Europe Nuclear Decommissioning Services Market Size 2024-2028

The Europe Nuclear Decommissioning Services Market size is estimated to grow by USD 1.84 billion at a CAGR of 5.7% between 2023 and 2028. The market is experiencing significant growth due to various influencing factors. Firstly, the decommissioning of aging nuclear reactors is gaining momentum, driven by safety concerns and the end of their operational life. Secondly, governments across Europe are increasingly prioritizing renewable energy sources, leading to a decline in the use of nuclear power. Lastly, regulatory changes following nuclear reactor accidents have imposed stricter safety standards, necessitating substantial investments in decommissioning services. These factors collectively contribute to the expansion of the European Nuclear Decommissioning Services Market. Our report examines historic data from 2018 to 2022, besides analyzing the current market scenario.

What will be the size of the Market During the Forecast Period?

Europe Nuclear Decommissioning Services Market Forecast 2024-2028

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Market Dynamics

The market is witnessing significant growth as nuclear installations reach the end of their reactor lifespan. With initial planning and assessment being crucial stages, the market addresses the complexities of managing nuclear fuel and radioactive materials. Decontamination processes are essential for ensuring safety post-operation, especially in the aftermath of nuclear accidents. Various decommissioning methods, including immediate dismantling and deferred dismantling, are employed, considering factors such as the type of reactors, like water-cooled reactors and gas-cooled reactors. Amid growing concerns over greenhouse gases and ozone depletion, the market also explores alternative sources of energy and renewable sources to mitigate risks associated with nuclear mishaps and address environmental sustainability. 

Key Market Driver- Growing government inclination toward renewable energy

With the growing concerns about public safety and the unavailability of sustainable nuclear waste disposal solutions, governments around the globe have increased their efforts to address the concerns surrounding the matter. Governments are offering subsidies and schemes such as feed-in tariffs (FITs) to encourage the use of renewable energy sources among consumers. These regulations and initiatives have emphasized the need for extended dependency on the use of renewable energy sources for electricity generation in order to bridge the supply gap before phasing out nuclear power plants.

As a result, the government's inclination to achieve higher capacity through the use of renewable energy will lead to the shutdown of nuclear power plants, thereby driving the growth of the nuclear decommissioning services market in Europe during the forecast period.

Significant Market Trends- Growing numbers of old nuclear reactors

The European countries are highly dependent on nuclear energy for electricity generation. However, most of these nuclear reactors are well beyond their prime and have an average age of over 30 years. Generally, the average life of old nuclear reactors is expected to be around 30 years, and 40-60 years for recent reactors, which denotes that most of the operational nuclear reactors have reached their life cycle and need to be shut down for decommissioning. As nuclear plants reach their end-of-life period, maintenance and major equipment activities increase, which leads to the high cost of maintenance and safety risks.

For instance, with exposure to radiation, high temperatures, and pressure, the components of nuclear plants get affected and can become more brittle and susceptible to cracking, thus leading to a less secure operating environment. This scenario has prompted governments to call time on the aging old nuclear reactors which resulted in Europe - nuclear decommissioning services market expansion. Thus, the growing number of old nuclear reactors will boost the growth of the nuclear decommissioning services market in Europe during the forecast period.

Major Market Challenge- High costs associated with decommissioning

The process of decommissioning is mainly based on government regulations. The primary factors that influence the cost of decommissioning include the reactor type, its size, and the number of reactors. According to the World Nuclear Association, the cost of decommissioning a nuclear plant is estimated to be 9%-15% of the initial capital investment made in constructing the plant. The EU provides support to the member countries to bear the high costs involved in decommissioning these plants. For instance, the EU covered a cost of USD 3.33 billion between 1999 and 2020 under the scheme of member states' co-financing EU programs to support the decommissioning of nuclear power plants in Bulgaria, Lithuania, and Slovakia.

In addition, the gap between decommissioning costs and financing for these countries continues to increase post-EU compensation. The cost incurred for decommissioning cannot be cross-referenced across countries as every country may have its own regulations, legal requirements, and responsibilities which negatively affect the Europe - nuclear decommissioning services market growth. Thus, the huge costs associated with nuclear plant decommissioning may have a negative impact on the growth of the nuclear decommissioning services market in Europe during the forecast period.

Market Segmentation 

By Application 

The market share growth of the research reactors segment will be significant during the forecast period. In nuclear power reactors, energy is produced by splitting the atoms of elements such as Uranium-235 and Plutonium-239. The energy thus released is used as heat to generate steam for producing electricity. 

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The research reactors segment was valued at USD 3.15 billion in 2018. The largest market for nuclear decommissioning services market by power reactor will be accumulated from Germany as the country is closing down eight of its high-capacity power reactors. The European countries are highly dependent on these power reactors as they contribute a significant amount of capacity to the overall energy mix of the European nations. After the life cycle of a power plant is over, operators give contracts to vendors offering decommissioning services. The decommissioning of power reactors continues for decades and requires a huge amount of capital, the cost of which is borne both by operators and the local government. However, the increasing funds for decommissioning of nuclear reactors in countries such as Germany will drive the growth of the segment and the market in focus during the forecast period.

By Type 

Based on type, the market has been segmented into PWR, BWR, and others. The PWR segment will account for the largest share of this segment. PWRs have two separate circulation systems, one for the turbine and the other for the reactor, also known as the primary and secondary coolant circuits. The primary coolant circuit is used to cool the reactor core using the circulation of coolants such as water. In the reactor pressure vessel, the energy generated by fission is transferred to the water by fuel rods. In the secondary coolant circuit, the pressure is comparatively low, due to which the water evaporates and is routed through the turbines toward the generator. The generator creates electricity using the kinetic energy of the steam. Furthermore, five PWRs, both in 2021 and 2022, have decommissioned in Germany, Belgium, Spain, and Switzerland. There is a possibility of these reactors getting an extension on their licenses due to a lack of supplemental power to meet the demand for electricity, which creates new opportunities for the Europe - nuclear decommissioning services market. Also, it is anticipated that more decommissioning services for nuclear plants will take place in various European countries such as the UK and Italy. This, in turn, will positively impact the growth of the segment and the market in focus during the forecast period.

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

AECOM- The company offers nuclear decommissioning services to Japanese government organizations and commercial power utilities that plan to decommission reactors and nuclear facilities.

We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:

AECOM, Ansaldo Energia Spa, Babcock International Group Plc, Bechtel Corp., Electricite de France SA, ENRESA, GD Energy Services Ltd., GE Hitachi Energy, Jacobs Solutions Inc., Jadrova a vyradovacia spolocnost AS, Orano, Qualcomm Inc., SNC Lavalin Group Inc., Studsvik AB, Veolia Environnement SA, and Westinghouse Electric Co. LLC. 

Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.  

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.

•  Application Outlook 
  • Research reactors
  • Power reactors

• Type Outlook 
  • PWR
  • BWR
  • Others

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Market Analyst Overview

The market is vital for addressing the challenges associated with radioactive waste and ensuring safe disposal of nuclear facilities. This involves physical dismantling and demolition of structures, requiring the expertise of engineers, scientists, and technicians in nuclear physics and radiation protection. Compliance with regulatory guidelines and the adoption of advanced technologies are crucial in this post-nuclear era to manage environmental risks effectively. As aging nuclear power plants near the end of their operational lifespans, specialized services are required to meet regulatory standards and ensure nuclear safety. The focus on cleaner energy sources underscores the need for site restoration and waste management in older nuclear facilities, aligning with the objectives of the International Atomic Energy Agency (IAEA) for environmental protection and public acceptance.

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What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2024 and 2028
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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