Nuclear decommissioning: Key market research findings
- Stringent legislations imposed post-Fukushima incident drives market growth
- PWR type reactors account for the majority share of the market
- Key vendors – AECOM Limited, AREVA SA, Babcock International Group PLC., Studsvik, and Westinghouse Electric
Technavio’s market research analysts predict the global nuclear decommissioning market to reach 18,659 MWe by 2020 in terms of capacity. The stringent regulations imposed after the Fukushima incident is the primary driving force behind growth in the market. Several governments across the world reviewed their nuclear power generation related regulations to ensure the safety of the reactor post-incident. In some countries such as Japan and Germany, the period of regular checks of the reactors was decreased so as to ensure timely action. Many countries have come up with updated regulations to enforce better safety standards on the nuclear reactors. During 2015, EMEA accounted for almost 63% of the market share to become the dominant shareholder in the global nuclear decommissioning market. Within EMEA, the countries where nuclear plants are slated for decommissioning within the forecast period are the Czech Republic, France, Germany, Hungary, Russia, Spain, Sweden, Switzerland, the UK, and Ukraine.
The new market research report from Technavio presents a breakdown and analysis of the nuclear decommissioning segments based on type.
“Growing international cooperation to ensure nuclear safety is the latest trend in the global nuclear decommissioning market. Organizations such as the International Atomic Energy Agency (IAEA), the Organisation for Economic Co-operation and Development’s (OECD’s) Nuclear Energy Agency (NEA), and the commission of the European communities share the experience, technology, and the knowledge about decommissioning among various countries. The cooperation between such organizations is expected to make the decommissioning process easier. These international organizations are also sharing the issues and results of R&D with each other to foster a safe and clean environment,” says Vishu Rai, Lead Analyst, Energy, Technavio Research.
The pressurized water reactor (PWR) segment occupied almost 85% of the market space to dominate the global nuclear decommissioning market in 2015. The typical decommissioning cost of PWR reactors is assumed to be around $600 million. The decommissioning market of PWR type reactors is likely to grow at a CAGR of around 35%. By 2020, the nuclear decommissioning market by PWR reactors is expected to reach 13,618 MWe and associated costs are expected to amount to more than $9 billion.
The key vendors in the global nuclear decommissioning market include AECOM Limited, AREVA SA, Babcock International Group PLC., Studsvik, and Westinghouse Electric. Due to the presence of a number of well-diversified international, regional and local nuclear decommissioning companies across the globe, this market appears to be highly fragmented. Owning quality nuclear decommissioning equipment has helped international players to dominate the market, and it has also been observed that international vendors tend to sign JVs with regional vendors to expand their global reach. The emergence of regional companies that claim expertise in safe decommissioning and waste management services is likely to intensify vendor competition in the market in the coming years.
A more detailed analysis is available in the Technavio report, Global Nuclear Decommissioning Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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