Fusion Energy Market Report 2025

The fusion energy market size has grown strongly in recent years. It will grow from $268.75 billion in 2024 to $290.97 billion in 2025 at a compound annual growth rate (CAGR) of 8.3%. The growth observed in the historic period can be attributed to increasing energy demand, expanding government-funded research initiatives, rising private sector investments, technological advancements in magnetic confinement, and the development of experimental reactors.

The fusion energy market size is expected to see strong growth in the next few years. It will grow to $398.16 billion in 2029 at a compound annual growth rate (CAGR) of 8.2%. The projected growth in the forecast period is expected to be driven by a stronger emphasis on clean energy, increased investments in fusion startups, supportive government policies, growing concerns over reliance on fossil fuels, and improved scalability of fusion reactors. Key trends anticipated during this period include the development of compact fusion reactors, the integration of AI for plasma control, advancements in fusion fuel cycles, enhanced private-public partnerships, and innovations in magnetic confinement systems.

The increasing demand for clean energy sources is expected to significantly drive the growth of the fusion energy market in the coming years. Clean energy sources, such as solar, wind, and hydropower, are essential for reducing greenhouse gas emissions and minimizing environmental impact. The growing concerns over climate change, coupled with the depletion of fossil fuel resources, are driving the global shift toward renewable energy options. With global temperatures rising and extreme weather events becoming more frequent, there is an urgent need to transition to clean energy sources. Fusion energy, in particular, offers a nearly limitless and environmentally friendly alternative to fossil fuels, providing a clean and sustainable energy solution. Nuclear fusion generates energy by combining light atomic nuclei, such as isotopes of hydrogen, to form a heavier nucleus, releasing vast amounts of energy in the process. For example, in March 2024, according to a report by the Office for National Statistics (ONS), the UK's low carbon and renewable energy economy (LCREE) turnover increased from $74.2 billion (£54.2 billion) in 2021 to $95 billion (£69.4 billion) in 2022, reflecting growing interest and investment in clean energy solutions. Thus, the increasing demand for clean energy sources is fueling 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 players in the fusion energy market are Lockheed Martin Corporation, LPP Fusion, Kyoto Fusioneering Ltd, TAE Technologies Inc, Commonwealth Fusion Systems, Helion Energy Inc, Zap Energy Inc, General Fusion, HB11 Energy Holdings Pty Ltd, Longview Fusion Energy Systems, Thea Energy, SHINE Technologies LLC, Type One Energy, Tokamak Energy Ltd, Renaissance Fusion, First Light Fusion Ltd, Marvel Fusion, Iter Organization, Avalanche Inc, Xcimer Energy Inc.

Asia-Pacific was the largest region in the fusion energy market in 2024. North America is expected to be the fastest-growing region in the forecast period. The regions covered in fusion energy report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the fusion energy market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Fusion energy is the power generated through nuclear fusion, a process in which two light atomic nuclei, typically hydrogen isotopes such as deuterium and tritium, merge to form a heavier nucleus, releasing significant energy. Fusion energy has the potential to serve as a nearly limitless and clean power source, as it emits little to no greenhouse gases and produces minimal radioactive waste compared to conventional nuclear fission.

The primary types of fusion energy include magnetic confinement fusion, inertial confinement fusion, stellarators, and spheromaks. Magnetic confinement fusion relies on strong magnetic fields to contain and control plasma at extremely high temperatures, enabling nuclear fusion reactions. The system types include experimental reactors, pilot plants, and commercial reactors, supported by both public and private sector investments and international collaborations. The fuel types used in fusion energy include deuterium-tritium, deuterium-deuterium, and proton-boron, which are applied in power generation, research and development, space propulsion, and various industrial uses.

The fusion energy market research report is one of a series of new reports that provides fusion energy market statistics, including fusion energy industry global market size, regional shares, competitors with a fusion energy market share, detailed fusion energy market segments, market trends and opportunities, and any further data you may need to thrive in the fusion energy industry. This fusion energy market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

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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