Nuclear Decommissioning Services Market Size, Share & Trends Report

Nuclear Decommissioning Services Market Size, Share & Trends Analysis Report By Reactor Type (PWR, BWR, PHWR, GCR), By Strategy (Immediate and Deferred Dismantling, Entombment), And Segment Forecasts, 2018 - 2025

  • Published Date: Feb, 2018
  • Base Year for Estimate: 2016
  • Report ID: GVR-2-68038-326-3
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2015
  • Number of Pages: 108

Industry Insights

The global nuclear decommissioning services market size was valued at USD 4.92 billion in 2016 and is projected to register a CAGR of 6.8% over the forecast period. The worldwide shutdown of older nuclear reactors due to aging and the transitioning trend toward renewable sources of energy due to minimal environmental impact are likely to be the major forces driving the growth of the market in the coming years.

U.S. nuclear decommissioning services market

Demand for nuclear decommissioning has observed a tremendous surge due to growing support from governments of various countries post nuclear accidents. Political pressure from the public as well as governments is building up, due to which, nuclear phase-out has become the need of the hour. Increasing safety concerns, especially in regions such as Europe and North America, are anticipated to positively impact market growth.

Nuclear dismantling can take several years as radioactive waste degrades over a long period of time. In general, the lifespan of a reactor is expected to be around 40 to 60 years, beyond which, it becomes difficult to operate them. Therefore, at the end of their lifespan, power plants need to be decommissioned or demolished so that the site can be made available for other uses.

The process of decommissioning includes the entire clean-up of radioactivity when the plant wears out or operating license expires. Different methods of decommissioning nuclear facilities are available with industry operators. These include immediate dismantling, deferred dismantling, and entombment. Majority of the materials can be reused and as the collective dose is relatively low, deferred dismantling is preferred. Some of the major players in the industry are constantly striving for technological advancements to deliver better services with increased efficiency.

Decommissioning of nuclear facilities involves extensive research and development in order to develop efficient dismantling techniques. Such technological advancements to deliver effective decommissioning of plants escalates cost and makes the entire process expensive. Therefore, high cost of dismantling reactors is expected to threaten market growth. Furthermore, service providers are required to conform to numerous standards and regulations established by authorities in different regions, posing as a challenge. 

Reactor Type Insights

Nuclear reactors can be categorized into two key types: water-cooled reactors and gas-cooled reactors. Water-cooled reactors include pressurized water reactors (PWR), pressurized heavy water reactors, and boiling water reactors. Pressurized water reactors held the maximum share in the global nuclear decommissioning services market in 2016.

PWRs are highly preferred by industry operators due to factors such as high level of stability and ease to operate them. This segment is projected to exhibit the strongest growth rate over the forecast period due to its widespread use and installation.

Strategy Insights

Decommissioning of nuclear facilities can be done in various ways, including immediate dismantling, deferred dismantling or safe enclosure, and entombment. These methods have their own merits and demerits. However, with the rise in global shutdown of nuclear reactors, especially in Europe, immediate dismantling of reactors soon after shutdown has dominated the market.

Global nuclear decommissioning services market

However, with growing energy crisis across the globe, key nations have realized the importance of nuclear power in their energy portfolio and are therefore, extending the lifespan of reactors. Deferred dismantling is thus expected to be the fastest-growing segment over the forecast period due to reduced level of radiation compared to other methods.

Entombment strategy calls for the nuclear plant to be entombed forever. This is a much faster and economical strategy in comparison to the other two. However, most industry operators have not yet accepted this strategy due to environmental as well as other public concerns.

Regional Insights

Germany accounted for around 40.5% of the European market revenue owing to rising shutdown down of nuclear reactors and the country’s plan for complete phase-out by 2022. Increasing political pressure in the region as a consequence of the Fukushima accident in 2011 has led to market growth. Europe held the largest share in the global market for nuclear decommissioning services in 2016.

The market in North America was valued at USD 1.41 billion in 2016 and the region is anticipated to register the fastest growth over the forecast period. U.S., which is a major market in the region, is likely to witness the shutdown of several reactors by 2025. Rise of nuclear decommissioning services in Japan and other Asian countries is likely to spur the market in Asia Pacific over the forecast period.

Nuclear Decommissioning Services Market Share Insights

Some of the key players in the market are Orano Group; Babcock International Group PLC; Westinghouse Electric Company LLC; AECOM Group; Studsvik AB; Bechtel Group Inc.; and Magnox Ltd. In February 2017, Orano and NorthStar entered into a joint venture known as Accelerated Decommissioning Partners (ADP). The joint venture contains all required management, regulatory, technical, and financial qualifications to safely decommission nuclear energy sites in U.S. 

Providers of nuclear decommissioning services continue to focus on innovation and technological advancements in dismantling techniques to deliver enhanced performance. Such developments, coupled with competitive pricing, are likely to assist them in increasing their market share over the forecast period. Companies are investing profoundly in research and development to overcome barriers faced while decommissioning nuclear facilities.

Report Scope

Attribute

Details

Base year for estimation

2016

Actual estimates/Historical data

2014 - 2015

Forecast period

2017 - 2025

Market representation

Revenue in USD Million and CAGR from 2017 to 2025

Regional scope

North America, Europe, Asia Pacific, South & Central America, and Middle East & Africa

Country scope

U.S., Germany, U.K., France, Japan, and South Korea.

Report coverage

Revenue forecast, competitive landscape, growth factors, and trends

15% free customization scope (equivalent to 5 analyst working days)

If you need specific market information, which is not currently within the scope of the report, we will provide it to you as a part of customization


Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of latest industry trends and opportunities in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global nuclear decommissioning services market report on the basis of reactor type, strategy and region:

  • Reactor Type Outlook (Revenue, USD Million, 2014 - 2025)

    • Pressurized Water Reactor (PWR)

    • Boiling Water Reactor (BWR)

    • Pressurized Heavy Water Reactor (PHWR)

    • Gas Cooled Reactor (GCR)

    • Others

  • Strategy Outlook (Revenue, USD Million, 2014 - 2025)

    • Immediate Dismantling

    • Deferred Dismantling

    • Entombment

  • Regional Outlook (Revenue, USD Million, 2014 - 2025)

    • North America

      • U.S.

    • Europe

      • Germany

      • U.K.

      • France

    • Asia Pacific

      • Japan

      • South Korea

    • South & Central America

    • Middle East and Africa

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