Asia-Pacific Nuclear Power Plant Equipment Market

APAC Nuclear Power Plant Equipment Market Analysis

The Asia-Pacific Nuclear Power Plant Equipment Market is expected to register a CAGR of greater than 5% during the forecast period.

The market was negatively impacted by COVID-19 in 2020. Presently the market has now reached pre-pandemic levels.

• Over the long term, the significant contribution of nuclear energy in reducing GHG emissions while fulfilling the increasing energy demands of a growing population and supporting sustainable development in the country is expected to drive the market during the forecast period.
• On the other hand, increasing competition from natural gas and renewables in electricity generation is restraining market growth.
• Nevertheless, rising investments in small modular reactors are expected to be a significant growth opportunity for the market during the forecast period.
• Due to rising energy consumption, limited fossil fuel reserves, and efforts to reduce emissions, China is expected to be the largest market for nuclear power plant equipment during the forecast period.

APAC Nuclear Power Plant Equipment Market Trends

Pressurized Water Reactors to Dominate the Market

• A typical design of a commercial PWR is such that the core inside the reactor vessel creates heat. The core of the reactor pressure vessel (RPV) contains nuclear fuel, moderator, control rods, and coolant that is cooled and moderated by high-pressure liquid water. PWR consists of a reactor vessel, steam generators, reactor coolant pumps, control roads, a pressurizer, and other elements.
• PWR is the most commercialized nuclear reactor design type, which dominates the Asia-pacific nuclear power plant equipment market. With supporting policies and upcoming projects in the forecast period, PWR nuclear power plants are expected to dominate the market in the coming years.
• Despite lower efficiency and high initial investments, PWR is a mature technology. It has relatively lower operational costs, so most countries with both adult and young nuclear energy sectors are investing in PWR technology. The reactor type is expected to dominate the market during the forecast period.
• As of December 2021, there are 26 under construction PWR in the Asia-Pacific region, and nearly 31 new PWRs are planned for construction. China is leading in terms of future pressurized water reactors and nuclear plants. China is the dominant country, with 15 under-construction PWR and 29 PWR reactors planned for construction.
• As PWR is a mature technology, most countries with a relatively underdeveloped nuclear energy industry focus on developing PWR-type nuclear reactors. Countries such as Bangladesh (2) and Pakistan (2) are building nuclear reactors exclusively of the PWR type. Additionally, due to the relatively lower operational costs, some countries with relatively mature nuclear sectors, such as India (4) and South Korea (4), are also building PWR-type nuclear reactors.
• Thus, such regional developments will support the Asia-Pacific nuclear power plant equipment market during the forecast period.

China to Dominate the Market

• China is the largest overall and nuclear energy consumer in Asia-Pacific region. As of December 2022, there are 16 nuclear power plants under construction in the country, and 31 are planned for construction. With a generation of 407.5 TWh of electricity from nuclear energy in 2021, China's nuclear power generation by nearly 65% during 2017-2021. With upcoming projects, dominance is expected to continue in the forecast period.
• China is projected to be one of the largest nuclear markets globally, by capacity during the forecast period. In March 2022, the National Energy Administration (NEA) set the target of increasing installed nuclear power capacity to 70 GW by 2025
• During 2021, China added 2 PWR reactors to the grid, and in January 2022, China added connected another PWR reactor to the grid, the Fuqing 6 reactor with a net capacity of 1000 MW. The Fuqing 5 nuclear reactor, which entered service in January 2021, was the first Hualong One reactor, a Chinese Generation III pressurized water nuclear reactor model, to enter commercial service. China also started construction on 6 new PWRs during 2021.
• Additionally, the country is also exporting technology and developing PWR nuclear reactors in many countries such as Pakistan, Romania, Iran, Turkey, Egypt and Argentina, and this is expected to the improve market prospects for PWR technology in these countries. Due to these factors, China is expected to be one of the largest markets for PWR reactors during the forecast period.
• China is expected to play a vital role in the future expansion of the global nuclear industry, despite some negative sentiment toward the Chinese nuclear companies, in the form of concerns over safety standards and illegal technology sharing.

APAC Nuclear Power Plant Equipment Industry Overview

The Asia-Pacific nuclear power plant equipment market is moderately consolidated. Some of the major companies (in no particular order) include Korea Electric Power Corporation, Framatome, Dongfang Electric Corporation Limited, Doosan Corporation, and GE-Hitachi Nuclear Energy,

APAC Nuclear Power Plant Equipment Market Leaders

APAC Nuclear Power Plant Equipment Market News

• In October 2022, the Bangladesh government announced the installation of the reactor pressure vessel at Rooppur 2, the second unit of Bangladesh's first nuclear power plant. According to government sources, the overall project was 53% complete, and the first unit was more than 70% complete. It is expected that the production of the first unit on a trial basis will begin in October 2023 and is expected to be fully ready to supply in 2024.
• In September 2021, BHEL received orders worth USD 1.32 billion for turbine islands for six nuclear power pressurized heavy water reactor (PHWR) units, four at Gorakhpur and two at Kaiga, the most significant order in BHEL's history. Additionally, in July 2021, Bharat Heavy Electricals Ltd (BHEL) received an INR 14 billion (USD 170 million) contract to supply twelve 700MWe Indian-designed PHWR steam generators to be built at four sites, including Gorakhpur and Kaiga.