Wave and Tidal Energy Market Size (2025-2030)

The Wave and Tidal Energy Market was valued at USD 0.67 billion in 2024 and is projected to reach a market size of USD 4.37 billion by the end of 2030. Over the forecast period of 2025-2030, the market is projected to grow at a CAGR of 36.7%.    

Wave and tidal energies are two kinds of marine energy that people can use. Wave energy is collected from ocean surface waves. Tidal energy, on the other hand, comes from the moon's and the sun's gravitational forces. Regarding tidal energy, two methods are commonly used to generate power: tidal range and tidal stream systems. Tidal range systems use dam-like structures, called barrages, to hold water during high tide and then release it through turbines to generate power as the tide goes out. Tidal stream systems put turbines in areas with fast-moving tidal currents, and these turbines spin to make electricity because of the water flow. One major advantage of wave and tidal energy is that they are very predictable. We know when tides will come in and out, and wave patterns are often consistent enough to forecast energy production. They also give clean, zero-carbon electricity, which means they don't release greenhouse gases into the atmosphere, making them good for the environment. Wave and tidal energy can help us fight climate change and make a more sustainable energy future, although they do have issues like environmental impacts.

Key Market Insights:

In 2024, solar energy provided over 40% of the total installed capacity.

Systems connected to the power grid were responsible for about 65% of total energy production.

Large-scale applications accounted for 48% of the market share in 2024.

The Asia-Pacific region is expected to remain in the lead, with an anticipated annual growth rate of over 18% until 2030.

Market Drivers:

Global Shift Toward Green Energy Driving Carbon Emissions Reduction.

Many countries in Europe, North America, and Asia are putting policies in place to lower carbon emissions. This is causing more money to flow into wave and tidal energy tech. For example, the UK, Canada, and South Korea have already included marine energy as part of their green energy goals. These nations see the value in diversifying their energy sources and are beginning to tap into the potential of the ocean. The governments are actively supporting schemes and research to advance these technologies, acknowledging their part in a greener future.

Marine Energy Stands Out for Predictability and Reliability.

One big plus is that tidal movements are very predictable because they follow the lunar cycles. This is different from solar and wind energy, which can change a lot. Tidal energy offers a reliable source, which helps in balancing energy grids. Having a steady and sure supply makes marine energy a great option for providing constant power to coastal and inland areas. These communities usually face energy supply issues, and marine energy could offer a steady and local solution.

Market Restraints and Challenges:  

The wave and tidal energy sector is experiencing some serious roadblocks that are slowing down its progress. A major issue is the high cost of starting these projects. Because they need a lot of money upfront and take a long time to pay off, many private investors are hesitant to get involved. Building things in the ocean is expensive, and it can take a while to get all the needed permissions and finish construction. Another problem is protecting the environment. Tidal barrages, for example, can harm marine life. Strict rules and assessments, such as those required by the EU Habitats Directive or the US NEPA, can also delay projects. It takes time to study how these energy projects affect the environment and get approval to move forward. Many coastal and island areas that could benefit from wave and tidal energy do not have the right grid infrastructure. Setting up submarine cables, offshore substations, and systems to convert the energy is not only expensive but also takes specialized technology. This lack of infrastructure makes it hard to expand these energy sources on a large scale.

Market Opportunities:

The wave and tidal energy sector show considerable potential for expansion, especially in areas that are not connected to large power grids, such as islands. In these locations, marine power solutions that can be easily expanded or reduced in size offer a substitute for importing diesel fuel, which can be very expensive. This is particularly relevant for countries like the Philippines, Indonesia, and various Pacific Island nations. One approach to improving the viability of wave and tidal energy is to combine it with other renewable energy sources, like offshore wind and floating solar farms. This integration allows for the sharing of infrastructure, which increases overall efficiency and reduces expenses. Such hybrid energy parks can offer a more dependable and diverse energy supply. In practical applications, integrating marine energy systems with coastal protection measures presents benefits. Integrating these systems into the construction of sea walls and artificial reefs can support climate resilience projects and promote what is known as the blue economy, an economic model focused on the sustainable use of ocean resources. Combining energy generation with environmental protection can attract governmental funding and help nations meet sustainability goals.

WAVE AND TIDAL ENERGY MARKET REPORT COVERAGE:

Wave and Tidal Energy Market Segmentation:

Wave and Tidal Energy Market Segmentation by Technology:

• Wave Energy
• Tidal Stream
• Tidal Range

When we look at marine energy tech, tidal Stream Energy dominates out. It’s ready for business because it has less impact on the environment, and it's been used successfully in places such as the UK and Canada. The turbines, which sit underwater, are good at grabbing energy from places where the tide flows fast. They offer a reliable way to get power.

Wave energy, that is, energy from ocean waves, is growing fast. More people are putting their money into wave energy, and we're seeing new setups being tested. These include things like floating devices that move with the waves and chambers that use the wave's motion to push air through a turbine. Wave energy is becoming popular in Portugal, Australia, and the U.S. One good thing about wave energy is that it can make lots of power from a small area. Also, waves can be found in many places around the world, which means more areas can use this type of power. Because of these things, wave energy is becoming more key in the mix of marine energy sources.

Wave and Tidal Energy Market Segmentation by Application:

• Power Generation
• Desalination
• Environmental Protection
• Others

In practical use, creating power accounts dominates most of the time. This tech is used all over the world. This is because energy companies and governments want reliable, renewable, and always-on power choices. These alternatives can keep the lights on and the economy running without the fluctuations of fossil fuels.

Water desalination is the application that grows the quickest, especially in areas by the sea and places with enough water. Wave-powered desalination plants provide a way to create freshwater that doesn't need fossil fuels or electricity from the grid. This is especially helpful in these areas. Desalination helps provide drinking water where natural sources of fresh water are limited. The process uses the motion of ocean waves to drive desalination systems, thus turning seawater into drinkable water with very little environmental effect. This system can operate independently and can be a game-changer for areas struggling with water access. It not only addresses water shortages but also promotes energy independence and environmental stewardship. As coastal populations grow and fresh water becomes scarcer, wave-powered desalination represents a path forward to secure water resources. These systems help blend technical advancement with environmental duty, providing a way that is both sustainable and practical for a critical global issue.

Wave and Tidal Energy Market Segmentation by End User:

• Utilities
• Industrial
• Government

Based on current adoption trends, utility companies are the primary drivers in the marine energy sector. This is largely due to their access to substantial capital, which allows them to take on the considerable costs associated with large infrastructure buildings. Also, utilities often have existing resources and frameworks in place to incorporate marine energy sources into their current national energy distribution networks.

The industrial sector, though smaller in terms of total use when compared to utilities, shows an even faster growth rate. Industries such as aquaculture, which need reliable power for operations like water circulation and temperature control, are increasingly looking at tidal and wave energy systems as a means to supply their energy needs. Marine facilities, such as ports and research stations, are also adopting these technologies. Remote industries, which are not connected to a main power grid, increasingly see the merit of marine energy as a source of dependable, independent power. The interest from these diverse industrial users shows the growing recognition of marine energy's ability to deliver power in specific applications, particularly where grid extension is not economically practical or environmentally friendly.

Wave and Tidal Energy Market Segmentation: Regional Analysis:

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa

Europe's leadership in wave and tidal energy is clear, holding about 38% of the global market. This is supported by helpful government policies, strong research and development facilities, and functioning projects in countries such as the UK, France, and Norway. The European Union's funding programs, along with careful marine spatial planning and clear regulations, have helped push forward big commercial projects, especially in tidal Stream Energy. This makes Europe a key player in the field.

The Asia-Pacific area is growing quickly in this market, with expectations of fast expansion due to a growing need for independent energy sources, coastal electrification, and access to clean water. Countries including China, South Korea, and Indonesia are putting a lot of money into both tidal and wave energy. Their actions are motivated by renewable energy goals and the need to supply power to islands and remote communities. Strategic financial support and trial programs are helping the Asia-Pacific region become a frontrunner in marine renewable energy. This positions the region as a place to watch for future developments and investments.

COVID-19 Impact Analysis:

The COVID-19 pandemic caused setbacks for many marine energy projects. Supply chains were interrupted, which meant getting necessary parts and materials became difficult. Marine construction projects were put on hold, and government money was redirected to support healthcare infrastructure. As the world began to recover from the pandemic, there was a rise in green stimulus funding. Wave and tidal energy projects became a priority under the Build Back Better program. Many island regions experienced disruptions to their fuel imports, and this pushed them to seek energy self-sufficiency, leading to increased interest in wave and tidal systems that can be easily expanded. The pandemic taught important lessons about the need for independent supply chains and resilience to climate change. These lessons have strengthened the argument for local, renewable marine energy sources. Investing in local marine energy not only ensures a stable energy supply but also contributes to long-term environmental sustainability and reduces reliance on global supply chains that can be vulnerable during crises. The focus on wave and tidal energy shows a move toward sustainable energy solutions. This shift is driven by the need for reliable energy sources, economic recovery, and a growing awareness of environmental issues. Developing marine energy resources offers a way to address energy needs and promote environmental stewardship.

Latest Trends and Developments:

The wave and tidal energy field is seeing a lot of new ideas. Using artificial intelligence to keep an eye on how well turbines and converters are working has become normal. This helps predict when things might need fixing and lowers the cost of running them. Floating and modular setups are getting more popular because they're simple to put in place and work well in deep water or on islands. Increasingly, we're seeing a mix of funding from both the government and private companies. This includes things like green bonds, grants, and private investments. This makes investing in these projects more appealing and speeds up the process of getting new projects started. The business is also starting to use systems that combine wave, tidal, solar, and wind energy on single platforms out at sea. These are being tested in countries such as France, China, and Japan. Finally, small, independent marine power grids are becoming a good way to provide power to ports, fish farms, and remote islands. This way, they can have sustainable energy without needing to be connected to the main power grid.

Key Players in the Market:

1. Orbital Marine Power
2. SIMEC Atlantis Energy
3. Minesto AB
4. Eco Wave Power
5. Ocean Power Technologies
6. Nova Innovation
7. Sustainable Marine Energy
8. Carnegie Clean Energy
9. Wello Oy
10. AW-Energy