Global Nuclear Power Market - Size, Share, Trends, Opportunities, and Forecast, 2021-2031F | Market to Reach USD 51.22 Billion as SMRs and AI Data Centers Drive Growth
Dublin, Oct. 14, 2026 (GLOBE NEWSWIRE) -- "Nuclear Power Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031F" has been added to ResearchAndMarkets.com's offering.
The Global Nuclear Power Market is projected to grow from USD 35.54 billion in 2025 to USD 51.22 billion by 2031, registering a Compound Annual Growth Rate (CAGR) of 6.28%. Market expansion is being supported by national energy security priorities, rising electricity demand and government commitments to net-zero emissions. Countries are increasingly considering nuclear energy as a reliable source of low-carbon electricity that can reduce dependence on volatile fossil fuel imports while complementing renewable power generation.
Global nuclear reactors generated a record 2667 TWh of electricity in 2024, according to the World Nuclear Association in 2025. This performance reinforces the importance of nuclear power within the global energy transition, particularly as governments seek dependable baseload capacity. However, high initial capital requirements, complex regulatory processes and prolonged construction schedules continue to limit the pace of new nuclear capacity development.
Market Drivers: Stringent decarbonization mandates are a central growth driver for the Global Nuclear Power Market. While solar and wind capacity continues to expand, their intermittent output increases demand for stable generation sources that can support grid reliability. Nuclear power provides continuous electricity with low operational carbon emissions, making it an important component of long-term climate and energy strategies.
The World Nuclear Association reported in its September 2025 World Nuclear Performance Report 2025 that nuclear reactors prevented 2.1 billion tonnes of carbon dioxide emissions in 2024. This environmental contribution is encouraging governments to extend the operating lives of existing reactors, restart selected facilities and support new nuclear construction.
Small Modular Reactor (SMR) technology is also expected to reshape the nuclear power industry. SMRs offer scalable deployment options and may help address challenges associated with the cost, complexity and construction duration of conventional large-scale reactors. Their potential applications include utility power generation, industrial energy supply and deployment in regions with smaller electricity grids.
According to the International Atomic Energy Agency's September 2025 Energy, Electricity and Nuclear Power Estimates for the Period up to 2050, SMRs could represent 24% of new nuclear capacity under the high case scenario. The agency also projected that global nuclear electrical generating capacity could reach 992 gigawatts by 2050 in the same scenario.
Market Challenges: Significant upfront investment and extended project timelines remain major barriers to nuclear power market growth. New facilities require substantial financing before generating revenue and can be affected by interest rate changes, regulatory delays, supply chain constraints and construction cost overruns. These risks often discourage private investment and increase reliance on state-supported financing, government guarantees or public-private partnerships.
The impact of these constraints is reflected in the limited number of new projects entering construction. The World Nuclear Association reported in 2025 that only nine nuclear reactors began construction globally during the previous year. Although energy security and decarbonization policies remain supportive, the nuclear industry must improve project delivery, financing structures and regulatory coordination to accelerate capacity additions.
Market Trends: Strategic agreements between nuclear power operators and hyperscale data centers are creating a new source of electricity demand. Artificial intelligence, cloud computing and digital infrastructure require large volumes of consistent power, prompting technology companies to seek direct access to carbon-free generation.
In September 2024, Constellation Energy announced a 20-year power purchase agreement with Microsoft to restart the Three Mile Island Unit 1 reactor as the Crane Clean Energy Center. The project is expected to add approximately 835 megawatts of carbon-free capacity for data center requirements. Similar agreements could improve the commercial outlook for existing nuclear assets and support reactor restarts or operating life extensions.
Nuclear-derived pink hydrogen is another emerging opportunity. Nuclear electricity and steam can support low-carbon hydrogen production for manufacturing and other industrial activities that are difficult to electrify. This enables nuclear facilities to diversify beyond electricity generation and participate in broader clean energy infrastructure development.
The Midwest Hydrogen Hub, which incorporates nuclear energy, received an initial federal grant of USD 22.2 million in December 2024. The funding supports early hydrogen infrastructure development and demonstrates the expanding role of nuclear power in industrial decarbonization.
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Report Scope: The Global Nuclear Power Market report evaluates market size, growth opportunities, industry trends and key segments by application, reactor type and region.
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