Published Year: 2024
Small Modular Reactor Market for Data Centers - A Global and Regional Analysis: Focus on Product, Ap
The global small modular reactor market for data centers is anticipated to be valued at $38.26...
Market Research Report
A quick peek into the report
Small Modular Reactor Market Overview
The small modular reactor market was valued at $159.4 million in 2024 and is projected to grow at a CAGR of 42.31%, reaching $5,179.6 million by 2035. The increasing adoption of modular nuclear reactor technology, including factory fabrication, standardization, and modular deployment, is driving this market growth. As the energy sector transitions to low-carbon and resilient power sources, demand for SMRs that can serve remote sites and industrial facilities and supplement existing grids is expected to rise. Additionally, the growing focus on reducing greenhouse gas emissions, improving safety performance, and shortening project timelines are contributing factors. Recent progress in advanced reactor designs, digital system integration, and manufacturing efficiencies has positioned the SMR market for significant expansion in the coming decade.
Introduction to the Small Modular Reactor Market
The small modular reactor (SMR) market focuses on the adoption of modular nuclear power solutions designed to reduce project risk, enhance scalability, and optimize resource utilization. This market is driven by the demand for low-carbon, reliable energy sources across utility, industrial, and remote applications, including grid support, process heat, and microgrid integration. Modular fabrication and standardized components lower construction costs and shorten project schedules, reducing upfront capital requirements and supply chain complexity. The policy emphasis on decarbonization has prompted developers to advance SMR designs to deliver cost-competitive power, improve safety performance, and comply with stricter regulatory standards. These practices contribute to environmental sustainability by lowering greenhouse gas emissions and supporting national decarbonization objectives.
Market Introduction
The SMR market is experiencing significant growth as the energy sector transitions to low-carbon power solutions and strengthens energy resilience. This market is driven by the adoption of modular reactor technology, standardization, and factory fabrication, which reduce capital expenditures and accelerate project schedules. Ongoing advancements in reactor design and digital systems further reduce costs and improve safety. Utilities and industrial operators are increasingly deploying SMRs for remote sites, process heat applications, and grid support to meet decarbonization goals, control construction risk, and simplify supply chains. As global demand for reliable, low-emission energy sources rises, the SMR market is set to play a critical role in advancing sustainable power generation.
Industrial Impact
The industrial impact of the small modular reactor (SMR) market is transformative across multiple sectors, including energy production, manufacturing, and supply chains. By adopting modular reactor technology, the market is driving significant improvements in plant construction efficiency, reducing on-site assembly time, and enhancing safety standards in the nuclear industry. The use of factory-fabricated reactor modules, standardized components, and digital monitoring systems optimizes procurement, lowers capital costs, and expands accessibility for utilities and industrial operators. This transition promotes innovation in manufacturing methods, project management, and regulatory frameworks and encourages the growth of engineering firms and nuclear service providers.
The companies involved in the small modular reactor market include major industry players such as The State Atomic Energy Corporation ROSATOM, Tsinghua University, Japan Atomic Energy Agency, NuScale Power, LLC., JSC NIKIET, Westinghouse Electric Company LLC, China National Nuclear Corporation, Rolls-Royce plc, STATE POWER INVESTMENT CORPORATION LIMITED, BWX Technologies Inc., Terrestrial Energy Inc., MITSUBISHI HEAVY INDUSTRIES, LTD., EDF, Moltex Energy, and General Atomics. These companies are enhancing their capabilities through strategic partnerships, collaborations, and technology advancements to improve the resilience and performance of small modular reactors in demanding environments. Their continued investments in research and development are driving the growth of the market while supporting the broader trends in small modular reactors.
Market Segmentation:
Segmentation 1: by Application
• Electricity Production
• Combined Heat and Power
• Desalination
• Off-Grid Application
Electricity Production to Lead the Market (by Application)
Electricity production represents the largest application segment in the small modular reactor market, driven by growing requirements for clean and reliable energy. SMRs deliver efficient and safe electrical output, supporting diverse deployment scenarios. In August 2023, Canadian Nuclear Laboratories and Ultra Safe Nuclear Corporation announced a partnership to advance a commercially viable molten salt SMR, demonstrating industry commitment to next-generation reactor technology.
SMR site flexibility is a significant advantage for power applications. These reactors can operate in locations unsuitable for conventional facilities, including isolated areas and small communities. This capability addresses localized energy demands and strengthens energy security. In October 2023, NuScale executed a memorandum of understanding with Argentina’s Investigación Aplicada (INVAP) to assess the deployment of the VOYGR SMR system, reflecting global interest in SMR-based electricity solutions.
Expansion of the SMR sector in power generation is set to reshape the energy market by introducing a lower-emission, sustainable alternative to conventional power plants.
Segmentation 2: by Reactor Type
• Water-Cooled Reactors
• Liquid Metal-Cooled Fast Neutron Spectrum Reactors
• Molten Salt Reactors
• High-Temperature Gas-Cooled Reactors
Water-Cooled Reactors to Lead the Market (by Reactor Type)
Water-cooled reactors represent the largest product segment in the small modular reactor market by reactor type. Their dominance reflects a proven performance record in the nuclear sector, straightforward design, and robust safety features. An established supply chain for water-cooled components reduces development costs and accelerates project schedules compared to emerging reactor technologies. Regulatory agencies possess extensive experience in licensing and supervising water-cooled reactors, which streamlines approval processes for SMR deployments.
China demonstrated this trend in January 2024 when its ACP100 SMR, a pressurized water reactor, was connected to the national grid. Research into alternative reactor concepts, including molten salt and high-temperature gas-cooled designs, continues. Market projections indicate that water-cooled SMRs will maintain their leading position due to their reliability and proven technological base, ensuring their status as the preferred solution for low-emission electricity production.
Segmentation 3: by Power Generation Capacity
• <25 MW
• 25-100 MW
• 101-300 MW
• >300 MW
25-100 MW to Lead the Market (by Power Generation Capacity)
The small modular reactor market is shifting to reactors with a production capacity of 25 to 100 MW, establishing this segment as the leading category in power output capacity. Several factors contribute to this segment’s prominence, including versatility, cost-effectiveness, and suitability for a variety of applications.
This capacity range delivers a strong balance between scalability, cost-effectiveness, and grid compatibility, positioning it as the industry’s preferred segment. It supports a broader array of deployments than smaller units, delivering dependable power to remote communities and industrial sites and supplementing existing power grids. Modular design enables incremental capacity expansion by adding individual units, reducing upfront capital requirements compared to a single, large-scale reactor.
Recent developments highlight the 25-100 MW segment’s lead. Government plans announced in November 2023 will deploy a fleet of next-generation SMRs rated between 40 and 70 MW, highlighting official support for this class of low-emission baseload power. Future SMR designs may diversify market offerings. Smaller units under 25 MW can serve niche requirements, and larger designs above 100 MW can cater to densely populated regions and major industrial complexes. The 25-100 MW segment is expected to maintain its leading position.
Its scalability, cost structure, and grid compatibility make 25-100 MW SMRs an adaptable and attractive choice for diverse power generation needs.
Segmentation 4: by Region
• North America: U.S., Canada
• Europe: Russia, France, and Rest-of-Europe
• Asia-Pacific: China, Japan, and Rest-of-Asia-Pacific
• Rest-of-the-World
North America is expected to lead the small modular reactor (SMR) market, supported by robust regulatory frameworks, technological advancements, and strategic investments in advanced nuclear projects. The U.S. Department of Energy and Canadian Nuclear Laboratories have sponsored SMR research, demonstration projects, and streamlined licensing initiatives. Strong public-private partnerships, federal funding programs, and growing interest in SMR applications for grid resilience and process heat are driving regional growth.
North America’s focus on reducing greenhouse gas emissions, enhancing energy security, and modernizing power infrastructure positions it as the leading region for SMR deployment, setting the stage for a low-carbon energy future.
Recent Developments in the Small Modular Reactor Market
• Tsinghua University’s Institute of Nuclear and New Energy Technology (INET) has demonstrated significant expertise in advancing innovative nuclear technologies, highlighted by the successful operation of the high-temperature gas-cooled reactor pebble-bed module (HTR-PM) demo project in December 2023.
• In September 2023, the Japan Atomic Energy Agency (JAEA) signed an agreement with the U.K.'s National Nuclear Laboratory to accelerate global SMR deployment, focusing on collaborative advancements in HTGR technologies. Continued innovation and strategic partnerships will be essential for JAEA to capitalize on the increasing demand for SMRs and strengthen its position in the global market.
• Westinghouse Electric Company LLC.'s agreements and acquisitions mark significant progress in the small modular reactor (SMR) market. The company’s collaboration with Community Nuclear Power, Ltd. (CNP) in February 2023 to deploy the U.K.'s first privately funded SMR fleet highlights its commitment to developing innovative energy solutions. The expected commercial operation by the early 2030s reflects a long-term vision and dedication to expanding the SMR sector.
Demand - Drivers, Limitations, and Opportunities
Market Drivers: Advancements in Nuclear Technology
Advancements in nuclear technology are key drivers in the growth of the small modular reactor market. Technological innovations in reactor design, such as enhanced safety features, modular construction, and advanced fuel cycles, have made SMRs more efficient and safer compared to traditional nuclear reactors. These advancements have enabled SMRs to meet the growing demand for reliable and clean energy sources while addressing long-standing concerns related to nuclear energy, such as waste management and the risks associated with large-scale nuclear plants.
Several companies are already capitalizing on these technological advancements. For instance, NuScale Power has developed the NuScale Power Module (NPM), a small modular reactor that incorporates passive safety features, significantly reducing the risk of accidents. In addition, Rolls-Royce is advancing its SMR designs, incorporating innovative engineering to achieve a compact, scalable solution for nuclear energy. Furthermore, the integration of advanced technologies such as digital monitoring and automation is making it easier to manage the operation of SMRs, enhancing their economic viability.
Looking ahead, advancements in nuclear technology have the potential to transform the energy landscape. As further technological breakthroughs occur, SMRs are expected to become even more cost-effective, efficient, and safer. The development of new reactor designs, including molten salt reactors and high-temperature gas-cooled reactors, will likely open up new markets for SMRs, especially in industrial applications requiring high-temperature heat.
Market Challenges: High Initial Costs and Infrastructure Limitations
High initial costs and infrastructure limitations represent significant restraints in the small modular reactor market, hindering the widespread adoption of this technology. The capital required for research, development, and construction of SMRs is considerable, and despite the promise of long-term cost savings, the upfront investment can be a deterrent for potential investors and governments. Additionally, building the necessary infrastructure, such as specialized manufacturing facilities and qualified labor forces, requires substantial investment, which may be challenging for countries or regions without the financial resources or technical expertise.
Several industry players are facing these challenges as they attempt to develop and deploy SMRs. In some cases, government subsidies or financing models are needed to support initial costs, but these mechanisms are not always readily available, particularly in countries with budget constraints. The lack of existing infrastructure for SMR-specific components, such as specialized factories for reactor components, can also delay production timelines and further increase costs.
In the near future, the small modular reactor market has the potential to overcome these barriers through continued technological advancements and the development of standardized, cost-effective manufacturing processes. As the industry matures, economies of scale and more efficient construction methods are expected to reduce costs, making SMRs more affordable for widespread deployment.
Market Opportunities: Surge in Decarbonization Policies
The surge in decarbonization policies across the globe presents a significant opportunity for the small modular reactor market. As governments increasingly prioritize climate change mitigation, clean energy technologies are gaining attention. SMRs, offering a reliable and low-carbon power generation solution, align well with these policies. Their ability to provide a steady supply of energy without contributing to carbon emissions positions them as a key technology in achieving net-zero emissions targets.
Industry players are already responding to this opportunity by aligning their strategies with decarbonization goals. For instance, the U.S. Department of Energy (DOE) has shown strong support for SMR development through funding initiatives and collaboration with private industry. In Canada, the government’s commitment to reducing carbon emissions has led to regulatory and financial support for SMR projects, such as Terrestrial Energy's efforts to deploy an Integral Molten Salt Reactor (IMSR). These industry efforts reflect the growing alignment between SMR technology and global decarbonization objectives, showcasing the increasing recognition of SMRs as a viable solution to meet emissions reduction targets.
Overall, the continued push for decarbonization is likely to create even greater demand for SMRs. As countries adopt stricter carbon reduction goals and implement more robust clean energy policies, SMRs are well-positioned to meet the need for reliable, scalable, and zero-emission energy sources. The integration of SMRs into national energy strategies is expected to contribute significantly to the transition from fossil fuels to cleaner energy alternatives. As governments continue to invest in low-carbon technologies, the SMR market is expected to expand, and SMRs will increasingly play a critical role in the global energy infrastructure.
Analyst View
According to Debraj Chakraborty, Principal Analyst, BIS Research, “The global small modular reactor market is expected to experience substantial growth over the next decade, driven by rising demand for low-carbon and reliable power generation solutions. As energy producers seek alternatives to large-scale plants, modular designs that emphasize factory assembly, standardized components, and scalable deployment are gaining traction. Increased focus on decarbonization targets, supply-chain efficiencies, and shorter project schedules are key factors supporting market expansion. Advances in reactor technology and regulatory frameworks that streamline approvals further enhance commercial prospects. Continued investment in demonstration projects and strategic partnerships will sustain momentum in this evolving sector.”
Small Modular Reactor Market - A Global and Regional Analysis
Focus on Application Type, Product Type, and Region - Analysis and Forecast, 2025-2035
Some Faq's
Frequently Asked Questions
BIS Research’s market study examined the small modular reactor sector, covering multiple reactor types and applications. The analysis characterized SMRs as a versatile platform delivering modular and efficient nuclear power and noted benefits including high reliability, environmental sustainability, and reduced emissions compared to conventional energy sources. Popular SMR technologies include water-cooled designs, liquid metal–cooled fast neutron spectrum units, molten salt reactors, and high-temperature gas-cooled models. These options are achieving recognition as practical alternatives to established power generation methods.
The key business opportunities in the small modular reactor market include growing demand for low-carbon baseload power, modular construction that reduces financing risk, new revenue streams from process heat and desalination services, and expanding applications in remote microgrids and industrial sites.
SMR developers are forming strategic partnerships with utilities, reactor vendors, and research institutions to share development risk and pursue joint design certification. Consortia are advancing regulatory frameworks. Companies also invest in demonstration projects, secure supply-chain agreements for key components, and apply digital engineering tools to optimize construction workflows.
A new entrant can focus on early design certification, alliances with established modular fabrication providers, targeting underserved applications such as industrial heat or remote power, investing in advanced digital-twin engineering platforms, and building relationships with regulators and utilities to streamline market entry.
The following are some of the USPs of this report:
• A dedicated section focusing on the trends adopted by the key players operating in the small modular reactor market
• Competitive landscape of the companies operating in the ecosystem, offering a holistic view of the small modular reactor market landscape
• Qualitative and quantitative analysis of the small modular reactor market at the regional and country level and granularity by application and product segments
• Supply chain and value chain analysis
Utilities, nuclear plant operators, reactor vendors, engineering and construction firms, climate-focused investors, government energy agencies, and technology integrators should buy this report.
Similar Product
You may also like