The power generation from nuclear power plants in India is expected to grow at a CAGR of more than 4% in the forecast period of 2020 - 2025, which, in turn, is expected to drive the market of nuclear power plant equipment in the country. 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. The Indian government aims to expand the nuclear energy share, and therefore, upcoming nuclear power plant projects are expected to create significant demand for nuclear power plant equipment. On the other hand, delay in the commissioning of several projects due to the ongoing pandemic of COVID-19, the growth is expected to be restrained during the forecast period.
- With a significant share of pressurized heavy water reactors and with upcoming projects, they are expected to dominate the reactor segment in the forecast period.
- The government plans to source 25% of the country's electricity from nuclear energy by 2050, up from the current level of 2.5%, which is likely to create ample opportunities for the market players.
- Island equipment holds a significant 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 Heavy Water Reactors to Dominate the Market
- PHWR design requires thin-walled pressure tubes, as opposed to PWR nuclear plants. This allows the distribution of pressure boundaries, an insignificant number of small diameter pressure tubes. As a result, this design has a lesser chance of accidental rupture of a pressure boundary.
- As of June 2020, there are 48 PHWRs around the world, with 23.87 GWe net capacity. Canada has the highest number of PHWRs with 13.55 GWe capacity, followed by India with 4.09 GWe capacity.
- Currently, there are four under construction PHWRs. All these PHWRs are being constructed by the National Power Corporation of India, with two in Gujarat (Kakrapar) and two in Rajasthan. The estimated capacity of these reactors will be around 2.5 GWe.
- On the other side, the ongoing COVID-19 pandemic has forced the government to impose complete lockdown in the countries for stopping the community spread of the virus. Which further has impacted the current projects.
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, control system, reactor coolant pumps (RCP), primary piping, pressurizer for controlling the pressure of primary coolant (only used in PWR). It also consists of steam generators for heat exchange between the primary circuit and the secondary circuit.
- India has 6.2 GW of installed nuclear capacity as of 2019, and around 5.3 GW net capacity under construction and over 80 GW planned or proposed. With upcoming projects, the demand for island equipment is likely to grow significantly.
- Those nuclear projects already under construction are expected to come online over the next ten years, albeit delayed. Nuclear capacity is expected to reach a total of 10.6 GW by 2026, driving the market considerably in the forecast period.
- The government plans to source 25% of the country's electricity from nuclear energy by 2050, up from the current level of 2.5% - and the project pipeline strengthened in line with these targets.
- With a generation of 45.7 TWh of electricity from nuclear energy in 2019, and with upcoming projects, the market for island equipment is expected to dominate the market in the forecast period.
The India nuclear power plant equipment market is moderately consolidated. Some of the major companies include Larsen & Toubro Ltd, Rosatom State Atomiс Energy Corporation, Hindustan Construction Company, Bharat Heavy Electricals Limited, Mitsubishi Heavy Industries.
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