Nuclear Power in the US Industry Market Research Report Now Available from IBISWorld

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An increase in demand for electricity will boost industry revenue, while plants will increase their capacity through uprates. For this reason, industry research firm IBISWorld has updated its report on the Nuclear Power industry.

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Demand for electricity will boost revenue, as players use uprates to increase capacity

The Nuclear Power industry has grown over the past five years, benefiting from increased output and prices since 2007. According to IBISWorld industry analyst Deonta Smith, the price increase has been due to high uranium prices before and after the recession, which have prompted industry players to pass along costs to customers; simultaneously, the level of demand from utilities and other independent power producers has increased significantly. As such, over the five years to 2012, industry revenue is expected to grow at an average annual rate of 2.7% to $33.3 billion, including an expected increase of 2.2% in 2012.
Historically, heavy regulation has hindered industry growth because players face difficulties gaining permits for new nuclear facilities. In fact, no new facilities have been built in the United States since 1996; though one nuclear reactor is set for construction, it is still pending license approval by the Nuclear Regulatory Commission. In response to heavy regulation regarding establishing and building new power plants, industry players have used uprates, or improvements in nuclear electricity generating capacity, to boost revenue, says Smith. Getting permission from the Nuclear Regulatory Commission for uprate approval is difficult, but the process is much easier to undertake than building a new plant. Firms have used uprates to increase capacity and sell higher volumes of energy to downstream customers over the past five years, boosting the industry's performance. The US Nuclear Power industry has a medium level of concentration. The four largest industry participants include Exelon Corporation, Tennessee Valley Authority, Entergy Corporation and Dominion Resources Inc. Merger and acquisition activity has contributed to increasing concentration over the past five years, as industry players gain access to new nuclear facilities. Most of the increase in industry revenue, however, is attributable to uprates, when firms increase the capacity of existing nuclear facilities by petitioning the Nuclear Regulatory Commission. Market share concentration is anticipated to increase as the US government grants permits to existing players that have experience owning and operating a nuclear plant.
Despite the recent nuclear crisis in Japan, regulatory concerns are anticipated to ease over the next five years. Industry players will continue to use uprates to increase the volume of electricity sold over the next five years, and, pending approval, a new nuclear plant is slated for completion by 2015, bolstering the industry's revenue potential. In addition, increasing concerns regarding greenhouse gas emissions will likely limit demand for competing energy sources used to generate electricity, making nuclear power a more attractive option. At the same time, however, low natural gas prices will continue to hover near historical lows, becoming external competition for the industry. This trend will limit the industry's growth potential. Moreover, precautions to ensure that facilities are safe from potential earthquakes may increase costs for operators in the near term. Nonetheless, IBISWorld projects that industry revenue will increase over the five years to 2017. For more information, visit IBISWorld’s Nuclear Power in the US industry report page.

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IBISWorld industry Report Key Topics

This industry consists of firms that operate nuclear-powered, electric-power generation plants. The power plants use nuclear fuel to generate steam, which in turn is used to power turbines that generate electric power. The electricity reaches end-users via transmission or distribution systems.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
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