Wave and Tidal Energy Market to Add USD 1.25 Billion by 2028, Fueled by Renewable Energy Surge

The wave and tidal energy market is poised to grow by USD 1.25 billion, achieving a CAGR of 27.47% between 2023 and 2028. As global energy demands increase and sustainability becomes a priority, wave and tidal power solutions are gaining ground as viable clean energy alternatives. For stakeholders in the renewable energy space, this market offers opportunities to diversify power portfolios and invest in cutting-edge, ocean-based energy technologies.

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Market Dynamics

Key Market Driver: Rising Global Energy Demand

The primary driver of the wave and tidal energy market is the global surge in energy demand, coupled with the need for sustainable power generation. Ocean energy technologies—ranging from wave energy converters (WECs) to tidal stream generators—offer reliable and renewable electricity generation by capturing kinetic and potential energy from ocean movements.

Governments and private sectors are prioritizing wave and tidal energy as strategic solutions for energy security, greenhouse gas reduction, and employment generation. Technologies such as oscillating water columns and tidal barrages are gaining traction due to their dual capability in power generation and water infrastructure integration, including desalination and pumping applications.

Market Trend: Popularity of Clean Energy Technologies

Wave and tidal energy are becoming cornerstones of green technology development. These renewable sources are not only eco-friendly but also versatile in application—serving not just electricity grids but also desalination plants and water management systems. With nations shifting away from fossil fuels, these marine energy solutions are emerging as critical components in long-term energy planning.

Companies are investing in R&D to boost efficiency and lower operational costs for systems such as marine wave power, tidal fences, and wave energy converters. This growing interest reflects the broader commitment to the Paris Agreement and other climate-related initiatives.

Market Challenge: High Capital Costs

Despite their potential, wave and tidal energy projects face high capital expenditures, acting as a barrier to broader adoption. The design, engineering, and deployment of ocean energy systems involve complex marine operations, specialized materials, and technological risks due to unpredictable ocean conditions.

Long payback periods and uncertain performance metrics often discourage private investment. However, public-private partnerships, government grants, and cost-sharing initiatives are being pursued to reduce upfront costs and de-risk investments.

Market Segmentation

By Type

• Tidal Energy

• Wave Energy

Tidal Energy Leads Growth

The tidal energy segment is set to experience significant growth during the forecast period. Tidal systems leverage the gravitational forces of the moon and sun to generate predictable, high-output energy. These include:

• Tidal stream generators

• Tidal barrages

• Tidal fences

• Oscillating water columns

Tidal energy was valued at USD 143.80 million in 2018 and has shown a steady upward trend, driven by consistent tidal patterns and favorable infrastructure development.

By Application

• Power Generation

• Desalination

Power generation dominates, but desalination is an emerging subsegment. Wave energy, for instance, can power reverse osmosis plants, while tidal installations offer water pumping solutions for arid regions, making these technologies especially valuable for climate resilience and water security projects.

Regional Market Trends

Europe

• UK

• France

• Italy

Europe is projected to contribute 58% of the global market growth between 2023 and 2028. The EU’s commitment to climate goals, including generating 35% of electricity from renewables by 2050, has accelerated interest in wave and tidal power. The decline in coal production by 20% in 2020 and growing investment in marine energy tech reinforce Europe’s leadership.

APAC

• China

• South Korea

China and South Korea are expanding their marine energy infrastructure, leveraging their extensive coastlines and government-backed innovation programs to pilot and scale ocean-based power systems.

North America

North America is a growing market for wave and tidal energy, driven by rising energy needs and federal interest in renewable diversification. Projects along the Pacific and Atlantic coasts are under evaluation, with utilities exploring partnerships for sustainable marine energy integration.

South America

Interest in tidal and wave energy is building slowly, primarily through pilot projects and government research, with a focus on long-term climate mitigation strategies.

Middle East and Africa

While in early development stages, the region presents significant opportunities for desalination-driven wave energy solutions due to freshwater scarcity and high solar integration potential.

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Market Research Overview

The Wave and Tidal Energy Market is emerging as a significant contributor to the global marine energy landscape, with increasing focus on harnessing ocean energy for sustainable power generation. Key technologies such as tidal turbines, tidal stream systems, and tidal barrages are being deployed to convert tidal energy into electricity. Supporting structures like tidal fences, tidal blades, tidal rotors, and tidal arrays enhance energy harnessing and optimize performance during the tidal cycle. Projects such as tidal plants, tidal dams, and tidal basins contribute to large-scale energy extraction, while devices like tidal generators, ocean turbines, and energy converters provide flexibility across different marine conditions. With rising tidal surges and tidal flows, the market continues to expand its footprint by leveraging the predictable nature of tidal force for stable energy output.

Key Players in the Wave and Tidal Energy Market

Industry leaders are employing strategies such as strategic alliances, M&A, and global expansion to establish competitive dominance. The following companies are at the forefront:

• Andritz AG

• Aquagen Technologies Inc.

• AWS Ocean Energy Ltd

• BioPower Systems Pty Ltd.

• Blue Energy Canada Inc.

• Carnegie Clean Energy Ltd.

• CorPower Ocean

• Mocean Energy Ltd.

• Nova Innovation Ltd.

• Ocean Power Technologies Inc.

• Ocean Renewable Power Co. Inc.

• Orbital Marine Power

• Simec Atlantis Energy Ltd.

• SINN Power GmbH

• SSE Plc

• Storage and Display Equipment Ltd.

• Tenax Energy Solutions

• TOCARDO B.V.

• Verdant Power Inc.

• Wello Oy

These players are investing heavily in R&D, targeting technology scalability and modular deployment. Many are categorized as pure play or category-focused, with operations tailored specifically to marine renewable energy.

Research Analysis Overview

In parallel, the wave segment of the market is gaining momentum with advanced technologies designed to capture wave energy from continuous wave motion. Systems such as wave converters, wave rollers, wave pumps, and wave harvesters are instrumental in energy capture and transformation. Innovations in wave devices, including wave buoys, wave oscillators, and wave flaps, are enhancing energy device performance in dynamic ocean environments. Tools like the oscillating column, wave attenuator, and wave chamber are also being deployed to optimize wave capture and increase energy output. Additionally, wave power initiatives use sophisticated wave attenuators and wave flaps to regulate pressure and improve system resilience. Through strategic deployment and ongoing R&D, the market aims to scale hydrokinetic energy solutions for future clean energy capture, reinforcing the vital role of wave and tidal technologies in the transition to renewable power.