| Study Period | 2019 - 2032 |
| 2024 Market Size | USD 6.6 Billion |
| 2025 Market Size | USD 6.9 Billion |
| 2032 Forecast | USD 9.9 Billion |
| Growth Rate (CAGR) | 5.4% |
| Largest Region | North America |
| Fastest Growing Region | Asia-Pacific |
| Nature of the Market | Fragmented |
| Largest Application Category | Power Generation |
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The small modular reactor market revenue is USD 6.6 billion in 2024, which is expected to witness a CAGR of 5.4% during 2025–2032, reaching USD 9.9 billion in 2032.
The major drivers for the market are the increasing demand for electricity, growing concerns over carbon emissions from fossil-fuel-based energy technologies, expanding population, surging rates of urbanization and industrialization, global sustainability initiatives, and hefty government funding and support.
Small modular reactors are smaller than conventional grid-scale variants, allowing to be factory-produced and assembled on site. Furthermore, SMRs can provide power to large centralize grids for urban areas, as well as industrial applications, such as district heating, desalination, and hydrogen production. Power equipment companies are working on advanced SMR designs to enhance safety and efficiency.
In July 2024, Rolls-Royce’s 470-Megawatt SMR design cleared stage two of its three-step generic design assessment (GDA).
Government initiatives are playing a major role in the development of these machines as countries march ahead on their mission to provide low-carbon energy to residents. The Foundational Infrastructure for Responsible Use of Small Modular Reactor Technology (FIRST) program of the U.S. Department of State is planned with an investment of USD 5.3 million. The initiative aims to build capacity in partner nations, deepen strategies, support energy innovations, and advance technical collaborations.
The heavy-water reactor category holds the largest market share. The dominance of the category is attributed to the ability of these reactors to utilize natural uranium instead of enriched uranium, which is quite expensive.
Additionally, these reactors use neutron moderators, which allow for more-efficient neutron economy and flexibility in the fuel cycle. They are also compatible with a range of fuel management approaches, thus offering flexibility to operators.
The light-water reactor category will grow at the highest during the forecast period. This growth can be attributed to the higher safety and efficiency of these variants, advancements in their technology, and better infrastructure for them. Their biggest advantage is that they use regular water, and not heavy water, both as a neutron moderator and coolant, thus offering cost-effectiveness.
These machines come in two types: boiling-water reactors (BWRs) and pressurized-water reactors (PWRs). Additionally, these systems have an inbuilt advanced passive system, which does not require any external power to shut the reactor down in emergencies, thus offering better safety.
The product types analyzed in the report are:
Power generation holds the largest market share in 2024, with around 45% revenue, and will grow at the highest CAGR till 2032. The main reason for the use of small modular reactors for power generation is their zero greenhouse gas emissions, which helps businesses achieve their goals of decarbonization. For large-scale and critical applications, such as data centers, utilities, and hospitals, multiple SMRs act as a suitable option, as a single large reactor becomes impractical due to cost and safety concerns.
Additionally, SMRs are being integrated with enhanced safety features, such as passive cooling systems, which help in preventing accidents due to overheating and core meltdowns. The Chernobyl and Fukushima disasters are grim reminders of the dangers of an inadequately cooled reactor core.
The following applications are analyzed in the report:
The up to 100 MW category holds the largest market share, of around 60%, in 2024. They are the most popular of small modular reactors as they can be deployed in remote areas with smaller grids where large scale reactors cannot be used. Additionally, due to their compactness, they can be easily integrated into the existing infrastructure.
The 101–200 MW category will grow at the highest CAGR during the forecast period. This can be attributed to the wide range of applications of these variants and the ideal balance between their compactness and scalability. These attributes make them a suitable option for businesses that require a high enough power load. Additionally, these SMRs are cheaper than those that offer an output the range of 201 to 300 MW and larger ones used for grid-scale power supply by utilities.
The following power generation capacities are analyzed in the report:
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North America is the largest region in the small modular reactor market, holding a share of around 25% in 2024. The transition of the region toward cleaner energy, to achieve carbon reduction goals, is driving the need for SMRs. This is itself encouraged by the government support in the form of favorable initiatives, emission reduction targets, and funding for technology and infrastructure. In June 2024, the U.S. Department of Energy (DoE) invested USD 900 million to support the initial U.S. deployment of Generation III+ SMR technologies.
After China, the U.S. is the second-largest emitter of greenhouse gases in the world, recording 4,807 million metric tonnes in 2023, as per the U.S. Energy Information Administration (EIA). The power sector holds the largest share in the country’s emissions, of 25%.
APAC will grow at the highest CAGR during the forecast period. This is credited to the rise in investments in nuclear energy, with a focus on SMRs, in India, China, and Japan. China and India hold the largest and third-largest shares in global emissions, respectively, with the absolute numbers growing in these nations with the rise in the population and fluctuating renewable energy supply.
In July 2024, finance minister of India Nirmala Sitharaman announced plans for the government to collaborate with the private sector on the development of SMRs.
The regions and countries analyzed for this report include:
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