Wave and Tidal Energy Market

Market Overview

The global wave and tidal energy market size was valued at USD 578.89 million in 2022 and is predicted to reach USD 7,386.43 million by 2031, increasing at a CAGR of 32.7% from 2022 to 2030. 

Water pumping, desalination, and electricity generation are all possible uses for wave energy, which is captured from ocean surface waves. One of the most promising green technologies is the use of wave and tidal energy, which generates the highest concentration of renewable energy. There is no end to the clean energy that the oceans can provide. Consequently, tidal and wave power from the oceans is predicted to be the most sustainable source of power. To generate electricity from the ocean's renewable resources, these are the best practices.

For many countries, renewable energy sources like wind and solar power are a reliable supply of clean, renewable energy. Several countries have seen an abundance of ocean surface and energy generation capability, which has prompted them to seek ocean energy generation as a major source of renewable energy in the future. In addition, depending on tide strength, tidal energy uses a wind-like turbine with blades revolving 12 to 18 times per minute. A generator is powered by a gearbox that is attached to the turbine.

Wave power is also related to tidal power in terms of power generation. While huge bodies of water have tidal motions, wave energy is generated by wind-driven waves. Electricity can be generated by using it.

Market Dynamics

Global Wave and Tidal Energy Market Drivers

Urgent Need to Replace Fossil Fuels with Renewable Sources of Energy

Reducing dependence on fossil fuels and environmental concerns can be achieved through the usage of renewable energy sources. CO2 emissions and local consequences like air pollution are two intertwined causes of environmental degradation. Using fossil fuels, which have a detrimental impact on global warming, results in this type of energy production. This unequal distribution of abundant fossil fuels around the world has the potential to spark wars. As a way to safeguard political stability and sovereignty, the majority of countries are attempting to reduce their dependence on other countries.

Across the globe, there is a pressing need to replace fossil fuels like gas, oil, and coal with more sustainable alternatives. As fossil fuels are depleted and environmental concerns rise, the renewable sector is being accelerated by technology advances, development priorities, and other factors. Wind and solar power, two examples of renewable energy, have been widely deployed, but they face limits due to land availability, supply mismatches, and vast amounts of untapped potential. In addition, strategic support for this industry would help put the Green Transition into practice and open up significant export prospects in fields where the United Kingdom is currently a global leader.

Growth in Ocean Technologies is Boosted by Government Funding

Additionally, governments' efforts to promote wave and tidal energy have been acknowledged as a crucial factor in the market's growth. Wave and tidal power projects are becoming more popular around the world because of their environmental advantages, and countries are taking various measures to promote these projects, including subsidies, restrictions on the expansion of conventional power projects, and target-based growth. Large portions of their energy needs, such as those in countries like China and India, are being met by wave and tidal energy projects, which is helping to drive up demand.

Infrastructure resources allow government agencies to look beyond total energy supply and find cost-effective solutions that can be scaled up and down. Countries such as the United Kingdom have launched policies for the expansion of clean energy, including cost reduction in technology, reduction of carbon emissions, and development of leading technology, in order to examine the viability of a new form of electricity. There have been several technologies that have stood out for their relevance in lowering carbon emissions, including wind, solar, wave, and tidal.

Global Wave and Tidal Energy Market Restraints

The High Cost and Lack of Maturity of The Technology Is a Stumbling Block

The expanding number of socio-economic, security, and environmental restrictions would likely operate as market restraints for the growth of wave and tidal energy in the above-mentioned anticipated timeframe. Constraints on the rise of power demand, which will be a major hurdle in the market's development Wave and tidal energy production is expected to face significant challenges in the next years because of the high capital investment and production costs.

In the wave and tidal energy industry, it has been observed that the intermittent nature of some wave and tidal power sources is a major restriction Wave and tidal power generation is hindered by a lack of finance channels, as well as a lack of commercial deployment of projects. Due to high operational costs and the possibility of marine mammals and fish being struck by tidal turbine blades, this market's growth is now constrained by the necessity for a specific location.

What Are Key Future Opportunities in Global Wave and Tidal Energy Market?

A Combination of Government Programs and Technological Advancements Will Open New Doors

Players currently operating in the wave and tidal energy market are presented with enormous opportunities for growth as a result of aggressive initiatives such as allowing large projects to be developed in phases, robust government policy frameworks and incentive schemes, and predictable and constant sources of renewable energy.

The global market has been making significant headway, with numerous projects reaching milestones, receiving investment capital, testing prototypes, or engaging in other activities that contribute to their growth. These projects are on the verge of being cost-competitive in a specific niche market, which tends to be the most effective method for constructing and demonstrating experience in wave and tidal power as well as critical developmental steps for utility scales. Additionally, diverse technologies are utilized for the generation of power from wave and tidal sources, which increases the prospects for the development of wave and tidal systems.

Regional Analysis

The global wave and tidal energy market share are segmented by geography into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

In the global Wave and Tidal Energy Market growth in 2022, Asia Pacific accounted for a market share that was equivalent to 42.5%. It is anticipated that public funding schemes, environmental restrictions, government actions, and competition will all play a role in facilitating the expansion of marine energy technologies in the region. In order to satisfy the growing demand for renewable energy, manufacturers have been actively participating in the development of both new designs and new manufacturing processes.

The Asia-Pacific region is one of the most important and lucrative markets for wave and tidal energy in the entire world. It is projected that throughout the course of the projection period, substantial economic growth, awareness among the populace, availability of resources, and advancements in open test sites would all contribute to the expansion of the market.

Even in the market for wave and tidal energy, China is making quite a name for itself. In 2021, China's national test sites underwent a number of changes as a result of these changes. Work is being done at three different test locations at the moment: a small-scale site in the province of Weihai, Shandong; a full-scale tidal energy site in the province of Zhejiang; and a full-scale wave energy site in the province of Wanshan, Guangdong.

The market in North America has been witness to a number of advancements in recent years. In the United States, the generation of electricity from renewable sources was responsible for around 16.7% of the total in 2022. In the surrounding area, Canada has a significant market for ocean technologies. It is predicted that Nova Scotia will be a major market in Canada at the provincial level.

According to some estimates, Canada holds the largest portion of the market for wave and tidal energy in North America. The country's wave and tidal energy business have been propelled to significant growth thanks in large part by the robust regulatory framework that has been put in place. Since 2010, more than USD 80 million in national public financing has been dedicated to maritime energy by the time the year 2021 rolls around. A direct investment of USD 11.0 million has been made by Nova Scotia, one of eastern Canada's Maritime Provinces in the Atlantic Ocean. This investment was made in the development of FORCE, which is Canada's leading research center for in-stream tidal energy. In addition to this, Nova Scotia has provided support for a variety of strategic research studies in marine energy.

There have been a few deployments of ocean energy technologies in the country, some of which include the following: an in-stream tidal turbine installed by Water Wall Turbine on Dent Island in British Columbia; and a Neptune wave energy device installed on Keats Island by Mermaid Power Corporation.

Segmental Analysis

The global wave and tidal energy market share are divided into different segments according to the Energy Type and the Regions (Geographies).

By Energy Type, the global wave and tidal energy market is segmented into Wave and Tidal. The global market for wave energy is smaller than the global market for tidal energy. The evaluation of an efficient wave project deployment plan has included investors. The Asia Pacific market is predicted to rise significantly as a result of increased investments in Japan, Thailand, the Philippines, and India.

Between 2017 and 2021, there were just a few wave energy plants installed around the world. Only a few high-power devices like the CETO5 (240 kW) and WaveRoller are included in the projects. The majority of these are modest WECs (rated power less than 50 kW) (300 kW).

In 2021, tidal energy technology had a 99.8% global revenue share. Over the past few years, the development of converters has been constantly increasing. The MeyGen project represents the most major step towards the commercialization of tidal technology.

Europe is at the forefront of technical innovation. During the years 2017–2021, the tidal energy technology sector made substantial progress toward commercialization. As a result of the work of leading technology companies such as Atlantis Resources, Andritz Hydro-Hammerfest, and Openhydro, a number of their products are now ready for use in the UK, France, Canada, the United States, and elsewhere (Openhydro).

By Region or Geography, the global wave and tidal energy market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. In 2021, Asia Pacific had a 42.5 percent share of the global wave and tidal energy market in sales. Government laws, environmental regulations, and public funding initiatives are all expected to help the industry flourish in the region. To meet the growing demand for sustainable energy, manufacturers have been actively involved in the development of innovative designs and production processes.

Wave and tidal energy is one of the most important and lucrative sectors in the world. Over the next few years, the industry is expected to rise as a result of a growing economy, more public awareness, the availability of resources, and advancements in open test sites.

Several changes have occurred in the North American market in the last several years. Renewable energy will generate 16.2% of the nation's electricity in 2021, according to the Energy Information Administration. Ocean technology is a big business for Canada in the region. A total of USD 50.0 million has been committed to marine energy projects in Nova Scotia since 2010, making it one of the province's largest markets in Canada.

Recent Developments

• April 2022 - Wave energy power plants of up to 2MW could be built in Port Adriano, Spain, according to Eco Wave Power Global AB, a pioneer in the production of sustainable electricity from the ocean and sea waves. Taking advantage of the country's extensive coastline, Eco Wave Power will assist Spain to meet its ambitious targets for renewable energy generation under the terms of the deal.
• October 2021 - As a result of a grant from the Blue Economy Cooperative Research Centre, Carnegie Wave Energy Ltd. has been able to begin work on the MoorPower a Scaled Demonstrator project (Blue Economy CRC). Clean and reliable power generation for offshore activities can be made easier with MoorPower, an innovative wave energy product developed by CETO for moored vessels.