Nuclear Decommissioning Services Market

Global Nuclear Decommissioning Services Market Size (2024-2029):

The Global Nuclear Decommissioning Services Market size is estimated at USD 6.66 billion in 2023 and is predicted to reach USD 9.24 billion in 2029 from USD 7.04 billion in 2024 and grow with a CAGR of 5.60% ​​between 2024 and 2029.

Market Scenario

Nuclear accidents, such as the 2011 Fukushima accident at the Daichi nuclear power plant and the escalating political pressure for the early closure of nuclear power plants, especially in European countries, are supposed to stimulate the nuclear-decommissioning services market. Companies that provide decommissioning services must take strict security measures, as the area to be dismantled is under the influence of nuclear radiation. The services provided by the companies include dismantling concepts, dismantling reports, accompanying controls, support for the postoperative phase, and evaluation of waste packages.

One of the factors responsible for the expansion of the nuclear decommissioning market is the increase in nuclear accidents that are dangerous to the environment. For many years, players in the nuclear-decommissioning services industry have performed manual operations with the aid of a huge workforce. It takes more time to decommission an entire nuclear power plant. Additionally, the operation of a massive workforce at a nuclear power plant exposes the workforce to the risk of radioactive materials existing at the site. Taking these factors into account, players in the nuclear-decommissioning services market are focusing on robotic technologies, which are predicted to speed up decommissioning activity and reduce the cost of the process in the coming years.

Market Drivers

The augmented call for power generation is forcing nuclear power plants to produce more and more power with the same number of pressure vessels that exist in the plant. We see that this creates an escalating load on the pressure vessels employed in nuclear power plants, which creates the need to refuel the reactors. Therefore, the nuclear power plant must be dismantled. This is estimated to create an opportunity for the expansion of the nuclear-decommissioning services market during the foreseen period. Following the accident at the Fukushima nuclear power plant, the German government took steps to shut down its nuclear power plants by 2022. This is predicted to boost the market for nuclear decommissioning services during the foreseen period. The growing concern for public safety due to the dangerous consequences of nuclear accidents is likely to drive market calls for years to come. Furthermore, the growing concern for sustainability is likely to have a positive impact on market expansion. The transition to renewable energy through various government initiatives and regulations is also predicted to promote nuclear decommissioning services during the foreseen period. The phase-out of nuclear power worldwide and growing government support after nuclear accidents are among the main factors likely to drive market expansion in the coming years.

Market Restraints

Nuclear power plants produce more than 11% of the world's electricity to meet basic electricity needs without carbon dioxide emissions. Plans are being developed to extend the life of power plants in several countries. As a result, several reactors are likely to operate beyond their originally intended life, which is predicted to significantly hamper the market for nuclear decommissioning services.

Market Opportunities

Stringent government rules are needed to upgrade or digitize nuclear services so that changes in reactor properties can be highlighted and relevant personnel quickly assist. This could drive the expansion of the nuclear-decommissioning services market in the future. The company's focus on using robots in the area of ​​high-alert radiation is also predicted to drive worldwide market expansion in the future. As governments encourage the use of renewable energy resources at the expense of nuclear power generation, decommissioning operations are predicted to expand continuously in the near future, thus driving the expansion of the worldwide nuclear-decommissioning services market to a large extent. Various political decisions based on social constraints and safety concerns are likely to support further the decision to shut down nuclear power plants over the next two decades.

Market Challenges

One of the main attractions of the worldwide market is nuclear power plants embracing a new innovation in digitization.

Impact of COVID-19 on the Nuclear Decommissioning Services Market

The coronavirus pandemic has called for drastic action in almost every aspect of life around the world. Maintaining a reliable power supply and "keeping the lights on" is vital. Nuclear generation provides about 10% of the world's electricity and contributes to electricity production in more than 30 countries. In many countries, employees in the nuclear sector have been identified as some of the key workers who are essential to maintaining important infrastructure during the pandemic. Additionally, in the United States, for example, the critical infrastructure designation has been extended to nuclear power plants, supply chains, fuel services, and outage support personnel. There has been no forced shutdown of a nuclear reactor due to the effects of COVID-19 on the workforce or supply chains, according to reports from operators and regulators received through the operational experience network. According to the IAEA, operators and regulators continued to ensure the safety and security of factories around the world, even as the pandemic affected them in various ways, including planned closures and maintenance programs.

NUCLEAR DECOMMISSIONING SERVICES MARKET REPORT COVERAGE:

Market Segmentation:

Global Nuclear Decommissioning Services Market Analysis By Reactor Type

• PWR
• BWR
• GCR

The BWR segment had the largest market size in 2020, as it is employed in most nuclear power plants.

Global Nuclear Decommissioning Services Market Analysis By Strategy

• Immediate Dismantling
• Deferred Dismantling
• Entombment

The immediate decommissioning segment is predicted to occupy the largest market size during the foreseen period, due to the anticipated phase-out of nuclear power plants in the European region, particularly in Germany and Italy.

Global Nuclear Decommissioning Services Market Analysis By Capacity

• Up to 800 MW
• 801 MW-1,000 MW
• Above 1,000 MW

Nuclear reactors up to 800 MW are likely to occupy the largest market size during the conjecture period due to the prior closure of nuclear power plants with capacities below 800 MW in the European region.

Market Regional Analysis:

• North America 
• Europe 
• Asia Pacific
• Latin America 
• Middle East & Africa 

Europe had the largest market share, followed by North America and Asia-Pacific. In 2021, Germany dominated the European market for nuclear decommissioning services. This can be attributed to government support, followed by public concern over the prior shutdown of nuclear power plants. Meanwhile, the market is predicted to grow faster in Asia-Pacific, due to the escalated number of nuclear power plants in Japan and South Korea. The market for nuclear decommissioning services is predicted to grow significantly in Europe due to several factors, such as strict government rules and regulations to phase out nuclear power plants. Many nuclear power plants in North America are approaching the decommissioning phase. This is likely to boost the market for nuclear decommissioning services in the region in the near future. North America is a leading market for the nuclear-decommissioning services market, showing significant expansion. On the other hand, strict government regulations can limit market expansion to some extent.

However, the Asia-Pacific region is showing strong expansion in the nuclear-decommissioning services market due to the escalating number of nuclear power plants in South Korea and Japan. Asia-Pacific has the largest number of nuclear power plants due to the escalating use of nuclear decommissioning. North America is predicted to grow during the foreseen period, as many nuclear power plants in this area will close for the safety of people and the environment.

Market Key Players:

Some of the leading players in the global Nuclear Decommissioning Services Market are

1. Rosatom
2. AECOM
3. Studsvik
4. EDF-Ciden
5. AREVA SA
6. Westinghouse Electric
7. Javys
8. EnergySolutions
9. Babcock International Group
10. NDA
11. Nuvia
12. Enresa 

Market Recent Developments

• Ontario Power Generation inaugurated the Canadian Center for Nuclear Sustainability to support preparations for the decommissioning of the Pickering nuclear power plant. The regional center will integrate collaboration and research to strengthen Ontario's supply chain for nuclear decommissioning.