Small Modular Reactor Market Opportunities and Strategies to 2033

This report describes and explains the small modular reactor market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global small modular reactor market reached a value of nearly $266.68 million in 2023. The market is expected to grow from $266.68 million in 2023 to $2.3 billion in 2028 at a rate of 53.88%. The market is then expected to grow at a CAGR of 36.02% from 2028 and reach $10.71 billion in 2033.

Growth in the historic period resulted from the strong economic growth in emerging markets, rise in energy security crisis, stringent environmental regulations and increasing costs of fossil fuels. Factors that negatively affected growth in the historic period include limited availability of skilled labor and expertise and concerns over nuclear waste management and disposal.

Going forward, the increasing urbanization, rise in demand for electricity, decommissioning of old reactors, favorable government policies and incentives, increasing adoption of renewable energy and significant investments in nuclear infrastructure will drive the market. Factors that could hinder the growth of the small modular reactor market in the future include significant upfront investment and economic uncertainties or downturns.

The small modular reactor market is segmented by reactor type into pressurized water reactor (PWR), boiling water reactor (BWR), high-temperature gas-cooled reactor (HTGR) and other reactor types. The high-temperature gas-cooled reactor (HTGR) market was the largest segment of the small modular reactor market segmented by reactor type, accounting for 76.55% or $204.15 million of the total in 2023. Going forward, the pressurized water reactor (PWR) segment is expected to be the fastest growing segment in the small modular reactor market segmented by reactor type, at a CAGR of 77.21% during 2023-2028.

The small modular reactor market is segmented by power rating into up to 100 MW, 101 to 200 MW and 201 to 300 MW. The 201 to 300 MW market was the largest segment of the small modular reactor market segmented by power rating, accounting for 76.55% or $204.15 million of the total in 2023. Going forward, the up to 100 MW segment is expected to be the fastest growing segment in the small modular reactor market segmented by power rating, at a CAGR of 52.77% during 2023-2028.

The small modular reactor market is segmented by application into power generation, heating and other applications. The power generation market was the largest segment of the small modular reactor market segmented by application, accounting for 77.64% or $207.04 million of the total in 2023. Going forward, the heating segment is expected to be the fastest growing segment in the small modular reactor market segmented by application, at a CAGR of 62.07% during 2023-2028.

The small modular reactor market is segmented by deployment into single module power plant and multi module power plant. The multi module power plant market was the largest segment of the small modular reactor market segmented by deployment, accounting for 76.55% or $204.15 million of the total in 2023. Going forward, the single module power plant segment is expected to be the fastest growing segment in the small modular reactor market segmented by deployment, at a CAGR of 101.32% during 2023-2028.

Asia-Pacific was the largest region in the small modular reactor market, accounting for 76.55% or $204.15 million of the total in 2023. It was followed by Eastern Europe, North America and then the other regions. Going forward, the fastest-growing regions in the small modular reactor market will be Eastern Europe and Asia-Pacific where, growth will be at CAGRs of 76.87% and 41.58%, respectively.

The global small modular reactor market has limited players operating in the market. The top two competitors in the market made up 100% of the total market in 2023. China National Nuclear Corporation was the largest competitor with a 76.6% share of the market and Rosatom State Nuclear Energy Corporation (Rosatom) with 23.4%.

The top opportunities in the small modular reactor market segmented by reactor type will arise in the pressurized water reactor (PWR) segment, which will gain $1.03 billion of global annual sales by 2028. The top opportunities in the small modular reactor market segmented by power rating will arise in the 201 to 300 MW segment, which will gain $1.21 billion of global annual sales by 2028. The top opportunities in the small modular reactor market segmented by deployment will arise in the single module power plant segment, which will gain $2.0 billion of global annual sales by 2028. The top opportunities in the small modular reactor market segmented by application will arise in the power generation segment, which will gain $1.47 billion of global annual sales by 2028. The small modular reactor market size will gain the most in Russia at $1.01 billion.

Market-trend-based strategies for the small modular reactor market include introduction of small modular reactors with enhanced performance and safety, advancements in small modular reactor core design and manufacturing for enhanced efficiency, strategic partnerships and collaborations among major players and integration of small modular reactors into hyperscale data centers and sustainable energy projects.

Player-adopted strategies in the small modular reactor market include focus on enhancing operational capabilities through strategic partnerships.

To take advantage of the opportunities, the analyst recommends the small modular reactor companies to focus on leveraging advanced SMR technology for market growth, focus on advancements in SMR core design for enhanced efficiency, focus on integrating SMRs into data centers and sustainable energy projects, focus on high temperature gas-cooled reactor (HTGR) market segment, focus on 201 to 300 mw market segment, focus on multi-module power plant market segment, expand in emerging markets, focus on strategic partnerships to enhance SMR development, focus on developing competitive pricing strategies for SMRs, focus on building strong brand awareness for SMRs, continue to use B2B promotions and focus on targeting power generation and heating end-users.