Global Wave and Tidal Energy Market Report and Forecast 2024-2032

Global Wave and Tidal Energy Market Size

The global wave and tidal energy market reached a value of USD 0.92 billion in 2023. The market is further projected to grow at a CAGR of 21.2% between 2024 and 2032 and reach a value of USD 5.20 billion by 2032.

Wave and Tidal Energy Market Outlook

• As per industry reports, the coastline of the United States can produce about 252 billion kWh of wave energy per year.

• Scotland contributes 10% to the total wave energy produced by the European continent and is a centre for Research & Development in wave energy technology.

• The cost of tidal power plants can be high, with some examples including a 3.75 MW plant in West Bengal costing Rs 63.5 crore per MW and a 50 MW plant in Gujarat costing Rs 15 crore per MW.

• As per industry reports, the total potential capacity of the 27 best locations in the world for tidal stream farms is 152,000 MW.

Wave and Tidal Energy Market Growth

Wave and tidal energies are renewable sources of energy powered by the natural movement of ocean tides and currents. To generate power, tidal energy uses tidal currents and amplitudes whereas wind energy uses wind driven water oscillations. They occur during the rise and fall of ocean currents and are caused due to the gravitational pull of sun and moon on the earth. The wave and tidal energy market expansion is driven by several key factors. The primary driver is the growing demand for clean and renewable energy sources, which has led to a shift away from fossil fuels and towards sustainable alternatives. For instance, the UK government has set a target of generating 30% of its electricity from offshore wind by 2030, which includes tidal and wave energy.

Additionally, governments and international organizations are increasingly recognizing the importance of investing in wave and tidal energy as part of their efforts to reduce greenhouse gas emissions and combat climate change. This recognition has resulted in significant funding and support for research and development in the sector. For example, the European Union has allocated EUR 1.5 billion for the development of offshore renewable energy, including tidal and wave energy. Furthermore, the growing number of wave and tidal energy projects worldwide are contributing to the market's expansion. As per industry reports, there are approximately 100 companies worldwide that deal with wave energy production, whereas over 20 countries have recently invested in tidal power project development.

Key Trends and Developments

Advancements in technology, favourable government incentives and regulations, and surging demand for water desalination are factors positively impacting the wave and tidal energy market outlook

June 2024

Ocean Power Technologies (OPT) achieved a milestone by generating nearly 15 megawatt-hours of wave energy using PowerBuoys, demonstrating the commercial possibility of non-grid-connected marine energy production.

June 2024

The Massachusetts Clean Energy Center is planning to open an Ocean Renewable Energy Innovation Center in New Bedford by 2026. The facility will focus on wind, wave, and tidal power and will serve as a business incubator, workshop, and networking space.

June 2024

Inyanga Marine Energy Group and Verdant Morlais Ltd have signed a MoU to deliver a 4.9MW tidal Stream Energy project at Morlais in Wales, the largest consented tidal energy scheme in Europe. The project will accelerate the development of the tidal energy industry.

June 2024

Minesto and Sev have renewed and updated their power purchase agreement (PPA) for tidal energy plants in the Faroe Islands. The agreement includes an adjusted electricity price to better reflect the overall value of tidal energy and enables moving towards a 100% renewable energy system by 2030.

Advancements in technology

Advancements in technology are enhancing the efficiency and cost-effectiveness of wave and tidal energy systems. For example, the development of floating devices, better mooring systems, and underwater turbines is improving energy capture capabilities and making the technologies economically viable.

Expansion of hydro power generation

The expansion of hydropower generation is a major driving factor for the wave and tidal energy market growth, as these technologies can complement hydropower to provide a reliable and consistent source of renewable energy.

Government incentives and regulations

Government initiatives and favourable regulatory policies are promoting the adoption of wave and tidal energy. For instance, the U.S., China, and Europe are implementing policies such as feed-in tariffs and investment tax credits to encourage the installation of wave and tidal energy systems.

Soaring demand for water desalination

The increasing demand for water desalination, particularly in water-scarce regions, such as Middle East and Africa, is driving the adoption of wave and tidal energy technologies, which can be used to power desalination plants.

Wave and Tidal Energy Market Trends

The growing demand for clean and renewable energy sources is a primary driver for market growth, as governments and organisations have goals to reduce greenhouse gas emissions and combat climate change. Canada is working to meet these goals as the country has an estimated tidal energy potential of 35,700 megawatts (MW), which displaces over 113 million tonnes of CO2, equivalent to removing over 24 million cars from the road.

Significant government funding, incentives, and support for research and development in the wave and tidal energy sector are in turn, influencing wave and tidal energy market development. In October 2022, the U.S. Department of Energy announced USD 35 million in funding for advancements in river and tidal energy systems. Moreover, recent developments like the installation of a wave conversion device by EcoWave Power in Jaffa, Israel in June 2021, which is funded by Israel's Energy Ministry and commencing of the MeyGen project in the UK, which is the world’s largest tidal energy project contributes to market’s growth.

Wave and Tidal Energy Industry Segmentation

The EMR’s report titled “Wave and Tidal Energy Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Wave Energy

• Tidal Energy

Market Breakup by Technology

• Tidal Stream Generator

• Oscillating Water Columns

• Tidal Turbines

• Tidal Barrages

• Tidal Fences

Market Breakup by Application

• Power Generation

• Desalination

Market Breakup by Region

• North America 

• Europe 

• Asia Pacific 

• Latin America 

• Middle East and Africa

Wave and Tidal Energy Market Share

Both wave energy and tidal energy technologies are playing important roles in the global transition towards renewable and sustainable energy sources

The wave energy segment accounts for the larger market share as wave energy systems are more developed and widely used in the marketplace compared to tidal energy technologies. Governments and investors tend to favour wave energy due to its relative simplicity and ability to generate steady amount of electricity. Also, wave energy is seen as a more mature and proven technology compared to tidal energy, which has contributed to its dominant market position. In 2023, the U.S. had an estimated annual wave energy potential of 2.64 trillion kilowatt hours, equivalent to 63% of its total utility-scale electricity generation.

On the other hand, the tidal energy segment is also a significant part of the wave and tidal energy market report as tidal energy is more efficient than wind or solar energy due to the higher density of water compared to air, which allows for slower rotation speeds and more power generation. Moreover, tidal energy is highly predictable due to the regular and predictable nature of tides, making them a valuable renewable energy source that is gaining increasing adoption.

Power generation holds a significant market share due to the rising global demand for electricity

Power generation accounts for a significant wave and tidal energy market share owing to the rising consumption of electricity due to increasing population. Additionally, growing urbanisation has also boosted the requirement for reliable power generation sources, such as tidal and wave at homes and offices. In 2023, the MeyGen project, developed by SIMAC in the UK achieved a significant milestone by generating 50GWh of clean electricity from tidal energy. Moreover, improvements in turbine technologies and designs are expected to boost the efficiency and reduce costs associated with power generation.

The desalination segment is expected to be a significant contributor to the wave and tidal energy market growth in regions like the Middle East and North Africa, where access to fresh water is limited.  Moreover, governments and private companies are investing heavily in desalination technologies, particularly those that use renewable energy sources like wave and tidal power. For example, Ocean Power Technologies recently announced the successful deployment of its PowerBuoy system, which harnesses the kinetic energy of waves to generate electricity for desalination plants.

Leading Companies in the Wave and Tidal Energy Market

Market players are investing extensively in R&D activities and building new manufacturing facilities to increase their market shares across different regions

Ocean Power Technologies, Inc. was founded in 1984 and is headquartered in New Jersey, United States. The renewable energy company provides electric power and communication solutions and services for remote offshore applications.

Wello Oy was established in 2008 and has its headquarters located in Espoo, Finland. The high-tech and innovative company is known for developing and offering simple and environmentally friendly neutral wave energy converters to customers.

Tocardo B.V. is a renewable energy semiconductor manufacturing company that was founded in 2020 and is headquartered in Wieringerwerf, Netherlands. The company is known for developing, designing, and manufacturing power generating solutions that provide a reliable flow of tidal energy.

Carnegie Wave Energy Ltd develops and commercializes the CETO wave energy technology, which captures energy from ocean waves and converts it into electricity using AI and electric machines. The company was founded in 1987 and is headquartered in North Fremantle, Western Australia.

Other key players in the global wave and tidal energy market include SIMEC Atlantis Energy LTD. (SAE), Eco Wave Power Ltd., Verdant Power, Inc., CorPower Ocean AB, and Mocean Energy Ltd., among others.

Wave and Tidal Energy Market Analysis by Region

Asia Pacific is expected to lead the market due to region’s rapid adoption and generation of renewable energy

The Asia Pacific is expected to capture the largest market share over the forecast period owing to rising number of environmental regulations and initiatives taken up by various governments in the region to promote the use of pollution free renewable energy sources. Opening of new national test sites in China coupled with the rising focus on the development of the electricity generation processes in the country is further supporting the growth of wave and tidal energy market in the Asia Pacific region.

North America is another significant player in this market due to the region's large investment in the creation, deployment, research, and development of wave and tidal technology. The area has many good seaside locations and a robust regulatory environment that supports the sector's expansion. Government support further accelerates the market through subsidies, tax breaks, and programs. Canada has the largest market in North America, with initiatives like FORCE, the premier research centre for in-stream tidal energy, and strategic research projects in the marine energy industry.

Key Highlights of the Report

Wave and Tidal Energy Market Report Snapshots

Wave and Tidal Energy Market Size

Wave and Tidal Energy Market Growth

Wave and Tidal Energy Market Trends

Wave and Tidal Energy Market Share

Wave and Tidal Energy Companies

Wave and Tidal Energy Market Regional Analysis