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Table Of Content
May 2025
The nuclear small modular reactors (SMRs) market is expanding as technological innovations and supportive policies encourage adoption. SMRs help bridge the gap between renewable energy and consistent baseload power. The market sizing and forecasts are revenue-based (USD Million/Billion), with 2024 as the base year.
The nuclear small modular reactors (SMRs) market is witnessing strong growth as nations adopt modular nuclear solutions for clean and reliable power. SMRs provide safety, scalability, and flexibility for diverse energy needs. The market is expanding rapidly, driven by modular designs, flexible deployment, and rising global clean energy demand.
Artificial intelligence (AI) is beginning to inform the nuclear small modular reactorsmaterial burdening efficiency on design, operation, and energy management. In February 2025, the Governments of India and France launched an AI plan for collaboration, specifying their focus on nuclear SMRs in improving efficiency, safety, and deploying low-carbon energy. This partnership highlights how AI could facilitate international cooperation on nuclear technologies. (Source: https://www.hindustantimes.com)
The nuclear small modular reactor (SMR) market is building momentum as a flexible, scalable option to traditional nuclear plants that are typically large. SMRs, generating anywhere up to ~300 MWe per module, are produced in factory-controlled environments, are able to be transported, and are designed to allow flexibility or phased deployment, which provides a means to add capacity when demand increases. They utilize different technologies, such as light-water, molten salt, high-temperature gas, and liquid-metal-cooled reactors.
SMRs can be used for more than just electricity production; they are also being utilized for industrial heating, desalination, hydrogen production, or even off-grid power applications. An increasing focus on decarbonization, energy security, and reliable baseload power, together with government support to encourage development and the implication of private investors, is also encouraging global interest in SMRs' development and commercialization.
| Report Coverage | Details |
| Dominating Region | North America |
| Fastest Growing Region | Asia Pacific |
| Base Year | 2024 |
| Forecast Period | 2025 to 2034 |
| Segments Covered | Reactor/Technology Type, Printing Method/Process, Power Rating, Coolant/Moderator, Application/End-use, Ownership/Business and Financing Model, Contract/Delivery Model, and Region |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
How are Data Centers Accelerating the Trend in Nuclear Small Modular Reactors (SMRs) Adoption?
Rising electricity needs from hyperscale data centers and the explosion of AI infrastructure are key drivers for the nuclear small modular reactor (SMR) market. SMRs offer clean, reliable, and consistent electric power to meet the staggering electricity demands from the next generation of technologies. In October 2024, Amazon signed an approximately $500 million deal with X-Energy to purchase SMRs, thereby securing new carbon-free energy dedicated to its operations. (Source: https://www.cnbc.com)
The urgency to initiate and secure SMR development projects shows how global technology companies are implementing SMRs as a long-duration, low-cost, scalable substitute for fossil fuels. In summary, it is the combination of the low carbon benefits and the modularity of deploying SMRs that are making it recognized as the next most important option to facilitate the power necessary for digital transformation and industrial activity.
What is hindering the SMR market?
One significant slowing factor is that there is a long, complicated, and expensive regulatory and licensing process related to large-site reactors—not modular reactors. Even simple design approvals take many years; In the U.S., for example, Kairos Power applied for approval for its Hermes SMR design in 2021 and has yet to receive it in 2025; typical design reviews often take nearly a decade.
Can Decarbonization Policies Create Opportunities for SMRs to the Energy Mainstream?
The global shift to decarbonization mandates represents a major moment for the nuclear small modular reactor. More than 70 countries have pledged to achieve net-zero emissions by 2050, creating a demand for clean baseload power that can be relied upon. Nuclear has received renewed support from many policymakers — the EU officially classifies nuclear as "green" in its sustainable finance taxonomy (2022), which is expected to unleash billions of investment flows.
In the U.S., the Inflation Reduction Act has a production tax credit of up to $30/MWh provided for advanced nuclear, which will affect SMR economics directly. The UK's Great British Nuclear program (2023) placed Rolls-Royce SMRs on a shortlist for accelerated deployment. These specific policy moves show how SMRs are in a unique position as a flagship technology for powerful governments balancing decarbonization and energy security. (Source: https://www.spglobal.com)
Why Light Water Reactor (LWR)/iPWR Have the Largest Nuclear Small Modular Reactors (SMRs) Market Share?
The light water reactor (LWR)/integral pressurized water reactor (iPWR) segment dominate the market due to their degree of technological maturity, authority familiarity, and established global supply chains. The LWR leverages decades of operational experience from conventional nuclear power plants with high margins of safety and reliability.
The molten salt reactor (MSR) segment is the fastest-growing technologies, which can use advanced applications to focus on hydrogen production, load-following power, and industrial heat. These designs have the potential for better thermal efficiencies, more inherent safety, and more flexible deployment than the current SMRs.
Which Power Rating Dominates the Nuclear Small Modular Reactors (SMRs) Market?
The 100–300 MWe segment dominated the nuclear small modular reactors (SMRs) market in 2024, due to the need for grid-scale electrical generation within a compact modular plant to replace aging fossil fuel generation capacity. The 100-300 MWe rating includes compact modularity but has sufficient output to address urban centers and industrial demand.
The micro (<10 MWe) segment is the fastest-growing segment of the market, typically driven by demand for distributed capacity in remote locations, military bases, and off-grid industrial applications. Their small size, ease of deployment, and autonomous operational modes distinguish them from larger fixed nuclear installations. The current interest in developing resilient energy infrastructure with emergency backup supply is accelerating market interest.
Which Material Type Dominated the Nuclear Small Modular Reactors (SMRs) Market?
The light water segment led the market in 2024 because it is an established technology with a proven safety radius and an international licensing status. Light water is benefiting from decades of deployed experience in large nuclear reactors, including supply chains, operational experience, and licensing experience.
The molten salt segment represents the fastest-growing segment. They can operate at higher temperatures with higher efficiencies, enabling them to be employed in advanced uses such as industry heat supply, hydrogen production, and cogeneration. Governments and private companies are investing heavily in demonstrations that highlight their potential for a coming generation of nuclear applications.
Why does the Residential Housing Dominate the Nuclear Small Modular Reactors (SMRs) Market?
The grid power/baseload electricity segment was the dominant application segment in 2024, and remains the main application for SMRs and providing stable, reliable, and carbon-free energy to the national grids. From the utility perspective, SMRs help replace aging coal and gas plants and maintain a constant supply. SMRs can be modularly expanded over time, making them an excellent option for enhancing grid resilience and decarbonization commitments in the long term. As mentioned previously, despite the inherent potential of SMRs, deployment will rely on clear public policy signals and embracing SMRs as part of the energy landscape.
The industrial heat segment represents the fast-growing applications for SMRs as demand rises for clean energy for heavy industry and transportation. High-temperature SMRs can provide process heat to a range of applications, including refineries, chemical plants, and hydrogen electrolysis. SMRs can therefore be an important facilitator in hard-to-abate sectors where renewable energy may not provide consistent high-grade heat.
Which Ownership/Business and Financing Model Segment Dominated the Market in 2024?
The utility-owned segment dominated the market in 2024, since well-established power companies are well-versed in the issues of siting, permitting, financing, and regulation. These utilities include SMRs in their long-term generation picture to diversify their generation resource, maintain a reliable supply of and provide affordable electricity, and comply with some level of required or voluntary carbon reductions. By being involved, the utility also provides comfort to governments and investors since utilities have shown their capability to deliver complex, regulated, large-scale energy projects.
The vendor-financed (build-own-operate, BOO) segment is growing at the fastest CAGR, as private developers and technology vendors now provide a route to market. By financing the projects, these models lower the barrier to entry, meaning less up-front costs for utilities or governments, and allow vendors to control operations and revenue in the interim. The growing interest in “non-traditional” financing solutions for smaller energy projects is accelerating SMR deployment, especially in developing nations and in the industrial end-user market.
Why EPC/Turnkey the Nuclear Small Modular Reactors (SMRs) Market in 2024?
The EPC/turnkey contracts segment was the dominant segment in 2024, because it provides the broadest, single-point solution to utilities and governments. EPC arrangements ameliorate complications by guaranteeing that the vendor or consortium will handle design, construction, and delivery. EPC contracts represent predictable timelines and costs. These factors make EPC contracts the optimal choice for large-scale nuclear projects, particularly those trying to reduce implementation risk.
The power purchase agreement (PPA)-backed projects segment is expected to expand at a notable CAGR over the projected period. Projects with PPAs as the funding model are supported by the benefits of sharing revenues and long-term stability, because in this model, end-users are reserving the right to buy power for the duration of that commitment. PPA arrangements encouraged private capital investment in SMRs, which is attractive to industrial facilities and other off-grid users who want low-carbon emissions smart power, without a significant upfront capital investment.
Why is North America Poised to Lead in the Nuclear Small Modular Reactors (SMRs) Market?
North America is leading in SMR momentum because changes in policy, capital, and utility commitments are all converging to derisk the first-of-a-kind builds and create supply chains. Federal programs are providing direct incentives, as well as procurement signals (i.e., solicitations such as $900M, HALEU allocation, etc), and regulators have jumped through hoops to accelerate design reviews that have shortened the commercialization timeframes. Large utilities, as well as industrial off-takers, are realizing that SMRs can provide grid-stable, low-carbon capacity that can complement intermittent renewables, and they see pathways to commercialize factory-built modules and modules needed for modular construction methods.
U.S. is the hub for SMR scaling, given the concentration of R&D, the licensing active, the pilots by utilities, and the recent developments regarding NRC approvals and expedited plant-level design permitting - alongside DOE support for HALEU, and funding for competitive awards - to provide U.S. developers with a clear near-term runway to commercialization. Further, clear market signals from utilities and commercial partnerships allow for pragmatic deployment pathways - moving programs from prototyping to planning regulated assets and procurement strategies that would be bankable for institutional investors.
Why Is Asia Pacific the Fastest-Growing Region in the Nuclear Small Modular Reactors (SMRs) Market?
Growth in Asia-Pacific is being propelled by a combination of central energy demand from large populations, strong coordination by state governments, and concurrent investments in both large reactors and modular designs that speed learning curves. National energy strategies emphasize energy security and rapid decarbonization, making SMRs the preferred technology for new grids in remote locations, island provinces, and industrial clusters.
China's integrated approach, which includes state-coordinated site selection, domestic site manufacture, and tightly held project management, minimizes delivery risk (to be a more politically relevant benchmark) and compresses learning curves that allow Chinese firms to deploy scaled units domestically and also offer near turn-key export to most neighbouring markets. Coupled with this operational momentum could accelerate adoption across the region.
By Reactor/Technology Type
By Printing Method/Process
By Power Rating
By Coolant/Moderator
By Application/End-use
By Ownership/Business and Financing Model
By Contract/Delivery Model
By Region
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