Tidal Energy Market

Market Definition

The market encompasses technologies and systems designed to harness the kinetic and potential energy of tidal movements to generate electricity. It includes tidal stream generators, tidal range (barrage) systems, and dynamic tidal power solutions. 

This market covers the development, deployment, and maintenance of tidal energy infrastructure, including turbines, control systems, and grid integration technologies. The report offers a thorough assessment of the main factors driving market expansion, along with detailed regional analysis and the competitive landscape influencing industry dynamics.

Tidal Energy Market Overview

The global tidal energy market size was valued at USD 1150.4 Million in 2024 and is projected to grow from USD 1368.0 Million in 2025 to USD 4679.3 Million by 2032, exhibiting a CAGR of 19.13% during the forecast period. 

The market is driven by the growing focus on integrating renewable energy sources to combat climate change and reduce carbon emissions. Governments are implementing supportive policies, subsidies, and incentives to encourage tidal power development.

Major companies operating in the tidal energy industry are Minesto AB (publ), CorPower Ocean, DesignPro Renewables, Nova, EEL ENERGY S.A.S, GKinetic Energy Ltd, Verdant, SAE Renewables, Instream Energy Systems Corp., Magallanes Renovables, S.L., DP Energy, Orbital Marine Power, Tocardo B.V., SAS HYDROQUEST and ANDRITZ.

Additionally, investments in the market are supporting the expansion of the market. Governments and private investors are steadily increasing funding for tidal energy projects. These investments support the commercialization of emerging technologies and help reduce development costs, thereby driving market growth.

• In May 2025, the Government of  Wales made a strategic equity investment of  USD 2.6 million in Inyanga Marine Energy Group to advance tidal energy development. The funding will support the deployment of next-generation tidal turbines at the Morlais site, located off the coast of Ynys Môn. The funding aims to boost turbine efficiency by up to 60%, enhancing the project's potential to supply clean electricity to approximately 180,000 residents across North Wales.

Key Highlights:

1. The tidal energy market size was recorded at USD 1150.4 Million in 2024.
2. The market is projected to grow at a CAGR of 19.13% from 2025 to 2032.
3. Asia Pacific held a market share of 33.85% in 2024, with a valuation of USD 389.4 Million.
4. The tidal stream segment garnered USD 416.6 Million in revenue in 2024.
5. The power generation segment is expected to reach USD 2593.3 Million by 2032.
6. Europe is anticipated to grow at a CAGR of 19.52% over the forecast period.

Market Driver

Supportive Government Policies and Incentives

Favorable government policies and incentive programs are driving the growth of the market. Regulatory frameworks are being refined to simplify permitting processes and reduce administrative hurdles for marine renewable projects. 

Financial instruments such as grants, subsidies, and tax credits are encouraging both innovation and capital investment in tidal energy technologies. These initiatives are also boosting public-private collaborations, facilitating infrastructure expansion, and strengthening long-term research and development efforts within the sector.

• In May 2023, The U.S. Department of Energy’s Water Power Technologies Office (WPTO) released a USD 45 million funding to support the first large-scale investment in a tidal and current energy research, development, and demonstration sitewith support for a community-led planning and development project, aiming to harness predictable marine energy resources for clean electricity generation.

Market Challenge

High Initial Costs 

The tidal energy market faces a significant challenge in the form of high upfront capital costs. Developing tidal power infrastructure demands substantial investment in specialized marine equipment, subsea construction, and engineering expertise. In contrast to other renewables, tidal projects often involve complex site assessments and customized designs, which further elevates initial expenditures.

To address this challenge, market players are investing in the development of more cost-effective and modular tidal technologies to simplify the installation and maintenance process. Additionally, by improving supply chain efficiency and standardizing components, companies are reducing costs and making tidal energy projects more financially viable.

Market Trend

Advancements in Tidal Energy Converters

Tidal energy technologies are witnessing significant progress, with modern converters becoming more efficient, scalable, and resilient. Innovations such as optimized hydrodynamic designs, modular configurations, and intelligent control systems are enabling converters to perform reliably in deeper and more dynamic marine environments. 

These advancements are reducing maintenance requirements and increasing energy capture, thereby improving the commercial viability of tidal energy.

• In April 2025, Scotland-based Orbital Marine Power secured an International Electrotechnical Commission for Renewable Energy (IECRE) feasibility statement from Lloyd’s Register for its upgraded O2-X tidal energy converter. The 2.4 MW O2-X is designed for deployment in the UK, Canada, and the US and features an 83-meter hull and flexible mooring systems to ensure stability in high-flow tidal environments 

Tidal Energy Market Report Snapshot

Segmentation	Details
By Method	Tidal Stream, Tidal Barrage, Tidal Turbine, Others
By Application	Power Generation, Desalination
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation:

• By Method (Tidal Stream, Tidal Barrage, Tidal Turbine, Others): The tidal stream segment earned USD 416.6 Million in 2024 due to its high efficiency and lower environmental impact compared to other methods.
• By Application (Power Generation, Desalination): The power generation segment held 54.51% of the market in 2024, due to rising demand for clean and renewable electricity sources globally.

Tidal Energy Market Regional Analysis

Based on region, the global market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

Asia Pacific accounted for 33.85% share of the tidal energy market in 2024, with a valuation of USD 389.4 Million. This dominance is driven by strategic partnerships and project expansions. Collaborations between local firms and global technology providers supporting the deployment of innovative wave energy systems, enhancing scalability. 

Pilot projects with plans for significant capacity growth, particularly in coastal regions such as Taiwan, driving market expansion. Partnerships leveraging regional expertise and international innovation to meet rising energy needs sustainably. Focused expansion efforts position the Asia Pacific as a dominant player in the global tidal energy sector.

• In October 2024, Eco Wave Power signed an agreement with I-Ke International Ocean Energy Co., a subsidiary of Lian Tat Company, to deliver its first onshore wave energy power station in Asia. Under the agreement, I-Ke will fully finance and deploy a 100KW pilot project in Taiwan using Eco Wave Power’s turnkey wave energy conversion unit. The initiative aims to scale up to a 20MW station with a long-term vision of reaching 400MW, positioning Taiwan as a regional center for wave energy expansion.

The tidal energy industry in Europe is set to grow at a robust CAGR of 19.52% over the forecast period. This growth is fueled by government investments and infrastructure development in the market. government authorities are funding large-scale tidal energy projects, enhancing grid connectivity and operational capacity.

These investments are fostering the establishment of industrial clusters focused on tidal energy, promoting continuous innovation and scalability. By prioritizing clean energy and strengthening infrastructure, these efforts are attracting private-sector collaboration and accelerating market expansion.

• In February 2025, the Welsh Government made a USD 10 million equity investment in the Morlais tidal energy project, a largest approved tidal energy project in Europe the funding supports the enhance grid connectivity at Parc Cybi in Holyhead, enabling the infrastructure needed to transmit the electricity generated by the tidal devices to the national grid. This move aims to develop a tidal energy industrial cluster in north Wales and reinforce Wales’ leadership in clean energy innovation.

Regulatory Frameworks

• In the U.S., the Federal Energy Regulatory Commission (FERC) regulates the tidal energy projects, they are responsible for licensing and regulating the tidal energy projects.
• In Europe, the European Commission oversees wave and tidal energy development through its agency known as the Climate, Infrastructure and Environment Executive Agency (CINEA).
• In India, the Ministry of New and Renewable Energy (MNRE) is the primary regulatory body for tidal energy development. They are responsible for promoting and regulating the development of renewable energy sources, including tidal energy.

Competitive Landscape

Market participants in the tidal energy market are forming strategic alliances to combine expertise across different areas. They are focusing on large-scale projects to increase capacity and efficiency. 

By collaborating on development, delivery, operations, and maintenance, they aim to enhance operational performance and reduce costs. Additionally, they are investing in advanced designs, improving installation and integrating smart monitoring and AI technologies for better performance and reliability.

• In November 2024, SKF signed a Memorandum of Understanding (MOU) with Proteus Marine Renewables and GE Vernova to form an alliance for supplying tidal turbine generation systems (TTGS) for commercial multi-megawatt tidal stream projects. The initial focus is on delivering at least 59MW to MeyGen PLC’s tidal facility in Scotland.

List of Key Companies in Tidal Energy Market:

• Minesto AB (publ)
• CorPower Ocean
• DesignPro Renewables
• Nova
• EEL ENERGY S.A.S
• GKinetic Energy Ltd
• Verdant
• SAE Renewables.
• Instream Energy Systems Corp.
• Magallanes Renovables, S.L.
• DP Energy
• Orbital Marine Power
• Tocardo B.V.
• SAS HYDROQUEST
• ANDRITZ

Recent Developments (M&A/Partnerships /Expansion)

• In May 2025, SKF entered into a partnership with Carnegie Clean Energy Limited to support the commercialization of Carnegie Energy Technology Organization (CETO) wave energy technology. The collaboration involves the design and delivery of CETO’s Power Take-Off (PTO) system, a fully submerged point absorber that converts wave motion into electricity. 
• In January 2024, HydroWing introduced a new Quad Hull Barge designed to reduce installation and maintenance costs for its patented tidal stream array technology. The system enables efficient turbine handling without disturbing the foundations, enhancing operational efficiency.