Small Modular Reactor Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Reactor Type (Heavy Water Reactor, Light Water Reactor, Fast Neutron Reactor, Others), By Deployment (Single, Multi), By Connectivity (Grid, Off-grid), By Location (Land, Marine), By Application (Power Generation, Desalination, Process Heat), By Region, By Company and By Geography, Forecast & Opportunities, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 4.69 Billion
CAGR (2026-2031)	4.93%
Fastest Growing Segment	Light Water Reactor
Largest Market	Asia Pacific
Market Size (2031)	USD 6.26 Billion

Market Overview

The Global Small Modular Reactor Market will grow from USD 4.69 Billion in 2025 to USD 6.26 Billion by 2031 at a 4.93% CAGR. Small Modular Reactors (SMRs) are defined as advanced nuclear fission reactors with power capacities of up to 300 megawatts electric per unit, engineered for modular manufacturing and scalable deployment. The market is primarily driven by the global imperative for enhanced energy security and the decarbonization of hard-to-abate industrial sectors, alongside the technology's ability to provide flexible baseload power that complements intermittent renewable energy sources. According to the OECD Nuclear Energy Agency, in 2025, there were 51 small modular reactor designs actively involved in pre-licensing or licensing processes across 15 countries, reflecting a significant maturity in regulatory engagement.

However, a critical challenge impeding rapid market expansion is the lack of harmonized international licensing frameworks. The necessity for developers to navigate diverse and complex regulatory approval processes in each jurisdiction creates substantial financial burdens and delays, undermining the standardization required to achieve the economies of scale essential for the sector's commercial viability.

Key Market Drivers

The increasing global commitment to decarbonization and net-zero emission goals acts as a primary catalyst for the Small Modular Reactor (SMR) market. As nations and corporations strive to eliminate carbon footprints, SMRs offer a reliable, dispatchable source of clean electricity that complements intermittent renewable sources. This urgency is particularly visible in the technology sector, where major data center operators are investing directly in nuclear capabilities to power artificial intelligence infrastructure. According to Amazon, October 2024, in the 'Amazon and X-energy Partnership Announcement', the company anchored a $500 million investment in X-energy to support the deployment of more than 5 gigawatts of new SMR capacity. Such capital injections validate the technology as a critical component in the transition away from fossil fuels.

Simultaneously, growing government incentives and regulatory support for advanced nuclear technologies are reducing barriers to entry and mitigating early-mover financial risks. Governments recognize that private capital requires public backing to bridge the gap between design and commercialization, leading to substantial funding programs aimed at accelerating deployment timelines. According to the U.S. Department of Energy, October 2024, in the 'Biden-Harris Administration Announces Funding' press release, the agency opened applications for up to $900 million in funding specifically to support the initial domestic deployment of Generation III+ SMR technologies. This fiscal support encourages broader commercial adoption. For instance, according to Google, in 2024, the corporation signed a master supply agreement to purchase nuclear energy from multiple SMRs to bring 500 megawatts of new carbon-free power to the grid.

Download Free Sample Report

Key Market Challenges

The absence of harmonized international licensing frameworks serves as a substantial constraint on the commercial expansion of the global small modular reactor market. When developers are required to navigate unique regulatory approval processes for every individual jurisdiction, the industry struggles to achieve the standardization necessary for mass production. This regulatory fragmentation forces vendors to modify designs to comply with distinct local codes, which increases engineering expenditures and prevents the realization of economies of scale that are essential for cost competitiveness.

This operational inefficiency directly impacts the financial viability of projects by extending timelines and increasing the risk profile for investors. The necessity to undergo repetitive certification procedures delays the ability of manufacturers to deploy units rapidly across borders, limiting market penetration. According to the World Nuclear Association, in 2024, the global landscape included over 80 small modular reactor designs at various stages of development, all potentially facing the prospect of diverse national regulatory assessments. Such a high volume of distinct compliance requirements creates a bottleneck that significantly hampers the commercial acceleration of the sector.

Key Market Trends

The repowering of retired coal infrastructure is emerging as a critical trend in the Small Modular Reactor (SMR) market, allowing developers to repurpose existing transmission assets, cooling water rights, and skilled workforces. This strategy significantly mitigates the high capital costs and siting challenges associated with greenfield projects while preserving local economic stability in communities transitioning away from fossil fuels. Regulatory bodies are increasingly accommodating this shift through streamlined reviews for projects that utilize legacy sites. According to the American Nuclear Society, February 2025, in the 'NRC gives TerraPower good news on Kemmerer construction permit' article, the Nuclear Regulatory Commission completed the draft safety evaluation for the Natrium reactor project ahead of schedule, a facility specifically sited to replace capacity at a retiring coal-fired plant in Wyoming.

Concurrently, the utilization of SMRs for industrial process heat is expanding the market beyond traditional electricity generation. Advanced reactor designs are being engineered to produce high-temperature steam capable of replacing gas-fired boilers in heavy industries such as chemical manufacturing, directly addressing Scope 1 emissions in hard-to-abate sectors. This application offers a decarbonization pathway for energy-intensive facilities that renewable electrification cannot efficiently serve. Highlighting this industrial integration, according to NucNet, April 2025, in the 'Dow And X-energy Submit Construction Application For Texas Advanced Nuclear Reactor Project' article, a major chemical corporation submitted a permit application to deploy a four-unit SMR plant intended to supply zero-carbon process heat and power to a manufacturing complex on the Gulf Coast.

Segmental Insights

The Light Water Reactor segment is currently positioned as the fastest growing area in the Global Small Modular Reactor Market. This expansion is largely attributed to the technological maturity of these designs, which utilize established operational principles found in traditional nuclear plants. Because of this historical precedence, agencies like the U.S. Nuclear Regulatory Commission can leverage existing licensing frameworks to expedite approval processes. This regulatory alignment minimizes development risks and shortens deployment timelines, thereby encouraging increased investment from energy providers seeking reliable and proven carbon-free power solutions.

Regional Insights

Asia Pacific commands the Global Small Modular Reactor Market, driven by surging energy consumption and aggressive decarbonization strategies. Major economies like China and South Korea are rapidly deploying nuclear technologies to replace fossil fuel dependence and stabilize power grids. China leads this expansion, supported by robust regulatory frameworks from its National Nuclear Safety Administration that facilitate project approvals and safety compliance. Furthermore, the region’s geography creates specific demand for modular reactors to electrify remote industrial areas and islands. These factors, combined with substantial government funding for clean energy infrastructure, establish Asia Pacific as the primary hub for market growth.

Recent Developments

• In November 2025, Equinix signed a capacity reservation agreement with French nuclear startup Stellaria to procure low-carbon power for its data centers. This deal marked the first commercial reservation for Stellaria’s 250-megawatt "Stellarium" small modular reactor, which utilizes a molten salt design capable of consuming its own waste. The agreement built upon a previous collaboration to explore energy resilience solutions and signaled strong market demand for autonomous, clean power sources. The partnership aimed to support the deployment of these reactors starting in 2035 to meet the digital sector’s sustainability goals.
• In September 2025, Oklo Inc. and Swedish advanced reactor developer Blykalla announced a strategic partnership to collaborate on technology, supply chain, and regulatory frameworks. The agreement involved Oklo co-leading an investment round in Blykalla and establishing a Joint Technology Development Agreement to share data on materials and fuel fabrication. Both companies aimed to leverage their respective expertise in fast reactor technologies to reduce costs and deployment risks in the United States and Europe. The collaboration highlighted a growing trend of transatlantic cooperation to strengthen the global ecosystem for advanced small modular reactors.
• In October 2024, Amazon anchored a $500 million Series C-1 financing round for X-energy to accelerate the commercial deployment of advanced nuclear energy. The partnership established a goal to bring more than 5 gigawatts of new power projects online in the United States by 2039, utilizing X-energy’s Xe-100 small modular reactor. Amazon also committed to a direct investment in a four-unit initial project with Energy Northwest in Washington state to power its operations. This strategic collaboration underscored the increasing engagement of major technology companies in the nuclear sector to secure reliable, carbon-free electricity for data centers.
• In February 2024, Westinghouse Electric Company signed a landmark agreement with Community Nuclear Power to deploy the United Kingdom’s first privately financed small modular reactor fleet. The deal outlined plans to construct four AP300 SMR units in the North Teesside region of Northeast England. This collaboration was designed to support the region’s industrial and economic development by providing reliable, carbon-free electricity. The project aimed for commercial operation by the early 2030s, utilizing Westinghouse’s AP300 technology, which leverages the licensed and operating AP1000 engineering in a smaller single-loop design.

Key Market Players

• NuScale Power
• GE Hitachi Nuclear Energy
• Rolls-Royce
• Toshiba Energy Systems & Solutions
• Westinghouse Electric
• China National Nuclear Corporation
• Korea Atomic Energy Research Institute
• Terrestrial Energy
• Hyperion Power Generation
• Seaborg Technologies

By Reactor Type	By Deployment	By Connectivity	By Location	By Application	By Region
Heavy Water Reactor Light Water Reactor Fast Neutron Reactor Others	Single Multi	Grid Off-grid	Land Marine	Power Generation Desalination Process Heat	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Small Modular Reactor Market, By Reactor Type:

• Heavy Water Reactor
• Light Water Reactor
• Fast Neutron Reactor
• Others

• Small Modular Reactor Market, By Deployment:

• Single
• Multi

• Small Modular Reactor Market, By Connectivity:

• Grid
• Off-grid

• Small Modular Reactor Market, By Location:

• Land
• Marine

• Small Modular Reactor Market, By Application:

• Power Generation
• Desalination
• Process Heat

• Small Modular Reactor 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