Small Modular Reactor Market Size, Share, Growth, Trends, and Global Industry Analysis: By Product Type (Heavy Water Reactors, Light Water Reactors, High-temperature Reactors, and Others), By Power Output (Up to 100 MW, 101 to 200 MW, and 201 to 300 MW), Technology (Water Cooled and Gas Cooled), By Application (Power Generation, Desalination, Industrial, and Hydrogen Production), and Region Forecast 2020-2031

Small Modular Reactor Market size was valued at US$ 5,830.9 million in 2024 and is expected to reach US$ 7,074.4 million by 2031, growing at a significant CAGR of 2.8% from 2025-2031. Moreover, the U.S. small modular reactor market is projected to grow significantly, reaching an estimated value of US$ 2,207.2 million by 2031. The market involves the design, manufacturing, deployment, and commercialization of compact nuclear reactors with an electrical power output of up to 300 megawatts (MW), designed for modular construction, factory fabrication, and flexible installation. The global small modular reactor (SMR) market is gaining momentum, primarily driven by the growing global demand for clean, reliable, and flexible energy solutions amid climate change concerns and net-zero commitments. SMRs offer a low-carbon alternative to fossil fuels and provide scalable, factory-built, and space-efficient nuclear energy suited for industrial and remote applications.

A key trend transforming the market is the increasing role of private players, who are advancing modular reactor designs and integrating innovations in fuel and digital systems. This momentum is further supported by growing international collaboration and increased government backing through funding and faster regulatory processes. A major opportunity lies in decarbonizing off-grid and hard-to-abate sectors such as mining, heavy manufacturing, and remote communities, as well as in repurposing aging coal plants and supporting hydrogen production.

However, the market still faces restraints, including high initial capital costs, long return timelines, and fragmented regulatory frameworks. Public concerns about nuclear safety and waste management also pose adoption challenges, particularly in emerging economies. Despite these hurdles, SMRs present a transformative pathway for clean energy expansion, especially where conventional grids and large-scale reactors are not viable. The market outlook remains optimistic, with a clear shift toward commercial deployment and global energy transition goals.

Facts & Figures

• Decarbonization and Net-Zero Commitments: Global pressure to reduce greenhouse gas emissions is driving demand for low-carbon energy sources, and SMRs offer a reliable, clean energy alternative. Countries like the U.S., the UK, and Canada are incorporating SMRs into their net-zero energy roadmaps. For instance, the Rolls-Royce SMR project secured £210 million in UK government backing in June 2025 to develop three clean-energy SMRs.
• Modular Construction and Scalability: SMRs are factory-fabricated and shipped for on-site assembly, reducing construction times, costs, and risks compared to traditional reactors. For instance, the GE Vernova-Hitachi BWRX-300 SMR approved in Canada uses a modular design, enabling faster deployment. This design is also being replicated in the U.S. by TVA.
• Industrial and Off-Grid Decarbonization Needs: Industries in remote or energy-intensive sectors (like mining, chemicals, and steel) require reliable, clean energy that SMRs can deliver. For instance, X-Energy’s Xe-100 reactor, backed by $700 million in private investment and supported by Amazon and Dow, aims to decarbonize industrial hubs and data centers.
• Technological Innovation and International Collaboration: Innovations in reactor fuel, safety systems, and global partnerships are making SMRs more viable and accepted globally. For instance, the newcleo-NextChem joint venture aims to commercialize a lead-cooled Gen-IV SMR by 2025, marking an advanced leap in modular reactor design and European collaboration.

Key Developments:

• In June 2025, the GE Vernova and Hitachi joint venture received Canadian approval for its BWRX?300 SMR design, with the first of four reactors under construction near Toronto. Multiple international utilities, including TVA in Tennessee, are pursuing plant permits.
• In June 2025, Rolls?Royce SMR, backed by ?EZ, Constellation, BNF, and Qatar Investment Authority, secured UK government funding (£210?m alongside £280?m private) to build three 480?MW SMRs, with factory plans and international expansion ambitions.
• In June 2025, Holtec International, in partnership with Hyundai Engineering & Construction, plans to build two SMR?300 units at Michigan’s Palisades plant by 2030, expanding to 10?GW across North America.
• In Dec 2024, Newcleo entered a JV (40% stake) with Italy’s NextChem to commercialize its lead-cooled fast-reactor LFR?AS?200 technology by February 2025, marking a move into modular Gen?IV deployment.

Small Modular Reactor Market Segmentation:

Based on the product type:

• Heavy Water Reactors
• Light Water Reactors
• High-temperature Reactors
• Others

Light Water Reactors (LWRs) hold the largest market share in the market due to their technological maturity, regulatory familiarity, and widespread global acceptance. These reactors utilize ordinary water as both a coolant and a moderator, making them cost-effective and easier to license, particularly in North America and Europe. Leading SMR designs, such as GE Hitachi’s BWRX-300, are based on LWR technology, which facilitates faster commercialization and integration with existing nuclear infrastructure. In contrast, high-temperature reactors, although promising for industrial heat applications and hydrogen production, currently hold the smallest market share due to limited deployment and ongoing research and development phases.

Based on the power output:

• Up to 100 MW
• 101 to 200 MW
• 201 to 300 MW

The 101 to 200 MW segment holds the largest market share in the market, as it offers the ideal balance between power scalability and deployment flexibility. Reactors in this range, such as X-Energy’s Xe-100 (80 MW), are well-suited for replacing coal plants, powering industrial hubs, and supplying electricity to mid-sized grids. They are also easier to finance, license, and construct compared to larger units. Meanwhile, the 201 to 300 MW segment, though growing with projects like Holtec’s SMR-300, currently holds a smaller share due to higher costs and limited deployment.

Based on the technology:

• Water Cooled
• Gas Cooled

Water-cooled technology dominates the market, holding the largest market share due to its proven safety record, regulatory familiarity, and wide adoption in commercial reactor designs. Most leading SMR projects, such as GE Hitachi’s BWRX-300, are based on water-cooled systems—making them easier to license, backed by decades of operational data and established supply chains. In contrast, Gas-cooled SMRs, though promising for high-temperature industrial applications and hydrogen production, currently hold a smaller share due to their complexity, limited deployment, and ongoing development.

Based on the application:

• Power Generation
• Desalination
• Industrial
• Hydrogen Production

Power generation currently holds the largest market share in the small modular reactor (SMR) sector. SMRs are mainly being developed to provide stable, low-carbon baseload electricity for national grids and remote communities. Their modular design, shorter construction timelines, and ability to replace retiring coal plants make them highly appealing to utilities aiming to achieve net-zero targets. While industrial applications and hydrogen production are emerging as promising segments, and desalination offers specific benefits in water-scarce regions, these applications currently occupy a smaller share of the market due to limited deployment and ongoing demonstration projects.