LONDON--(BUSINESS WIRE)--Technavio market research analysts forecast the global nuclear reactor construction market to grow at a CAGR of more than 5% during the forecast period, according to their latest report.
The market study covers the present scenario and growth prospects of the global nuclear reactor construction market for 2017-2021. The report also segments the market based on the type of nuclear reactors into PWR and Others. The others segment included ABWR, FBR, HTGR, and PHWR. PWRs accounted for more than 86% of the market share in 2016.
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Technavio heavy industry analysts highlight the following three market drivers that are contributing to the growth of the global nuclear reactor construction market:
- Prefabricated structure gaining prominence
- Growing demand for electricity
- Rising initiatives from governments
Prefabricated structure gaining prominence
Prefabricated structures help reduce the cost and period of construction, both of which are quite high for nuclear reactors. Nuclear power projects such as Flamanville 3 in France is behind its construction schedule, which resulted in the increasing cost of the overall project. A prefabricated structure includes an assembly of piping, valves, ladders, structural elements, supports, reinforced bar mats, ducting, and others. These structures can be mass produced in the event where several reactors are to be installed simultaneously. The mass production helps reduce considerable construction time and labor requirements. Prefabricated structures are manufactured in a controlled environment to maintain quality and efficiency of the structure.
Growing demand for electricity
The demand for electricity is directly proportional to the economic growth of a country. It is expected that the demand for electricity will rise to nearly 25 trillion KWh by 2020. The immense surge in electricity prompts the need to develop new ways to generate it without any negative impact on the environment.
Renewable energy sources such as nuclear energy and natural gas are the fastest growing sectors involved in the generation of electricity. Nuclear energy provides electricity at economical rates without affecting the environment.
“The strongest demand is expected from APAC with India and China attracting major shares for the development of nuclear energy plants. China is expected to account for maximum share with an addition of nearly 139 GW capacity by 2040, followed by India at 36 GW,” says Likhitha Bandla, a lead analyst at Technavio for construction research.
Rising initiatives from governments
Countries such as India, China, Russia, and the UAE are witnessing an increase in government spending on nuclear power. The Chinese government plans to increase the country's nuclear energy production to 40 GW by 2020 with an additional 18 GW of nuclear reactors under construction.
“Governments across the globe are entering strategic alliances to construct nuclear power plants, which augurs well for the growth of the market,” says Likhitha.
For instance, in 2016, the governments of India and Japan signed a deal on nuclear power, which will allow Japanese nuclear giants such as Toshiba, Mitsubishi, and Hitachi to enter the Indian nuclear reactor construction market, which already has a strong presence of French and Russian vendors.
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