Small Modular Reactor Research Report 2025 | Market to Grow at a CAGR of 42.31% During 2024-2030, Driven by Shift to Low-Carbon Energy and Demand for Resilient Power Solutions - ResearchAndMarkets.com

The "Small Modular Reactor Market - A Global and Regional Analysis: Focus on Application Type, Product Type, and Region - Analysis and Forecast, 2025-2035" report has been added to ResearchAndMarkets.com's offering.

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 $5.17 billion 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.

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.

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:

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 Investigacion 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.

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.

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.

How can this report add value to an organization?

Product/Innovation Strategy: The small modular reactor market has been segmented based on application, reactor type, power generation capacity, and end-user category, providing valuable insights into deployment strategies and technology preferences. Application segmentation includes electricity production, combined heat and power, desalination, and off-grid power.

By reactor type, the market has been divided into water-cooled reactors, liquid metal-cooled fast neutron spectrum reactors, molten salt reactors, and high-temperature gas-cooled reactors. Capacity segmentation covers units under 25 MW, 25-100 MW, 101-300 MW, and above 300 MW. The end user segmentation includes utilities, industrial operators, off-grid microgrid providers, and desalination plant operators. This segmentation framework supports targeted market analysis and strategic planning by stakeholders across technology development, policy, and finance.

Growth/Marketing Strategy: The small modular reactor market has been growing at a rapid pace. The market offers enormous opportunities for existing and emerging market players. Some of the strategies covered in this segment are mergers and acquisitions, product launches, partnerships and collaborations, business expansions, and investments. The strategies preferred by companies to maintain and strengthen their market position primarily include product development.

Competitive Strategy: The key players in the small modular reactor market analyzed and profiled in the study include professionals with expertise in the small modular reactor domain. Additionally, a comprehensive competitive landscape, such as partnerships, agreements, and collaborations, is expected to aid the reader in understanding the untapped revenue pockets in the market.

Key Attributes:

Market Dynamics Overview

Market Drivers

• Advancements in Nuclear Technology
• Growing Research and Development Activities to Achieve Near Zero Emissions

Trends: Current and Future Impact Assessment

• Growing Interest in Clean Energy Solutions
• Regulatory and Policy Support

Market Restraints

• High Initial Costs and Infrastructure Limitations
• Regulatory and Licensing Hurdles

Market Opportunities

• Surge in Decarbonization Policies
• Energy Access in Remote and Off-Grid Areas

Supply Chain Overview

Research and Development Review: Patent Filing Trend (Number of Patents by Year and by Patent Office)

Regulatory Landscape

Summary of Economic Assumptions for SMRs

Estimated CAPEX and OPEX Component Costs for SMR Designs ($/kW)

Competitive Benchmarking and Company Profiles

• 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
• General Atomics
• Next Frontiers
• Market Share and Strategic Initiatives Overview
• Top Products/Product Portfolio
• Top Competitors
• Target Customers/End Users
• Key Personnel
• Analyst View

For more information about this report visit https://www.researchandmarkets.com/r/95cmpv

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