Nuclear Reactor Construction Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Reactor Type (Pressurized Water Reactors, Boiling Water Reactors, Advanced Reactors), By Application (Baseload Electricity Generation, Desalination & Process Heat, Marine Propulsion, Others), By Region, By Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 54.72 Billion
CAGR (2026-2031)	3.02%
Fastest Growing Segment	Advanced Reactors
Largest Market	North America
Market Size (2031)	USD 65.41 Billion

Market Overview

The Global Nuclear Reactor Construction Market is expected to grow from USD 54.72 Billion in 2025 to USD 65.41 Billion by 2031 at a 3.02% CAGR. The Global Nuclear Reactor Construction Market encompasses the comprehensive engineering, procurement, and building of facilities designed to generate electricity through controlled nuclear fission. This sector is fundamentally driven by the escalating global imperative to secure low-carbon baseload power that aligns with stringent decarbonization mandates and international climate accords. Additionally, nations are increasingly investing in nuclear infrastructure to bolster energy security and mitigate the geopolitical risks associated with fossil fuel dependence, thereby ensuring a stable and diversified national energy mix.

According to the World Nuclear Association, in 2025, there were 70 nuclear reactors under construction worldwide, reflecting a sustained commitment to capacity expansion particularly in Asian markets. However, the sector continues to grapple with the significant challenge of prohibitive upfront capital expenditures and prolonged project development timelines, which create substantial financial risks and can impede the rapid deployment of new projects.

Key Market Drivers

Surging power demand from artificial intelligence and hyperscale data centers has emerged as a primary catalyst for new nuclear reactor construction. Technology corporations are actively seeking carbon-free baseload electricity to power energy-intensive computational infrastructure and meet sustainability goals. This trend has catalyzed direct partnerships between hyperscalers and nuclear developers. According to Amazon Web Services, October 2024, in the 'Amazon and X-energy Partnership Announcement', the company committed to anchoring a Series C-1 financing round with an investment of approximately $500 million to support the development of advanced nuclear projects. Such capital injections provide the necessary financial certainty to move reactor designs toward physical construction.

Commitments to net-zero carbon emissions and climate change mitigation underpin long-term market expansion. Governments are revising energy policies to acknowledge nuclear power as an indispensable component of the clean energy transition. According to the International Atomic Energy Agency, September 2024, in the 'Energy, Electricity and Nuclear Power Estimates for the Period up to 2050', the high case projection indicates that global nuclear generating capacity could increase to 950 gigawatts by 2050. This positive outlook is translated into project approvals in high-growth regions. According to Reuters, in 2024, China's State Council approved five new nuclear projects involving 11 reactors with a total estimated investment of roughly 220 billion yuan. These strategic approvals demonstrate how national mandates drive infrastructure growth.

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Key Market Challenges

The significant financial burden associated with prohibitive upfront capital expenditures and prolonged project development timelines acts as a formidable barrier to the growth of the Global Nuclear Reactor Construction Market. Unlike modular renewable energy installations, nuclear facilities require immense initial capital outlays that must be secured years before any revenue is generated, exposing investors to substantial interest accumulation and liquidity risks. This capital intensity creates a high threshold for market entry and often deters private sector participation, leaving projects dependent on complex and often uncertain government financing mechanisms or loan guarantees.

This economic strain is directly reflected in recent project performance metrics which highlight the risks deterring investment. According to the International Energy Agency, in 2025, new nuclear projects in advanced economies experienced average construction delays of approximately eight years and incurred final costs reaching nearly 2.5 times the initial budget estimates. Such pronounced cost overruns and schedule slippages significantly reduce the commercial competitiveness of nuclear power relative to other baseload energy sources, causing utilities to hesitate in committing to new developments and directly hampering the pace of market expansion.

Key Market Trends

The commercialization of Small Modular Reactor (SMR) designs is reshaping the market by offering scalable alternatives to traditional large-scale infrastructure. Unlike gigawatt-class plants requiring bespoke on-site engineering, SMRs utilize standardized designs for factory fabrication, which significantly reduces installation risks and upfront capital outlays. This transition is increasingly evident in national procurement strategies that are advancing from feasibility studies to binding deployment contracts. According to the American Nuclear Society, June 2025, in the 'U.K.'s own Rolls-Royce wins SMR competition', the government committed over £2.5 billion to the program while selecting the domestic firm as the preferred bidder to deliver the country’s first fleet of modular units. These investments provide the critical market signals needed to activate supply chains and move designs toward physical realization.

Concurrently, the repurposing of retired coal infrastructure for nuclear siting is emerging as a strategic method to optimize project economics. Developers are prioritizing brownfield sites to leverage existing high-voltage transmission lines, cooling water rights, and skilled local labor pools, effectively mitigating the substantial costs associated with greenfield development. This approach also aligns with regulatory frameworks designed to streamline permitting for projects that replace fossil fuel generation capacity. According to the American Nuclear Society, December 2025, in the 'NRC completes safety review for TerraPower's Kemmerer project', the developer affirmed its schedule to achieve commercial operation of its 345-megawatt reactor, situated near a Wyoming coal facility, by 2031. This integration of advanced nuclear technology with legacy energy assets accelerates capacity expansion while revitalizing industrial communities.

Segmental Insights

The Advanced Reactors segment currently represents the fastest-growing category within the global nuclear reactor construction market. This expansion is primarily driven by the enhanced safety profiles and reduced capital intensity of these designs compared to traditional large-scale infrastructure. Investors and governments are increasingly favoring these units because their modular nature allows for scalable deployment and easier integration with renewable energy grids. Furthermore, the International Atomic Energy Agency is actively developing harmonized safety standards to streamline licensing processes, thereby reducing regulatory uncertainty and accelerating commercial adoption worldwide.

Regional Insights

North America dominates the Global Nuclear Reactor Construction Market, driven by extensive investments in modernizing existing infrastructure and developing advanced nuclear technologies. This leadership is underpinned by robust government incentives in the United States and Canada aimed at decarbonization and energy security. The region is witnessing a surge in projects focused on Small Modular Reactors (SMRs) and substantial life-extension programs for its large operational fleet. Additionally, a stable regulatory framework facilitates these developments, attracting capital for projects that ensure reliable, carbon-free power for critical industries and grid stability.

Recent Developments

• In November 2024, Westinghouse Electric Company signed an engineering services contract with Hyundai Engineering & Construction and the project company for the Kozloduy Nuclear Power Plant in Bulgaria. This agreement initiates the design, licensing, and site planning phases for the construction of two AP1000 reactor units at the existing nuclear site. The deal formalizes a strategic partnership between the U.S. technology provider and the South Korean construction giant to deliver Generation III+ nuclear capabilities. The project is a critical component of Bulgaria's plan to diversify its energy supply and replace aging Soviet-era infrastructure with modern Western technology.
• In October 2024, Kairos Power signed a Master Plant Development Agreement with Google to deploy a fleet of advanced nuclear power projects across the United States. This collaboration outlines a roadmap to bring 500 MW of new, firm carbon-free electricity online by 2035 to power data centers and support corporate net-zero goals. Under the agreement, the nuclear engineering firm will develop, construct, and operate multiple small modular reactors using its proprietary fluoride salt-cooled high-temperature technology. The first deployment is targeted for 2030, signaling a major corporate commitment to scaling advanced nuclear infrastructure for industrial energy needs.
• In July 2024, Korea Hydro & Nuclear Power (KHNP) was selected as the preferred bidder to construct two new nuclear reactor units at the Dukovany power plant in the Czech Republic. The estimated cost for the project is approximately CZK 400 billion, representing a significant investment in the nation's energy infrastructure. This selection concluded a competitive tender process in which the South Korean company's proposal was chosen over a bid from a French utility group. KHNP will lead a consortium to execute the engineering and construction, aiming to enhance the country's energy security and support the transition to carbon-free power generation.
• In June 2024, TerraPower commenced physical construction on the Natrium reactor demonstration project in Kemmerer, Wyoming. This milestone marked the start of non-nuclear groundworks for a first-of-its-kind commercial advanced reactor facility. The project features a 345 MW sodium-cooled fast reactor integrated with a molten salt energy storage system, designed to provide flexible baseload energy. By developing the plant near a retiring coal-fired station, the company aims to validate the feasibility of repurposing fossil fuel sites for nuclear energy. Infrastructure development is proceeding while the company awaits final regulatory approval to begin construction on the nuclear island.

Key Market Players

• GE-Hitachi Nuclear Energy, Inc.
• Westinghouse Electric Company LLC
• KEPCO Engineering & Construction Inc.
• SKODA JS a.s.
• China National Nuclear Corporation
• Bilfinger SE
• Larsen & Toubro Limited
• Doosan Corporation

By Reactor Type	By Application	By Region
Pressurized Water Reactors Boiling Water Reactors Advanced Reactors	Baseload Electricity Generation Desalination & Process Heat Marine Propulsion Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Nuclear Reactor Construction Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Nuclear Reactor Construction Market, By Reactor Type:

• Pressurized Water Reactors
• Boiling Water Reactors
• Advanced Reactors

• Nuclear Reactor Construction Market, By Application:

• Baseload Electricity Generation
• Desalination & Process Heat
• Marine Propulsion
• Others

• Nuclear Reactor Construction Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE