Small Modular Reactor Market Size 2025-2029
The small modular reactor market size is forecast to increase by USD 1.82 billion, at a CAGR of 5.2% between 2024 and 2029.
- The Small Modular Reactor (SMR) market is experiencing significant growth, driven by increasing investments in its development. Advancements in SMR technology offer numerous benefits, including improved safety features, scalability, and efficiency compared to traditional nuclear reactors. However, the high initial cost of SMRs poses a substantial challenge for market penetration. Despite this obstacle, the potential for SMRs to address energy security concerns, reduce greenhouse gas emissions, and provide reliable baseload power makes them an attractive option for energy companies and utilities.
- To capitalize on these opportunities, industry players must focus on cost reduction strategies, collaborative partnerships, and regulatory compliance. Effective navigation of the challenges and leveraging the advantages of SMRs will be crucial for companies seeking to establish a competitive edge in the evolving nuclear energy landscape.
What will be the Size of the Small Modular Reactor Market during the forecast period?
Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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The small modular reactor (SMR) market continues to evolve, shaped by dynamic market conditions and diverse applications across various sectors. Remote handling technologies enable efficient maintenance, while passive safety systems ensure reliable operation. Turbine generators convert thermal energy into electricity, and factory fabrication streamlines construction. Reactor physics optimizes power output, and containment vessels protect against radiation. Thorium reactors offer potential for load following and uranium enrichment, while on-site assembly reduces transportation costs. Modular design allows for flexibility in power generation, from baseload to peak load, and grid integration facilitates electricity distribution. Advanced reactor designs, such as Generation IV reactors, enhance thermal efficiency and safety.
Hydrogen production and district heating applications expand the market's reach. Regulatory compliance, seismic design, and quality assurance are crucial for ensuring energy security and public acceptance. Nuclear engineering innovations include reactor coolant pumps, heat exchangers, and non-destructive testing. Fuel cycle management, spent fuel management, and licensing and regulation shape the market's future. Material science advancements, welding techniques, and active safety systems contribute to ongoing improvements. Control rods and steam generators maintain reactor stability, and advanced reactor designs offer potential for process heat applications. Nuclear proliferation concerns remain a critical consideration, and nuclear fuel supply chains continue to evolve.
How is this Small Modular Reactor Industry segmented?
The small modular reactor industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.
- Capacity
- 300 MW
- 300-500 MW
- Application
- Utility
- Industrial
- Geography
- North America
- US
- Canada
- Europe
- Finland
- France
- Russia
- UK
- APAC
- China
- India
- Japan
- South Korea
- Rest of World (ROW)
- North America
By Capacity Insights
The 300 MW segment is estimated to witness significant growth during the forecast period.
The small modular reactor (SMR) market is experiencing growth, particularly in the 300 MW capacity segment. This segment's appeal lies in its optimal balance of power output and operational efficiency. Advanced reactor technologies and favorable government policies are driving this trend. For instance, Holtec International unveiled plans to construct two SMR-300 units at Michigan's Palisades Nuclear Generating Station, with a projected completion date in 2030. The SMR-300, a pressurized light-water reactor, utilizes low-enriched uranium fuel and offers a reliable and efficient nuclear power source. This project has secured a conditional commitment of up to USD1 billion in funding. Seismic design, regulatory compliance, reactor pressure vessels, thermal efficiency, reactor coolant pumps, non-destructive testing, energy security, nuclear waste disposal, and operating costs are integral considerations in the SMR market.
Nuclear engineering, heat exchangers, generation IV reactors, grid integration, district heating, nuclear proliferation, nuclear fuel, spent fuel management, power output, quality assurance, remote handling, passive safety systems, turbine generators, factory fabrication, reactor physics, containment vessels, radiation shielding, thorium reactors, load following, uranium enrichment, on-site assembly, modular design, peak load, steam generators, advanced reactor designs, baseload power, licensing and regulation, process heat, quality control, material science, control rods, public acceptance, welding techniques, active safety systems, and fuel cycle are all crucial aspects shaping the market's evolution.
The 300 MW segment was valued at USD 3.69 billion in 2019 and showed a gradual increase during the forecast period.
Regional Analysis
North America is estimated to contribute 45% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The small modular reactor (SMR) market in North America is experiencing notable growth due to technological advancements and substantial investments from public and private sectors. In Canada, SNC-Lavalin is leading the development of the country's first SMR, the GEH BWRX-300, in collaboration with Candu Energy Inc. This project, announced in January 2023, aims for completion by the end of the decade. The Darlington SMR, set to be the first new nuclear reactor in Ontario in over 30 years, will generate 300 MW of electricity, providing power for around 300,000 homes. This initiative underscores Canada's dedication to clean, dependable energy sources.
Advancements in nuclear technology, including seismic design, regulatory compliance, and reactor physics, are crucial to the success of SMRs. Nuclear engineering innovations, such as reactor pressure vessels, thermal efficiency improvements, and reactor coolant pumps, contribute to the efficiency and safety of these reactors. Non-destructive testing (NDT) plays a vital role in ensuring the integrity of components, while quality assurance (QA) and quality control (QC) practices maintain high standards. The integration of SMRs into electricity grids enhances energy security and reliability. SMRs' smaller size and modular design facilitate grid integration, district heating, and load following capabilities. Advanced reactor designs, such as Generation IV reactors and passive safety systems, offer enhanced thermal efficiency and safety features.
Nuclear fuel management, including spent fuel management and uranium enrichment, is a critical aspect of the SMR market. On-site assembly and factory fabrication reduce transportation costs and improve safety. Hydrogen production from SMRs offers potential applications in industrial processes and energy storage. Despite challenges, such as public acceptance, licensing and regulation, and nuclear proliferation concerns, the SMR market continues to evolve, driven by the potential for baseload power and process heat applications. Material science advancements and welding techniques contribute to the development of more robust and efficient reactors. Active safety systems and fuel cycle management are essential components of the SMR market's future.
Market Dynamics
Our researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Small modular reactors (SMRs) represent a significant shift in nuclear energy production, offering advanced safety features, cost-effectiveness, and scalability. These innovative reactors utilize passive safety systems, modular design, and factory-built components, making them an attractive option for both new build and nuclear fleet expansion. SMRs are compact, with power outputs ranging from 10 to 300 megawatts, enabling them to serve diverse energy needs. They also offer flexible deployment options, from remote locations to microgrids and industrial sites. Moreover, SMRs boast lower capital costs, shorter construction timelines, and reduced waste generation, making them a sustainable and economically viable choice. With ongoing research and development, SMRs are poised to revolutionize the nuclear energy landscape, offering clean, reliable, and efficient power solutions. The market is expected to grow robustly, driven by increasing energy demand, regulatory support, and technological advancements. This market encompasses various stakeholders, including manufacturers, utilities, regulators, and investors, all working towards a future powered by SMRs.
What are the key market drivers leading to the rise in the adoption of Small Modular Reactor Industry?
- The significant investments being made in Small Modular Reactor (SMR) development serve as the primary catalyst for market growth.
- The Small Modular Reactor (SMR) market is experiencing notable growth due to substantial investments from major corporations, underlining the technology's potential as a viable solution for future electricity generation. In October 2024, Amazon made headlines by signing three agreements to support SMR development and deployment in the US. One agreement involves a partnership with Energy Northwest, a consortium of public utilities, to deploy four X-energy reactors, generating approximately 320 megawatts of electricity starting in the early 2030s. Amazon also made an equity investment in X-energy as part of a USD 500 million fundraising round. Seismic design, regulatory compliance, thermal efficiency, and energy storage are crucial factors driving the market's growth.
- Non-destructive testing, reactor pressure vessel, and reactor coolant pump are essential components ensuring reactor safety and reliability. Energy security and nuclear waste disposal are significant concerns, with ongoing research focusing on advanced technologies to address these challenges. Operating costs remain a critical factor, with ongoing efforts to optimize designs and streamline manufacturing processes. The SMR market's dynamics are shaped by these factors, making it an exciting and evolving sector in the energy industry.
What are the market trends shaping the Small Modular Reactor Industry?
- Advances in Small Modular Reactor (SMR) technology represent a significant market trend in the nuclear energy sector. This technology is poised to revolutionize the industry through increased efficiency, safety, and cost-effectiveness.
- The global small modular reactor (SMR) market is experiencing notable progress due to the rising demand for clean and sustainable energy solutions. One significant development in this sector is the introduction of the AP300 by Westinghouse, which was announced in May 2023. This new SMR, a compact version of the AP1000 reactor, is expected to be commercially available by 2027. The AP300 has a power output of approximately 300 megawatts, capable of supplying electricity to around 300,000 homes. This innovation underscores the broader trend in the SMR market towards the development of more efficient and accessible nuclear power solutions.
- Nuclear engineering advancements, such as hydrogen production and grid integration, are also driving growth in the SMR market. Generation IV reactors, which offer improved safety features and increased efficiency, are gaining popularity. Additionally, district heating applications and spent fuel management solutions are increasing the market's appeal. Quality assurance (QA) measures are being emphasized to ensure safety and reliability, while nuclear fuel advancements are reducing capital costs. Despite concerns over nuclear proliferation, the market's potential benefits outweigh the risks. Overall, the SMR market is poised for significant growth as the world transitions towards cleaner energy sources.
What challenges does the Small Modular Reactor Industry face during its growth?
- The high initial cost represents a significant challenge that impedes the growth of the industry.
- The global small modular reactor (SMR) market is characterized by substantial initial costs, with setup expenses ranging from USD 1,000 to USD 2,000 per kilowatt (kW) of capacity. For a 10-megawatt (MW) SMR, the total setup cost amounts to between USD10 million and USD 20 million. Design and manufacturing complexity is a primary contributor to these high costs. The intricate nature of SMRs necessitates specialized components and advanced manufacturing processes, which significantly increase financial burdens. Passive safety systems, remote handling, turbine generators, factory fabrication, reactor physics, containment vessels, radiation shielding, thorium reactors, and load following are essential features of SMRs.
- Despite these costs, the modular design offers benefits such as on-site assembly and factory fabrication, which can streamline construction and reduce overall project timelines.
Exclusive Customer Landscape
The small modular reactor market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the small modular reactor market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Key Companies & Market Insights
Companies are implementing various strategies, such as strategic alliances, small modular reactor market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.
AtkinsRealis Group Inc - Small Modular Reactors (SMRs) are the innovative solution for generating safe, scalable, and carbon-free nuclear electricity.
The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
- AtkinsRealis Group Inc
- Fluor Corp.
- General Atomics
- GE Vernova Inc.
- Holtec International
- KAIROS POWER LLC
- MoltexFLEX Ltd.
- Rolls Royce Holdings Plc
- Seaborg Technologies ApS
- State Atomic Energy Corp. Rosatom
- TERRAPOWER LLC
- Terrestrial Energy Inc.
- ThorCon
- ULTRA SAFE NUCLEAR
- Westinghouse Electric Co. LLC
- X Energy LLC
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Recent Development and News in Small Modular Reactor Market
- In January 2024, TerraPower, a nuclear technology company backed by Bill Gates, announced a strategic partnership with GE Hitachi Nuclear Energy to develop and commercialize their small modular reactor (SMR) design, the Natrium reactor (Reuters, 2024). This collaboration combines TerraPower's innovative reactor design with GE Hitachi's manufacturing and regulatory expertise.
- In March 2024, Holtec International, a leading nuclear technology company, secured a contract worth USD 1.6 billion from the U.S. Department of Energy to build an SMR manufacturing facility in New Mexico (Bloomberg, 2024). This initiative aims to create a domestic supply chain for SMRs and reduce reliance on foreign imports.
- In April 2025, Oklo, a California-based advanced nuclear technology company, received a significant investment of USD 100 million from Breakthrough Energy Ventures, a climate-focused investment fund backed by Bill Gates (Wall Street Journal, 2025). Oklo plans to deploy its 1.5 MWe Elysium SMRs in the U.S. and Canada.
- In May 2025, the Nuclear Regulatory Commission (NRC) approved the design certification application for NuScale Power's SMR, making it the first U.S. Utility-scale SMR to receive such approval (NRC, 2025). This significant milestone paves the way for the commercial deployment of NuScale's SMRs in the U.S. and other markets.
Research Analyst Overview
- The small modular reactor (SMR) market is experiencing significant activity and trends, shaping the future of nuclear energy. Stakeholder engagement and emergency response planning are crucial elements in SMR development, ensuring community acceptance and safety. Corrosion resistance and advanced materials are essential for extending plant life and reducing maintenance costs. Fuel enrichment and fuel fabrication technologies are advancing, offering improved efficiency and cost-effectiveness. Nuclear insurance, reactor simulation, and control system software are essential for managing risk and ensuring reliable operation. International collaboration and economic modeling are driving innovation in waste reprocessing technologies and spent fuel storage solutions. Reactor vessel materials, thermal hydraulics, and radiation hardening are key focus areas for enhancing reactor safety and performance.
- Training programs, nuclear security, and supply chain management are essential for ensuring a skilled workforce and reliable supply of components. Reactor monitoring systems, fuel management strategies, and digital twins are transforming reactor operations, enabling real-time data analysis and predictive maintenance. Plant life extension and decommissioning strategies are critical for maximizing the value of SMR assets.
Dive into Technavio's robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Small Modular Reactor Market insights. See full methodology.
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Market Scope |
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Report Coverage |
Details |
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Page number |
193 |
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Base year |
2024 |
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Historic period |
2019-2023 |
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Forecast period |
2025-2029 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.2% |
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Market growth 2025-2029 |
USD 1818.1 million |
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Market structure |
Fragmented |
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YoY growth 2024-2025(%) |
3.9 |
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Key countries |
US, China, UK, Russia, Canada, South Korea, Japan, France, India, and Finland |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
What are the Key Data Covered in this Small Modular Reactor Market Research and Growth Report?
- CAGR of the Small Modular Reactor industry during the forecast period
- Detailed information on factors that will drive the growth and forecasting between 2025 and 2029
- Precise estimation of the size of the market and its contribution of the industry in focus to the parent market
- Accurate predictions about upcoming growth and trends and changes in consumer behaviour
- Growth of the market across North America, Europe, APAC, Middle East and Africa, and South America
- Thorough analysis of the market's competitive landscape and detailed information about companies
- Comprehensive analysis of factors that will challenge the small modular reactor market growth of industry companies
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