Global Tidal Power Generation Market By Power Generation Method(Tidal Barrage, Floating Tidal Power Platform, Tidal Stream Generation, Dynamic Tidal Power), By Tidal Energy Converters, Horizontal Axis Turbine(Vertical Axis Turbine, Other Tidal Energy Converters), By Application(Power Generation, Desalination), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2024-2033

Report Overview

The global Tidal Power Generation Market size is expected to be worth around USD 2086 Million by 2033, from USD 762 Million in 2023, growing at a CAGR of 10.6% during the forecast period from 2023 to 2033.

The tidal power generation market refers to the industry involved in harnessing energy from tidal movements to generate electricity. This market is driven by the need for renewable energy sources that can provide a consistent and predictable power output.

Tidal power generation leverages the natural rise and fall of ocean tides, a result of the gravitational interactions between the Earth, moon, and sun, to produce energy. Technologies used in this market include tidal stream generators, tidal barrages, and dynamic tidal power systems, each utilizing different mechanisms to capture and convert tidal energy into electrical power.

Tidal power is considered a highly reliable and predictable form of renewable energy, offering advantages over other renewable sources like wind and solar, which are subject to weather variability. The market for tidal power generation is gaining momentum due to increasing global energy demand, advancements in technology, and growing environmental concerns. Countries with significant tidal ranges and coastal areas, such as the United Kingdom, Canada, and South Korea, are investing heavily in tidal energy projects to diversify their energy portfolios and reduce carbon emissions​​​.

Despite its potential, the tidal power generation market faces challenges, including high initial capital costs, environmental impacts on marine ecosystems, and the complexity of deploying and maintaining underwater infrastructure. However, ongoing research and development are focused on improving the efficiency and reducing the costs of tidal energy systems, making this market a promising component of the future renewable energy landscape.

Key Takeaways

• Market Growth: The tidal power market is to reach USD 2086 Mn by 2033 from USD 762 Mn in 2023, with a CAGR of 10.6%.
• By Power Generation Method: Tidal Barrage holds a 35.3% market share, followed by Floating Tidal Power Platform, Tidal Stream Generation, and Dynamic Tidal Power.
• Application Focus: Power generation dominates with a 77.1% market share in 2023, emphasizing tidal energy’s role in electricity production.
• By Tidal Energy Converters: Horizontal Axis Turbine held a dominant market position, capturing more than a 42.7% share.
• Regional Dominance: Europe maintains a leading position, capturing 43.8% market share by 2023, supported by proactive environmental policies.

By Power Generation Method

In 2023, Tidal Barrage held a dominant market position, capturing more than a 35.3% share. This method involves constructing a dam (barrage) across a tidal estuary or inlet, capturing the energy from the rising and falling tides. Tidal barrages are known for their high energy output and reliability, making them a popular choice in regions with significant tidal ranges. Examples include the Sihwa Lake Tidal Power Station in South Korea and the La Rance Tidal Power Station in France.

Floating Tidal Power Platform: This segment includes systems that float on the water’s surface and harness energy from tidal currents. Floating tidal power platforms are advantageous due to their flexibility and ease of installation. They can be deployed in deeper waters where tidal currents are strong, offering a versatile solution for tidal energy generation. Projects like the MeyGen in Scotland utilize floating platforms to capture tidal energy effectively.

Tidal Stream Generation: Tidal stream generators capture energy from fast-flowing tidal currents using underwater turbines. This method is less intrusive than tidal barrages and can be installed in various marine environments. Tidal stream generation is gaining traction due to its lower environmental impact and scalability. Notable examples include the SeaGen turbine in Northern Ireland and the Atlantis Resources’ turbines used in the MeyGen project.

Dynamic Tidal Power (DTP): DTP is a novel method that involves creating long dams extending from the coast into the ocean without fully enclosing a tidal basin. This method harnesses the potential energy created by tidal currents along the length of the dam. While still in the experimental stage, DTP has the potential to generate significant amounts of energy with minimal environmental disruption. It is particularly suitable for regions with strong tidal currents and large coastal areas​​​​​.

By Tidal Energy Converters

In 2023, Horizontal Axis Turbine held a dominant market position, capturing more than a 42.7% share. Horizontal axis turbines operate similarly to traditional wind turbines but are placed underwater to harness the kinetic energy from tidal currents. These turbines are widely favored due to their high efficiency and proven technology. They are commonly used in projects such as the MeyGen array in Scotland and the Raz Blanchard pilot project in France.

Vertical Axis Turbine: Vertical axis turbines capture tidal energy with blades that rotate around a vertical axis. This design allows them to harness energy from currents coming from multiple directions, making them suitable for turbulent tidal environments.

Although they are less common than horizontal axis turbines, vertical axis turbines are gaining interest for their potential to operate efficiently in various tidal conditions. Projects like the Tocardo Tidal Turbine in the Netherlands utilize this technology to exploit the advantages of multi-directional current flows.

Other Tidal Energy Converters: This category includes innovative and emerging technologies such as oscillating hydrofoils, tidal kites, and Archimedes screws. These converters are designed to harness tidal energy in unique ways, often targeting specific environmental conditions or niche applications.

For example, tidal kites, which move in a figure-eight pattern underwater, can generate power from lower-velocity currents. The Minesto Deep Green project is a notable example of this technology, demonstrating the potential of alternative tidal energy converters to expand the capabilities of tidal power generation​​​​​​.

By Application

In 2023, Power Generation held a dominant market position, capturing more than a 77.1% share. This segment includes the use of tidal energy to generate electricity, leveraging the consistent and predictable nature of tidal movements. Power generation through tidal energy is highly efficient and environmentally friendly, providing a renewable source of energy that significantly reduces carbon emissions.

It is particularly prominent in regions with high tidal ranges, where the potential for energy generation is maximized. Major projects like the Sihwa Lake Tidal Power Station in South Korea and the La Rance facility in France exemplify the successful application of tidal power in electricity generation.

Desalination: Tidal energy is also increasingly used in desalination processes, which convert seawater into potable water. This application is particularly valuable in arid regions where freshwater resources are scarce. Tidal energy provides a sustainable and energy-efficient method for powering desalination plants, reducing the reliance on fossil fuels and minimizing environmental impact.

The integration of tidal power with desalination technology offers a promising solution to water scarcity issues, though it currently captures a smaller market share compared to power generation. The use of tidal energy in desalination is still in the developmental stage, with pilot projects and research focused on optimizing this process for broader implementation.

Market Key Segments

By Power Generation Method

• Tidal Barrage
• Floating Tidal Power Platform
• Tidal Stream Generation
• Dynamic Tidal Power

By Tidal Energy Converters

• Horizontal Axis Turbine
• Vertical Axis Turbine
• Other Tidal Energy Converters

By Application

• Power Generation
• Desalination

Drivers

Increasing Demand for Renewable Energy Sources

A significant driver of the tidal power generation market is the increasing global demand for renewable energy sources. This demand is spurred by the urgent need to reduce greenhouse gas emissions and minimize dependency on fossil fuels, which are finite and contribute to environmental pollution.

Tidal power, derived from the natural and predictable movement of water due to the gravitational pull of the moon and sun, presents a sustainable and reliable source of clean energy. Unlike solar and wind energy, tidal energy is highly predictable and can provide consistent power output, making it an attractive option for integrating into the energy grid.

The push towards renewable energy is bolstered by international agreements like the Paris Climate Accord, where countries have committed to reducing carbon emissions and increasing the share of renewables in their energy mix.

Governments worldwide are implementing policies and incentives, such as feed-in tariffs and tax benefits, to support the development and integration of tidal energy projects. For instance, regions with significant tidal ranges, such as the coasts of the United Kingdom, Canada, and France, have been pioneers in exploring and investing in tidal power technology, recognizing its potential to meet significant portions of their energy demand.

Furthermore, advancements in technology are making tidal power more viable and cost-effective. Modern tidal energy converters, including both horizontal and vertical axis turbines, have enhanced efficiencies and reduced operational costs. Innovations in materials science and engineering have also led to more durable and effective turbine designs, capable of withstanding harsh marine environments while maximizing energy capture.

Moreover, the growing public and governmental concern over environmental sustainability has led to increased research and investment in renewable energy sources, including tidal power. The ability of tidal power to provide stable energy output aligns with the global shift towards cleaner energy production and the broader goals of energy security and sustainability. As the technology matures and the cost of deployment decreases, tidal power is expected to play a crucial role in the future energy landscape, helping to meet the rising global energy demand in an environmentally responsible manner.

Restraints

High Initial Capital Costs and Infrastructure Challenges

One of the significant restraints on the tidal power generation market is the high initial capital costs and complex infrastructure challenges associated with developing tidal energy projects. Tidal power plants require substantial upfront investment due to the need for specialized technology, robust construction to withstand harsh marine environments, and extensive infrastructure for energy conversion and distribution. These financial and logistical hurdles can deter investors and limit the rapid expansion of tidal power projects.

High Initial Capital Costs: The development of tidal power facilities, such as tidal barrages, tidal stream generators, and dynamic tidal power systems, demands significant financial outlays. Tidal barrages, for instance, involve constructing massive dams across estuaries, which require extensive civil engineering work and durable materials to endure the constant pressure and corrosive nature of seawater. The capital expenditure for these projects can run into hundreds of millions or even billions of dollars, making them among the most expensive renewable energy projects to undertake​​.

Tidal stream generators and floating tidal power platforms also require advanced engineering and materials to ensure they can operate efficiently in underwater or surface marine environments. The turbines and supporting structures must be designed to resist strong tidal currents, marine growth, and potential impacts from debris, adding to the overall cost. The specialized nature of the technology and the need for customized solutions further drive up expenses​​​​.

Infrastructure Challenges: In addition to the high costs, tidal power projects face significant infrastructure challenges. One of the primary issues is the difficulty of installing and maintaining equipment in remote and often harsh marine locations. Accessing these sites can be logistically challenging, requiring specialized vessels and equipment for transportation, installation, and maintenance activities. The complexity of working in underwater environments also increases the risk of delays and cost overruns​​​​.

Moreover, the infrastructure required to connect tidal power plants to the existing electrical grid can be extensive and costly. This includes the construction of undersea cables, substations, and grid connection points, which must be designed to handle the unique characteristics of tidal energy generation, such as variable output and the need for robust, corrosion-resistant materials. The integration of tidal power into the grid also requires advanced control systems to manage the intermittent and predictable nature of tidal flows, ensuring a stable and reliable energy supply​​.

Environmental and Regulatory Hurdles: Tidal power projects often face stringent environmental regulations and lengthy permitting processes, which can further increase costs and delay project timelines. The potential impact on marine ecosystems, including disruption to local wildlife habitats and changes in tidal patterns, necessitates comprehensive environmental impact assessments and mitigation strategies. These requirements can add significant time and expense to the project development process​​​​.

Opportunity

Expanding Global Investment in Renewable Energy Projects

One major opportunity for the tidal power generation market lies in the expanding global investment in renewable energy projects. As governments and private sectors worldwide increasingly commit to reducing carbon emissions and transitioning to sustainable energy sources, tidal power generation stands to benefit significantly from this trend.

This surge in investment is driven by the urgent need to combat climate change, the economic benefits of developing renewable energy infrastructure, and the growing recognition of tidal power as a reliable and predictable source of clean energy.

Government Incentives and Support: Many countries are implementing policies and financial incentives to support the development of renewable energy projects, including tidal power. These incentives often include grants, tax breaks, and feed-in tariffs that make tidal energy projects more economically viable. For instance, the European Union’s Green Deal and the United States’ Inflation Reduction Act provide substantial funding and support for renewable energy initiatives, encouraging investment in innovative energy solutions like tidal power​​​.

Additionally, governments are increasingly setting ambitious renewable energy targets, creating a favorable regulatory environment for the growth of tidal power projects. For example, the United Kingdom has set a target to generate 40 GW of offshore wind and marine energy by 2030, including tidal power. Such targets create a clear demand for new tidal energy projects and encourage investment in this sector​​.

Technological Advancements and Cost Reductions: Advancements in tidal energy technology are making projects more efficient and cost-effective, enhancing their attractiveness to investors. Innovations in turbine design, materials, and installation techniques are reducing the costs associated with tidal power generation. For example, the development of modular and scalable tidal energy converters allows for easier installation and maintenance, lowering overall project costs and risks​​.

Moreover, ongoing research and development efforts are focused on improving the efficiency and durability of tidal energy systems. These technological improvements are expected to further reduce the levelized cost of energy (LCOE) for tidal power, making it more competitive with other forms of renewable energy like wind and solar. As costs continue to decline, tidal power projects are likely to attract more investment from both public and private sectors​​​​.

Economic and Environmental Benefits: Investing in tidal power generation offers significant economic and environmental benefits, which are increasingly recognized by policymakers and investors. Economically, tidal power projects can create jobs, stimulate local economies, and provide a stable source of income through the production of clean energy. Environmentally, tidal power helps reduce greenhouse gas emissions and reliance on fossil fuels, contributing to global efforts to mitigate climate change​​​​.

Tidal power generation also has the advantage of predictability, as tidal patterns are highly predictable and consistent. This reliability enhances energy security and grid stability, making tidal power a valuable addition to the renewable energy mix. The ability to provide consistent base-load power makes tidal energy particularly attractive for regions looking to diversify their energy sources and improve grid resilience​​.

Global Interest and Collaboration: There is growing global interest in tidal power, with several countries and regions exploring collaborative projects and partnerships to leverage tidal energy potential. International collaboration can lead to the sharing of best practices, technological innovations, and investment opportunities, further driving the growth of the tidal power market. For example, initiatives like the Ocean Energy Europe association bring together stakeholders from various countries to promote the development and deployment of ocean energy technologies, including tidal power​​​​.

Trends

Growing Integration of Hybrid Renewable Energy Systems

A significant trend in the tidal power generation market is the growing integration of hybrid renewable energy systems. This trend involves combining tidal energy with other renewable energy sources such as wind, solar, and wave energy to create more reliable and efficient power generation systems.

Hybrid systems are gaining traction as they offer several advantages, including enhanced energy output, improved grid stability, and better utilization of available resources, making them an attractive option for meeting the increasing global demand for clean energy.

Enhanced Energy Output and Efficiency: Hybrid renewable energy systems leverage the complementary nature of different energy sources to maximize energy production. For instance, combining tidal power with wind or solar energy allows for continuous energy generation, as these sources typically peak at different times. Tidal energy provides predictable and consistent power, while wind and solar can compensate during low tidal activity periods. This synergy enhances overall energy output and efficiency, ensuring a more stable and reliable power supply​​​​.

Improved Grid Stability: The integration of hybrid systems contributes to improved grid stability by mitigating the intermittency issues associated with individual renewable energy sources. By combining tidal energy with wind or solar power, hybrid systems can provide a more balanced and continuous energy flow to the grid, reducing the need for backup power from fossil fuels. This is particularly beneficial in regions with high renewable energy penetration, where maintaining grid stability is a critical challenge​​​​.

Optimized Use of Resources: Hybrid renewable energy systems optimize the use of available natural resources, making them more efficient and cost-effective. For example, coastal areas with strong tidal currents and high wind speeds can harness both resources simultaneously, maximizing energy production and reducing infrastructure costs. This integrated approach also allows for better land and water use planning, minimizing the environmental impact of renewable energy projects​​​​.

Technological Advancements: Advancements in technology are driving the development and deployment of hybrid renewable energy systems. Innovations in energy storage, smart grid technologies, and advanced control systems enable better integration and management of multiple energy sources. Energy storage solutions, such as batteries and pumped hydro storage, play a crucial role in balancing supply and demand, storing excess energy generated during peak production periods and releasing it when needed​​​​.

Economic and Environmental Benefits: The adoption of hybrid renewable energy systems offers significant economic and environmental benefits. Economically, hybrid systems can reduce the levelized cost of energy (LCOE) by improving capacity utilization and reducing downtime. This cost-effectiveness makes renewable energy more competitive with conventional fossil fuels. Environmentally, hybrid systems contribute to a lower carbon footprint by maximizing the use of clean energy sources and minimizing reliance on fossil fuels​​​​.

Global Adoption and Projects: Several countries and regions are actively exploring and implementing hybrid renewable energy projects. For instance, the European Union has been a strong advocate of hybrid systems, supporting projects that combine tidal, wind, and solar energy through various funding programs and initiatives. In Asia, countries like South Korea and Japan are investing in hybrid renewable energy systems to enhance energy security and reduce greenhouse gas emissions​​​​.

Regional Analysis

In the realm of tidal power generation, Europe is poised to maintain its leading position, set to capture a substantial market share of 43.8% by 2023. This dominance is attributed to Europe’s proactive approach to implementing stringent environmental regulations and promoting sustainable energy practices.

European governments have been instrumental in advocating initiatives to reduce carbon emissions and improve energy efficiency across various sectors. These efforts set a benchmark for global standards, highlighting the pivotal role of tidal power generation in achieving ambitious environmental targets. Regulatory support from European authorities has significantly boosted the demand for tidal power solutions, positioning them as essential components in Europe’s strategy to mitigate emissions in the energy sector.

The integration of tidal power generation services in European markets reflects a balanced approach, preserving the region’s rich energy heritage while embracing innovative sustainable solutions. This approach ensures that the energy sector can flourish while simultaneously reducing its environmental impact, underscoring the adaptability and critical importance of tidal power technologies in modern energy systems.

Moreover, Europe’s unwavering commitment to sustainability has spurred remarkable advancements in research and development within the tidal power sector. These advancements have led to the development of more efficient, reliable, and eco-friendly tidal power solutions, solidifying Europe’s leadership in promoting cleaner energy alternatives worldwide.

Key Regions and Countries

• North America
  • The US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Russia & CIS
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • ASEAN
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of MEA

Key Players Analysis

In the burgeoning Tidal Power Generation Market, several key players are driving innovation and development. Companies such as Atlantis Resources Ltd., SIMEC Atlantis Energy, Orbital Marine Power, and Nova Innovation are at the forefront of tidal energy technology. Atlantis Resources Ltd., a pioneer in tidal energy, has deployed its groundbreaking MeyGen project in Scotland, demonstrating the commercial viability of tidal power.

Market Key Players

• Andritz AG
• Verdant Power, Inc.
• Ocean Renewable Power Company
• TENAX ENERGY
• Eco Wave Power
• Pelamis Wave Power
• SIMEC Atlantis Energy
• Carnegie Wave Energy Ltd.
• Corpower Ocean AB
• Aquagen Technologies
• Ocean Power Technologies, Inc

Recent Developments

September 2023, Andritz AG collaborated with a leading research institution to further enhance tidal energy technology, highlighting its dedication to innovation in the field.

June 2023 Verdant Power, the company successfully deployed its tidal turbines in a new project, demonstrating their effectiveness in harnessing tidal energy.

Report Scope