The China nuclear power plant equipment market is expected to grow at a CAGR of more than 5% in the forecast period of 2020 - 2025. The significant contribution of nuclear energy in reducing GHG emissions, while fulfilling the increasing energy demands of a growing population and supporting sustainable development is driving the market. Upcoming projects in China are expected to create significant demand for different nuclear power plant equipment. On the other hand, the availability and intense competition from alternative clear energy sources are expected to restrain the growth of the market in the forecast period.
- With a significant share of pressurized water reactors, they are expected to dominate the reactor segment in the forecast period.
- The World Nuclear Association has set a target of 25% of global electricity in 2050, which is expected to be provided by nuclear energy. This requires roughly 1000 GW of new nuclear capacity to be constructed, creating ample opportunities for market players.
- Island equipment holds the major investment share in nuclear power plant equipment. With upcoming projects, the island equipment is expected to dominate the market in the forecast period.
Key Market Trends
Pressurized Water Reactors to Dominate the Market
- A typical design of a commercial PWR is such that the core inside the reactor vessel creates heat. The core of the reactor pressure vessel (RPV) contains nuclear fuel, moderator, control rods, and coolant that is cooled and moderated by high-pressure liquid water. PWR consists of a reactor vessel, steam generators, reactor coolant pumps, control roads, a pressurizer, and other elements.
- A long-term service contract was signed between Framatome and Taishan Nuclear Power Joint Venture Company Limited (TNPJVC). The contract was to support operations of two EPRs at the Taishan Nuclear Power Plant in China.
- As of May 2020, there are 44 under construction PWR. China is the dominant country with nine under construction PWR, with a nuclear capacity of 10.12 GWe.
- During the 2018-2019, ten PWRs have been added to the global grid, with six PWRs in China, three in Russia, and one in South Korea. The net capacity addition of the PWRs in 2019 stands at 9.72 GWe.
- With supporting, policies and upcoming projects in the forecast, PWR nuclear power plants are expected to dominate in the forecast period.
Island Equipment to Dominate the Market
- The major equipment under the island equipment category is the nuclear steam supply system (NSSS) and safety system.
- The nuclear steam supply system includes reactors that contain the reactor core and control system, reactor coolant pumps (RCP), primary piping, pressurizer for controlling the pressure of primary coolant (only used in PWR), and steam generators for heat exchange between the primary circuit and secondary circuit.
- China is the largest electricity generator through Nuclear power in Asia-Pacific. As of April 2020, 45 nuclear power plants are operating in the country, and 12 are currently under construction, driving the demand for island equipment.
- China is projected to be the second-largest nuclear market, globally, by capacity, in 2027. The government targets to have 58GW of nuclear capacity operating by 2020-21, and 150GW by 2030. With this anticipated growth, the market for island equipment is expected to witness considerable growth.
- On the other hand, with China being one of the important suppliers of components for the nuclear power plant, the trade disruption due to the COVID-19 pandemic is likely to restrain the demand for these equipment. It is thus expected to hinder the growth of the market till the mid of 2021.
- With a generation of 348.7 TWh of electricity from nuclear energy in 2019, China is dominating the market in Asia-Pacific. With upcoming projects, dominance is expected to continue in the forecast period.
The China nuclear power plant equipment market is moderately consolidated. Some of the major companies include China National Nuclear Corporation, Shanghai Electric Power Generation Equipment Co. Ltd, Dongfang Electric Corporation Limited, Doosan Corporation, Mitsubishi Heavy Industries Ltd.
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