Global Nuclear Power Industry: Porter’s Five Forces Analysis

The global nuclear power industry witnessed a remarkable renaissance prior to the Fukushima nuclear disaster in March 2011. With the support of favorable regulations, couple with the rising cost of fossil fuels and the environmental impact of using fuels such as coal and oil & gas, nuclear energy had become an attractive option for generating electricity for many countries.

However, the Japanese nuclear disaster has changed this scenario in the last one year. The fallout of the Fukushima nuclear disaster was that many countries such as China, Germany, Italy, and even the US have put on hold their long term plans to rely on nuclear power. Even Japan's over-reliance on nuclear power has been brought to question as the Japanese government looks at other sources to generate electricity.

What remains to be seen in the coming years is whether or not the world can survive without the nearly 3,000 TWh of power that is generated from nuclear power every year. With the debate raging on strong about the use and safety of nuclear power, alternative sources of energies such as clean coal, LNG, renewable resources, etc., have come to the front as the world decides whether to opt for nuclear energy in its future energy mix or not.

In order to understand the profitability and the dynamics of competitive structure of the global nuclear industry, Taiyou Research presents a Porter's Five Forces Analysis of the Global Nuclear Power Industry.

Michael Porter's Five Forces Model is one of the most effective analytical model for understanding and analyzing the competitive landscape in an industry. The model analyzes the bargaining power of buyers and suppliers; the competitive rivalry in the industry; the threat of new entrants and the threat of substitutes for the particular industry – in this case, coal faces the threat of substitution from the various renewable energy sources that are fast becoming popular today.

In our report, apart from the Porter’s Five Forces Model Analysis of the industry, we also analyze briefly what nuclear power is along with a definition of nuclear power, a profile of the global nuclear power industry, including a market profile, industry statistics, market value and volume analysis, and other factors are looked at.