Global Spent Nuclear Fuel Dry Storage Cask Market By Type (Concrete, Metal), By Application (Large Nuclear Power Plants, Small Nuclear Power Plants), and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa)

Market Outlook:

The global spent nuclear fuel dry storage cask market was valued at USD 1,687.5 Million in 2019 and is projected to reach USD 2,739.6 Million by 2027, expanding at a CAGR of 6.9% during the forecast period. In terms of volume, the market is projected to expand at 6.4% during the forecast period. Dry cask storage is a technique for processing high-level hazardous waste, such as spent nuclear fuel, which has been stored in the spent fuel tank for at least a year and sometimes as long as ten years. Usually, casks are made from concrete and metal tubes and are either welded or locked. Inside, fuel rods are encircled by inert gas. The tanks provide leak-tight protection. The cylinder is covered by extra steel, concrete, or other material to provide radiation shielding.

The operation of nuclear reactors includes the fission process that creates energy to generate electricity, during which nuclear fuel, primarily uranium, is used. Nuclear fuel is used in reactors for a number of years before it loses its ability to efficiently generate energy. Fission by-products accumulates and interfere with a reactor’s efficiency, meaning that the fuel can no longer produce energy effectively. At this point, the used fuel is said to be spent nuclear fuel (SNF) and is replaced with fresh nuclear fuel. The SNF generated during the fission process is highly radioactive and must be cooled in pools, which are usually located at nuclear plant sites. SNF contains high levels of radioactive waste materials, including uranium, plutonium, strontium, and neptunium. These materials remain radioactive for many years, which means that waste is dangerous to the environment. Pools help control the amount of heat and radioactivity that is emitted by the SNF, after which it is transferred to dry storage casks to make room for newly generated SNF. Dry casks are cylindrically shaped metal or concrete containers, which can safely limit the amount of heat and radioactivity emitted by the SNF. Specially designed container systems also known as casks are used for the management of SNF. These casks are designed to store, transport, and dispose SNF. Different kinds of cask are used for different purposes.

Market Dynamics

The market is driven by factors such as rising uses of nuclear technology, increasing need to reduce greenhouse gas emissions drives nations to develop nuclear power plants, and soaring fossil fuel prices and scarcity of energy sources. However, limitations of dry storage casks and difficulty of financing nuclear power projects could impede the development of the nuclear power industry are key restraints of this market.

Development of small-scale nuclear reactors worldwide and increasing investment in nuclear power plants, are boosting the growth of the market. Recent market trends include permanent storage facilities and dry storage casks are preferred over wet storage casks.

Growing Usage of Permanent Storage Facilities

The demand for dry cask storage facilities for SNF is increasing. Several countries are investing in R&D for the permanent storage of nuclear wastes. Finland and Sweden are anticipated to witness subversive repositories for radioactive waste to be completed in 2020. Permanent storage facilities are available in almost every country to enhance its nuclear capacity. 

Rising Popularity of Nuclear Power Generation

Rising environmental issues and rising demand for power have fueled the demand for nuclear power generation and it has become one of the most dependable options to cater to the requirements for electricity and to reduce greenhouse gas emissions. Nuclear power generation is a clean energy technology that can meet the growing demand of electricity efficiently. Nonetheless, a nuclear power plant can produce a lot of radioactive waste that needs to be disposed off properly using cooling ponds and dry storage cask. This, in turn, is expected that drive the demand for spent nuclear fuel dry storage cask.

Segmental Outlook

On the basis of types, the spent nuclear fuel dry storage cask market is bifurcated into concrete and metal. The metal segment is estimated to hold a large share of the market during the forecast period due to its ease of operation and maintenance with flexibility in the transportation process; therefore, the segment is anticipated to expand at a CAGR of 6.5% during the forecast period. The concrete segment is expected grow significantly, concrete dry storage casks are less expensive than metal concrete storage cask.

Based on applications, the spent nuclear fuel dry storage cask market is divided into large nuclear power plants and small nuclear power plants. The large nuclear power plants segment is projected to constitute an 86.5% share of the market in 2027, as a majority of power plants are considered large and the dry storage casks are a majorly supplied to the large nuclear power plants. The small nuclear power plants segment is anticipated to expand at a sluggish pace during the forecast period.

Regional Outlook

In terms of regions, the market has been segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. North America is a promising region for the market. It constituted a 41.9% share of the market in 2020. The market in the region is projected to expand at a CAGR of 6.6% during the forecast period. The demand for spent nuclear fuel dry storage cask is expected to rise due to the expansion of existing nuclear power plants and high investments in the new nuclear power plant during the forecast period. The market in Asia Pacific is projected to expand at a CAGR of 7.4% due to the increase in energy consumption from nuclear power plants and ongoing developments and investments in the region.

Competitive Landscape

• Key players in the market include EnergySolutions, Holtec International, ŠKODA JS a.s., GNS Gesellschaft für, Nuklear-Service mbH, and Hitachi Zosen Corporation. These companies are considered as key manufacturers of spent nuclear fuel dry storage cask based on their revenue, research & development (R&D) activities, regional presence, and supply chain management system.

• The players are adopting key strategies such as acquisition, and geographical expansion where potential opportunity for the spent nuclear fuel dry storage cask extraction is added in the company’s capacity.

• For instance, In December 2019, Orano announced that it signed a contract worth euros 40 million with ECP, which is a subsidiary of Rosatom. The contract enabled Orano to receive a project for the depleted uranium plant, which is located Zelenogorsk in Russia.

•  In December 2017, EnergySolutions acquired PHTS Logistics Inc. which is located in Ontario, Canada. PHTS Logistics Inc. is one of the leaders in truckload and less than truckload logistics services in Canada.

• In August 2019, Holtec International’s subsidiaries completed the acquisition of the Pilgrim Nuclear Power Station, which is located in Massachusetts, the US from Entergy Corporation.