on nuclear energy from supplying 75% of its electricity to about 50% by 2035.
• Furthermore, in September 2021, Electricité de France's (EDF) Decommissioning and Waste Management Directorate and International Atomic Energy Agency agreed to work together to help countries to strengthen technology and human resources development for decommissioning nuclear power reactors.
• Decommissioning is projected to become an increasingly important part of the nuclear sector activity in the coming decades as many reactors are expected to reach their technical lifetime very soon, increasing the demand for decommissioning and dismantling services.

Europe Nuclear Decommissioning Market Competitor Analysis

The European nuclear reactor decommissioning market is moderately consolidated in nature. Some of the major players in the market (in no particular order) include Cavendish Nuclear Ltd, Fluor Corporation, GE Hitachi Nuclear Services, James Fisher and Sons PLC, and Electricite de France SA.

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• The market estimate (ME) sheet in Excel format
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