Global Wave and Tidal Energy Market By Type (Wave Energy, Oscillating Water Columns, Oscillating Body Convertor, Others, Tidal Energy, Tidal Turbine, Tidal Barrages, Others), By Technology (Tidal Stream Generator, Oscillating Water Columns, Tidal Turbines, Tidal Barrages, Others), By Application (Power Generation, Desalination, Others) , By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2025-2034

Report Overview

The Global Wave and Tidal Energy Market size is expected to be worth around USD 21.8 Bn by 2034, from USD 1.1 Bn in 2024, growing at a CAGR of 34.8% during the forecast period from 2025 to 2034.

Waves are generated when wind blows across the surface of the water, meaning their energy ultimately originates from the sun. In contrast, tidal energy is driven by the gravitational forces in the Sun-Moon-Earth system, resulting from their interactions and the Earth’s rotation. This form of energy traces its origins to the angular momentum (spin) of the solar system and the galaxy, potentially extending all the way back to the Big Bang.

Typically, large ocean waves have wavelengths around 100 meters and amplitudes of a few meters. Although wind drives these waves, they tend to be more reliable as an energy source compared to the wind itself.

One example of this evolving energy sector is the TIGER project, which is backed by Interreg Channel funding of USD 46.75 million. This initiative is focused on developing five tidal energy sites across France and the U.K. Additionally, in February 2020, the European Marine Energy Centre Limited (EMEC) partnered with Seabased to design and implement a test program for Seabased’s wave-to-grid technology.

In February 2024, Minesto launched its first tidal power plant, Dragon 12, in the Faroe Islands. The 1.2 MW utility-scale facility generates electricity from ocean currents and tidal streams. The plant uses a 28-ton, 12-meter subsea kite tethered to the seabed, which converts the kinetic energy from the moving water into electricity, supplying power to the U.K.’s national grid.

Key Takeaways

• The global wave and tidal energy market is projected to reach USD 21.8 billion by 2034.
  Starting from USD 1.1 billion in 2024, it will grow at a compound annual growth rate (CAGR) of 34.8% during the forecast period from 2025 to 2034.
• Tidal energy held a dominant market share of over 58.3% in 2024 within the wave and tidal energy sector.
• Tidal Stream Generator technology captured more than 30.3% of the wave and tidal energy market in 2024.
• Power generation represented over 87.2% of the wave and tidal energy market share in 2024.
• In 2024, the Asia Pacific (APAC) region dominated the wave and tidal energy market with more than 45.2% of the global market share, Valued at approximately USD 0.4 billion.

By Type

In 2024, Tidal Energy held a dominant market position in the wave and tidal energy sector, capturing more than 58.3% of the market share. This strong presence can be attributed to the growing demand for renewable energy solutions and the unique advantages that tidal energy offers over other forms of renewable energy. Tidal energy, harnessed from the movement of ocean tides, is highly predictable and can provide a stable, reliable source of power, making it a favorable option for long-term energy planning.

Looking ahead to 2025, the tidal energy segment is expected to maintain its leadership in the market, with continued advancements in turbine technology and energy storage solutions. The ability to generate power consistently, regardless of weather conditions, positions tidal energy as a strong contender for regions with significant tidal movements, such as coastal areas in Europe, North America, and Asia. Governments in these regions are increasingly offering incentives and funding for tidal energy projects, which is expected to drive further market growth.

By Technology

In 2024, Tidal Stream Generator technology held a dominant market position, capturing more than 30.3% of the wave and tidal energy market. This technology, which harnesses the kinetic energy of moving water to generate electricity, has become increasingly popular due to its reliability and efficiency. Tidal stream generators are similar to underwater wind turbines and are ideal for areas with strong tidal currents, offering a predictable and steady source of renewable energy.

The tidal stream generator market is expected to continue growing, driven by advances in turbine design and improved deployment techniques. As technology becomes more efficient and cost-effective, more regions with suitable tidal conditions are expected to adopt this form of energy generation. The ongoing reduction in installation costs and the increase in governmental support for renewable energy projects are likely to further boost the segment’s growth.

By Application

In 2024, Power Generation held a dominant market position in the wave and tidal energy sector, capturing more than 87.2% of the market share. This significant share is due to the growing global demand for renewable energy sources and the increasing interest in ocean-based power generation solutions. Tidal and wave energy technologies are becoming increasingly attractive for power generation, particularly in coastal regions with strong tidal and wave activity.

The power generation application is expected to continue its strong performance, with investments in tidal and wave energy projects steadily increasing. Governments and private investors are expected to continue supporting this sector through subsidies, research funding, and regulatory frameworks aimed at achieving long-term sustainability goals. With improved technology efficiency and more cost-effective installations, tidal and wave energy will play a larger role in powering communities, particularly in remote or island regions where conventional power generation methods are more costly or less reliable.

Key Market Segments

By Type

• Wave Energy
  • Oscillating Water Columns
  • Oscillating Body Convertor
  • Others
• Tidal Energy
  • Tidal Turbine
  • Tidal Barrages
  • Others

By Technology

• Tidal Stream Generator
• Oscillating Water Columns
• Tidal Turbines
• Tidal Barrages
• Others

By Application

• Power Generation
• Desalination
• Others

Drivers

Rising Demand for Renewable Energy and Government Support

One of the major driving factors for the growth of the wave and tidal energy market is the increasing global demand for renewable energy solutions, driven by both environmental concerns and government policies. As countries aim to reduce their carbon emissions and meet international climate goals, renewable energy technologies, such as wave and tidal energy, are becoming a critical part of the energy mix. This shift is essential for mitigating climate change and achieving net-zero emissions by mid-century.

Governments worldwide are offering increasing support for renewable energy projects, including financial incentives, grants, and policy frameworks to promote the development and deployment of wave and tidal energy technologies. For example, in the United Kingdom, the government has set a target to generate 40% of its electricity from offshore wind and marine energy by 2030, which includes significant investments in wave and tidal energy infrastructure. In 2020, the UK government announced a £175 million funding package to support marine energy projects, with a portion of this dedicated specifically to tidal and wave energy innovation.

In the European Union, the Green Deal has also set ambitious renewable energy targets, with marine energy, including tidal and wave power, expected to contribute to the EU’s goal of reducing greenhouse gas emissions by 55% by 2030. Similarly, countries like the U.S., Canada, and Japan are actively investing in marine energy technologies to harness their potential, given their vast coastlines and strong tidal resources.

Restraints

High Initial Capital Costs and Infrastructure Challenges

One of the major restraining factors for the wave and tidal energy market is the high initial capital costs associated with developing and installing these technologies. Unlike more established renewable sources like wind or solar, wave and tidal energy require significant upfront investment in infrastructure, including the construction of specialized turbines, underwater cables, and energy storage systems.

For instance, setting up a tidal energy project can cost upwards of $5,000 per installed kilowatt in the initial stages, depending on the location and scale of the project. This can make it challenging for many countries, especially developing ones, to implement such technologies on a large scale.

Moreover, the environmental and logistical challenges of installing tidal and wave energy systems are significant. These technologies often require installation in remote, harsh marine environments, which poses risks related to weather, tidal conditions, and the protection of marine ecosystems. The complexity of underwater construction and maintenance also adds to the cost, with repairs or upgrades requiring specialized vessels and equipment. In 2020, the cost of offshore wave and tidal projects was reported to be approximately two to three times higher than that of offshore wind energy projects, which are more widely adopted.

While governments are providing incentives to encourage the adoption of clean energy technologies, such as subsidies and grants, these financial supports are often not enough to offset the high costs in the early stages. For example, the European Commission’s Horizon 2020 program allocated €40 million to support the development of marine energy projects, but the funding only covers a portion of the overall costs, leaving much of the burden on private investors. The high cost of infrastructure and the need for continuous innovation to reduce costs are major barriers to the widespread adoption of wave and tidal energy.

Opportunity

Expanding Investment in Offshore Renewable Energy

One of the most promising growth opportunities for the wave and tidal energy sector lies in the increased investment in offshore renewable energy projects. As countries strive to meet ambitious renewable energy targets and reduce their carbon footprints, offshore energy generation, including both wind and marine energy, is receiving growing attention. The global shift towards decarbonization has prompted governments and private investors to look more closely at the untapped potential of wave and tidal energy, especially in regions with strong tidal currents and extensive coastlines.

For instance, the United Kingdom has set a target to generate 40% of its electricity from offshore wind and marine energy by 2030, with significant investments directed towards developing marine energy projects. In 2023, the UK government committed an additional £175 million to fund the development of tidal and wave energy projects as part of its Clean Growth Strategy. These initiatives aim to drive down the cost of energy production from marine sources while expanding the overall share of renewable energy in the national grid.

Similarly, the European Union is targeting a more than 50% increase in its renewable energy capacity by 2030, which includes expanding offshore wind and marine energy contributions. Under the European Green Deal, marine energy is expected to become a key part of the EU’s renewable energy strategy, with the potential to contribute up to 10% of Europe’s energy mix by 2050. This support is reflected in funding programs such as Horizon Europe, which has already allocated €22 billion to green energy innovations, including wave and tidal energy.

Trends

Increasing Focus on Hybrid Renewable Systems

A key latest trend in the wave and tidal energy sector is the increasing focus on hybrid renewable systems, which combine wave and tidal energy with other forms of renewable energy, like offshore wind. This trend is driven by the need for more consistent and reliable power generation, as well as the desire to maximize the use of available marine resources. Hybrid systems are seen as an effective way to overcome the intermittent nature of renewable energy sources by leveraging the strengths of multiple technologies to provide a more stable energy output.

For example, Scotland has been pioneering this approach through its European Marine Energy Centre (EMEC), where projects are underway to combine tidal and wave energy with offshore wind turbines. In 2024, Scotland received £25 million in funding from the UK government to develop hybrid renewable energy systems in its coastal regions. These systems are designed to work together, with tidal and wave energy helping to balance the variability of wind energy, creating a more consistent and reliable power supply for local communities and the national grid.

The European Union is also prioritizing hybrid energy systems as part of its Green Deal, with investments planned in combining marine energy with offshore wind in areas like the North Sea. By 2025, hybrid projects in Europe are expected to generate over 5 GW of energy, significantly contributing to the EU’s renewable energy targets. In fact, hybrid systems are anticipated to become the norm in offshore energy projects in the coming years, with the potential to reduce overall installation and maintenance costs while improving energy efficiency.

Regional Analysis

In 2024, Asia Pacific (APAC) emerged as a dominant region in the wave and tidal energy market, capturing more than 45.2% of the global market share, valued at approximately $0.4 billion. This strong market position can be attributed to the region’s vast coastal areas, high tidal energy potential, and the increasing commitment of governments to meet renewable energy targets.

China, in particular, is focusing heavily on renewable energy and is expected to lead APAC’s tidal energy development. With a coastline of over 14,000 kilometers, China is exploring ways to harness its tidal resources to meet growing energy demands while reducing its reliance on coal. The Chinese government has already invested in pilot tidal energy projects and is expected to further expand funding in the coming years.

South Korea is another key player in the APAC tidal energy market, with the country’s Shiwa tidal power plant in operation, showcasing the region’s commitment to harnessing marine energy. As the demand for sustainable energy solutions grows in APAC, the region’s tidal energy market is expected to experience rapid growth, with projections indicating a steady increase in investments and projects across coastal nations.

Key Regions and Countries

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

Key Players Analysis

ANDRITZ is a global technology company that specializes in providing innovative solutions for the wave and tidal energy sector. Through its subsidiary Andritz Hydro Hammerfest, the company focuses on the development of marine energy technology, particularly tidal energy. ANDRITZ is involved in several high-profile tidal energy projects and continues to advance technologies aimed at reducing the cost of marine energy generation.

Aquamarine Power is a leading company in the wave energy industry, known for its Oyster wave energy converter. The company has been focused on developing and deploying reliable wave energy technologies that convert the power of waves into clean electricity. Aquamarine Power has received recognition for its efforts in advancing wave energy projects in Europe and is exploring new markets for its innovative solutions.

Aquanet Power focuses on developing tidal and wave energy technologies, with a special emphasis on designing low-cost, efficient solutions for renewable energy generation. The company works on several projects to harness the power of tidal currents and waves, aiming to produce clean energy for coastal regions. Aquanet’s solutions are aimed at enhancing energy security while contributing to environmental sustainability.

AW Energy is an innovative company in the wave energy sector, known for its WaveRoller technology. The company develops wave energy converters that harness the power of nearshore waves to generate clean electricity. AW Energy is committed to advancing wave energy technology, and its WaveRoller technology is already being tested in several locations around the world.

Top Key Players

• ANDRITZ
• Andritz Hydro Hammerfest
• Aquamarine Power
• Aquanet Power
• AW Energy
• BIOPOWER SYSTEMS PTY LTD
• Carnegie Clean Energy
• CorPower Ocean AB
• Eco Wave Power
• Mocean Energy
• Nova Innovations
• Ocean Power Technologies
• Ocean Renewable Power Company
• OceanEnergy
• Orbital Marine Power
• ORPC, Inc.
• SAE Renewables
• SIMEC Atlantis Energy
• SINN Power GmbH
• SSE Renewables
• Tacardo B.V
• Tenax Energy
• Tidal Lagoon Plc
• Wello Oy
• Yam Pro Energy

Recent Developments

In 2024, Aquanet Power is actively working on a range of projects designed to capture tidal energy and convert it into clean, renewable electricity.

In 2024, Aquamarine Power continues to advance its Oyster technology with pilot projects in the UK and Ireland, targeting a potential global market of £1.2 billion by 2030, as part of the broader marine energy industry’s growth.

Report Scope