Nuclear Power Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented, By Applications (Energy, Defense, Others), By Reactor Type (Pressurized Heavy Water Reactor, Boiling Water Reactor, High-temperature Gas-cooled Reactor, Liquid Metal Fast Breeder Reactor, Other Reactor Types), By Region, By Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 35.54 Billion
CAGR (2026-2031)	6.28%
Fastest Growing Segment	Defense
Largest Market	North America
Market Size (2031)	USD 51.22 Billion

Market Overview

The Global Nuclear Power Market is expected to grow from USD 35.54 Billion in 2025 to USD 51.22 Billion by 2031 at a 6.28% CAGR. The Global Nuclear Power Market encompasses the generation of electricity through nuclear fission, a process wherein atomic nuclei are split to release thermal energy that drives steam turbines. This market is primarily propelled by the dual imperatives of enhancing national energy security and adhering to stringent decarbonization mandates, which compel nations to diversify their energy mix away from volatile fossil fuel imports. These fundamental drivers are distinct from transient market trends, as they represent structural shifts in energy policy aimed at achieving net-zero emissions targets. According to the World Nuclear Association, in 2025, it was reported that nuclear reactors worldwide generated 2667 TWh of electricity in 2024, representing the highest annual production on record.

Despite this robust operational performance, the market faces a significant impediment in the form of substantial initial capital requirements and extended construction timelines. Developing new nuclear infrastructure involves complex regulatory compliance and immense financial outlays that often deter private investment and delay project completion. This economic barrier limits the pace at which new capacity can be deployed, potentially slowing the broader adoption of nuclear energy even amidst favorable policy environments. Consequently, mitigating these financial risks remains a critical hurdle for stakeholders aiming to expand the global nuclear footprint.

Key Market Drivers

The implementation of stringent decarbonization mandates is acting as a primary catalyst for the Global Nuclear Power Market. Governments worldwide are recognizing that intermittent renewable energy sources alone are insufficient to meet ambitious climate goals, necessitating the integration of firm nuclear baseload. This policy-driven shift is quantifying the environmental value of the sector, ensuring its continued operation and expansion as a clean energy cornerstone. According to the World Nuclear Association, September 2025, in the 'World Nuclear Performance Report 2025', nuclear reactors helped avoid 2.1 billion tonnes of carbon dioxide emissions in 2024, demonstrating their critical role in global carbon mitigation efforts.

Furthermore, the advancement of Small Modular Reactor (SMR) technology is reshaping the market by addressing traditional barriers such as high capital costs and long construction timelines. These advanced reactors offer scalable, flexible solutions for diverse applications, broadening the potential customer base beyond utility-scale operators. This technological evolution is expected to capture a significant share of future market growth. According to the International Atomic Energy Agency, September 2025, in the 'Energy, Electricity and Nuclear Power Estimates for the Period up to 2050' report, small modular reactors are projected to account for 24% of new nuclear capacity added in the high case scenario. Such innovation underpins broader industry expansion. According to the International Atomic Energy Agency, in 2025, the high case scenario projects that global nuclear electrical generating capacity will increase to 992 gigawatts by 2050.

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Key Market Challenges

The substantial initial capital requirements and extended construction timelines constitute a formidable economic barrier hindering the Global Nuclear Power Market. These factors deter private investment by creating a high-risk financial environment where capital is tied up for years before generating revenue. Unlike modular energy solutions that offer rapid deployment and quicker returns, nuclear projects require immense upfront liquidity and face significant exposure to interest rate fluctuations and regulatory delays. This financial structure severely limits the number of entities capable of undertaking new builds, restricting market participation primarily to state-backed enterprises or projects with heavy government subsidization, thereby stifling broader commercial competition and innovation.

Consequently, the pace of capacity expansion lags behind the trajectory needed to meet global energy demands. The impact of these impediments on project initiation is evident in recent industry activity, where the rate of new construction fails to match the urgency of decarbonization goals. According to the World Nuclear Association, in 2025, it was reported that construction started on only nine nuclear reactors globally during the preceding year. This limited number of new project launches, despite a favorable policy landscape, highlights how the burdensome combination of high costs and long lead times directly constrains the scalable growth of the market.

Key Market Trends

Strategic partnerships with hyperscale data centers are establishing a new demand paradigm for the Global Nuclear Power Market, fueled by the intensive energy requirements of artificial intelligence. Technology corporations are actively securing direct access to nuclear assets to ensure uninterrupted, carbon-free electricity, bypassing general grid volatility. This shift validates the premium value of firm nuclear power in the digital economy and drives the revitalization of dormant assets. According to Constellation Energy, September 2024, in the 'Constellation to Launch Crane Clean Energy Center' press release, the company executed a 20-year power purchase agreement with Microsoft to restart the Three Mile Island Unit 1 reactor, adding approximately 835 megawatts of carbon-free capacity to support data center needs.

Simultaneously, there is an intensifying focus on nuclear-derived pink hydrogen production to decarbonize heavy industrial processes. By leveraging reactor steam and electricity for electrolysis, operators can produce low-carbon hydrogen for sectors like manufacturing that are difficult to electrify, creating a new value proposition for nuclear assets. This development enables plants to diversify their operational scope beyond simple power generation and align with broader clean energy infrastructure goals. According to Morgan Lewis, December 2024, in the 'DOE Initial Funding Awards to Two More Regional Hydrogen Hubs Supports Hydrogen Infrastructure Expansion' article, the Midwest Hydrogen Hub, which integrates nuclear energy, received an initial federal award of $22.2 million to commence the development of hydrogen infrastructure.

Segmental Insights

The Defense segment currently represents the fastest-growing area in the Global Nuclear Power Market, driven primarily by the modernization of naval fleets and rising geopolitical security concerns. Nations are prioritizing the procurement of nuclear-powered submarines and aircraft carriers to ensure extended operational range and mission endurance without frequent refueling. Additionally, defense agencies are exploring portable nuclear micro-reactors to provide resilient energy for remote bases. This strategic shift is supported by oversight from entities such as the National Nuclear Security Administration, ensuring the safe integration of nuclear propulsion technologies into military infrastructure.

Regional Insights

North America currently holds the leading position in the Global Nuclear Power Market, driven largely by the United States, which operates the world’s largest fleet of commercial nuclear reactors. This dominance is supported by substantial investments in modernizing existing infrastructure and developing advanced reactor technologies. The region benefits from a comprehensive regulatory framework established by the U.S. Nuclear Regulatory Commission, which ensures operational safety and facilitates license renewals for long-term generation. Additionally, a strong strategic focus on energy security and carbon reduction goals continues to fuel market revenue and reinforce the region's established leadership in the sector.

Recent Developments

• In October 2024, Amazon established a strategic collaboration with X-energy by anchoring a Series C-1 financing round of approximately $500 million to support the development of advanced small modular reactors. This investment is part of a comprehensive agreement to deploy up to 5 gigawatts of new nuclear capacity across the United States by 2039 to meet the escalating power demands of artificial intelligence. The partnership will fund the completion of the reactor design and licensing, as well as the construction of a fuel fabrication facility, significantly accelerating the commercial rollout of the Xe-100 high-temperature gas-cooled reactor technology.
• In September 2024, Rolls-Royce SMR was selected by the government of the Czech Republic and the state utility ČEZ as the preferred supplier for the country's upcoming small modular reactor program. This strategic collaboration involves the planned deployment of the company’s 470-megawatt small modular reactor units to support the Czech Republic’s national energy security and decarbonization objectives. The agreement positions the British engineering company to finalize contractual terms and proceed with the rigorous regulatory safety assessment required for the construction of the first unit, which is anticipated to be deployed near the existing Temelín nuclear site in the 2030s.
• In September 2024, Constellation Energy announced a major twenty-year power purchase agreement with Microsoft to restart the Unit 1 reactor at the Three Mile Island nuclear plant in Pennsylvania. Under this significant collaboration, the facility will be renamed the Crane Clean Energy Center and is expected to provide approximately 835 megawatts of carbon-free electricity to support the technology company’s data center operations. The deal represents a historic commercial commitment to reviving shut-down nuclear capacity and includes substantial capital investments to refurbish the plant’s turbine, generator, and cooling systems to ensure safe and reliable long-term operation.
• In June 2024, TerraPower commenced construction on the Natrium reactor demonstration project near a retiring coal plant in Kemmerer, Wyoming. This development marked a significant breakthrough as the first commercial advanced nuclear reactor project to move into the construction phase in the United States in decades. The company began non-nuclear earthworks for the facility, which is designed to feature a 345-megawatt sodium-cooled fast reactor integrated with a molten salt energy storage system. The project, which is supported by the U.S. Department of Energy, aims to validate the design, safety, and economics of the technology for future widespread commercial deployment.

Key Market Players

• BHP Billiton
• Paladin Energy
• Bulgarian Energy Holding
• Electrabel NV/SA
• Uranium One Inc.
• Eni S.p.A.
• PreussenElektra GmbH
• CGN Power Co., Ltd.

By Applications	By Reactor Type	By Region
Energy Defense Others	Pressurized Heavy Water Reactor Boiling Water Reactor High-temperature Gas-cooled Reactor Liquid Metal Fast Breeder Reactor Other Reactor Types	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Nuclear Power Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Nuclear Power Market, By Applications:

• Energy
• Defense
• Others

• Nuclear Power Market, By Reactor Type:

• Pressurized Heavy Water Reactor
• Boiling Water Reactor
• High-temperature Gas-cooled Reactor
• Liquid Metal Fast Breeder Reactor
• Other Reactor Types

• Nuclear Power Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE