Spent Nuclear Fuel (SNF) Dry Storage Casks Market

Global Spent Nuclear Fuel (SNF) Dry Storage Casks Market Size

The global spent nuclear fuel (SNF) dry storage casks market was valued at USD 2.14 billion in 2023. The global market is anticipated to reach a valuation of USD 3.55 billion by 2032 from USD 2.26 billion in 2024, registering a CAGR of 5.8% from 2024 to 2032.

The dry cask storage is specially designed to store the spent nuclear fuel for years, which has already been cooled in a spent fuel pool.  The steel cylinders that are closed with welding or bolting process with leak-tight containment with the fuel rods inside those are surrounded by inert gas. Every steel cylinder is typically shielded with additional steel, concrete, or any other materials to avoid the risk of radioactive emissions from the nuclear fuel that provides protection to the workers or the people around the plants. The rising prominence of increasing the efficiency in producing energy in various ways is greatly influencing the growth rate of the market. The high production of energy means the high need to store nuclear waste in the proper way without causing environmental concerns. The nuclear reactors need to refuel with fresh fuel regularly where the need to store the spent fuel that is cooled should need to be stored safely. Therefore, the rising demand for energy is likely to surge the demand for the spent nuclear fuel (SNF) dry cask.

• According to the World Nuclear Association, the total electricity generated using nuclear reactors in 2023 was 2602 TWh. In China, 50% of the nuclear plants will be under construction in 2023 and are expected to generate huge amounts of electricity to fulfill the energy demand in the coming years with the growing population.

MARKET DRIVERS

Growing Safety and Environmental Concerns in the Nuclear Industry

As older nuclear power plants continue to operate beyond their initial design lifespans, the need to safely store and manage spent nuclear fuel has become increasingly crucial. Dry storage casks have emerged as a secure and environmentally friendly solution, effectively reducing the risk of radioactive material release. The Fukushima nuclear disaster in 2011 highlighted the importance of robust spent fuel storage, driving investment in dry storage solutions.

The demand for Spent Nuclear Fuel (SNF) Dry Storage Casks Market is amplifying due to the fact that many nuclear power plants are reaching the end of their operational lifetimes, leading to a surge in decommissioning activities. As these plants are shut down, there is a growing market demand for reliable and long-term storage solutions for the spent fuel. Dry storage casks offer a cost-effective and practical option for handling SNF during and after the decommissioning process.

• The International Atomic Energy Agency (IAEA) reported in 2022 that there are only 6 nuclear reactors in Germany where, as more than 26 of them were already dismantled with the rising demand to reach net zero emissions by the end of 2050.
• According to the World Nuclear Association, European countries are steeping towards the target of producing 40% of their annual deployment totally in net zero technologies by the end of 2030. European Parliament approved the Net Zero Industry Act to deploy all technologies in net zero emissions that help achieve their target of zero carbon emissions by the end of 2050.

MARKET RESTRAINTS

Technological Challenges and Aging Infrastructure

The development and maintenance of SNF dry storage casks require advanced engineering and material science expertise. The aging of existing storage facilities and casks can present technological challenges, as they may require costly refurbishments or replacements to ensure continued safe operation. According to the U.S. Government Accountability Office (GAO), the aging storage places and limited funds are making it tough to meet SNF storage needs in the United States. As a result, these technological challenges and aging infrastructure can slow down the SNF Dry Storage Casks Market's progress. 

MARKET OPPORTUNITIES

Growing Need for Nuclear Fuel Storage

The need for spent nuclear fuel storage is becoming popular with the launch of a number of innovative technologies that extend the storage period by merely up to 100 years. The dry casks come with high corrosion-resistant power, which is the major aspect for the storage of spent nuclear fuel for longer years.

• In 2024, the U.S. Department of Energy (DOE) conducted seismic testing on the dry cask storage systems for spent nuclear fuel. The major aspect of this study is to evaluate the safety and integrity of these systems during seismic events like earthquakes. More than 70 nuclear sites were tested to know how earthquakes can impact the storage cylinders.

The majority of the spent nuclear fuel is stored in dry casks for better management of waste without causing harm to the environment. Government organizations are also greatly supporting installing these systems for a better future by reducing carbon footprints by safely storing and depositing nuclear waste. It is estimated that by the end of 2025, the majority of the nuclear power plants in the U.S. will install independent spent nuclear fuel storage facilities at or near the plant.

MARKET CHALLENGES

Storing the spent nuclear fuel in a dry cask is an effective way to avoid the risk due to radioactive elements. However, there are many risks associated with human errors while safely storing spent nuclear fuel in dry casks. Spent nuclear fuel remains active for many years with hazardous, radioactive elements that lead to fatality even for a short period of direct exposure. Scientists believe that severe earthquakes can pose a serious threat.

• According to the Nuclear Regulatory Commission (NRC), spent fuel pools have been densely packed for many decades. These pools may have higher chances of explosions or any other odd factors that may lead to fatal accidents. As per NRC analyses, the densely packed pool may release 24 megacuries of cesium 137, which has the power to contaminate thousands of square miles of land. Millions of people can be affected by any leakage.

Therefore, the rising concern over the safety of installing spent nuclear fuel storage dry casks certainly limits the growth rate of the market.

REPORT COVERAGE

SEGMENTAL ANALYSIS

By Product Insights

The metal casks segment is currently dominating the spent nuclear fuel (SNF) dry storage casks market share and is expected to grow with a CAGR of 6.6% during the forecast period. Metal casks are typically constructed from robust alloys like stainless steel and are vital in the dry storage of spent nuclear fuel (SNF). Renowned for their strength and corrosion resistance, they are well-suited for applications prioritizing weight and portability. In contrast to concrete casks, metal casks offer a more compact and lightweight alternative, which can be advantageous for transportation and handling in certain scenarios. However, due to their reduced radiation shielding capabilities, metal casks are typically chosen when shielding needs are less stringent or specific logistical constraints influence the decision.

The concrete dry storage casks segment is expected to showcase a healthy CAGR during the forecast period. Concrete dry storage casks are favored for their exceptional shielding properties, providing effective radiation protection for spent nuclear fuel (SNF). Their thick concrete walls ensure the safe containment of SNF. These casks offer durability and can withstand various environmental conditions, making them suitable for long-term storage. Their modular and robust design allows for easy transportation, installation, and scalability in diverse nuclear facilities. Specially formulated concrete ensures longevity, maintains the integrity of the storage system, and contributes to their preference for SNF management.

By Application Insights

The large nuclear power plants segment is estimated to hold the largest share of the global spent nuclear fuel (SNF) dry storage casks market during the forecast period due to their higher power output and longer operational lifespans, generating a significant volume of spent nuclear fuel. As a result, the demand for dry storage casks, essential for the safe and efficient management of this fuel, is notably greater in such facilities. The dominant application of dry storage casks in large nuclear power plants is due to the sheer quantity of spent nuclear fuel that needs to be securely managed, reflecting the scale and output of these nuclear facilities.

The small nuclear power plants segment is estimated to showcase a notable CAGR during the forecast period due to their lower power output and reduced generation of spent nuclear fuel, which still necessitate secure storage solutions for radioactive waste. Dry storage casks play a crucial role in managing the spent fuel at these facilities. The prevalence of this application type is often driven by the presence of smaller, decentralized nuclear power plants that are increasingly becoming significant players in the evolving energy landscape. These plants require effective and safe solutions for their spent nuclear fuel, contributing to the growth of dry storage casks in this context.

REGIONAL ANALYSIS

North America held 42% of the global SNF dry storage casks market in 2023. The proactive stance of North America toward nuclear waste management, coupled with stringent safety regulations, has solidified its dominance. The focus on long-term storage solutions and the imperative to manage the accumulated SNF generated over decades contribute to North America's significant presence in the market. The region's commitment to safe and efficient nuclear waste storage is instrumental in shaping the industry landscape.

The Asia-Pacific region is the second leading market and is anticipated to showcase a CAGR of 7.2% during the forecast period. This demand surge is primarily propelled by the expansion of both large and small nuclear power plants. The dominance of this application is furthered by the development of new nuclear facilities across the region, reflecting a growing reliance on nuclear energy to meet power demands while focusing on safe and efficient waste management solutions. The market share in China is anticipated to be prominent in the coming years, with growing support from government organizations. Government authorities in this country advise the key players to follow the fuel management strategies that are used in order to avoid the risk. China is one of the major countries that proposes nuclear power plants with ambitious technologies in it. Owing to the high demand for the supply of electricity, the rising population substantially levels up the need for the rapid adoption of storage facilities along with effective strategies to dispose of nuclear waste without harming the environment.

• In 2023, Korean-based company Dooran Enerbility Co. secured a contract to deliver dry storage systems due to its comprehensive design from Korea Hydro & Nuclear Power Co. The company estimates to deliver the systems that enable transporting and storing the spent nuclear fuel safely by the end of 2027.

Europe holds a significant position in the SNF dry storage casks market share due to its varied mix of nuclear power facilities. Numerous countries within the European Union have been actively developing strategies and regulations for safe and efficient SNF management, contributing to market expansion. The range of nuclear power plant sizes in Europe creates a balanced dominance between large and small nuclear power plants, emphasizing the importance of reliable dry storage solutions for a wide spectrum of facilities.

• According to the International Atomic Energy Agency (IAEA), the Ahaus spent fuel storage facility (BZA) got a license to store the spent nuclear fuel. German government plans for safe storage facilities with a guaranteed period of up to 30 years shall fuel the growth rate of the spent nuclear fuel dry storage cask market.

Latin America and the Middle East & Africa are likely to have significant growth during the forecast period due to investment in nuclear power generation.

KEY MARKET PLAYERS

Companies playing a promising role in the global spent nuclear fuel (SNF) dry storage casks market include Holtec International, AREVA, NAC International, Transnuclear, Inc., TN Americas LLC, Waste Control Specialists (WCS), Orano USA, NUHOMS, Copperhead Industries, GNS Gesellschaft für Nuklear-Service, and Others.

RECENT HAPPENINGS IN THE MARKET

• In 2023, NAC International expanded its portfolio to include MAGNASTOR® systems, emphasizing robust engineering and efficient storage of spent nuclear fuel. These casks are designed for extended storage periods.
• In 2023, EnergySolutions emphasized the development of integrated storage solutions, offering enhanced security, monitoring, and environmental protections for SNF storage.
• In 2023, Orano introduced new cask designs, enhancing passive cooling features to reduce heat emissions and ensure the long-term safety of stored SNF.
• In 2023, U.S.-based NRC International and Korea’s Doosan Enerbility developed a metal storage cask that received approval from the U.S. Nuclear Regulatory Commission.

MARKET SEGMENTATION

This research report on the global spent nuclear fuel (SNF) dry storage casks market has been segmented and sub-segmented based on product, application, and region.

By Product

• Concrete
• Metal 

By Application

• Large nuclear power plant
• Small nuclear power plant 

By Region

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