The global market value for nuclear fuel assembly will increase from approximately $22.2 billion in 2014 to just under $32.1 billion by 2025, representing a Compound Annual Growth Rate (CAGR) of 2.5%, according to research and consulting firm GlobalData.
The company’s latest report* states that rising power demand, the need to cut greenhouse gas emissions and soaring fossil fuel prices will be the major drivers of market growth throughout the forecast period.
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Chiradeep Chatterjee, GlobalData’s Senior Analyst covering Power, says the ever-growing worldwide demand for electricity will require the optimal utilization of existing nuclear reactors and the deployment of new plants by 2025, which will increase the need for nuclear fuel.
Chatterjee explains: “Some developing countries, such as China and India, have witnessed significant increases in power demand and formulated extensive nuclear development plans to meet this.
“Nations are considering nuclear as a viable option for power generation, as it can produce a large amount of energy from relatively little fuel and generate electricity with minimal direct environmental impact.”
The analyst adds that some leading exporters of fossil fuel products, such as Iran and Saudi Arabia, intend to develop nuclear power to decrease domestic oil consumption while boosting exports.
Despite these motivating factors, a number of challenges remain to nuclear power development, including safety concerns, the issue of nuclear waste disposal, difficulty financing projects, and the technology‘s lack of popularity, which will subsequently impact the fuel assembly market.
Chatterjee continues: “Many governments have been compelled to reconsider their nuclear energy strategies due to negative public opinion stemming from accidents and disasters, such as those at Three Mile Island, Chernobyl, and Fukushima.
“The challenges faced by the nuclear industry have increased, with uncertain market conditions and delays in projects leading to escalated construction costs. Furthermore, increased safety requirements, long payback periods and huge decommissioning costs have all contributed significantly to the diminished economic attractiveness of nuclear power plants,” the analyst concludes.
