Small Modular Reactor Market Projected to Hit US$10.3 Billion by 2032 - Persistence Market Research

The global small modular reactor (SMR) market is witnessing a significant surge as nations and corporations seek reliable, low-carbon, and flexible energy solutions. Small modular reactors, compact nuclear power plants typically under 300 MW per unit, offer scalable and safer alternatives to conventional nuclear reactors. Their modular design allows for factory fabrication, reducing on-site construction time and minimizing cost overruns. With rising global energy demand and mounting climate change concerns, SMRs are increasingly positioned as a pivotal solution to achieve energy security while supporting decarbonization initiatives.

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As per industry research, the global SMR market was valued at US$5.8 billion in 2025 and is projected to reach US$10.3 billion by 2032, growing at a CAGR of 8.5% during the forecast period. The market's growth is driven by several factors, including government decarbonization mandates, corporate net-zero commitments, and rising energy demand from technology-intensive sectors such as data centers and AI-driven operations. Among SMR types, pressurized water reactors (PWRs) dominate the market due to their mature technology, robust safety features, and wide adoption across pilot projects. Geographically, North America leads the market, largely due to strong policy support from the U.S. government, advanced nuclear technology infrastructure, and growing interest from private tech firms to secure clean baseload power for energy-intensive operations.

Key Highlights from the Report

• The small modular reactor market is expected to grow at a CAGR of 8.5% between 2025 and 2032.
• Pressurized water reactors are the leading SMR type due to proven technology and high safety standards.
• North America holds the largest market share, driven by U.S. government incentives and private sector adoption.
• Factory-fabricated SMRs reduce construction timelines from decades to months while ensuring consistent quality.
• Rising global energy demand from AI, data centers, and high-performance computing drives corporate interest in SMRs.
• Decarbonization mandates and net-zero commitments are creating strong market pull for nuclear baseload capacity.

Market Segmentation

The small modular reactor market is primarily segmented by reactor type, application, and end-user industry, each contributing differently to market growth. Based on reactor type, SMRs include pressurized water reactors (PWRs), boiling water reactors (BWRs), high-temperature gas-cooled reactors (HTGRs), sodium-cooled fast reactors (SFRs), and other advanced modular designs. Among these, PWRs dominate due to their technological maturity, proven safety protocols, and high adaptability for modular deployment. HTGRs and SFRs are gaining traction in pilot projects due to their higher thermal efficiency and potential for industrial heat applications.

By application, SMRs are used in electricity generation, district heating, desalination, and industrial process heat. Electricity generation remains the largest segment, particularly in regions with rising energy demand and limited grid infrastructure. District heating and desalination applications are expanding in regions with water scarcity and extreme climates. In the industrial sector, SMRs are increasingly being adopted to provide process heat for chemical, petrochemical, and manufacturing operations, reducing reliance on fossil fuels and enhancing operational sustainability.

End-user industries also influence market segmentation. Government utilities and private energy companies are key adopters, investing in SMRs for baseload energy generation. Additionally, tech companies, data centers, and industrial conglomerates are exploring off-grid SMR solutions to meet energy-intensive operations sustainably. The flexibility of modular deployment enables SMRs to be scaled incrementally, aligning supply with evolving energy demand profiles.

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Regional Insights

The SMR market is geographically diverse, with North America, Europe, Asia-Pacific, and Rest of the World presenting distinct growth patterns. North America, particularly the U.S., dominates due to supportive regulatory frameworks, investments in SMR pilot projects, and interest from tech giants to secure clean, reliable power. Government initiatives, such as streamlined licensing for modular reactors, have accelerated market development.

Europe is actively promoting SMRs to replace aging nuclear infrastructure and meet net-zero energy goals. Countries like the U.K., France, and Poland are piloting modular nuclear projects, focusing on safety, sustainability, and public-private partnerships. Asia-Pacific is emerging as a high-growth region, with China, Japan, and South Korea leading adoption. In China, strategic energy planning emphasizes nuclear expansion, while Japan is gradually resuming nuclear projects post-Fukushima with modular solutions to enhance safety and cost efficiency. Other regions, including the Middle East, Africa, and Latin America, are exploring SMRs to meet growing energy needs, particularly in areas where grid expansion is challenging and renewable integration is limited.

Market Drivers

The small modular reactor market is propelled by the increasing need for reliable, low-carbon energy sources. Global decarbonization mandates and corporate net-zero commitments are creating strong demand for nuclear baseload capacity that complements intermittent renewable energy sources. SMRs' modular, factory-fabricated design enables faster deployment compared to traditional nuclear plants, appealing to governments and private corporations seeking predictable energy solutions. Additionally, the rising energy demand from data centers, artificial intelligence applications, and high-performance computing is accelerating adoption of multi-gigawatt power purchase agreements backed by SMRs. Safety advancements, reduced land footprint, and potential for co-generation applications further strengthen the market outlook.

Market Restraints

Despite promising growth, the SMR market faces several challenges. High upfront capital costs remain a barrier, as nuclear projects require substantial financial investment and long-term financing. Regulatory hurdles, including stringent licensing processes and safety compliance, can delay project initiation. Public perception and social acceptance of nuclear energy, influenced by historical accidents, also pose challenges for widespread adoption. Additionally, competition from renewable energy sources, such as solar and wind, which benefit from declining costs and faster deployment timelines, may impact SMR adoption in certain regions.

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Market Opportunities

The SMR market offers multiple avenues for growth and innovation. The trend toward factory-fabricated, modular reactors enables standardized production, reducing construction time from decades to months while improving quality and cost predictability. Integration of advanced safety features, digital monitoring systems, and remote operation capabilities presents opportunities for technology differentiation. Emerging economies with rising energy demand and limited grid infrastructure represent a significant market opportunity. Moreover, the potential to supply district heating, desalination, and industrial process heat expands SMRs' utility beyond electricity generation. Partnerships between governments and private corporations, particularly in the tech and industrial sectors, are further driving market expansion.

Company Insights

The small modular reactor market is competitive, featuring several established nuclear technology firms and emerging innovators advancing modular solutions. Key players include:

• NuScale Power - A pioneer in modular nuclear reactor technology with operational pilot projects in the U.S.
• GE Hitachi Nuclear Energy - Focuses on advanced BWR and SMR designs for global deployment.
• Rolls-Royce SMR - Developing factory-built SMRs in the U.K. for commercial energy supply.
• TerraPower - Innovating sodium-cooled fast reactors and modular solutions for clean energy.
• China National Nuclear Corporation (CNNC) - Leading SMR pilot projects and domestic deployments in China.
• Korea Hydro & Nuclear Power (KHNP) - Developing SMRs and advanced reactor designs for regional and international markets.
• BWX Technologies - Provides components and technology solutions for SMR construction.
• Oklo Inc. - Specializes in compact, high-efficiency modular nuclear reactors for commercial and industrial applications.

Recent Developments:

NuScale Power achieved U.S. NRC design approval for its 77 MW SMR, marking a major regulatory milestone for commercial deployment.

Rolls-Royce SMR secured a partnership with the U.K. government to develop a fleet of factory-built SMRs, supporting national net-zero targets and energy security.

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