The global market for steam generators for nuclear power is expected to have an aggregate market value of $10.68bn during the period 2019-2026, as compared to $9.54bn during the period 2011-2018, according to GlobalData. The company’s latest report Steam Generators for Nuclear Power, Update 2019 – Global Market Size, Competitive Landscape and Key Country Analysis to 2026 reveals that the growing demand for electricity, emission concerns, aim to reduce fossil fuels import, and the steady nature of power generation could bolster the nuclear power market. Though renewable energy sources such as wind and solar PV are gaining prominence across the globe, their intermittent nature and uncertainty regarding laws and regulations are some of the hindrances to the proliferation of renewables. This in turn would prove beneficial for nuclear power and its related equipment markets, as the role of nuclear increases to meet the global power demand.

The report also reveals that government led initiatives to enhance energy security, provide for increasing power demand and reluctance in expanding fossil fuel energy generation sources are expected to drive the steam generators for nuclear power market. Moreover, increase in the safety upgradation of nuclear reactors post Fukushima Daiichi nuclear disaster is also one of the prime factors for the growth in the shipment of steam generators used for refurbishments.

Nuclear power remains a vital source of electricity in a number of countries, although various nations have proposed to phase-out nuclear power in the near future. Low emissions and ability to generate electricity at a steady rate, along with the need to retain a secure power source to mitigate the growing demand of power in the long run will boost the nuclear power sector, consequently driving the steam generators market. However, the development of nuclear industry currently faces various concerns such as sourcing of funds, processing of nuclear waste, aging nuclear facilities and prevalence of anti-nuclear sentiments across the globe.

Steam generators for nuclear power – aggregate market value by region

Source: GlobalData, 2019

GlobalData’s report finds that the global market is expected to grow in the forecast period, owing to the inclusion of nuclear energy in the development plans of various emerging economies. Asia-Pacific is expected to dominate the steam generators for nuclear power market in the forecast period (2019-26) with an aggregate market size of $4.8bn over the forecast period. Although second to APAC, Europe is likely to be the fastest growing market, with the market value expected to grow at a CAGR of 11.4%, supported by Russia and the UK.

China is set to lead the steam generators for nuclear power market in the forecast period. The country focused mainly on new installations for upcoming nuclear projects and this trend is expected to continue in the forecast period. In the 13th FYP, the Chinese government proposed constructing additional nuclear power projects in the upcoming years. Furthermore, the plan mandated strict adherence to nuclear safety laws and regulations while installing steam generators and other associated equipment.

Russia is the expected to dominate the European market in the forecast period. Though Russia was the first country to generate electricity from nuclear power plant on commercial basis; its commissioning rate of nuclear reactors declined in the country between 1986 and 2000 owing to the Chernobyl nuclear disaster. Rosatom State Nuclear Energy Corporation (ROSATOM) is one of the largest companies in Russia, operating in the nuclear power. The latest version of ROSATOM’s plan for long term nuclear energy development has provided significant thrust to the steam generators market in the forecast period.

In Americas, the US is expected to dominate the steam generators for nuclear power market. The country benefits from its large private sector participation for generating nuclear power. Although the US is focusing on nuclear energy development for long term energy security, significant levels of renewable energy installations has hindered the growth of nuclear power in recent times. In addition, the low cost of natural gas in the US and plateauing demand for electricity pose significant challenges to nuclear power deployment of scale.

Apart from the major nations, various emerging economies have also begun developing nuclear energy. Electricity generation from nuclear energy sources in these countries would help in reducing its reliance on fossil fuel and attain energy security. For example, UAE has proceeded with plans to set up its own ambitious nuclear energy program. The country also accepted $20bn bid from a South Korean association to build four commercial nuclear reactors with a total capacity of 5.6 GW by 2020. Pakistan, on the other hand, lacks the required technology for upgrading its nuclear energy sector. Thus, the country is involved with China in order to upgrade and build new nuclear reactors in the country. Electricity generation from nuclear sources would help in decreasing the excessive reliance of the country on thermal power sources. Thus, inclusion of nuclear energy for power generation in emerging nations would help in improving the market for steam generators for nuclear power in the forecast period.