Retiring Nuclear Power Plants Driving the Growth of Nuclear Decommissioning Services Market
Large number of nuclear plants retired in the Europe, US, and APAC between 2018 and 2019. Fessenheim Nuclear Power Plant (France), Philippsburg Nuclear Power Plant (Germany), Oyster Creek Nuclear Generating Station (US), and Chin Shan Nuclear Power Plant (Taiwan) are some of the nuclear power plants that were shut. These plants are now waiting for decommissioning activities. Governing authorities such as International Atomic Energy Agency (IAEA) and Nuclear Regulatory Commission (NRC) are emphasizing decommissioning in order to reduce the risk of emission of radioactive material from the nuclear reactor sites. As decommissioning is the only choice left for the operators and governments, the demand for decommissioning services is seen always high. Considering this demand, companies in the nuclear decommissioning services market are experiencing higher demand for their services.
Plus, the global nuclear power generation sector is witnessing a rise in the numbers of aging infrastructure. After generating power for more than three decades, currently, some nuclear power facilities are nearing the respective end of operational lifecycle. The increasing number of nuclear power plants, reaching the phase out period is creating need for the governments and operators to decommission the facilities.
Business development and market consolidation strategies are the mostly adopted strategies by companies to expand the market reach. AECOM, Ansaldo Energia, Babcock International Group Plc., Energy Solutions, and GE Hitachi Nuclear Energy, etc. are among these market players that are implementing these strategies to enlarge their customer base and gain significant global market share. Experts opine that these activities permit these companies to maintain their brand name in the global nuclear decommissioning services market.
In this market, government agencies and organizations play vital role by providing funding. For instance, recently, the European Commission awarded 10 million Euro Framework Contract to Ansaldo Nucleare. Under this contract, Ansaldo Nucleare stands for approximately 40% of total value, aiming at an assessment of the nuclear fusion power plant physics and technology system architecture, overall configuration and system engineering processes.
On the other side, companies are seen performing strategic activities such as partnerships and collaborations. The cooperation agreement among Ansaldo Energia, State Power Investment Corporation, and Shanghai Electric Group was announced recently. With this agreement, the three parties will take benefits of their capabilities and respective resources to carry out pragmatic cooperation in four areas—decommissioning and waste, nuclear power market development, R&D design & engineering construction, and operation management & lifecycle service.
As per the research report published by The Insight Partners, the nuclear decommissioning services market was valued at US$ 5.82 billion in 2019 and it is projected to grow at US$ 9.43 billion by 2027 at a CAGR of 6.3% between 2020 to 2027.
The same report also states that due to the end of operating license of the facilities, the governments of various countries—especially in Europe—are increasingly phasing out the nuclear power facilities in recent years. The rise in the focus toward phasing out nuclear facilities is creating demand for decommissioning service and it is triggering the growth of the nuclear decommissioning services market.
Neha writes articles on sectors including medicine, food, materials, and science & technology. A qualified statistician, she has the ability to observe and analyze the trends in global markets and write compelling articles that help CXOs in decision making. She is a bookworm and loves to read fiction, lifestyle, science and technology. Neha comes with 6 years of experience in content writing and editing that involves blog writing, preparation of study materials and OERs.