SMALL MODULAR REACTOR MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2025-2032)

Small Modular Reactor Market Size and Forecast – 2025 to 2032

Small modular reactor market is estimated to be valued at USD 6.09 Bn in 2025 and is expected to reach USD 7.70 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 3.4% from 2025 to 2032.

Key Takeaways

• By Reactor Type, Heavy Water Reactor (HWR) hold the largest market share of 37.7% in 2025 owing to its fuel flexibility and natural uranium use.
• By Conductivity, Off Grid expected to hold largest market share of 56.8% in 2025 owing to the energy access where grid infrastructure is weak or absent.
• By Application, Desalination acquired the prominent market share of 29% in 2025 owing to the addressing global water scarcity.
• By Region, North America dominates the overall market with an estimated share of 34.0% in 2025 owing to the strong government support & policy incentives.

Market Overview

The Small Modular Reactor (SMR) market is rapidly transforming the global nuclear energy industry, as stakeholders seek low-carbon, reliable, and flexible power solutions. Developers design SMRs with modular, scalable structures that serve remote locations, off-grid sites, and industrial applications, including desalination. Technological innovations, government incentives, and rising demand for clean energy drive the market forward. Investors and governments in North America, Europe, and Asia actively advance SMR projects to strengthen energy security and promote sustainable power generation.

Current Events and Its Impact on the Small Modular Reactor Market

Uncover macros and micros vetted on 75+ parameters: Get instant access to report

Segmental Insights

To learn more about this report, Download Free Sample

Small Modular Reactor Market Insights, By Reactor Type - Heavy Water Reactor (HWR) contribute the highest share of the market owing to its alignment with clean energy & decarbonization goals

Heavy Water Reactor (HWR) hold the largest market share of 37.7% in 2025. The Small Modular Reactor (SMR) market increasingly embraces heavy water reactors (HWRs) because they run on natural uranium, minimizing reliance on enriched fuel and cutting fuel cycle costs. Their superior neutron efficiency enables longer operational cycles and better fuel utilization. Developers deploy HWR-based SMRs to meet low-carbon energy targets and provide flexible power in remote or off-grid locations. Ongoing advancements in modular construction, supportive government policies, and rising demand for reliable, scalable nuclear energy actively accelerate the global adoption of heavy water SMR technologies. For instance, in July 2025, Senior officials from the state-owned NPCIL and BARC have unveiled the country’s first private test facility for upgrading depleted heavy water, commissioned by TEMA India Ltd.

Small Modular Reactor Market Insights, By Conductivity - Off Grid contribute the highest share of the market owing to its modular & scalable deployment

Off Grid expected to hold largest market share of 56.8% in 2025. The Small Modular Reactor (SMR) market expands through off-grid applications as developers deliver reliable, continuous power to areas beyond conventional grid access. Engineers design SMRs with modular, scalable systems that provide electricity and heat to remote communities, industrial facilities, and strategic sites. Operators use these reactors to enhance energy security, cut fossil fuel dependence, and sustain critical operations in isolated locations. Ongoing technological innovations, government support, and growing demand for dependable off-grid energy actively drive the global adoption of SMRs. For instance, the UK is supporting Rolls-Royce to launch small modular reactors as part of a nuclear revival. These factory-built reactors use modular components to enable faster construction, scalability, and lower deployment costs.

Small Modular Reactor Market Insights, By Application - Desalination contributes the highest share of the market owing to its economic efficiency and reduced operating costs

Desalination acquired the prominent market share of 29% in 2025. Developers increasingly deploy Small Modular Reactors (SMRs) to support desalination by delivering reliable, low-carbon energy for water production. Engineers design SMRs to provide both electricity and process heat, efficiently powering energy-intensive desalination technologies in water-scarce regions. Operators use these reactors to produce freshwater continuously on a large scale while reducing dependence on fossil fuels. Governments and industries adopt modular, scalable SMRs to strengthen water security, enhance sustainability, and meet rising demand in arid and coastal areas, actively driving market growth. For instance, in June 2025, Small modular reactor company Nuscale Power started research on producing hydrogen using heat from its nuclear reactors and brine from desalination.

Regional Insights

To learn more about this report, Download Free Sample

North America Small Modular Reactor Market Trends

North America dominates the overall market with an estimated share of 34.0% in 2025. Technological innovation and strong government support are actively driving growth in the North American Small Modular Reactor (SMR) market. Developers design modular, scalable reactors to strengthen energy security, deliver low-carbon baseload power, and support renewable energy integration. Companies increase private sector investment, deploy advanced reactor technologies, and expand off-grid and industrial applications. National laboratories, utilities, and technology firms collaborate to accelerate commercialization, while regulatory frameworks and policy incentives actively promote research, development, and early adoption of SMRs throughout the region.

Asia Pacific Small Modular Reactor Market Trends

Countries across the Asia Pacific actively advance the Small Modular Reactor (SMR) market to achieve energy diversification and low-carbon solutions for rising electricity demand. Developers design modular, compact reactors to supply power to remote areas, industrial centers, and coastal desalination facilities. Companies increase investment in research and development, form strategic partnerships between local and international firms, and integrate SMRs with renewable energy systems. Governments implement supportive policies, prioritize energy security, and modernize infrastructure, actively driving SMR deployment throughout the region. For instance, in December 2025, China planned to begin commercial operations at the world’s first small modular reactor to generate nuclear energy as early as the first half of 2026.

United States Small Modular Reactor Market Trends

The United States actively advances the Small Modular Reactor (SMR) market as government and private stakeholders promote advanced, low-carbon energy solutions. Developers design modular, factory-built reactors to strengthen grid reliability, power industrial operations, and supply flexible energy to remote locations. Companies and laboratories collaborate closely on research, licensing, and demonstration projects, while increasing investments accelerate technology readiness. Policymakers implement incentives, enforce safety regulations, and pursue strategic energy objectives, actively driving the adoption and commercialization of SMRs across the country. For instance, in October 2025, the U.S. Army has launched the Janus Program, a next-generation nuclear initiative using small modular and microreactors to provide resilient, secure energy for defense installations, protecting against cyberattacks, extreme weather, and other disruptions.

India Small Modular Reactor Market Trends

India drives the growth of its Small Modular Reactor (SMR) market to satisfy increasing energy demand, strengthen energy security, and reduce carbon emissions. Developers create compact, modular reactors for remote locations, industrial zones, and coastal desalination facilities. The government boosts investment, establishes partnerships with international technology providers, and encourages integration with renewable energy systems. Policymakers advance SMR deployment through supportive regulations, infrastructure expansion, and research in advanced nuclear technologies, positioning India as a leading force in regional and global nuclear energy development.

End-user Feedback and Unmet Needs in the Small Modular Reactor Market

• Reliability and Operational Confidence: End-users emphasize the need for consistent, uninterrupted power delivery. While SMRs promise reliability, operators seek more field-proven designs, enhanced monitoring systems, and predictive maintenance tools to ensure continuous operation, especially in remote or industrial settings. Confidence in long-term performance remains a key requirement for wider adoption.
• Cost and Financing Challenges: Stakeholders note that upfront capital and financing for SMRs remain significant barriers. Users request more cost-competitive solutions, innovative financing models, and government-backed risk mitigation measures. Reducing construction, licensing, and operational costs is critical to making SMRs financially viable for utilities, industries, and off-grid applications.
• Regulatory Clarity and Licensing: End-users highlight the complexity of nuclear licensing and regulatory compliance. Faster, clearer, and harmonized regulatory frameworks would enable quicker deployment. Operators need standardized approval processes, transparent safety assessments, and consistent international guidelines to reduce delays and facilitate global SMR adoption.

Small Modular Reactor Market Trend

Modular and Scalable Designs

The SMR market emphasizes modular, factory-built designs that simplify construction, reduce timelines, and allow phased capacity expansion. Developers focus on reactors that can be easily scaled to match demand, supporting both small communities and large industrial facilities. This trend enables flexible deployment in remote or grid-constrained areas, lowering financial and operational risks, while promoting standardization and repeatability across multiple installations to enhance reliability and cost-effectiveness in diverse energy markets.

Market Report Scope

Small Modular Reactor Market News

• In November 2025, The IAEA launched a pilot school in Warsaw to train regulatory specialists on small modular reactor safety and regulation, bringing together experts from 17 countries to discuss SMRs’ role in the future of energy.
• In June 2025, Energy Secretary Chris Wright told Congress that the Department of Energy will operate at least three small modular reactors, marking a major advance for next-generation nuclear energy.
• In July 2025, the NEA launched the SMR Dashboard, an interactive platform tracking global SMR development and assessing progress in licensing, siting, financing, supply chains, engagement, and fuel availability

Analyst Opinion (Expert Opinion)

• The Small Modular Reactor (SMR) market is at a pivotal juncture where strategic industrial adoption and real‑world project progress are shaping its credibility. Planned SMR deployments such as Holtec’s SMR‑300 units at Michigan’s Palisades site demonstrate concrete efforts to leverage existing nuclear infrastructure to lower costs and accelerate build‑outs, targeting multi‑gigawatt capacity in North America by the 2030s. Similarly, Ontario’s move to construct the first Western‑world BWRX‑300 SMR to power roughly 300,000 homes underlines tangible regional commitment to next‑generation nuclear.
• In industrial contexts, partnerships like Amazon’s planned Cascade Advanced Energy Facility deploying up to 12 X‑energy Xe‑100 units reflect the demand for stable, carbon‑free power for data centers and AI workloads, signaling SMRs’ commercial appeal beyond utilities. Despite these advancements, the market’s near‑term success hinges on resolving persistent challenges: regulatory timelines remain protracted, financing structures must evolve, and supply chains for nuclear‑grade materials require maturation. Data from industry tracking reveals nearly 100 distinct SMR technologies under development, with concentrated efforts in North America and Europe, yet only a handful have reached full commercialization readiness.

Market Segmentation

• By Reactor Type Insights (Revenue, USD Bn, 2020 - 2032)
• • Heavy Water Reactor (HWR)
  • Light water Reactor (LWR)
  • Fast Neutron Reactor (FNR)
  • Others
• By Connectivity Insights (Revenue, USD Bn, 2020 - 2032)
• • Off Grid
  • Grid Connected
• By Application Insights (Revenue, USD Bn, 2020 - 2032)
• • Desalination
  • Power Generation
  • Industrial
  • Hydrogen Production
• Regional Insights (Revenue, USD Bn, 2020 - 2032)
• • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
• • Holtec International
  • General Atomics Corporation
  • Brookfield Asset Management
  • Terrestrial Energy Inc.
  • Fluor Corporation
  • TerraPower, LLC.
  • Moltex Energy
  • X Energy LLC
  • Rolls-Royce plc.
  • ULTRA SAFE NUCLEAR
  • Westinghouse Electric Company LLC.
  • Mitsubishi Heavy Industries Ltd.
  • NuScale Power, LLC.
  • General Electric Company

Sources

Primary Research interviews

• Industry experts from nuclear energy companies
• Regulatory authority officials
• Engineers and technical specialists in SMR design and construction
• Utility company representatives exploring SMR adoption

Databases

• International Atomic Energy Agency (IAEA) Power Reactor Information System (PRIS)
• World Nuclear Association (WNA) Nuclear Database
• U.S. Energy Information Administration (EIA) Data Portal
• European Nuclear Society (ENS) Statistics

Magazines

• Nuclear Engineering International
• Power Engineering International
• World Nuclear News
• Energy World

Journals

• Progress in Nuclear Energy
• Annals of Nuclear Energy
• Nuclear Technology
• Journal of Nuclear Materials

Newspapers

• The New York Times – Energy Section
• Financial Times – Energy & Utilities
• The Guardian – Environment & Energy
• Reuters – Energy News

Associations

• World Nuclear Association (WNA)
• Nuclear Energy Institute (NEI)
• International Atomic Energy Agency (IAEA)
• European Atomic Forum (FORATOM)

Public Domain sources

• National renewable energy and nuclear energy policy documents
• Government reports on energy and nuclear power (e.g., U.S. DOE, UK BEIS)
• International Energy Agency (IEA) publications
• Publicly available press releases from nuclear technology developers

Proprietary Elements

• CMI Data Analytics Tool
• Proprietary CMI Existing Repository of information for last 8 years