Global Wave and Tidal Energy Market Trends, Forecast Report 2025-2037
Wave and Tidal Energy Market size was valued at USD 7.8 billion in 2024 and is likely to cross USD 103 billion by 2037, expanding at more than 24% CAGR during the forecast period, i.e., between 2025-2037. In 2025, the industry size of wave and tidal energy is estimated at USD 9.6 billion.
Rise in demand for renewable sources of energy and provision of funds from government and private organizations for clean sources of energy across all the regions is projected to vigorously propel the growth of the market in the forecasted period. Technological developments are refining turbine efficiencies and reducing costs, further propelling the market growth. Moreover, the growing energy security and independence necessity encourages countries to explore local renewable energy sources. For instance, in July 2024, the Canadian government announced funding of USD 6.z8 million for four tidal energy projects, through NRCan Energy Innovation, Clean Growth, and Emerging Renewables Power programs.
Extensive coastline and government-backed initiatives focused on marine renewables are significantly driving the growth of the market worldwide. Strong policy support and advanced R&D infrastructure also drive the market expansion. Strategies promoting energy production are pushing forward pilot projects and technology development. In September 2024, the UK government announced the award of USD 17.1 million for 6 new tidal projects under its Contracts for Difference (CfD) scheme.
Wave and Tidal Energy Sector: Growth Drivers and Challenges
Growth Drivers
- Rising demand for renewable energy: Increasing global demand for clean energy to meet the climate goals and reduce carbon emissions is pushing countries to invest in more alternative sources, including marine energy, which offers a vast untapped potential. For instance, in October 2023, California became the first U.S. state to pass marine energy-centric legislation with the Governor signing the Wave and Tidal Energy Bill into law.
- Technological advancements: Marine energy technology developments are giving a boost to the market. Innovations in turbine design, energy conversion systems, and underwater infrastructure are making wave and tidal energy more efficient and cost-effective, encouraging wider adoption. This is further expected to increase the demand, leading to an increasing number of adoptions and investments.
Challenge
- High capital and infrastructure costs: This is a prime challenge faced by the market. Building and maintaining wave and tidal energy systems in harsh marine environments requires substantial funding, which can hinder scalability and deter private investment without strong governmental support. Hence, the market players worldwide are trying to overcome this challenge and remain competitive in the market.
Wave and Tidal Energy Market: Key Insights
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
24% |
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Base Year Market Size (2024) |
USD 7.8 billion |
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Forecast Year Market Size (2037) |
USD 103 billion |
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Regional Scope |
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Wave and Tidal Energy Segmentation
Production (Wave energy, Tidal energy)
Wave energy is anticipated to dominate the production segment in the global marine energy density, with more consistent availability than tidal energy. Its ability to generate power throughout the day, combined with ongoing technological improvements and pilot projects, has positioned wave energy as a more commercially attractive option for large-scale deployment. In September 2024, the U.S. Department of Energy’s Water Power Technologies Office (WPTO) announced a USD 112.5 million investment to accelerate wave energy technologies' commercial readiness through open water testing and system validation.
End user (Automotive, Marine, Industrial, Power, Others)
The marine sector is dominating the end-user segment in the global wave and tidal energy market, driven by its direct application in powering offshore operations, ports, and naval facilities. These settings benefit from localized, renewable energy sources that reduce reliance on fossil fuels and enhance energy security in remote or ocean-based environments. In July 2024, Canada’s government announced funding of four tidal energy projects for USD 1.46 million to the Offshore Energy Research Association of Nova Scotia to research an environmental effects monitoring solution for the instream tidal energy industry in Canada, including fish and marine mammal interactions with tidal devices.
Our in-depth analysis of the global wave and tidal energy market includes the following segments:
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Production |
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End user |
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Customize this ReportWave and Tidal Energy Industry - Regional Synopsis
Europe Market Forecast
Europe is projected to account for the largest share of the wave and tidal energy market on the heels of the enforcement of stringent environmental regulations aimed at reducing pollution caused by increasing CO2 gas emissions from fossil fuels in countries such as the UK and France. In November 2021, the UK government announced an investment of USD 21.3 million annually to support Tidal Stream electricity through its leading renewable energy auction scheme, launching a new era for the tidal industry.
UK stands at the forefront, leveraging its abundant marine resources and robust policy support. Home to the European Marine Energy Center (EMEC) in Orkney, Scotland, hosts the world’s largest tidal stream array and has tested several wave and tidal devices. In March 2023, Orbital Marine Power announced the commercial deployment of its innovative floating tidal turbine technology, which was awarded an Option Agreement from Crown Estate Scotland for a new tidal energy project in the Westray Firth.
APAC Market Analysis
APAC wave and tidal energy market is witnessing rapid growth, fueled by increasing energy demand, coastal population growth, and supportive government frameworks. Countries such as China, South Korea, and Australia are investing in research and infrastructure to harness their vast ocean energy potential. In December 2022, IIT Madras Researchers developed an ‘Ocean Wave Energy Converter’ that can generate electricity from sea waves, deployed at a location about 6 KM off the coast of Tuticorin, Tamil Nadu, intended to generate 1 MW of power from ocean waves.
China market is actively advancing, leveraging its extensive coastline and commitment to renewable energy. The government has implemented policies to promote marine renewables, including a five-year plan emphasizing tidal, wave, and ocean thermal energy technologies. In January 2022, Hann-Ocean Energy launched their first third-generation 15-kilowatt wave energy converter (WEC) in the Shengsi archipelago, China, entering a one-year sea trial, with the device expected to generate 70,000 kWh of power annually.
Companies Dominating the Wave and Tidal Energy Landscape
- Wave Power Ltd
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Carnegie Wave Energy Ltd
- Ocean Power Technologies, Inc
- Ocean Renewable Power Company LLC
- Tenax Energy
- AquaGen Technologies
- Atlantis Resources Ltd.
- S.D.E. Energy Ltd
- Marine Current Turbines Ltd
- Aquamarine Power Ltd
- CCGrass
Companies in the market are implementing numerous key strategies to remain competitive and meet growing consumer demands. One major method is product innovation, mergers and acquisitions, global expansion, and sustainability. They investing in more durable and efficient energy converters, and collaborating with governments and research institutions. Some of the key players in the market are:
In the News
- In February 2025, Amazon announced investments in three new wind energy projects across India, including Karnataka, Maharashtra, and Tamil Nadu, contribute over 379 MW of clean energy.
- In March 2022, CalWave launched California’s first at-sea, long-duration wave energy pilot project, bringing the xWave technology closer to providing grid-connected electricity for coastal communities.
Author Credits: Dhruv Bhatia
- Report ID: 1294
- Published Date: May 13, 2025
- Report Format: PDF, PPT
