The global energy landscape is undergoing a transformative shift as small modular reactors (SMRs) emerge as a pivotal component in the transition towards sustainable and resilient energy systems. SMRs are set to play a significant role in enhancing energy security, reducing carbon emissions, and supporting the transition to a low-carbon economy across the globe. Against this backdrop, global SMR capacity is forecast to increase by roughly sixfold from 2025 to 2030, according to GlobalData, a leading intelligence and productivity platform.
GlobalData’s latest report, “SMR Power Market, Update 2026 – Market Size, Segmentation, Major Trends, and Key Country Analysis to 2035,” reveals that different regions are favoring specific SMR technologies based on their unique energy needs and regulatory environments. For instance, China is advancing light-water SMRs, high-temperature gas reactors, and molten-salt prototypes, while South Korea is focusing on integral PWRs and desalination-capable reactors.
Attaurrahman Ojindaram Saibasan, Power Analyst at GlobalData, comments: “SMR capacity is projected to increase by over a hundredfold by 2040 relative to 2025. The substantial growth forecast is being driven by surging demand for zero-carbon firm power, industrial cleantech uses, and greater emphasis by policymakers on energy security.”
The market depends heavily on the translation of global SMR pipelines into financed, permitted, and constructed projects. Currently, more than 90% of proposed SMR capacity remains in the announced or early permitting phases. Very few projects have reached full construction or commercial operation. The success of early movers will be necessary to prove deployment metrics, schedule reliability, cost containment, and regulatory compliance. If these early challenges are resolved, SMRs can shift quickly from niche demonstrations to material contributors to energy grids worldwide by the mid-2030s.
China and Russia are among the leading countries in SMR deployment due to strong industrial capacity, state coordination, and experience with diverse reactor technologies. These markets have already moved some SMRs into construction or demonstration and benefit from supplier ecosystems capable of scaling rapidly. The US shows growing pipeline strength with substantial announced projects, regulatory reform, and public funding, but deployment remains limited by first-of-a-kind (FOAK) risk and supply chain readiness. Similarly, countries such as the UK, Canada, and Central and Eastern European nations are ramping up regulatory and procurement efforts yet still face cost and regulatory timing pressures.
The demand for SMRs is significantly driven by the need for reliable, low-carbon power for data centers. Major tech companies are increasingly partnering with SMR developers to secure long-term, high-availability electricity, which is crucial for supporting the growing digital economy.
Saibasan adds: “Governments worldwide are implementing supportive policies, including financial incentives, streamlined licensing processes, and public-private partnerships, to accelerate SMR deployment. These measures are crucial to overcome the initial financial and regulatory hurdles associated with FOAK projects.”
While the potential for SMRs is immense, challenges such as regulatory harmonization, supply chain readiness, and public acceptance remain. Addressing these challenges will be critical to realize the full potential of SMRs in the global energy mix.
The global push toward SMRs is driven by the need for clean, reliable, and flexible energy solutions. As countries strive to meet their decarbonization goals, SMRs offer a viable pathway to achieving these targets while ensuring energy security and economic growth.
Saibasan concludes: “Securing financing for FOAK SMRs requires risk sharing through public investment, guarantees, contracts for difference (CfD), regulated asset base models, or capacity payments. Investors need predictable revenue streams and clarity on regulatory and licensing commitments. Offtake agreements, utility partnerships, and industrial anchor customers can enhance bankability. Governments must consider enabling financial instruments to de-risk early projects, protect against cost overruns, and support supply chain scale-up. Early successes or failures will have outsized effects on the broader investment environment.”
