The Rise of Small Modular Reactors (SMRs): A New Paradigm in the Global Nuclear Industry by 2025
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Rapid Growth of the SMR Market and Global Competitive Landscape
The global Small Modular Reactor (SMR) market in 2025 is demonstrating unprecedented growth momentum, presenting a new paradigm for the nuclear industry. According to the International Atomic Energy Agency (IAEA), as of the end of 2024, over 80 SMR projects are under development worldwide, with the market size expected to grow at an average annual rate of 20.8%, reaching approximately $85 billion by 2030. This is because SMRs are considered an innovative technology capable of overcoming the high initial investment costs and lengthy construction periods associated with traditional large nuclear power plants.
Doosan Enerbility of South Korea (located in Changwon, Gyeongsangnam-do) is actively expanding its SMR business in the first half of 2025, strengthening its position in the global market. The company obtained a pre-design approval for its SMART (System-integrated Modular Advanced ReacTor) technology from the U.S. Nuclear Regulatory Commission (NRC) in October, paving the way for its entry into the North American market. Doosan Enerbility’s SMART, with a capacity of 100MW, is evaluated for its competitiveness by reducing construction costs by 30-40% compared to existing large nuclear power plants and shortening the construction period from the traditional 5-7 years to 3-4 years.
In the U.S. market, NuScale Power, based in Portland, Oregon, is leading the SMR commercialization race. As of November 2025, NuScale’s VOYGR power plant has secured contracts totaling 4.2GW across six projects in the U.S., and has recorded orders worth $2.2 billion in Eastern European markets such as Romania and Poland. The flexibility of NuScale’s SMR technology, which can expand up to 12 modules with a capacity of 77MW per module, allows for large-scale generation of up to 924MW. NuScale demonstrated the growth potential of the SMR market by recording $48.5 million in revenue in the third quarter of 2025, a 156% increase compared to the same period the previous year.
The British industrial giant Rolls-Royce Holdings (based in London) is also emerging as a strong competitor in the SMR market. In 2025, the company secured an additional £210 million investment from the UK government, aiming for the commercialization of a 470MW SMR by 2030. Rolls-Royce’s SMR can be installed on approximately 1/10th of the area of existing nuclear sites, and boasts an economic advantage with a total generation cost of around £60 per MWh over 60 years of operation, which is 20% cheaper than traditional nuclear power plants. The company has secured potential order opportunities worth $18 billion in European markets such as the Czech Republic and the Netherlands.
Market Opportunities Created by Technological Innovation and Enhanced Safety
The core innovation of SMR technology lies in the introduction of the Passive Safety System. This technology allows reactors to be safely shut down using natural circulation and gravity without external power supply or intervention, meeting the stringent safety standards reinforced after the Fukushima nuclear disaster. According to the IAEA’s 2025 safety assessment report, the latest SMR designs have reduced the probability of core damage to 1/100th compared to existing third-generation nuclear power plants. This improvement in safety is a crucial factor in increasing social acceptance of nuclear power.
From an economic perspective, SMRs offer a solution to the limitations of existing nuclear power plants. According to Bloomberg New Energy Finance’s 2025 analysis, the levelized cost of electricity (LCOE) for SMRs is estimated at $65-85 per MWh, up to 35% cheaper than the $90-130 for traditional large nuclear power plants. This cost advantage is attributed to economies of scale achieved through modular factory production and reduced construction risks due to standardized designs. The economic superiority of SMRs is particularly pronounced in small-scale power grids, island regions, and industrial complexes.
In South Korea, the government designated SMRs as a core next-generation nuclear technology in its ‘4th Basic Energy Plan’ announced in August 2025, committing to invest 3 trillion won by 2035. Consequently, in addition to Doosan Enerbility, Korea Electric Power Corporation (based in Seoul) plans to invest 500 billion won in building transmission and distribution infrastructure dedicated to SMRs, while Korea Hydro & Nuclear Power is expanding its SMR operation specialist training programs. The Ministry of Trade, Industry and Energy has outlined a roadmap to construct four demonstration SMRs domestically by 2030 and commence full-scale commercialization by 2035.
In the global market, the increase in uranium demand is also supporting the growth of the SMR market. According to Canada’s Cameco (based in Saskatchewan), the spot price of uranium in 2025 reached $82 per pound, a 15% increase from 2024, with the demand surge due to SMR expansion identified as a major factor. U.S.-based Uranium Energy Corp (based in Texas) announced plans to expand its production capacity from 2 million pounds to 3.5 million pounds annually to secure SMR fuel supply contracts. This expansion of the fuel supply chain indicates the infrastructure for SMR commercialization is becoming more established.
The growth of the SMR market is also bringing changes to the existing nuclear ecosystem. Traditionally focused on large nuclear power plant construction, Westinghouse (based in Pennsylvania) announced a $1.2 billion investment in developing a 300MW SMR called AP300 in 2025. In South Korea, Westinghouse Electric Korea is considering establishing an SMR component manufacturing plant in Busan as part of its localization strategy. This demonstrates that the SMR market is driving structural changes across the entire nuclear industry beyond the mere introduction of new technology.
Regional Market Trends and Policy Support
The Asia-Pacific region is evaluated as having the greatest growth potential in the SMR market. In the first half of 2025, China began constructing its first commercial SMR based on ACP100 in Hainan Province, with plans to build 20 SMRs by 2030. According to China’s National Nuclear Safety Administration, the investment in SMR-related projects alone amounts to 50 billion yuan (approximately $7 billion). Japan is also actively considering SMR adoption as part of its nuclear policy shift following the Fukushima disaster, with Mitsubishi Heavy Industries and Hitachi each developing their own SMR technologies.
Southeast Asian countries like Indonesia and the Philippines are actively pursuing SMR adoption to address power supply issues in island regions. In September 2025, the Indonesian government signed a memorandum of understanding with NuScale Power for the construction of a 462MW SMR in the offshore island regions of Java, with a total project cost of $3.5 billion. The Philippines plans to build four SMRs in northern Luzon and has secured a $1.5 billion loan from the World Bank for this purpose. The expansion of the Southeast Asian market provides new export opportunities for South Korean and American companies.
In the European market, interest in SMRs is rising alongside the reevaluation of nuclear power’s role in achieving carbon neutrality goals. France announced a nuclear renaissance policy, including the construction of six SMRs by 2030, with EDF leading the development of its proprietary SMR technology called NUWARD. The Czech Republic has confirmed the construction of two Rolls-Royce SMRs at the Dukovany nuclear site, with a total investment of $8 billion. Poland aims to build 12 SMRs by 2040 and has signed a nuclear cooperation agreement with the United States for this purpose.
In the North American market, Canada is playing a leading role in SMR commercialization. In October 2025, the Ontario government granted final approval for the construction of GE-Hitachi’s BWRX-300 SMR at the Darlington nuclear site, which will be the first commercial SMR in North America. This project, with a total construction cost of 5 billion Canadian dollars, aims for commercial operation by 2029. In the U.S., the Idaho National Laboratory is progressing with NuScale’s SMR demonstration project, targeting completion by 2028, with the accumulated operational experience expected to serve as a foundation for global market expansion.
The Middle East and Africa are also emerging as new growth drivers. Saudi Arabia plans to introduce four SMRs as part of the NEOM City project and is discussing technological cooperation with South Korean and American companies. South Africa is pursuing the construction of eight SMRs to replace aging coal-fired power plants and has secured a total of $4.5 billion in funding from the World Bank and the African Development Bank. The growth of these emerging markets provides new opportunities for advanced countries with SMR technology.
Policy support is also a crucial driver of SMR market growth. The U.S. Department of Energy allocated an $1.8 billion budget for SMR development in 2025, a 40% increase from the previous year, with half of it dedicated to commercialization support. The European Union, as part of its Green Deal policy, decided to invest €1.2 billion in SMR research and development, which will be used to establish the foundation for SMR commercialization in Europe by 2030. Such proactive government support is inducing private investment and accelerating the pace of technological development.
The rapid growth of the SMR market is bringing changes to the traditional energy industry structure. The entry of small and medium-sized enterprises into the nuclear power generation market, previously dominated by large power companies, is intensifying competition, leading to lower electricity prices and improved service quality. Additionally, the potential for distributed deployment of SMRs is expected to significantly enhance the stability and efficiency of power supply. The International Energy Agency predicts that global SMR capacity will reach 100GW by 2040, accounting for approximately 25% of total nuclear power generation. This growth forecast suggests that SMRs will become a key driver of global energy transition beyond being a mere technological alternative.
*This analysis is based on general market trends and publicly available information. For investment decisions, expert advice and additional due diligence are recommended.
