Nuclear Fuel Market Size, Share, Opportunities, And Trends By Type (Uranium -235, Uranium – 233, Plutonium – 239), By Form (Metal, Alloy, Oxide), By Reactor Type (Pressurized Water Reactor, Boiling Water Reactor, Fast Neutron Reactor, Others), And By Geography - Forecasts From 2023 To 2028

Nuclear fuel is a material that can sustain a nuclear chain reaction in a nuclear reactor. It is typically made up of enriched uranium or plutonium, which can undergo fission and release a large amount of energy in the form of heat. Nuclear fuel is used primarily in nuclear power plants to generate electricity. The nuclear reactor uses the heat produced by the fission process to create steam, which in turn drives a turbine to generate electricity. Nuclear fuel is also used in nuclear weapons to release a large amount of energy in a short amount of time. The nuclear fuel market is influenced by a variety of factors, including global energy demand, government policies, environmental concerns, technological advancements, and supply and demand dynamics.

A crucial factor driving the growth of the nuclear fuel market is the increasing production of uranium.

Uranium is a primary nuclear fuel used in nuclear reactors to generate electricity. Uranium fuel typically consists of small cylindrical pellets of uranium dioxide, which are stacked and sealed in metal fuel rods. These fuel rods are then assembled into fuel assemblies and loaded into the nuclear reactor. Thus, the growing production of uranium has provided a positive outlook toward its usage as nuclear fuel. For instance, data from the International Atomic Energy Agency shows that the global production of uranium has gone up from 47,731 tonnes in 2020 to 48,332 tonnes in 2021. As per the same source, the percentage of demand for uranium across the globe has gone up from 74% to 77% between 2020 and 2021. The data also shows that uranium production in Kazakhstan increased from 19,477 tonnes to 21,819 tonnes between 2020 and 2021 and a similar increase was seen in Canada and South Africa where uranium production increased from 3885 tonnes to 4693 tonnes and 250 tonnes to 385 tonnes respectively for the same timeframe. Thus, the growing production of uranium is an important factor that will lead to the growth of the nuclear fuel market.

The increasing use of nuclear energy for power generation is fuelling the expansion of the nuclear fuel market.

Nuclear energy is generally considered a low-carbon energy source, as it does not produce carbon dioxide or other greenhouse gases during the generation of electricity and as a result, it is preferred as an energy generation source. Nuclear fuel is a vital part of the production of nuclear energy. The rising production of nuclear energy will prove to be beneficial for the growth of the nuclear fuel market. For instance, according to data from the International Energy Agency, nuclear power generation has gone up from 2634.69 TWh in 2020 to 2739.32 TWh in 2021. Similarly, reports from the International Atomic Energy Agency state that in 2023, approximately 440 power reactors are in operation worldwide, generating roughly 10% of the world's electricity from nuclear energy. In 2019, nuclear energy represented 28% of the world's low-carbon power, making it the second-largest source, according to the same source. Thus, it can be concluded that the growing nuclear energy generation is a vital factor in the growth of the nuclear fuel market.

Substantial growth in the nuclear fuel market is anticipated in the North American region.

The nuclear fuel market exhibits promising growth due to the rising amount of nuclear energy generation and a high number of nuclear power plants where nuclear fuel is an integral part. The United States of America and Canada are two of the top nuclear energy generation countries in the world. Data from the International Atomic Energy Association indicates that around 771,638 GW-HR (Gigawatt hour) of nuclear electricity was supplied in the U.S. and around 86,780 GW-HR in Canada in 2021. According to a report published by the OECD Nuclear Energy Agency in 2020, Canada is one of the top three countries with the largest uranium reserves, with approximately 873,000 tonnes of uranium as of 2019. In comparison, the uranium reserves in the United States were estimated to be around 101,900 tonnes in the same year. Additionally, reports from the Energy Information Administration (EIA) show that in 2021 the U.S. had 93 reactors in operation, boasting a collective power generation capacity of approximately 95,492 MW. Government initiatives taken for the development of nuclear technology in this region are another reason why the nuclear fuel market is expected to show significant growth in the North American region. For instance, in October 2022, Canada’s Natural Resources Minister Jonathan Wilkinson announced the investment of C$970 million ($708 million) in funding to support the development of a grid-scale small modular reactor (SMR) which is a novel nuclear technology that is a crucial component of the country's efforts to reduce emissions. In August 2022, Mexico's Laguna Verde nuclear power plant was granted an extension to the operating license for its second reactor, allowing the plant to continue operating until the mid-2050s. Therefore, the combination of these factors contributes to the expansion of the nuclear fuel market in the North American region.

Market Key Developments

• In February 2023, a commercial agreement was reached between Ukraine's state-owned nuclear energy utility and Cameco Corporation, a Canadian-based global producer of uranium fuel. Under the terms of the agreement, significant volumes of natural uranium hexafluoride (UF6), including uranium and conversion services, will be supplied by Cameco to fulfill Ukraine's entire nuclear fuel requirements until 2035.
• In September 2022, the Chinese government gave its approval for two new nuclear power plants to be built in the southern region of the country, raising the total number of newly sanctioned nuclear power units to 10 in 2022 - the highest annual number in over a decade. The projects were expected to cost around 80 billion yuan ($11.5 billion).

Nuclear Fuel Market Scope:

Segmentation

• By Type
  • Uranium -235
  • Uranium - 233
  • Plutonium – 239
• By Form
  • Metal
  • Alloy
  • Oxide
• By Reactor Type
  • Pressurized Water Reactor
  • Boiling Water reactor
  • Fast Neutron Reactor
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    •  Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • UK
    • France
    • Spain
    • Others
  • Middle East and Africa
    • Suadi Arabia
    • UAE
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • Australia
    • Others