The Europe nuclear reactor construction market is expected to decline at a CAGR of around 4% during the forecast period of 2020 - 2025. Factors such as a large number of reactors with age exceeding 30 years and shift of energy generation from oil and gas towards nuclear energy are expected to be major drivers driving the market. Also, advancement in technology, leading to an increase in efficiency and reliability of modern nuclear power plants, has been a significant factor for the growth of the European nuclear reactor construction market. However, water scarcity and investment in the renewable energy sector has somewhat hampered the growth of the market.
- The pressurized water reactor has dominated the market in recent years and is expected to dominate the market in the forecast period, owing to factors like low cost operating reactor, as both the coolant and the moderator used in the reactor is light water and relatively higher controllable and safer nature of the reactor.
- The increase in electricity demand in the region is expected to provide an excellent opportunity for the Asia-Pacific nuclear reactor construction market in the forecast period.
- Russia is expected to witness significant growth in the forecast period, over rising concerns over pollution from energy plants based on coal and rising electricity demand. The country is the second largest electricity generator from nuclear power plants in the region and produced 204.5 TWh of electricity from its nuclear power plants.
Key Market Trends
Pressurized Water Reactor to Dominate the Market
- The pressurized water reactor (PWR) nuclear reactor sector has dominated the market in the past and is expected to do so in the forecast period too. The reactor is the most popular form of nuclear reactor due to its higher control and safety compared to other forms of reactors.
- PWR has some advantages over other reactors that make it the most used nuclear reactor in the globe. PWR reactors are low cost operating reactor, as both the coolant and the moderator used in the reactor is light water, which is cheaper than other kinds of coolant, like heavy water.
- With less fissile material in the core reactor, chances of additional fission reaction reduce, that makes the reactors to have only the required temperature and reduce the chances of facing any kind of unfavorable conditions, thus making the reactor safer and controllable. Lastly, PWR has separate loops for water and nuclear reaction. This reduces the chances of water contamination with radioactive material.
- In 2018-19 three pressurized water reactors were added to the grid in Russia. Aside from these, a number of pressurized water reactors are planned in the region.
- Therefore, the aforementioned factors are expected to drive the market in the forecast period.
Russia to Witness Significant Growth
- Russia is expected to witness significant growth in the nuclear reactor construction market in the coming years. The country has been very active in the sector in recent years in a bid to increase the export of nuclear goods and services.
- In May 2018, Russia marked a significant breakthrough in the completion of the construction of its first floating nuclear power plant, Akademik Lomonosov, with the power ship leaving Saint Petersburg to be towed to Murmansk for fuelling. The plant was connected to the grid on 19th December 2019 at the Port of Pevek, where it was replacing the outgoing capacities of the Bilibino nuclear power plant and the Chaunskaya combined heat and power plant.
- In April 2018, Russia began building Turkey’s first nuclear power plant, and in December 2018, Tianwan 4 was connected to the grid in China, the fourth Russian-designed reactor to be deployed in that country. In June 2018, contracts were signed with China for the construction of four further VVER units in the country. Russia has around 20-22 reactor planned and proposed for construction. Hence, the country is expected a high demand for nuclear reactor construction market during the forecast period.
- Moreover, it is estimated that nuclear power is likely to remain an integral part of the Russian energy policy, as the country tries to meet rising power demand, while also tackling emissions.
The Europe nuclear reactor construction market is moderately consolidated. Some of the major companies are Rosatom State Nuclear Energy Corporation, Westinghouse Electric Company LLC (Toshiba), Larsen & Toubro Limited, Mitsubishi Heavy Industries Ltd, Electricite de France SA (EDF) among others.
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Table of Contents
1.2 Market Definition
1.3 Study Assumptions
4.2 Market Size and Demand Forecast in USD billion, till 2025
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.6 Supply Chain Analysis
4.7 Porter's Five Forces Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitutes Products and Services
4.7.5 Intensity of Competitive Rivalry
5.2 Reactor Type
5.2.1 Pressurized Water Reactor
5.2.2 Pressurized Heavy Water Reactor
5.2.3 Boiling Water Reactor
5.2.4 High-temperature Gas Cooled Reactor
5.2.5 Liquid Metal Fast Breeder Reactor
5.3.3 Rest of Europe
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Rosatom State Nuclear Energy Corporation
6.3.2 Westinghouse Electric Company LLC (Toshiba)
6.3.3 Larsen & Toubro Limited
6.3.4 Mitsubishi Heavy Industries Ltd
6.3.5 China National Nuclear Corporation
6.3.6 Electricite de France SA (EDF)
6.3.7 SKODA JS a.s.
6.3.8 KEPCO Engineering & Construction
6.3.9 Bilfinger SE
6.3.10 Doosan Heavy Industries & Construction Co. Ltd
6.3.11 Dongfang Electric Corporation Limited
6.3.12 Shanghai Electric Group Company Limited