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Nuclear Fusion Market to Hit $491.55 billion by 2031: Coherent Market Insights, Inc

BURLINGAME, Calif., June 11, 2024 /PRNewswire/ -- The global nuclear fusion market, valued at $331.26 billion in 2024, is on a trajectory of rapid expansion, with projections indicating it will soar to $491.55 billion by 2031, growing at a compound annual growth rate (CAGR) of 5.8% from 2024 to 2031, as per a recent report by Coherent Market Insights. Fusion works by mimicking the processes that power our sun and other stars to generate energy. It has potential to meet global energy demand for thousands of years without carbon emissions or long-lived radioactive waste. This clean source of energy output makes nuclear fusion an attractive proposition for governments and policymakers looking to transition to greener sources of energy production.

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Market Dynamics:

The growth of the global nuclear fusion market is attributed to increasing investments in fusion technology development and growing support from public and private organizations across the globe. For instance, in 2021, the European Commission announced plans to invest over €650 Mn in nuclear fusion energy research over the next 5 years.

Nuclear Fusion Market Report Coverage

Report Coverage


Market Revenue in 2024

$4.21 billion

Estimated Value by 2031

$491.55 billion

Growth Rate

Poised to grow at a CAGR of 5.8%

Historical Data


Forecast Period


Forecast Units

Value (USD Million/Billion)

Report Coverage

Revenue Forecast, Competitive Landscape, Growth Factors, and Trends

Segments Covered

By Technology, By Fuels

Geographies Covered

North America, Europe, Asia Pacific, and Rest of World

Growth Drivers

  • Addressing climate change concerns
  • Energy security and diversity concerns

Restraints & Challenges

  • Overcoming hurdles towards commercial viability
  • Technical challenges in sustaining fusion reactions

Market Trends:

Growing focus on commercialization of fusion energy and development of compact fusion reactors is expected to drive the nuclear fusion market growth over the forecast period. For instance, Commonwealth Fusion Systems, a spin-off from the Massachusetts Institute of Technology, is developing compact tokamak fusion reactors with the goal of commercializing fusion energy by 2025. The company raised over $1.8 billion in private funding by November 2021 to accelerate this mission.

Additionally, increasing research focus on alternative approaches such as inertial confinement fusion (ICF) using lasers is also expected to support the nuclear fusion market expansion. For instance, the National Ignition Facility (NIF) at Lawrence Livermore National Laboratory is conducting research towards ignition and net energy gain using powerful laser beams.

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Market Opportunities:

Inertial confinement fusion uses intense laser or particle beams to compress and heat fuel to extreme temperatures and densities, causing nuclear fusion reactions. This technology holds promise as it could enable compact fusion reactors. Several companies are developing this technology including Zap Energy which is working on developing electric power plants based on inertial confinement fusion.

Magnetic confinement fusion uses magnetic fields to confine the hot plasma fuel in donut-shaped devices called tokamaks. This is currently the leading approach being pursued by several companies and national programs. Tokamaks allow for continuous fusion reactions compared to inertial confinement which works in pulsed modes. International experimental fusion reactor ITER, being built in France, uses magnetic confinement fusion with the aim to demonstrate self-heating by 2035.

Key Market Takeaways

The global nuclear fusion market size was valued at USD 331.26 Bn in 2024 and is anticipated to witness a CAGR of 5.8% during the forecast period 2024-2031. This is owing to growing investments in developing commercially viable fusion reactors to meet increasing energy demands sustainably.

On the basis of technology, the magnetic confinement segment is expected to hold a dominant position over 75% market share during the forecast period. This is because magnetic confinement allows for continuous operation compared to inertial confinement.

On the basis of fuels, deuterium-tritium fuel is anticipated to hold a major share over 60% of the market. This is because deuterium-tritium fuel allows efficient fusion reaction rates.

By region, North America is expected to dominate the nuclear fusion market over the forecast period due to presence of major companies like Zap Energy and high investments in fusion research by the U.S. Department of Energy.

Some of the prominent players operating in the nuclear fusion market include Zap Energy, First Light Fusion, Tokamak Energy, Commonwealth Fusion Systems, among others. These players are investing in developing commercial fusion reactors to tap into this multibillion-dollar opportunity.

Key Developments:

For new technologies to gain market share, the following conditions must be met: applications for the technology must be developed, the cost of development must be attractive to investors in order to justify building the factories and supply chains required to scale them up, customers must want to buy them, and sufficient supply must be available to meet growing demand.

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About Us:

Coherent Market Insights is a global market intelligence and consulting organization that provides syndicated research reports, customized research reports, and consulting services. We are known for our actionable insights and authentic reports in various domains including aerospace and defense, agriculture, food and beverages, automotive, chemicals and materials, and virtually all domains and an exhaustive list of sub-domains under the sun. We create value for clients through our highly reliable and accurate reports. We are also committed in playing a leading role in offering insights in various sectors post-COVID-19 and continue to deliver measurable, sustainable results for our clients.

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Coherent Market Insights
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India: +91-848-285-0837
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