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Uranium Market Overview
Uranium market
size is forecast to reach US$11.2 billion by 2027, after growing at a CAGR of 4.3%
during 2022-2027. The
most numerous actinides on earth are naturally occurring uranium and thorium,
as well as synthetically generated plutonium. In the nucleus of each atom
of uranium – 238, uranium – 234, and uranium-235 protons and neutrons are
present. Globally, nuclear
power generation, which accounts for around one-tenth of the world's
electricity, is the primary driver of uranium demand which has fueled the market
in recent years. Uranium is a naturally occurring radioisotope and an extremely
heavy metal. Small pellets of enriched uranium can be put in the long tubes
that are used in nuclear reactors. Moreover, rising demand for uranium in
the space and healthcare industry is estimated to uplift the growth of the market.
Report Coverage
The report " Uranium Market Report – Forecast (2022-2027)" by IndustryARC covers
an in-depth analysis of the following segments of the uranium market.
By Form: Uranium – 238,
Uranium – 234, and Uranium – 235.
By Application: Medical & Pharmaceutical, Food & Beverage, Industrial
(Automotive, Aerospace, and Metallurgy), Nuclear Energy, and Others.
By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, Italy,
France, Spain, Netherlands, Russia, Belgium, and Rest of Europe), Asia Pacific
(China, Japan, India, South Korea, Australia and New Zealand, Taiwan,
Indonesia, Malaysia, and Rest of Asia Pacific), South America (Brazil,
Argentina, Colombia, Chile, and Rest of South America), and RoW (Middle East
and Africa)
Key Takeaways
- The North America region dominated the Uranium market with the rising uranium production. For instance, according to the World Nuclear Association, the largest-producing uranium mine in 2020 was Cigar Lake situated in Canada which produced 3885 tonnes .
- Rising growth of new Uranium projects has uplifted the market growth. For illustration, in 2019, in the Andhra Pradesh region of Kadapa, India's largest uranium mine was opened, with an estimation to produce 6,000 tonnes of uranium per day.
- In the foreseeable future, the rising
production of uranium is estimated to raise
the growth of the market. For instance, Rosatom, Russia's state nuclear
corporation’s, new factory, is estimated to increase the capacity for uranium
to 20,000 per year by 2023 as part of a new government programme.
- The COVID-19 epidemic had a major impact on the uranium market, with several companies announcing plans to reduce uranium production and related services in the year 2020, according to the Euratom Supply Agency (ESA).
Figure: North America Uranium Market Revenue, 2021-2027 (US$ Billion)
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Uranium Market Segment Analysis – By Form
Uranium-235 held
the largest share with 23% in the uranium market and is expected to continue
its dominance over the period 2022-2027. The only naturally occurring isotope
capable of sustaining a nuclear fission process is uranium-235. Iodine,
caesium, strontium, xenon, and barium isotopes are the most common radioactive
fission products in uranium-235 fission. In the nuclear power plant fuel and
naval nuclear propulsion systems uranium-235 is majorly used. It is also utilized
in the manufacturing of coloured glazes, luminous glassware, and wall tiles.
Uranium Market Segment Analysis – By Application
Nuclear energy held
the largest share with 47% in the uranium market and is expected to continue
its dominance over the period 2022-2027. Nuclear materials are an excellent
source for the heat generation process. Uranium is primarily utilized as a fuel
in the nuclear power reactors to generate electricity. Nuclear materials are employed in the
generation of electricity because they have several advantages such as low-cost
energy, zero-carbon emissions, better energy density, and a stable power
source; as a result, the volume of nuclear power generation is increasing.
Furthermore, new nuclear power plants are being built to increase nuclear power
producing capacity. According to the World Nuclear Association, around 445
nuclear power stations generate 10% of the world's electricity, and
approximately 50 nuclear power plants are under construction in 2021,
increasing the percentage of electricity generation through nuclear energy. Due
to these factors, the demand for uranium is anticipated to increase and result
in the growth of the market in the future period.
Uranium Market Segment Analysis – By Geography
North America region dominated the uranium market with a share of 55% in 2021. The market in the region is witnessing expansions with the rising production of uranium in emerging economies such as USA, Canada, and Mexico. According to the World Nuclear Association, Canada generated the third highest uranium from mines i.e. 3885 tonnes U in 2020 (8% of global supply). Additionally, in 2020, the North American region generated the most electricity using nuclear power, with 8,92,949 GWH out of 25,53,200 GWH, accounting for nearly 35% of total power generation. Furthermore, when compared to other sources of electricity, the percentage share of electricity generated by nuclear power is increasing. For instance, nuclear power accounted for 19% of total electricity output in the United States in 2019, and it climbed to around 20% in 2020, a 1% increase over 2019. With the expansion of electricity and power generation, production of uranium in North American countries is estimated to boost over the forecast period.
Uranium Market Drivers
Increasing usage of uranium in the space industry will drive the market growth.
Nuclear-powered systems are lighter in mass than solar cells with
similar power when compared to other power-backed systems. It allows spacecraft
to be smaller and easier to orient and direct in space. When space probes
function in areas far from the sun, the only available alternative for
producing heat and electricity is the use of radio-isotopes such as uranium. Increasing
investments in the space sector has accelerated the demand for uranium
over the forecast period. For instance, according
to the Department of Space, in 2020 the budget allocation
for space was approximately US$1.28 billion and in
2021 it increased to approximately US$2 billion, an increase in
the budget of approximately 56% in comparison with 2019. Similarly,
according to the American Institute of Aeronautics and Astronautics
(AIAA), in 2019 the overall global space economy was US$428.16 billion and
in 2020 it increased to US$447 billion, with an increase of 4.4% in
comparison with 2019. Thus, due to increased investment in the
space industry across the world is acting as a driver for the growth of
the uranium market.
Driving demand for uranium in the medical industry.
Radioisotopes such as uranium is widely employed in medicine and
research. Radio-diagnosis is a technique for detecting disease that involves
injecting radio-elements into the human body and watching their trajectories. Lonizing radiation is used in radiotherapy to kill cancer cells, while nuclear
medicine relies on radioactive medications that target specific organs.
Increasing investments in the medical sector for research & development has
uplifted the market growth. According to the Congressional Budget Office, in
2019, the pharmaceutical sector spent US$83 billion on research and
development. Also, according to the Research America Organization, in 2020, the
United States' medical and health R&D expenditures totaled US$ 245.1
billion. The industry invested US$161.8 billion in medical and health research
and development (66.0%). Thus, with the rising investments in the medical and
healthcare sector the demand for uranium is estimated to rise over the forecast
period.
Uranium Market Challenges
Fluctuating Price of Uranium
The expansion of nuclear power in numerous markets, the
demonstration of upgraded reactor technology in the near future, and the
potential for nuclear hydrogen generation could all be signs of a longer-term
shift toward higher uranium investment. However, due to the emergence of
alternative energy sources such as shale gas in the United States and a drive
toward subsidizing renewables, uranium prices have varied significantly in
recent years. According to the publication provided by the Government of
Australia the spot prices of Uranium stood 30.0 US$/lb in 2020, which is further
projected to decline in 2021 to reach 29.7 US$/lb, and further incline in the
upcoming years to reach 32.0 US$/lb and 35.6 US$/lb in 2022 and 2023
respectively. Thus, fluctuating price of uranium may create challenges in the overall
market expansion.
Uranium Industry Outlook
Technology launches, acquisitions,
and R&D activities are key strategies adopted by players in the uranium market. Global uranium top 10 companies include:
- Kazatomprom
- Orano
- Uranium One
- enCore Energy
- Navoi Mining
- CNNC (China Nuclear National Corporation)
- Uranium Energy Corp.
- Cameco
- ARMZ Uranium Holding
- General Atomics/Quasar and others.
Recent Developments
- In April 2021, Rosatom, Russia's state nuclear corporation, announced the construction of a new uranium hexafluoride handling facility, more than doubling the company's capacity to manage the controversial substance, which many have referred to as radioactive trash. The new factory, however, will increase throughput to 20,000 per year by 2023 as part of a new government programme.
- In December 2021, Uranium Energy Corp. announced that it has completed the transactions contemplated in the definitive share purchase agreement with Uranium One Investments Inc., a subsidiary of Uranium One Inc., and has purchased all of the issued and outstanding shares of Uranium One Americas, Inc. for a total purchase price of $112 million in cash.
- In January 2022, enCore Energy an uranium development company completed its acquisition of Azarga Uranium. The acquisition is part of enCore's aim to become the largest ISL uranium producer in the United States.
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