Small Modular Reactor Market Size and Share Analysis - Growth Trends and Forecasts (2025-2032)

Market Size and Trends

The Small Modular Reactor market is estimated to be valued at USD 5.8 billion in 2025 and is expected to reach USD 15.4 billion by 2032, growing at a compound annual growth rate (CAGR) of 15.2% from 2025 to 2032. This rapid expansion is driven by increased demand for clean and efficient energy solutions, alongside growing investments from both public and private sectors aiming to reduce carbon emissions and enhance energy security worldwide.

Current market trends indicate a strong shift towards the adoption of Small Modular Reactors due to their scalability, lower upfront capital costs, and enhanced safety features compared to traditional nuclear reactors. Governments and industries are increasingly focusing on these reactors to complement renewable energy sources, address grid stability, and support decarbonization goals. Technological advancements and regulatory support are further accelerating the integration of SMRs into national energy strategies, highlighting the sector's promising growth trajectory.

Segmental Analysis:

By Reactor Type: Dominance of Integral Pressurized Water Reactor (iPWR) Driven by Proven Technology and Safety Features

In terms of By Reactor Type, Integral Pressurized Water Reactor (iPWR) contributes the highest share of the small modular reactor market owing to its well-established technology, enhanced safety profiles, and adaptability to modular design. iPWRs utilize a compact configuration that integrates the major components of the reactor within a single pressure vessel, significantly reducing the complexity and potential points of failure compared to traditional reactors. This design inherently supports passive safety mechanisms, which allows the reactor to shut down or maintain safe conditions without active intervention, thereby addressing one of the most critical concerns in nuclear power generation—safety. Furthermore, the extensive operational experience with pressurized water reactors globally provides regulators, operators, and investors with confidence in the reliability and predictable performance of iPWRs.

The modular nature of iPWRs also aligns well with evolving energy infrastructure demands, offering flexible deployment options that can cater to various scales and locations. Their relatively smaller size and factory-based manufacturing processes reduce construction times and onsite labor requirements, lowering overall project risks and costs. These factors render iPWR technology particularly attractive for markets seeking scalable, low-carbon energy solutions that can be integrated into existing grids or isolated systems. Additionally, iPWRs are well-suited for coupling with other energy systems, such as hydrogen production or district heating, further expanding their application potential. The combination of regulatory familiarity, safety advancements, and versatility drives the predominance of iPWRs in the small modular reactor segment.

By Application: Power Generation Leads Through Demand for Clean, Reliable Energy Sources

By Application, power generation dominates the small modular reactor market because it aligns directly with global strategies to transition toward low-carbon and sustainable energy sources. As countries grapple with the need to meet increasing electricity demands while reducing greenhouse gas emissions, small modular reactors present an attractive alternative to conventional fossil fuel plants. Their compact size and modular construction facilitate quicker deployment, which is crucial for utilities aiming to expand or diversify energy portfolios in response to growing environmental regulations and policy incentives.

The ability of small modular reactors to provide a consistent baseload power supply addresses the intermittency challenges associated with renewable energy sources such as solar and wind. This reliability makes them essential components in supporting grid stability, especially as energy systems become more complex with higher penetration of variable renewables. Moreover, the inherent scalability of SMRs allows operators to incrementally add capacity tailored to specific demand profiles, reducing investment risks compared to large-scale nuclear projects.

Besides electricity generation, some SMR designs can operate at higher temperatures, offering cogeneration capabilities for industrial heat or hydrogen production, which further cements their role in power generation applications. The drive toward decarbonization, coupled with rising global energy needs and enhanced safety profiles of SMRs, especially in power generation, underscores why this application segment garners the largest market share.

By End-User: Utilities Lead Adoption Owing to Infrastructure Integration and Investment Capacity

By End-User, the utilities segment holds the highest share within the small modular reactor market, largely due to their central role in power system infrastructure and capacity to undertake significant capital investments. Utilities have long been the primary operators of nuclear energy facilities, positioning them as natural adopters of SMR technology. Their experience with regulatory compliance, grid integration, and long-term operational management of nuclear assets provides a strong foundation for embracing the innovations that SMRs offer.

The utilities sector is driven by mandates to reduce carbon footprints and diversify energy portfolios with stable, clean energy sources. SMRs provide utilities with a way to modernize their generation mix without compromising grid reliability. Additionally, their modular construction and smaller footprints allow utilities to overcome some traditional hurdles associated with nuclear power, such as large upfront costs and extended construction timelines. Utilities benefit from the flexibility to deploy SMRs incrementally or in locations unsuitable for larger reactors, including remote or smaller grids.

Moreover, utilities often have access to financing mechanisms and favorable regulatory relationships that support the development and operation of SMRs. Their existing infrastructure allows smoother integration of new SMR plants into transmission and distribution networks. This end-user segment is expected to continue leading adoption due to the alignment of SMR capabilities with the strategic objectives of utilities striving to deliver affordable, reliable, and sustainable energy solutions.

Regional Insights:

Dominating Region: North America

In North America, the dominance in the Small Modular Reactor (SMR) market is largely driven by a well-established nuclear industry, robust government support, and strong infrastructure for nuclear technology development. The United States, in particular, has fostered a conducive ecosystem through consistent regulatory frameworks led by the Nuclear Regulatory Commission (NRC), along with substantial federal funding for advanced nuclear technologies. The presence of influential companies such as NuScale Power and TerraPower, which pioneer innovative reactor designs and modular solutions, further consolidates this region's leadership. Additionally, strategic partnerships between private firms and national laboratories accelerate research and deployment efforts. Trade dynamics favor North America's position as it exports nuclear technology components and expertise globally, reinforcing its dominant role.

Fastest-Growing Region: Asia Pacific

Meanwhile, the Asia Pacific region exhibits the fastest growth in the SMR market due to escalating energy demands, a strategic pivot towards low-carbon energy sources, and active government policies aimed at nuclear energy expansion. Countries like China, South Korea, and Japan have intensified investments in SMR technologies to address both energy security and environmental goals. The supportive regulatory regimes are evolving to accommodate these innovations alongside an expanding manufacturing and supply chain ecosystem. Major companies such as China National Nuclear Corporation (CNNC), Korea Hydro & Nuclear Power (KHNP), and Mitsubishi Heavy Industries contribute significantly by developing indigenous SMR designs and enabling pilot projects. Additionally, intra-regional trade and technology cooperation with Western firms accelerate market penetration, making Asia Pacific the most dynamic arena for SMR development.

Small Modular Reactor Market Outlook for Key Countries

United States

The United States' market benefits from an advanced nuclear technology landscape supported by strong R&D initiatives and government incentives. NuScale Power stands out as a leader, advancing one of the first SMR designs to receive regulatory approval. Collaborations with the Department of Energy and utilities foster deployment readiness, underscoring the U.S. as a front-runner in commercializing SMR technology. Additional partnerships with firms like TerraPower also aim to introduce breakthrough designs, signaling a robust future pipeline and diversified innovation within the country.

China

China's market is characterized by aggressive government backing aligning with its long-term clean energy and industrial self-reliance strategies. CNNC drives the development of domestically engineered SMR models, integrating advanced safety features and modular construction principles. China's immense manufacturing capability enables rapid prototyping and potential scalability. The government's supportive regulatory environment and strategic partnerships with international bodies further strengthen its market position, making China a vital hub for SMR growth in Asia.

South Korea

South Korea continues to lead in advanced nuclear technology deployment with strategic support from KHNP and Korea Atomic Energy Research Institute (KAERI). The government's focus on nuclear export strategies positions South Korea as a key player in SMR deployment both domestically and internationally. Companies like Doosan Heavy Industries collaborate on design and fabrication, contributing to a comprehensive ecosystem that supports SMR commercialization. South Korea's aggressive global outreach enhances its influence in the evolving SMR market landscape.

United Kingdom

The United Kingdom's market is shaped by government initiatives aiming to revitalize its nuclear power sector through SMR technology as part of its net-zero emissions roadmap. The UK government's backing of projects led by companies such as Rolls-Royce SMR promotes modular, scalable designs tailored for diverse deployment scenarios. Emphasis on collaboration between public institutions and private stakeholders fosters innovation, while the UK's regulatory framework adapts to accommodate emerging technologies, thereby supporting market growth and international partnerships.

Japan

Japan's SMR market is evolving in the post-Fukushima era with increased interest in safe, compact nuclear solutions. The government encourages research and pilot projects focusing on next-generation SMRs to complement renewable energy systems and enhance grid stability. Firms such as Mitsubishi Heavy Industries and Toshiba leverage their nuclear expertise to develop viable SMR platforms. Japan's stringent safety regulations and innovation-driven culture create a unique balance that shapes the adoption and progression of SMRs domestically and potentially for export.

Market Report Scope

Market Segmentation

Reactor Type Insights (Revenue, USD, 2020 - 2032)

• Integral Pressurized Water Reactor (iPWR)
• High-Temperature Gas-Cooled Reactor (HTGR)
• Molten Salt Reactor (MSR)
• Fast Neutron Reactor (FNR)
• Others

Application Insights (Revenue, USD, 2020 - 2032)

• Power Generation
• District Heating
• Desalination
• Marine Propulsion
• Others

End-user Insights (Revenue, USD, 2020 - 2032)

• Utilities
• Industrial
• Commercial
• Military and Defense
• Others

Regional Insights (Revenue, USD, 2020 - 2032)

• North America
• U.S.
• Canada
• Latin America
• Brazil
• Argentina
• Mexico
• Rest of Latin America
• Europe
• Germany
• U.K.
• Spain
• France
• Italy
• Russia
• Rest of Europe
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• ASEAN
• Rest of Asia Pacific
• Middle East
• GCC Countries
• Israel
• Rest of Middle East
• Africa
• South Africa
• North Africa
• Central Africa

Key Players Insights

• NuScale Power
• Terrestrial Energy
• Rolls-Royce
• GE Hitachi Nuclear Energy
• Holtec International
• X-energy
• BWX Technologies
• SNC-Lavalin
• China National Nuclear Corporation (CNNC)
• Korea Electric Power Corporation (KEPCO)
• Toshiba Corporation
• Westinghouse Electric Company
• Rosatom
• Kairos Power
• Ultra Safe Nuclear Corporation
• Candu Energy Inc.
• Framatome
• Mitsubishi Heavy Industries
• Azrieli Group
• Lightbridge Corporation