Fusion Energy Market Report 2026

The fusion energy market size has grown strongly in recent years. It will grow from $288.05 billion in 2025 to $310.99 billion in 2026 at a compound annual growth rate (CAGR) of 8%. The growth in the historic period can be attributed to extensive research in tokamaks and stellarators, early government-funded experimental reactors, international fusion collaborations, advancements in plasma physics, development of superconducting magnets.

The fusion energy market size is expected to see strong growth in the next few years. It will grow to $419.84 billion in 2030 at a compound annual growth rate (CAGR) of 7.8%. The growth in the forecast period can be attributed to commercial pilot fusion plants, breakthroughs in net energy gain, rising private sector investments, integration with national power grids, development of tritium breeding and advanced fuel cycles. Major trends in the forecast period include advancements in magnetic confinement techniques, development of high-efficiency inertial confinement systems, investment in compact and modular fusion reactors, enhancement of fuel cycle optimization technologies, growth of international research collaborations.

The growing demand for clean energy sources is expected to drive the expansion of the fusion energy market in the coming years. Clean energy sources - such as solar, wind, and hydropower - are renewable or low-carbon options that produce minimal greenhouse gas emissions and reduce environmental impact. This demand is rising due to mounting concerns over climate change and the depletion of fossil fuel resources. As global temperatures increase and extreme weather events become more frequent, the urgency to transition to renewable energy alternatives grows. Fusion energy contributes to this shift by providing a nearly limitless and environmentally friendly alternative to fossil fuels. Nuclear fusion generates energy by combining light atomic nuclei, typically hydrogen isotopes, to form a heavier nucleus, releasing substantial amounts of energy. For example, in March 2025, the International Renewable Energy Agency (IRENA), a UAE-based intergovernmental organization, reported that in 2024, global renewable power capacity grew by approximately 585 gigawatts (GW), representing over 90% of total power capacity additions and bringing the total installed renewable energy capacity worldwide to 4,448 GW. Consequently, the rising demand for clean energy sources is a key factor driving the growth of the fusion energy market.

Companies operating in the fusion energy market are focusing on developing innovative technologies to enhance clean energy generation. These innovations include advanced fusion technologies equipped with low-energy nuclear reaction (LENR) capabilities designed to provide sustainable energy solutions across a variety of applications. For instance, in July 2024, Hylenr Technologies Private Limited, an India-based company specializing in LENR technology, launched its cold fusion technology to generate clean energy using its patented Low Energy Nuclear Reactor (LENR) technology. The HYLENR device is designed for diverse applications, such as steam generation, space missions (MMRTG), room heating in cold regions globally, and induction heating for industrial and domestic uses. This technology has the potential to reduce risks in space missions and provide a more sustainable energy option for global energy needs.

In July 2023, Tokamak Energy Ltd., a UK-based fusion energy company, collaborated with Sumitomo Corporation to advance commercial fusion energy. This partnership aims to accelerate the development, implementation, and scaling of fusion energy solutions in Japan and globally. Sumitomo Corporation, a major trading and investment company based in Japan, brings significant resources and expertise to the collaboration, which will help speed up the commercialization of fusion energy technologies.

Major companies operating in the fusion energy market are Commonwealth Fusion Systems, TAE Technologies, Helion Energy, General Fusion, Zap Energy, Tokamak Energy, Proxima Fusion, OpenStar Technologies, LPPFusion, First Light Fusion, Focused Energy, EX‑Fusion, Blue Laser Fusion, LaserFusionX, Pacific Fusion, HB11 Energy, Renaissance Fusion, Gauss Fusion, Type One Energy Group, Energy Singularity Fusion Power Technology.

Asia-Pacific was the largest region in the fusion energy market in 2025. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the fusion energy market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the fusion energy market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The fusion energy market consists of revenues earned by entities by providing fusion energy services such as research and development services, consulting and feasibility studies, and fusion power plant development and engineering. The market value includes the value of related goods sold by the service provider or included within the service offering. The fusion energy market also includes sales of superconducting magnets, helion energy’s fusion generator, and tokamak-based reactors. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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