Small Modular Reactor Construction Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Reactor Type (Pressurized Water Reactor, Boiling Water Reactor, Fast Neutron Reactor, Molten Salt Reactor, Others), By Construction Type (New Build SMR Construction, Retrofit/Upgrade of Existing Nuclear Facilities), By End-User (Government & Defense, Private Energy Companies, Industrial & Commercial, Academic & Research Institutions), By Region, and By Competition, 2020-2030F

Market Overview

The Global Small Modular Reactor Construction Market was valued at USD 6.26 Billion in 2024 and is expected to reach USD 9.34 Billion by 2030 with a CAGR of 6.74% during the forecast period.

The global Small Modular Reactor (SMR) Construction Market is gaining significant traction as the demand for safe, reliable, and low-carbon energy intensifies worldwide. SMRs, which are compact nuclear reactors typically producing up to 300 megawatts of electricity per unit, offer a promising alternative to traditional large-scale nuclear power plants. These reactors are designed to be factory-fabricated and modular, allowing for reduced construction times, lower upfront capital investment, and scalability to meet varying energy demands. Growing interest in clean energy transitions, coupled with rising concerns over energy security and decarbonization targets, is driving adoption across both developed and emerging economies.

Several countries are actively investing in SMR technologies to supplement their energy mix and replace aging fossil fuel infrastructure. North America, particularly the United States and Canada, leads the market with substantial government support, regulatory clarity, and active participation from key players such as NuScale Power, TerraPower, and BWX Technologies. In Europe, the UK’s Rolls-Royce SMR program is drawing attention as part of a broader national strategy to meet net-zero goals. Meanwhile, Asia-Pacific countries including China, Russia, and South Korea are integrating SMRs into long-term energy planning, utilizing them for power generation in remote areas, industrial process heat, and even marine propulsion.

The modular nature of SMRs also opens up new possibilities for off-grid applications, desalination, and district heating, enhancing their appeal to diverse end-users ranging from defense sectors and private utilities to mining companies and research institutions. Technological innovations in reactor designs, including high-temperature gas-cooled reactors and molten salt reactors, are expected to further propel market growth by offering enhanced safety, efficiency, and fuel flexibility.

Despite promising growth prospects, the market faces notable challenges such as high upfront R&D costs, regulatory hurdles, public skepticism regarding nuclear energy, and complex licensing frameworks. However, increasing public-private partnerships, international collaboration, and favorable policy support are steadily mitigating these barriers.

The global SMR construction market is poised for robust growth in the coming years. As governments and industries seek compact, cost-effective, and climate-friendly energy solutions, SMRs are emerging as a viable and transformative technology with the potential to reshape the global energy landscape. Ongoing commercialization efforts, rising investment in nuclear innovation, and the development of supportive regulatory environments will be crucial to unlocking the full potential of this market.

Key Market Drivers

Rising Electricity Demand and Grid Pressure

The global surge in electricity demand is accelerating the need for stable, low-carbon baseload power sources like SMRs. Worldwide, electricity consumption is expected to grow by over 50% by 2050, driven by digital infrastructure, population growth, and industrial expansion. Data centers alone could consume 8% of global electricity by 2030. In the United States, electricity use is projected to increase by 27% between 2020 and 2035. Electrification of transportation is another major driver, with electric vehicle sales surpassing 14 million units in 2023, up from 6.6 million in 2021. Furthermore, urbanization trends indicate that 70% of the global population will live in cities by 2050, further boosting demand for decentralized, resilient energy sources. SMRs, with their compact size and modular design, are well-suited for distributed deployment near load centers, reducing transmission losses and enhancing energy security in regions facing growing consumption.

Supportive Government Policies and Investments

Governmental backing is playing a pivotal role in SMR construction. The U.S. Department of Energy has committed over USD1.2 billion in funding for advanced reactor demonstration projects. Canada’s Infrastructure Bank allocated CAD 745 million to the Ontario SMR project. In the United Kingdom, the government invested Euro210 million in Rolls-Royce’s SMR initiative. South Korea increased its SMR R&D budget by 25% year-on-year in 2024. France launched a nuclear innovation fund totaling Euro500 million, with a large portion directed toward SMRs. In addition, tax incentives, fast-track regulatory approvals, and loan guarantees are being introduced in several countries to reduce upfront financial risk for SMR developers. These policy mechanisms signal long-term national commitment and stimulate private sector participation, accelerating SMR commercialization across regions.

Lower Construction Costs and Shorter Timelines

SMRs are gaining traction due to cost advantages over traditional large reactors. While conventional nuclear plants often require USD6,000–USD9,000 per kilowatt in capital costs and take 7–10 years to build, SMRs aim for USD4,000–USD6,000 per kilowatt and 3–5 years construction time. Factory-based modular fabrication reduces on-site labor by up to 70% and minimizes delays related to weather and logistics. For example, the BWRX-300 SMR design can be constructed with 50% fewer components than its predecessors. NuScale's SMR modules are designed for transport by truck or rail, allowing easier deployment in remote or grid-challenged areas. Additionally, standardized designs reduce licensing complexity, lowering regulatory costs by approximately 30% compared to conventional plants. These efficiencies make SMRs more viable for utilities seeking capital-light nuclear solutions.

Improved Safety and Regulatory Favorability

Safety is a top driver behind the adoption of SMRs. Most designs utilize passive safety features that rely on natural circulation, eliminating the need for external power or operator intervention during emergencies. This reduces accident risk by more than 90% compared to traditional reactors. Underground installation is another common feature, improving protection against external threats and natural disasters. The SMR-160, for example, is designed to withstand aircraft impact and seismic activity up to 9.0 magnitude. Smaller fuel inventories and lower operating pressures further enhance safety. Regulatory bodies have responded with new licensing frameworks for SMRs—reducing approval timelines by 35–50% in several jurisdictions. Public support is also improving; surveys in North America and Europe show 60–70% of respondents favor SMRs over fossil fuel plants. This growing trust reduces deployment resistance and helps attract long-term investment.

Versatile Applications Across Industries

The multifunctional utility of SMRs is expanding their market reach. Beyond electricity generation, they can support district heating, hydrogen production, seawater desalination, and industrial process heat. For example, SMRs can supply steam at 500–800°C, ideal for steel, chemical, and cement industries. In coastal regions, SMRs are being evaluated for desalination plants with capacity to produce up to 100 million liters per day of potable water. Floating SMRs are under development for deployment on marine platforms and Arctic regions, with over 10 ship-based reactors already operating or in development. Additionally, micro-SMRs of under 50 MWe are gaining attention for military bases and remote mining operations. Countries like Canada and Russia are integrating SMRs into their energy strategies to decarbonize off-grid and industrial zones, where conventional solutions are economically or technically unfeasible. This broad application spectrum positions SMRs as a flexible solution to various sectoral challenges.

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Key Market Challenges

High Capital Investment and Financial Risk

Despite being smaller and theoretically more cost-effective than conventional reactors, SMRs still require substantial capital investment. The development of a single SMR prototype can cost between USD1 billion to USD2 billion, depending on the technology and site conditions. For example, the cost of NuScale’s initial project ballooned from USD3 billion to USD9.3 billion, triggering concern among utility partners and potential investors. Such cost escalations undermine the perception of SMRs as affordable and predictable investments. Further, the economies of scale that benefit large nuclear plants do not immediately apply to SMRs unless multiple modules are built concurrently. The long lead time for returns—often exceeding 15 years—combined with regulatory uncertainty, makes financial institutions hesitant to underwrite SMR projects. The high upfront costs, along with the limited track record of commercial deployments, lead to risk-averse behavior from both public and private investors, thereby slowing global adoption.

Regulatory Complexity and Licensing Delays

Regulatory frameworks for nuclear power are traditionally built for large reactors, making them ill-suited for modular or non-traditional technologies. This has resulted in unclear or lengthy licensing pathways for SMRs. For instance, while the U.S. Nuclear Regulatory Commission (NRC) approved NuScale’s design after years of review, it still took over 42 months, with additional time required for site-specific licenses. Many countries lack dedicated licensing protocols for SMRs, forcing developers to navigate outdated or inappropriate frameworks. Additionally, international harmonization is limited—what’s acceptable in Canada may not be in Europe or Asia. This inconsistency creates bottlenecks in cross-border collaboration, supply chain synchronization, and export opportunities. For first movers, licensing remains both expensive and time-consuming, often accounting for up to 20–30% of total project costs. As long as regulatory agility does not catch up with SMR innovation, commercial rollout will remain slow.

Public Perception and Nuclear Opposition

Public trust in nuclear energy remains a significant barrier, largely influenced by historical events like the Fukushima disaster in 2011 and Chernobyl in 1986. Although SMRs are designed with advanced safety features, including passive cooling and underground deployment, public skepticism persists. Surveys indicate that in many countries, 30–50% of the population opposes nuclear projects near residential areas. Environmental and anti-nuclear advocacy groups are also raising concerns about long-term waste storage, radiation risks, and accident preparedness. In democratic nations, these sentiments can lead to legal challenges, project cancellations, or severe delays due to public opposition and regulatory activism. For instance, local resistance in some European countries has stalled site permitting for new reactor builds, including SMRs. Additionally, misinformation around radiation and reactor safety on social media platforms compounds the issue, making it difficult for stakeholders to build transparent and supportive public engagement. Without proactive education and outreach, SMR deployment will continue to face social resistance.

Supply Chain Constraints and Manufacturing Readiness

The global nuclear supply chain is not yet optimized for mass SMR deployment. Critical components such as reactor pressure vessels, control rods, and advanced fuel assemblies require specialized manufacturing capacity, which is limited to a few countries and vendors. As of 2024, fewer than 10 facilities worldwide are capable of producing reactor-grade forgings at SMR scale. Lead times for nuclear-grade components can extend up to 24–36 months, which delays project schedules. Moreover, the nuclear workforce is aging, and skilled labor shortages in welding, machining, and nuclear-grade quality assurance pose further risks. The lack of standardized SMR designs also makes mass production challenging, reducing the benefit of modularity. Inconsistent demand projections and fragmented procurement strategies add pressure on vendors, who are reluctant to invest in production line upgrades. Without a robust, globalized supply chain and design convergence, scaling SMR construction to meet climate and energy goals will remain difficult.

Nuclear Waste Management and Fuel Cycle Challenges

Although SMRs produce less total waste than large reactors, waste management remains a contentious and unresolved issue. Many SMRs, particularly advanced designs like molten salt or fast reactors, generate novel waste streams that existing repositories are not configured to handle. Current international regulations require spent fuel to be stored on-site for 30–50 years, increasing the land use and long-term liability of SMR facilities. Deep geological disposal solutions are still under development in most countries, and public resistance to nuclear waste storage remains high. Transporting spent fuel from remote or offshore SMR locations to central repositories can also be logistically complex and politically sensitive. Additionally, SMRs designed for closed fuel cycles or reprocessing face proliferation concerns due to potential plutonium production. Without a unified, long-term waste disposal framework, national regulators may hesitate to approve SMR deployment. These unresolved waste management issues directly impact the feasibility, cost, and public acceptability of SMR projects.

Key Market Trends

Surge in Floating and Remote SMR Deployments

Floating and remote SMRs are gaining popularity as viable solutions for regions lacking access to centralized power infrastructure. Countries with vast remote territories—such as Canada, Russia, and Norway—are exploring marine-based or off-grid SMR installations to support mining operations, military bases, and indigenous communities. Floating SMRs, like Russia’s Akademik Lomonosov, are mounted on barges and can deliver up to 70 MW of electricity to isolated regions, replacing expensive diesel generators. These units also support combined heat and power (CHP) applications. Remote land-based SMRs are designed to be air-cooled and require minimal site infrastructure, allowing deployment in Arctic or desert climates. The emergence of micro-SMRs, with capacities ranging from 5 MW to 50 MW, further accelerates this trend. For instance, Oklo’s Aurora reactor is designed to run for 20 years without refueling, making it ideal for isolated facilities. These compact reactors can be transported by truck, train, or barge, simplifying logistics and reducing deployment time. Governments are increasingly interested in these options as part of national energy resilience strategies, particularly in the face of natural disasters or geopolitical instability. By 2035, analysts estimate that floating and remote SMRs could make up 10–15% of all global deployments. This trend emphasizes the importance of mobility, resilience, and localized energy solutions in the future nuclear landscape.

Emphasis on Factory-built Modular Construction and Supply Chain Standardization

One of the core value propositions of SMRs is their modularity, which allows for factory-built components and streamlined construction. This trend is transforming the way nuclear plants are delivered. Unlike traditional reactors built entirely on-site over a decade, SMRs are increasingly fabricated in manufacturing facilities and assembled on-site in 3–5 years. This approach reduces labor costs, minimizes weather-related delays, and improves quality control. Leading vendors like NuScale and GE Hitachi have already designed modules that can be transported using standard rail and road systems. Modular construction also facilitates design standardization, which is crucial for scaling production. With over 80 SMR designs in development globally, efforts are being made to harmonize core components such as pressure vessels, control systems, and fuel assemblies. Standardization is expected to reduce construction costs by 20–30% and accelerate deployment timelines by 40% compared to traditional nuclear plants. Additionally, modularity supports a “plug-and-play” model where utilities can install multiple units over time to match demand growth. Governments are supporting this trend through grants for manufacturing infrastructure and by including SMRs in industrial policy roadmaps. As global supply chains mature and production scales up, modular construction will become a cornerstone of the SMR business model, driving down cost and boosting investor confidence.

Increasing Role of Private Sector and Strategic Partnerships

Another significant trend in the SMR market is the increasing involvement of the private sector, which is complementing traditional government-led nuclear initiatives. Companies such as Amazon, Google, and Microsoft are exploring SMRs as a means to decarbonize their energy-intensive data centers and logistics operations. In 2023, Amazon invested USD500 million in X-energy for deployment of Xe-100 reactors. Similarly, Dow Chemical and TerraPower are working together to develop an industrial-scale SMR in Texas by 2030. These partnerships demonstrate how corporations are viewing SMRs not just as energy solutions but as strategic tools for carbon reduction and energy autonomy. Venture capital interest is also on the rise, with nuclear startups raising over USD3 billion in private funding over the last three years. Strategic alliances between SMR developers, utilities, EPC contractors, and component suppliers are helping to de-risk large projects. For example, the partnership between Ontario Power Generation, GE Hitachi, and SNC-Lavalin is set to deliver the first grid-connected SMR in Canada by 2028. These collaborations improve project credibility, enhance technical expertise, and secure financing. The trend toward multi-stakeholder partnerships is reshaping the SMR ecosystem, bringing in new talent, business models, and market opportunities that accelerate commercialization and global adoption.

Segmental Insights

Reactor Type Insights

Pressurized Water Reactor segment dominates in the Global Small Modular Reactor Construction market in 2024 due to its technological maturity, safety profile, and global regulatory familiarity. PWRs are the most widely adopted nuclear reactor type worldwide, accounting for over 60% of all operating nuclear reactors, which gives them a proven track record and extensive operational data. This legacy significantly reduces perceived risk and accelerates licensing processes for PWR-based SMRs.

SMR designs such as NuScale’s VOYGR, Holtec’s SMR-160, and Korea’s SMART reactor are all based on PWR technology. These designs capitalize on decades of operational experience, component availability, and existing workforce expertise. In 2024, several PWR-based SMRs are either under construction or have received regulatory approval, placing this segment ahead in commercialization compared to emerging technologies like molten salt or gas-cooled reactors.

Additionally, PWR-based SMRs offer enhanced passive safety systems, such as natural convection cooling and gravity-fed emergency core cooling, which significantly improve operational safety and reduce the need for operator intervention during emergencies. These safety improvements align with post-Fukushima regulatory standards, making them more acceptable to both regulators and the public.

Another key factor is supply chain readiness. Many suppliers already produce components compatible with PWR technology, enabling faster deployment and cost efficiencies. Furthermore, utilities and operators are more comfortable investing in familiar technology, reducing barriers to financing and partnerships.

Moreover, PWR-based SMRs are suitable for a wide range of applications, from baseload electricity generation to industrial process heat and district heating. Their ability to integrate into existing grid infrastructure further supports their dominance in the market.

Construction Type Insights

Retrofit/Upgrade of Existing Nuclear Facilities segment dominated the Global Small Modular Reactor Construction market in 2024 due to cost efficiency, faster deployment timelines, and reduced regulatory hurdles. Aging nuclear infrastructure worldwide—many built in the 1970s and 1980s—is being phased out or requires modernization. Replacing or augmenting old reactors with SMRs allows operators to utilize existing grid connections, security protocols, and cooling systems, reducing capital costs by up to 30%. Additionally, retrofitting minimizes land acquisition challenges and public resistance, while supporting national decarbonization goals through smoother integration of low-carbon baseload power into current energy systems.

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Regional Insights

Largest Region

North America dominates the Global Small Modular Reactor Construction market in 2024 due to strong government support, advanced nuclear infrastructure, robust regulatory frameworks, and active participation from key industry players. The United States and Canada, in particular, are leading the charge with major public-private investments aimed at accelerating SMR deployment.

In the U.S., the Department of Energy (DOE) has allocated over USD1.2 billion in recent years to support advanced nuclear technologies, including SMRs. Designs such as NuScale Power’s VOYGR, TerraPower’s Natrium, and X-energy’s Xe-100 have received significant funding, fast-tracked licensing, and siting assistance. The U.S. Nuclear Regulatory Commission (NRC) remains one of the most established and internationally respected bodies for reactor certification, having already approved several SMR designs. These efforts reduce investor risk and boost market readiness.

Canada is also a frontrunner, with the first grid-scale SMR project—led by Ontario Power Generation and GE Hitachi—scheduled to be operational by 2028. The Canadian Nuclear Safety Commission (CNSC) has established a technology-inclusive licensing process, enabling faster deployment of multiple reactor types. Moreover, Canada's nuclear innovation roadmap and partnerships with utilities in provinces like Saskatchewan and New Brunswick are expanding the country’s SMR footprint.

The region also benefits from a mature supply chain, skilled nuclear workforce, and existing nuclear facilities that can be retrofitted with SMRs, reducing capital and permitting costs. The presence of data centers, industrial consumers, and military applications further supports demand for reliable, carbon-free, modular energy.

Furthermore, North America is leveraging its geopolitical influence to export SMR technology and shape international safety standards. This leadership, combined with aggressive climate targets and resilient financing mechanisms, cements North America’s dominant role in the global SMR construction market in 2024.

Emerging Region

Europe is the emerging region in the Global Small Modular Reactor Construction market in the coming period due to growing energy security concerns, decarbonization goals, and increasing support for nuclear innovation. Countries like the UK, France, Poland, and Estonia are actively investing in SMRs to replace aging coal and nuclear plants. The UK government has committed Euro210 million to Rolls-Royce’s SMR program, while Eastern European nations are fast-tracking deployment to reduce reliance on Russian energy. Favorable regulatory reforms, strong climate policies, and public-private partnerships are accelerating SMR adoption across the continent, positioning Europe as a fast-growing SMR market in the near future.

Recent Developments

• In April 2025, the Government of Maharashtra signed an MoU with Russia’s state-owned ROSATOM to develop a Small Modular Reactor (SMR), marking the first nuclear initiative led by an Indian state. Traditionally under the Department of Atomic Energy (DAE), this move signifies a shift toward decentralized nuclear development. The project will proceed only upon central government approval, highlighting the evolving role of state-level initiatives in India’s broader nuclear energy framework.
• NTPC, India’s state-owned energy enterprise, launched an international tender in April 2025 to partner on developing 15 GW of nuclear power capacity using pressurized water reactor (PWR) technology. The tender mandates compliance with Indian regulatory standards and requires bidders to secure endorsements from their national governments. This strategic move underscores NTPC’s push to reduce coal dependency and positions India as a significant global market for nuclear technology and fuel supply partnerships.
• As of October 2024, India has positioned nuclear power as a central pillar of its energy diversification strategy, aiming to achieve 100 GW capacity by 2047. Strategic partnerships with countries including Russia, the U.S., and France have accelerated technology transfers and investment flows. These collaborations are not only enhancing India’s energy security and technological base but also opening extensive commercial opportunities for global nuclear suppliers across engineering, construction, and fuel management sectors.
• In February 2025, Japan, in partnership with the EU, launched the JT-60SA—currently the world’s largest operational nuclear fusion reactor. Designed to support ITER, the multinational fusion project underway in France, JT-60SA will aid in refining reactor designs and operational strategies. This development represents a critical milestone in the global transition toward fusion energy and reinforces Japan and the EU’s leadership in next-generation clean energy technologies.

Key Market Players

• NuScale Power  
• TerraPower
• Holtec International
• Rolls-Royce SMR
• X-energy
• GE Hitachi Nuclear Energy
• China National Nuclear Corporation
• Rosatom
• Framatome
• BWX Technologies    

Report Scope:

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

•  Small Modular Reactor Construction Market, By Reactor Type:

o   Pressurized Water Reactor

o   Boiling Water Reactor

o   Fast Neutron Reactor

o   Molten Salt Reactor

o   Others

• Small Modular Reactor Construction Market, By Construction Type:

o   New Build SMR Construction

o   Retrofit/Upgrade of Existing Nuclear Facilities

• Small Modular Reactor Construction Market, By End-User:

o   Government & Defense

o   Private Energy Companies

o   Industrial & Commercial

o   Academic & Research Institutions

• Small Modular Reactor Construction Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  Germany

§  France

§  United Kingdom

§  Italy

§  Spain

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Asia-Pacific

§  China

§  India

§  Japan

§  South Korea

§  Australia

o   Middle East & Africa

§  Saudi Arabia

§  UAE

§  South Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Small Modular Reactor Construction Market.

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Company Information

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