Wave and tidal energy are distinct forms of marine renewable energy harnessed from the ocean's power. While often grouped together, they utilize different resources:

• Wave Energy: Captures the energy from the surface waves generated by wind.
• Tidal Energy: Harnesses the energy from the predictable rise and fall of tides, driven by gravitational forces of the moon and sun.

This market represents a high-potential, emerging segment of the global clean energy transition, offering a predictable and dense power source compared to some other renewables.

According to Credence Research Wave and Tidal Energy Market size was valued at USD 1.27 billion in 2024 and is anticipated to reach USD 12.14 billion by 2032, at a CAGR of 32.6% during the forecast period.

Source: https://www.credenceresearch.com/report/wave-and-tidal-energy-market

 Market Overview & Forecast (2024–2032)

• Market Size & Growth Rate: The global wave and tidal energy market was valued at approximately USD 500-600 million in 2023. It is projected to experience explosive growth, with a Compound Annual Growth Rate (CAGR) of 25% to 30% during the forecast period, potentially reaching a value of USD 3.5 - 5 billion by 2032.
• Key Growth Drivers:
  • Global Decarbonization Goals: Stringent government mandates and net-zero targets are driving investment in non-intermittent, reliable clean energy sources.
  • Energy Security Concerns: The need for domestic, diversified energy portfolios is pushing countries with long coastlines to explore marine resources.
  • Technological Maturation: After years of R&D, several technologies are moving from pilot-scale to pre-commercial and commercial array deployments, reducing costs and increasing reliability.
  • Government Support and Funding: Significant public funding, grants, and revenue support mechanisms (like CfDs - Contracts for Difference) are de-risking projects and attracting private capital.
  • Advantages over Other Renewables: High energy density and predictability surpass the intermittency issues of solar and wind.
• Key Restraints:
  • High Capital Expenditure (CAPEX) and LCOE: The levelized cost of energy (LCOE) remains significantly higher than established renewables, hindering widespread adoption.
  • Technological and Engineering Challenges: Harsh marine environments lead to issues with durability, survivability, maintenance, and corrosion.
  • Complex Regulatory and Permitting Processes: Securing licenses for seabed use, grid connection, and environmental impact assessments can be lengthy and complex.
  • Supply Chain and Infrastructure Limitations: A specialized supply chain for manufacturing, installation vessels, and maintenance is still underdeveloped.
  • Environmental and Social Concerns: Potential impacts on marine ecosystems, fisheries, and coastal communities require careful assessment and mitigation.

Market Segmentation Analysis

a) By Type

This is the primary segmentation, distinguishing between the two energy sources.

• Wave Energy:
  • Description: Converts the kinetic and potential energy in ocean waves into electricity.
  • Characteristics: More variable and less predictable than tides but available along most coastlines.
  • Market Share & Growth: Currently holds a smaller market share than tidal but is expected to see a higher growth rate (CAGR) as a wider variety of technologies are being tested and deployed globally.
• Tidal Energy:
  • Description: Harnesses the energy from tidal currents (tidal stream) or the potential energy from height differences in tidal ranges (tidal barrages).
  • Characteristics: Highly predictable and reliable, but viable only in specific locations with strong tidal currents (>2.5 m/s) or significant tidal ranges.
  • Market Share & Growth: Holds the larger market share as of 2023, driven by the more advanced stage of tidal stream technology and several pre-commercial projects in operation.

b) By Technology

This segmentation delves into the different device types used to capture the energy.

• Tidal Stream Generators:
  • Description: Function like underwater wind turbines, using kinetic energy from flowing tidal currents. This is the dominant and fastest-growing technology in the tidal sector.
  • Sub-types: Horizontal-axis turbines (most common), vertical-axis turbines, and oscillating hydrofoils.
• Tidal Barrages:
  • Description: Large dams built across tidal estuaries. They capture potential energy by storing water at high tide and releasing it through turbines at low tide.
  • Market Position: Mature technology but with very high CAPEX and significant environmental impact, leading to fewer new large-scale projects.
• Tidal Lagoons:
  • Description: Similar to barrages but are standalone structures built offshore, potentially offering a lower environmental impact. Still in early development stages.
• Oscillating Water Columns (Wave):
  • Description: A partially submerged structure where incoming waves trap and force air through a turbine to generate electricity.
• Oscillating Body Converters/Point Absorbers (Wave):
  • Description: Floating or submerged structures that move relative to each other or a fixed point with the wave action, driving a power take-off (PTO) system.
• Overtopping Devices (Wave):
  • Description: Structures that capture seawater from incoming waves in a reservoir and then release it back to the sea through a low-head turbine.
• Other Wave Technologies: Include attenuators (e.g., Pelamis) and submerged pressure differential devices.

Competitive Landscape Analysis

The market is fragmented and consists of a mix of specialized technology developers, large engineering firms, and utility companies. It is highly collaborative, with consortia often forming to execute projects.

Key Players and Strategic Initiatives:

1.      Orbital Marine Power (UK): A leader in tidal stream technology with its innovative floating tidal turbine (O2 model).

2.      SIMEC Atlantis Energy (UK): Developer of the MeyGen project in Scotland, one of the world's largest planned tidal stream farms.

3.      Verdant Power (US): A pioneer in tidal power with its TriFrame™ mounting system for horizontal-axis turbines, deployed in New York's East River.

4.      Ocean Power Technologies (OPT) (US): A key player in wave energy, specializing in point absorber-type PowerBuoys® for both power generation and autonomous applications.

5.      CorPower Ocean (Sweden): Developing a highly efficient, bio-inspired point absorber wave energy converter.

6.      Carnegie Clean Energy (Australia): Focused on both wave energy (CETO technology) and microgrids.

7.      Andritz Hydro Hammerfest (Germany/Norway): A major player in the hydroelectric sector developing tidal stream turbines.

8.      Nova Innovation (UK): Successfully deployed and operates tidal arrays in Scotland and Canada.

Key Competitive Strategies:

• Technology Demonstration and Scaling: The primary focus is on proving device reliability, survivability, and cost-reduction through successive pilot and pre-commercial projects.
• Strategic Partnerships and Consortia: Technology developers partner with engineering firms (e.g., Aker Solutions, DEME), utilities (e.g., EDF, RWE), and research institutions to share risk, funding, and expertise.
• Securing Government Grants and Revenue Support: Success in securing funding from bodies like the European Marine Energy Centre (EMEC), US Department of Energy, and UK/Scottish governments is critical for R&D and project development.
• Focus on Standardization and Modularity: To drive down costs, companies are designing modular systems that are easier to manufacture, install, and maintain.
• Diversification into Hybrid Systems and Niche Markets: Some companies are exploring combining wave/tidal with offshore wind or targeting niche markets like powering offshore aquaculture and subsea equipment.

 Regional Insights

• Europe:
  • Market Position: Undisputed global leader (largest share, >50%).
  • Hotspots: The UK (particularly Scotland and Orkney, home to EMEC), France, and the Netherlands.
  • Reasons: Strong policy support, ambitious carbon reduction targets, significant public and private funding, and world-leading test centers.
• North America:
  • Market Position: A significant and growing market.
  • Hotspots: Canada (Bay of Fundy in Nova Scotia), the United States (Alaska, Maine, Washington State, and New York).
  • Reasons: Supportive state/provincial policies, federal R&D funding (especially from the US DoE), and significant tidal and wave resources.
• Asia-Pacific (APAC):
  • Market Position: An emerging market with immense potential.
  • Hotspots: China, South Korea, Australia, and the Philippines.
  • Reasons: Growing energy demand, long coastlines, and increasing government interest in marine energy. China, in particular, is investing heavily in tidal barrages and stream projects.
• Rest of the World (Latin America, Africa):
  • Market Position: Early-stage development.
  • Reasons: Potential is largely untapped due to funding constraints and a focus on other energy priorities. Chile (wave) and Indonesia (tidal) are countries to watch.

Conclusion

The Global Wave and Tidal Energy market stands at a critical inflection point between the demonstration phase and early commercialization. The forecast period of 2024–2032 is expected to be transformative, characterized by the deployment of the first utility-scale arrays and a significant reduction in LCOE. While challenges related to cost and technology survivability persist, the relentless global push for decarbonization, coupled with strategic public-private partnerships, is creating unprecedented momentum. Europe will continue to lead, but North America and Asia-Pacific are poised for rapid growth. The success of this market hinges on continued innovation, supply chain development, and streamlined regulatory processes to unlock the vast potential of the ocean as a predictable and powerful clean energy source.

Source: https://www.credenceresearch.com/report/wave-and-tidal-energy-market