After years of slow progress, nuclear energy is back in focus, this time shaped by a different set of priorities. Energy security concerns, rising electricity demand, and the need for reliable, low-carbon baseload power are pushing governments and industries to reconsider its role in the energy mix.
The question is, how quickly the industry can scale technologies like Small Modular Reactors (SMRs) while addressing long-standing challenges around cost, regulation, and deployment.
These themes were discussed in Frost & Sullivan’s recent webinar, “Growth Opportunities in the Global Nuclear Power Industry: How Small Modular Reactors Redefine Scalable, Clean Baseload Power” where industry experts discussed the opportunities, competitive landscape, and real-world challenges influencing the next phase of global power generation.
The session brought together the following Growth Experts:
Jonathan Robinson
Growth Expert and Associate Partner, Energy at Frost & Sullivan
Manoj Shankar
Growth Expert and Industry Analyst, Energy at Frost & Sullivan
Click here to access the discussion’s recording.
Additionally, click here to explore emerging opportunities in the nuclear energy ecosystem.
During the webinar, the panelists focused on practical growth levers and the constraints that will determine competitive success across the ecosystem. Here are some highlights:
Nuclear Energy Is Back on the Global Agenda
Nuclear energy is gaining traction again, driven largely by energy security concerns and shifting global dynamics. The Russia–Ukraine conflict marked a turning point, pushing many countries, especially in Europe, to rethink their reliance on imported fuels and fragile supply chains.
At the same time, the challenge of maintaining stable, round-the-clock power has brought nuclear back into the conversation. While renewables continue to expand, their variability has made reliable baseload generation a more pressing issue.
A few clear shifts are behind this renewed focus:
- Energy security has taken priority: Countries are looking to reduce dependence on external sources and strengthen domestic supply.
- Reliable baseload power matters more than ever: Nuclear provides consistent output that supports renewable integration.
- Policy direction is evolving: Governments are re-evaluating nuclear as part of long-term energy planning.
A Trillion-Dollar Power Shift and Nuclear’s Opportunity
Global power generation investment sits at around one trillion dollars a year, with renewables taking most of that share. Nuclear is starting to come back into focus, and if SMRs move ahead as expected, their share could grow in the years after 2040.
Key investment dynamics:
- Data center demand is rising: The growth of AI-driven data centers, especially in the United States, is driving plant life extensions and restarts. It is also creating a clear market for future SMR output.
- Renewable build-out is maturing: As expansion slows in some regions over time, space opens up for other sources of reliable power.
- Nuclear already has a strong base: France generates close to 80% of its electricity from nuclear, and several Eastern European countries exceed 50%. As China reduces its reliance on coal, nuclear is expected to play a larger role.
SMRs Signal the Next Phase of Nuclear Growth
While SMRs are positioned as the future of nuclear energy, their timelines remain long and complex. From initial concept to electricity generation, most projects take 10 to 15 years to become operational.
The TerraPower project in the United States reflects this reality. Despite strong backing and clear technological promise, it has taken years to move from concept to early construction and is still expected to take another decade before coming online.
What’s driving these extended timelines:
- Regulatory approvals slow early-stage progress
- New reactor designs take time to validate
- Construction and deployment add further complexity
Despite these constraints, long-term demand remains strong, particularly from energy-intensive sectors like AI-driven data centers that are actively exploring nuclear as a reliable power source.
Global Nuclear Ecosystem – At a Glance
- Key growth enablers: Energy security, electricity demand, and SMR innovation
- Core challenges: Long timelines, regulatory hurdles, and technical complexity
- Investment focus: SMR development, supply chain scaling, and ecosystem partnerships
Click here to explore emerging opportunities across the global power ecosystem
China Is Gaining Ground in Nuclear Development
China has moved ahead in both large-scale nuclear and SMR development. With a strong focus on reducing dependence on coal and strengthening domestic energy security, China is investing heavily in nuclear infrastructure.
What’s driving this progress:
- Strong, sustained investment in nuclear capacity and technology
- Early movement on SMRs, with operational projects already in place
- A clear push to scale manufacturing and bring down costs with a focus on future exports of nuclear technology.
By building experience and expanding production, China is setting itself up to supply nuclear technology beyond its borders and play a larger role in the global energy mix.
SMR Competitive Landscape: Startups vs. Established Players
The SMR space is split between established players like GE, Hitachi and a group of well-funded startups that are further ahead today. Smaller companies are more focused on SMRs and are making quicker progress with design and approvals.
Key dynamics shaping competition:
- Startups are ahead for now: Backed by private funding and government support, smaller US players are progressing faster, largely because they are focused on a narrower scope.
- Large players will catch up: Experience, capital, and long-standing regulatory relationships put companies like GE in a strong position as projects scale.
- Asian state-backed players have an edge: Government-backed companies, especially in China, face fewer constraints around funding, land, and grid access, which helps them move faster.
The Real Challenges Behind SMR Deployment
Despite growing interest, SMR developers continue to face technical and structural challenges that slow projects and push up costs.
Three barriers stand out:
- Design approval: There are more than 80 SMR designs globally, and each one goes through its own regulatory process. This makes approval slow, costly, and hard to predict. Standardizing designs will be key to moving faster.
- Manufacturing and supply chain: SMR components are modular and specialized, but the supply chain to produce them at scale is still limited. Building this ecosystem will take time and investment.
- Grid integration: Connecting an SMR to the grid or to an industrial user requires additional infrastructure. Grid capacity, distance, and end-user need all have to be addressed before projects can move forward.
These challenges continue to extend timelines and increase costs, especially in early-stage deployment.
Don’t Stop Here
The Growth Webinar also dives into the key shifts that will shape the global nuclear power industry over the next decade:
- How will surging electricity demand from AI and data centers drive new investment in nuclear infrastructure?
- Which SMR designs and partnership models are set to define the next generation of nuclear plants?
- How will China’s industrial scale and government backing reshape the global nuclear supply chain?
Expert’s Corner
“Nuclear power will see a revival as nations seek both energy security and zero carbon emissions.”
Jonathan Robinson
Growth Expert & Associate Partner
Frost & Sullivan
Click here to access the discussion’s recording.
Additionally, click here to explore emerging opportunities in the nuclear energy ecosystem.
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