Global Nuclear Decommissioning Services Market to Reach $7.5 Billion by 2026

Nuclear decommissioning is progressive dismantling or demolition of a nuclear facility to ensure nuclear safety and eliminate the requirement of radiation protection. Nuclear decommissioning holds critical significance as these facilities have radioactive materials, and involves processes that are time-intensive, expensive, hazardous, and pose environmental risks. The process must ensure safe transportation or on-site storage of radioactive materials. Decommissioning involves cleanup of radioactive substances, followed by progressive dismantling of a facility to eliminate radiological danger. Nuclear decommissioning releases a nuclear facility from the regulatory control, with the plant licensee no longer holding responsibility for nuclear safety of the plant.

The need to decommission a nuclear facility depends on several factors such as service life of a plant, political decisions and radiological risk. All nuclear power plants hold a specific life, from 30-60 years, and need to retire following end of their useful life. Facilities that are no more economically viable or profitable to operate must be decommissioned, demolished and cleaned up to make the site available for other purposes. In the recent decades, a large number of nuclear facilities with commercial power nuclear reactors, prototype or experimental reactors and research reactors have been dismantled. Majority of commercial, early commercial and prototype units nearing the retirement age have been decommissioned. On the other hand, various facilities have been shut down following serious incident, accident or political decisions. Since majority of parts of these nuclear facilities are not contaminated or became radioactive, they can be recycled.

Amid the COVID-19 crisis, the global market for Nuclear Decommissioning Services estimated at US$5.3 Billion in the year 2020, is projected to reach a revised size of US$7.5 Billion by 2026, growing at a CAGR of 5.9% over the analysis period. Upto 800 MW, one of the segments analyzed in the report, is projected to record a 6.3% CAGR and reach US$5.1 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the 801 MW & Above segment is readjusted to a revised 5.2% CAGR for the next 7-year period.

The U.S. Market is Estimated at $1.6 Billion in 2021, While China is Forecast to Reach $824 Million by 2026

The Nuclear Decommissioning Services market in the U.S. is estimated at US$1.6 Billion in the year 2021. China, the world`s second largest economy, is forecast to reach a projected market size of US$824 Million by the year 2026 trailing a CAGR of 5.5% over the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 4.8% and 5% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 6.4% CAGR.

The market is poised to achieve considerable gains as a large number of nuclear power-generation facilities, especially in developed countries, are reaching end of their lifecycles. In addition, rising awareness about environmental issues and increasing affordability of renewable power sources such as solar and wind are reducing the economical appeal of nuclear power. With majority of countries playing attention to decommissioning of nuclear reactors, nuclear decommissioning is slated to enjoy immense gains and become an integral component of the nuclear industry in the coming years. The global market is bolstered by increasing incident of nuclear accidents that are hazardous for the environment and demand effective decommissioning. The risk of nuclear accidents remains a major driver for the market owing to meltdowns of specific nuclear facilities in countries like Japan. In addition, stringent regulations and increasing pressure to close nuclear power plants are likely to further stimulate the demand for these services. The market growth is estimated to be also facilitated by low cost of dismantling research reactors. Moreover, the setup of steel recycling units to dismantle steel components with radioactive material is expected to further boost the decommissioning market.

Immediate Dismantling Segment to Reach $3.4 Billion by 2026

In the global Immediate Dismantling segment, USA, Canada, Japan, China and Europe will drive the 5.6% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$2.2 Billion in the year 2020 will reach a projected size of US$3.3 Billion by the close of the analysis period. China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$169.5 Million by the year 2026.