Wave Energy Market

Market Definition

Wave energy is a form of renewable energy that is generated by capturing the power of ocean surface waves. It is created by the movement of water on the surface of the sea, primarily caused by the wind blowing across the ocean. The market involves the development and deployment of technology to generate electricity from ocean waves. 

The report scope covers manufacturers, project developers, investors, and government support involved in this market. As a renewable energy sector, it offers sustainable power with low environmental impact. The report examines the main factors influencing market development, provides an in-depth regional analysis, and offers a thorough overview of the competitive landscape that will shape future opportunities.

Wave Energy Market Overview

Global wave energy market size was valued at USD 499.9 million in 2024, which is estimated to be valued at USD 557.1 million in 2025 and reach USD 1,328.8 million by 2032, growing at a CAGR of 13.22% from 2025 to 2032. 

The growing global demand for clean and renewable energy is encouraging the exploration of alternative sources like wave energy. As nations push for net-zero goals, wave energy has emerged as a consistent, untapped solution to diversify sustainable power generation.

Major companies operating in the wave energy industry are Ocean Power Technologies, Carnegie Clean Energy, AW Energy, Aquanet Power, BioPower Systems Pty Ltd, Eco Wave Power Ltd., CalWave, WES, WEPTOS, Seabased, Oscilla Power, Wave Swell, Bombora Wave Power, Havkraft AS, NoviOcean, and others.

The market is gaining momentum as a promising source of renewable power, due to the global push for sustainable and clean energy alternatives. Ocean waves offer consistent energy generation with minimal environmental impact in coastal and island regions. 

Technological advancements, government funding, and increasing investment in marine energy infrastructure are accelerating the development of wave energy solutions. The market is also seeing growing interest from defense, offshore industries, and remote operations seeking reliable, fuel-free energy solutions to enhance operational efficiency and resilience.

• In June 2025, researchers from Old Dominion University’s Department of Mechanical and Aerospace Engineering began developing an underwater wave energy system. Funded by a USD 1 million Office of Naval Research (ONR) grant, the project uses piezoelectric materials to convert ocean wave motion into electricity, supporting secure power for naval maritime operations.

Key Highlights:

1. The wave energy industry size was recorded at USD 499.9 million in 2024.
2. The market is projected to grow at a CAGR of 13.22% from 2025 to 2032.
3. Europe held a market share of 36.42% in 2024, with a valuation of USD 182.1 million.
4. The Oscillating Body Converters (OBCs) segment garnered USD 225.6 million in revenue in 2024.
5. The onshore segment is expected to reach USD 767.0 million by 2032.
6. The power generation segment is anticipated to witness fastest CAGR of 15.02%during the forecast period
7. Asia Pacific is anticipated to grow at a CAGR of 14.26% during the forecast period.

Market Driver

Sustainable Energy Demand

The rising demand for sustainable energy is a major driver in the wave energy market. This demand is mainly fueled by urgent climate goals and the global transition away from fossil fuels. Countries are seeking diverse and reliable renewable sources, and wave energy stands out due to its predictability and abundance in coastal regions. 

Unlike solar or wind, wave energy remains available day and night, making it a valuable addition to the renewable energy mix. As governments and private sectors increase investment in cleaner technologies, wave energy is gaining traction as a scalable solution to meet future energy demands.

• In March 2025, Eco Wave Power received the final approval to begin construction of its onshore wave energy pilot project at the Port of Los Angeles. The project will demonstrate the company’s innovative technology, marking a key step in advancing wave energy as a viable renewable power source in the U.S.

Market Challenge

Increased Maintenance due to Harsh Marine Environment

The marine environment poses a significant challenge for the wave energy market, as the equipment often endures corrosion, biofouling, strong currents, and other extreme weather conditions. These conditions increase the maintenance requirements and reduce equipment lifespan. 

To address this, manufacturers invest in advanced materials such as corrosion-resistant alloys and marine-grade composites, along with improved coatings and self-cleaning technologies. Modular designs and remote monitoring systems are also implemented to facilitatemaintenance and enhance the durability of wave energy converters in ocean conditions.

Market Trend

Increasing Focus on Large-Scale Deployments

A prominent trend in the wave energy market is the increasing focus on large-scale deployments to meet ambitious global renewable energy targets. Scaling wave energy projectsincreases energy production, improves cost efficiency, and enhances grid integration. 

Larger projects attract more investment and drive technological advancements, helping overcome challenges related to reliability and maintenance. This expansion is essential for wave energy to become a competitive and reliable renewable resource, significantly contributing to the global transition toward sustainable, low-carbon energy systems and reducing dependence on fossil fuels.

• In March 2025, Arup and WaveX signed MOUs to collaborate on the D-Spar wave energy project in Western Australia. Arup will support electrical design and integrate power transfer units while also exploring shared mooring systems. This partnership aims to advance large-scale, cost-effective wave energy solutions globally.

Wave Energy Market Report Snapshot

Segmentation	Details
By Technology	Oscillating Water Columns (OWCs), Oscillating Body Converters (OBCs), Overtopping Converters
By Deployment	Onshore, Offshore
By Application	Power Generation, Water 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, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation:

• By Technology [Oscillating Water Columns (OWCs), Oscillating Body Converters (OBCs), and Overtopping Converters]: The Oscillating Body Converters (OBCs) segment earned USD 225.6 million in 2024, driven by its efficiency and adaptability in harnessing wave energy, making it a leading technology in the market.
• By Deployment (Onshore, Offshore): The Onshore segment held 59.51% of the market in 2024, benefiting from easier installation, lower maintenance costs, and proximity to grid infrastructure compared to offshore alternatives.
• By Application (Power Generation, Water Desalination, and Others): The Water Desalination segment is projected to reach USD 132.1 million by 2032, as wave energy offers a sustainable and cost-effective power source for desalination in water-scarce coastal regions.

Wave Energy Market Regional Analysis

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

Europe wave energy market share stood at 36.42% in 2024 in the global market, with a valuation of USD 182.1 million. Europe dominates the market due to its extensive coastline, favorable regulatory frameworks, and strong alignment with renewable energy targets. The region also benefits from advanced marine energy research centers, substantial government funding, and established supply chains that support innovation and deployment. 

Europe's focus on decarbonization and energy security encourages investment in wave energy technology, making it a global leader in marine renewables. Additionally, collaborative initiatives across countries foster knowledge sharing and accelerate the growth of wave energy projects.

• In May 2025, CorPower Ocean signed an agreement to develop the UK’s largest 5 MW wave energy array at the European Marine Energy Centre’s (EMEC) Billia Croo site in Orkney, Scotland. Scheduled for 2029 deployment, the project will feature 14 innovative wave energy converters, supporting local manufacturing and boosting Scotland’s marine renewable leadership.

Asia Pacific wave energy industry is poised for significant growth at a robust CAGR of 14.26% over the forecast period. It is the fastest-growing market for wave energy, driven by its extensive coastline, increasing energy demand, and strong government support for renewable energy initiatives. 

Countries in the region are investing in marine energy technologies to diversify their energy mix and reduce carbon emissions. Rising industrialization and urbanization along coastal areas further fuel the need for sustainable power sources. Additionally, growing public-private collaborations are accelerating research, development, and deployment of wave energy projects, positioning Asia Pacific as a key player in the market.

Regulatory Frameworks

• In the U.S., the Federal Energy Regulatory Commission (FERC) regulateswave energy projects by licensing and regulating  tidal energy.
• In Europe, the European Commission oversees wave and tidal energy development through the Climate, Infrastructure and Environment Executive Agency (CINEA).
• In India, the Ministry of New and Renewable Energy (MNRE) oversees tidal energy development.It is responsible for promoting and regulating the development of renewable energy sources, including wave energy.

Competitive Landscape

Companies in the wave energy industry are actively advancing technology development, focusing on improving the efficiency, durability, and cost-effectiveness of wave energy converters. They are investing in research collaborations, pilot projects, and large-scale deployments to demonstrate commercial viability of wave energy. Emphasis is placed on innovative designs that reduce maintenance challenges and enhance energy capture. 

Additionally, firms are working to secure regulatory approvals, establish local supply chains, and integrate wave energy with existing renewable systems, driving the transition toward sustainable and reliable ocean-based power generation.

• In February 2025, Eco Wave Power initiated key infrastructure upgrades at its first 1MW wave energy project in Porto, Portugal. The project involves converting “The Gallery” breakwater tunnel into a state-of-the-art facility for wave energy conversion, including an underwater museum and education center. These enhancements support Portugal’s goal of acheiving 85% renewable electricity by 2030.

List of Key Companies in Wave Energy Market:

• Ocean Power Technologies
• Carnegie Clean Energy
• AW Energy
• Aquanet Power
• BioPower Systems Pty Ltd
• Eco Wave Power Ltd.
• CalWave
• WES
• WEPTOS
• Seabased
• Oscilla Power
• Wave Swell
• Bombora Wave Power
• Havkraft AS
• NoviOcean

Recent Developments (Testing/MoU/Project Completion)

• In March 2025, WaveGen Energy completed testing of its 200 W proof of concept at the National Institute of Technology, Karnataka (NITK), demonstrating wave energy technology with 52% efficiency—more than double the industry standard. The system also supports seawater desalination and coastal erosion protection, leading the company to seek partners for commercial-scale deployment.
• In February 2025, BPCL and Eco Wave Power signed an MoU to develop wave energy projects across India. This agreement aims to conduct feasibility studies and pilot installations, supporting India’s clean energy transition and leveraging significant untapped wave energy potential along its coastline for sustainable power generation.
• In April 2024, AW-Energy completed the three-year WaveFarm project, advancing the WaveRoller wave energy converter into a commercially viable solution. This milestone enhances energy capture, efficiency, and operational lifespan, positioning the technology as a reliable and scalable contributor to sustainable global wave energy deployment.