Rapid Growth of the Global Small Modular Reactor (SMR) Market, Emerging as a Game Changer in the Energy Industry by 2025
Editor
Explosive Growth of the SMR Market and Global Competitive Landscape
As of December 2025, the Small Modular Reactor (SMR) market is receiving unprecedented attention in the global energy industry. According to the International Atomic Energy Agency (IAEA), over 80 SMR projects are underway in 18 countries worldwide, and the market size is expected to grow from $6.7 billion in 2024 to $23 billion by 2030, with an average annual growth rate of 22.8%. This rapid growth is driven by the innovative characteristics of SMRs that overcome the limitations of traditional large-scale nuclear power plants.
SMRs are small reactors with a power generation capacity of 300MW or less, offering advantages such as reducing construction time from 10 years to 3-5 years and cutting initial investment costs by over 70% compared to traditional large nuclear plants. Their modular design allows for mass production in factories, providing dual benefits of reduced construction costs and consistent quality. The U.S. Department of Energy (DOE) estimates the construction cost of an SMR to be 50-60% of that of a traditional large nuclear plant, at $3-5 billion per unit, which is a crucial factor in maintaining competitiveness with renewable energy.
Currently, U.S. companies are leading the SMR market. NuScale Power, headquartered in Portland, Oregon, received the world’s first SMR design approval from the U.S. Nuclear Regulatory Commission (NRC) in 2020 and aims for commercial operation by 2029. NuScale’s SMR, with a capacity of 77MW, can be modularly installed up to 12 units and features a passive safety system that allows safe shutdown without external power supply. Westinghouse Electric is also developing the AP300 model with a capacity of 460MW, targeting commercialization in the early 2030s.
In the Asian market, South Korea and China are actively pursuing SMR technology development. In South Korea, the ‘i-SMR’ project led by Korea Electric Power Corporation plays a pivotal role. The i-SMR, with a capacity of 170MW, aims for standard design approval by 2028, with key technology development by the Korea Atomic Energy Research Institute and Doosan Enerbility. Doosan Enerbility, possessing manufacturing technology for reactor pressure vessels and steam generators for SMRs, is expected to hold a significant position in the global SMR supply chain. China is developing various SMR models, including the ACP100 and HTR-PM, with the HTR-PM becoming the first in the world to start commercial operation in December 2021, positioning China as a frontrunner in the SMR commercialization race.
In Europe, Rolls-Royce in the UK is accelerating the development of an SMR with a capacity of 470MW, aiming to operate the first unit by 2029, supported by £210 million in funding from the UK government. France’s EDF is also developing a 340MW small reactor through the Nuward SMR project, targeting commercialization in the mid-2030s.
Technological Innovation and Enhanced Safety
The core innovation of SMR technology lies in the Passive Safety System. While traditional large nuclear plants require external power and active intervention during accidents, SMRs prevent accidents through passive safety mechanisms utilizing physical laws such as gravity, natural convection, and evaporation. This ensures safety even in extreme situations like the Fukushima nuclear disaster. NuScale’s SMR can maintain a safe shutdown state for 72 hours without external intervention, a ninefold improvement over the 8-hour capability of traditional nuclear plants.
Additionally, SMRs have significantly enhanced protection against terrorism and natural disasters through underground installation designs. South Korea’s i-SMR installs the reactor building 25 meters underground, ensuring safety from external threats such as aircraft collisions and earthquakes. Such designs play a crucial role in alleviating public concerns about nuclear power and increasing social acceptance of SMR adoption.
SMR’s technological innovation is also notable in fuel efficiency. Next-generation SMRs can achieve 20-30% higher burnup rates compared to traditional uranium fuel, and some high-temperature gas-cooled reactor (HTGR) type SMRs can achieve over 90% fuel utilization. This significantly reduces nuclear waste generation and lowers fuel costs. Canada’s Terrestrial Energy is developing an SMR based on molten salt reactors (MSR), which is evaluated to reduce nuclear waste by over 80% compared to traditional nuclear plants.
In terms of operation, SMRs implement a level of automation that allows for unmanned operation. Predictive maintenance systems utilizing artificial intelligence and machine learning can reduce operating costs by 30-40% compared to traditional nuclear plants, and the number of operators can be reduced to one-third of that of traditional plants. This greatly enhances the economic viability of SMRs, facilitating their adoption in developing countries or regions lacking nuclear infrastructure.
Another factor driving the growth of the SMR market is their versatility in various applications. Beyond power generation, SMRs can be used for industrial heat supply, seawater desalination, and hydrogen production, shortening the investment recovery period and enhancing economic viability. In particular, the use of SMRs in hydrogen production is increasing, as high-temperature operation SMRs can significantly improve the efficiency of thermochemical hydrogen production. Mitsubishi Heavy Industries of Japan announced that the efficiency of hydrogen production facilities using SMRs is over 40% higher than conventional electrolysis methods.
Market Trends and Investment Outlook
The investment scale in the global SMR market is rapidly increasing as of 2025. The U.S. Department of Energy announced plans to invest a total of $11 billion in SMR development from 2024 to 2030, with more than half of this being joint investments with private companies. TerraPower, founded by Bill Gates, is investing over $1 billion in developing an SMR based on a sodium-cooled fast reactor, aiming for a demonstration operation by 2028.
In South Korea, SMR investment is also gaining momentum. The government announced through the ‘K-SMR Promotion Strategy’ in 2024 that it would invest 1.5 trillion won by 2030, with private investment accounting for 1 trillion won. SK Innovation plans to invest 500 billion won in the SMR fuel supply business, and Doosan Enerbility is proceeding with a 300 billion won facility investment for the production of key SMR equipment. These investments play a crucial role in positioning South Korea as a key player in the global SMR supply chain.
China’s SMR investment is also noteworthy. China plans to invest $50 billion in the SMR sector from 2025 to 2035, accounting for about 30% of global SMR investment. China National Nuclear Corporation (CNNC) is preparing a $10 billion financial package for the overseas export of the ACP100 SMR and has already signed SMR construction agreements with countries like Pakistan and Argentina.
The growth of the SMR market is also bringing significant changes to the existing nuclear industry ecosystem. Traditional nuclear plant construction companies are transitioning their business models to enter the SMR market, and new startups are challenging the market with innovative SMR technologies. U.S.-based X-energy has attracted $1.6 billion in investment for its high-temperature gas-cooled reactor-based SMR, and UK-based Moltex Energy is developing an SMR based on molten salt reactors.
Interest in SMRs is also rising in the financial market. Goldman Sachs predicts that the global SMR market will grow to $1 trillion by 2040, which is three times the size of the existing nuclear market. The expansion of clean energy investments to achieve carbon neutrality and growing concerns about energy security are major factors driving SMR investments. The European Investment Bank (EIB) has decided to resume investments in nuclear projects from 2024, with a significant portion expected to be allocated to SMR projects.
However, there are still challenges to be addressed for the growth of the SMR market. The most significant challenge is the complexity of the regulatory approval process and the lengthy licensing procedures. To date, China’s HTR-PM is the only SMR that has received commercial operation approval, and most SMR projects are experiencing delays at the licensing stage. The U.S. NRC has introduced a new regulatory framework to improve the SMR licensing process, but it still takes 3-5 years to obtain approval.
Additionally, there is ongoing debate about the economic viability of SMRs. A recent MIT study suggests that the cost of electricity generation per kilowatt-hour for SMRs could be 25-75% higher than that of traditional large nuclear plants, due to the lack of economies of scale. However, SMR developers argue that mass production and learning effects can reduce this cost gap, and NuScale claims that the cost of electricity generation can be reduced to $65 per kilowatt-hour with the installation of 12 modules.
In conclusion, the SMR market stands at a critical turning point between technological maturity and commercial feasibility as of 2025. The success of major SMR projects’ commercialization over the next five years is expected to determine the long-term growth of the market, with continued policy support from governments and sustained private investment being key drivers of market growth. Particularly, as the pressure to achieve carbon neutrality increases, SMRs are expected to play an increasingly important role as a stable carbon-free power source that can complement the intermittency of renewable energy.
