Wave and Tidal Energy Market Report [2031]- Global Size

Market Definition

Wave and tidal energy are types of renewable energy sourced from the movement of ocean water. Wave energy is produced by harnessing the movement of ocean surface waves to generate power, while tidal energy is derived from the rise and fall of tides caused by the gravitational pull of the moon and sun.

Wave and Tidal Energy Market Overview

The global wave and tidal energy market size was valued at USD 804.5 million in 2023 and is projected to grow from USD 880.2 million in 2024 to USD 1823.1 million by 2031, exhibiting a CAGR of 10.96% during the forecast period.

This market is propelled by the growing demand for clean energy and continuous advancements in marine energy technologies. Its expansion is fueled by increasing investments in sustainable energy, rising environmental awareness, and innovative technologies that enhance efficiency and cost-effectiveness.

Major companies operating in the wave and tidal energy industry are Eco Wave Power Global AB, CorPower Ocean, Ocean Power Technologies, Inc., Carnegie Clean Energy, Mocean Energy Ltd, Nova Innovation Limited, SINN Power GmbH, Inyanga Maritime Ltd., SAE, Equinox Ocean Turbines, Marine Kinetic Energy, SAS HYDROQUEST, Orbital Marine Power, Verdant Power, Inc., and Minesto AB.

In addition to clean energy demand and technological advancements, supportive government policies and incentives play a crucial role in driving the market by providing funding, subsidies, and regulatory frameworks that encourage development and deployment.

For instance, in November 2024, Eco Wave Power Global received the final Nationwide Permit from the U.S. Army Corps of Engineers for its wave energy project at the Port of Los Angeles. This marks a key milestone for the first onshore wave energy installation in the U.S., allowing the company to install eight wave energy floaters and an energy conversion unit.

Key Highlights:

The wave and tidal energy industry size was valued at USD 804.5 million in 2023.
The market is projected to grow at a CAGR of 10.96% from 2024 to 2031.
North America held a market share of 34.66% in 2023, with a valuation of USD 278.8 million.
The wave energy segment garnered USD 457.0 million in revenue in 2023.
The power generation segment is expected to reach USD 710.8 million by 2031.
The market in Asia Pacific is anticipated to grow at a CAGR of 11.04% during the forecast period.

Market Driver

"Growing Demand for Renewable Energy & Carbon Reduction Goals and Government Support"

The wave and tidal energy market is gaining momentum as nations strive for net-zero emissions and seek sustainable alternatives to fossil fuels. Unlike solar and wind, which are intermittent, ocean energy is consistent, due to the regularity of tides and wave patterns, making it an attractive option for grid stability and energy security.

The growing focus on climate change mitigation, coupled with corporate sustainability initiatives, has further spurred investments in ocean energy technologies to diversify the renewable energy mix and reduce dependence on fossil fuels. Another key driver is strong government support and financial incentives, which are critical in advancing wave & tidal energy projects.

Additionally, funding for Research and Development (R&D), along with streamlined permitting processes, is accelerating innovation and reducing deployment costs. International organizations and national policies are also playing a crucial role in setting ambitious renewable energy targets, fostering collaborations between public and private sectors, and creating favorable regulatory frameworks to drive the market.

For instance, in April 2024, the researchers at the National Renewable Energy Laboratory, supported by the U.S. Department of Energy, published a study highlighting Cook Inlet’s tidal energy potential in Alaska’s Railbelt grid. The study found that tidal energy could provide up to 300 megawatts, reduce carbon emissions by 37%, and meet up to 20% of the grid’s electricity demand by 2035.

Market Challenge

"High Capital Costs and Marine Ecosystem Concerns"

The wave and tidal energy market faces significant challenges in terms of development & deployment, due to the high costs associated with underwater installations, specialized materials, and maintenance in harsh marine environments.

The cost of energy production remains high compared to other renewable sources like wind and solar. However, advancements in modular and scalable designs, improved manufacturing processes, and economies of scale are helping to reduce costs. Another challenge is the environmental and regulatory hurdles associated with deploying wave & tidal energy projects.

Marine ecosystems are sensitive to large-scale installations, and obtaining permits for new projects involves lengthy approval processes and stringent environmental assessments. Concerns about the impact on marine biodiversity, fishing industries, and coastal communities further slow down development.

Companies are adopting eco-friendly designs that minimize disruption to marine life, engaging in continuous environmental monitoring, and working closely with regulatory bodies to streamline approval processes.

Market Trend

"Advancements in Energy Conversion Technologies and Expansion of Pilot Projects"

The wave and tidal energy market is registering rapid advancements, driven by innovations in turbine design, hydro elastic membranes, and energy capture systems that are enhancing device performance and making large-scale deployment more viable.

Developments in floating and submerged energy systems, along with improved materials and digital monitoring solutions, are addressing key challenges such as storm survivability and maintenance costs.

Another major trend is the expansion of pilot projects and commercial deployments, signaling the transition of wave & tidal energy from research and testing phases to full-scale commercialization. Successful pilot projects are paving the path for grid-connected tidal arrays and wave energy plants, proving their potential to contribute significantly to the global renewable energy mix and attracting more investments into the sector.

For instance, in February 2025, Eco Wave Power Global announced its participation in India Energy Week 2025. The company will showcase its onshore wave energy technology and sign its first collaboration agreement with a Fortune 500 Indian company for a pilot project in Maharashtra. This marks a significant milestone in integrating wave energy into India’s renewable energy strategy.

Wave and Tidal Energy Market Report Snapshot

Segmentation	Details
By Type	Wave Energy (Oscillating Water Columns, Oscillating Body Convertor, Others), Tidal Energy (Tidal Turbine, Tidal Barrages, Others)
By Application	Power Generation, Desalination, Others
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, UAE, Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation:

By Type (Wave Energy, Tidal Energy): The wave energy segment earned USD 457.0 million in 2023, due to increasing investments in renewable energy, technological advancements, and the rising demand for sustainable power solutions.
By Application (Power Generation, Desalination, Others): The power generation segment held 38.91% share of the market in 2023, due to the growing demand for clean electricity, increasing government support for renewable energy projects, and advancements in wave & tidal energy conversion technologies.

Wave and Tidal Energy Market Regional Analysis

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

North America accounted for a substantial wave and tidal energy market share of 34.66% in 2023, with a valuation of USD 278.8 million. The region's dominance is attributed to strong government support, significant investments in renewable energy projects, and the presence of key industry players. This region leads the market, due to favorable policies, increasing R&D initiatives, and the growing adoption of sustainable energy solutions.

Additionally, technological advancements and infrastructure development, particularly in coastal areas, further strengthen North America's position as the leading market for wave & tidal energy.

The wave and tidal energy industry in Asia Pacific is expected to register the fastest growth, with a projected CAGR of 11.04% over the forecast period. This rapid expansion is driven by increasing energy demand, government initiatives promoting renewable energy, and the vast potential of untapped marine energy resources.

Governments in the region are implementing favorable policies, offering financial incentives, and fostering collaborations between public and private sectors to accelerate project deployment. Countries such as China, Japan, South Korea, and Australia are at the forefront of development, with substantial investments in wave & tidal energy projects.

For instance, in October 2024, Eco Wave Power Global signed an agreement with I-Ke International Ocean Energy Co. for the sale of its first wave energy generation unit in Taiwan. Under the agreement, I-Ke will fully finance a 100KW pilot project, with plans to expand up to 400MW. This marks Eco Wave Power’s official entry into the Asian market, positioning Taiwan as a hub for future wave energy expansion across Asia Pacific.

Regulatory Frameworks

In the U.S., the U.S. Army Corps of Engineers (COE), the Federal Energy Regulatory Commission (FERC), and the Bureau of Ocean Energy Management regulate wave & tidal energy. The COE regulates wave & tidal energy projects through the Clean Water Act and the Rivers and Harbors Act.
In Europe, the European Commission regulates wave & tidal energy development, through its agency called the "Climate, Infrastructure and Environment Executive Agency (CINEA)" which supports research and development in ocean energy initiatives across the continent
In Japan, the Ministry of the Environment (MOE) is actively supporting the development of wave & tidal energy projects, particularly by funding demonstration projects to test and implement these technologies on a larger scale. It focuses on locations where tidal currents are strong and suitable for harnessing tidal power.
In India, the Ministry of New and Renewable Energy (MNRE) governs wave & tidal energy. The MNRE oversees the development and deployment of ocean energy sources like tidal and wave power, with the Ministry of Earth Sciences also playing a key role in R&D.

Competitive Landscape:

The wave and tidal energy market is characterized by a large number of participants, including established corporations and rising organizations. The market is highly competitive, driven by technological advancements, strategic collaborations, and increasing investments in R&D to enhance efficiency and reduce costs.

Market players are focusing on innovation and technology development to improve energy conversion efficiency and scalability. Companies are investing in advanced turbine designs, floating wave energy converters, and hybrid renewable energy solutions to gain a competitive edge.

Strategic partnerships, joint ventures, and mergers & acquisitions are key strategies adopted by industry participants to expand their market presence and leverage shared expertise. Collaborations between private companies, governments, and research institutions are accelerating the commercialization of wave & tidal energy projects.

In October 2024, CorPower Ocean secured USD 33 million in Series B1 funding, marking the single largest investment in its wave energy technology. This investment accelerates wave energy toward becoming a mainstream energy source.

List of Key Companies in Wave and Tidal Energy Market:

Eco Wave Power Global AB
CorPower Ocean
Ocean Power Technologies, Inc.
Carnegie Clean Energy
Mocean Energy Ltd
Nova Innovation Limited
SINN Power GmbH
Inyanga Maritime Ltd.
SAE
Equinox Ocean Turbines
Marine Kinetic Energy
SAS HYDROQUEST
Orbital Marine Power
Verdant Power, Inc.
Minesto AB

Recent Developments (M&A/Partnerships/Agreements/New Product Launch)

In January 2025, Eco Wave Power Global engaged Portuguese engineering firm MOQ Engineering to finalize design and load calculations for its wave energy project in Porto, Portugal. The project will feature an underwater wave energy museum and support Portugal’s renewable energy goals.
In December 2024, SwitcH2 partnered with CorPower Ocean to develop an industrial-scale floating green ammonia production facility, integrating wave energy alongside wind and solar power. Supported by BW Offshore and Dutch Oceans Capital, the project aims to launch in northern Portugal with grant funding from the Dutch Government.
In December 2024, Inyanga Marine Energy Group announced its 20MW HydroWing tidal project at Morlais, Wales, featuring Tocardo T3 turbines. Securing the UK’s largest tidal energy award in AR6, the modular design aims to cut costs by 60% while maximizing energy yield.
In December 2024, SAE announced that the MeyGen tidal stream site had reached full power with all four turbines operational, delivering 6MW of renewable energy. The deployment, supported by Proteus Marine Renewables, marks a milestone in tidal energy innovation and future expansion.
In November 2024, Eco Wave Power Global and EDF Renewables IL, in collaboration with the Tel Aviv-Yafo Municipality and Atarim, announced the inauguration of Israel’s first wave energy pilot station at Jaffa Port. The project, recognized as “Pioneering Technology” by the Ministry of Energy, marks a historic milestone by supplying electricity from sea waves to the national grid for the first time.

Loading FAQs...