Small Modular Reactor Market Forecasted to Surge Over 30-fold by 2035
New York, Friday, 8 August 2025.
The small modular reactor market is expected to increase from $159.4 million in 2024 to $5.17 billion by 2035, driven by improved efficiency, safety, and a CAGR of 42.31%.
Projected Growth and Economic Impact
The Small Modular Reactor (SMR) market is on a trajectory to expand exponentially, with forecasts projecting its growth from $159.4 million in 2024 to a substantial $5.17 billion by 2035, underpinned by a compound annual growth rate (CAGR) of 42.31% [1]. This growth is primarily driven by advancements in modular nuclear reactor technology, which emphasize factory fabrication, standardization, and modular deployment that collectively enhance efficiency and safety while reducing costs [1]. Furthermore, the adoption of SMRs is crucial in efforts to decarbonize energy systems globally, aligning with international priorities on reducing greenhouse gas emissions and promoting sustainability [1].
The Role of Key Stakeholders
Significant contributions to the SMR sector’s development come from key stakeholders like the U.S. Department of Energy and Canadian Nuclear Laboratories, which have played a vital role in sponsoring research and streamlining licensing processes [1]. Public-private partnerships are forging new paths for SMR deployment, enhancing energy grid resilience and industrial processes [1]. The involvement of international players, such as ROSATOM and NuScale Power, is expected to steer further advancements as they partner with various countries to explore SMR applications [1]. In recent collaborative efforts, NuScale, for instance, partnered with Argentina’s INVAP to assess deploying the VOYGR SMR system [1].
Market Segmentation and Regional Leadership
The SMR market’s segmentation encompasses applications ranging from electricity production to off-grid power, with reactor types such as water-cooled and molten salt leading innovations [2]. The 25-100 MW category is projected to dominate due to its versatility and applicability in diverse sectors [2]. North America is anticipated to emerge as a leader in SMR deployment, bolstered by robust regulatory frameworks and investments in advanced nuclear projects [1][2]. However, alongside potential advantages, challenges such as high initial costs and regulatory hurdles remain as significant barriers to swift market penetration [2].
Future Prospects and Strategic Directions
Looking forward, the SMR industry is set to witness strategic shifts and technological advancements, enhancing its role in the global energy landscape [1][3]. Companies like Rolls-Royce are focusing on modular construction techniques to lower costs and improve delivery timeliness, which has already led to a market share increase in Europe [3]. Such endeavors align with broader decarbonization policies and regulatory support across various regions, aiming to position SMRs as pivotal solutions for achieving net-zero goals [1][3]. As investments in clean energy continue to grow, SMRs are likely to redefine energy frameworks by providing reliable and flexible power generation options [3].