The global wave and tidal energy market is poised for substantial growth, with projections indicating a surge from $0.5 billion in 2020 to $1.3 billion by 2030, at a robust CAGR of 9.4%. As governments and investors seek sustainable solutions for power generation, wave and tidal energy are emerging as highly promising avenues in the renewable energy sector.
Wave and tidal energy harness the natural motion of seawater to generate electricity, offering a consistent and renewable power source. These technologies, part of the broader ocean energy category, play a crucial role in reducing carbon emissions while addressing the growing global demand for electricity. Europe currently leads the market and is expected to maintain its dominance throughout the forecast period, driven by strong governmental support and strategic investments in marine energy projects.
Key players in the industry include Aquagen Technologies, Carnegie Wave Energy Ltd., Corpower Ocean AB, Eco Wave Power, Ocean Power Technologies, Inc., Ocean Renewable Power Company, Pelamis Wave Power, SIMEC Atlantis Energy, Tenax Energy, and Verdant Power, Inc. These companies are driving technological advancements and scaling up deployment to make ocean energy a mainstream power source.
The rising global reliance on electricity underscores the need for sustainable power generation. Governments worldwide are prioritising ocean energy projects, recognising the vast potential of the ocean’s surface for continuous and efficient power generation. Wave energy, which captures the kinetic power of surface waves, can be used for electricity generation, desalination, and water pumping, making it one of the most versatile green energy solutions available.
Tidal energy operates similarly to wind power, with underwater turbines harnessing the strength of tides to rotate and generate electricity. This method offers a predictable and steady energy output, making it an attractive option for long-term investment. Wave-driven power, on the other hand, leverages wind-driven ocean waves to produce electricity, expanding the range of viable renewable energy technologies.
Market insights reveal that wave energy emerged as the leading segment in 2020 and is expected to continue its dominance through 2030. Tidal stream generators are also gaining traction as a preferred technology within the sector. In terms of applications, power generation remains the primary driver of market growth, with continued advancements in efficiency and infrastructure.
The COVID-19 pandemic momentarily disrupted the wave and tidal energy market, particularly impacting equipment manufacturing and supply chain operations. However, the sector has rebounded, with renewed investment and government support reinforcing its long-term potential. According to the United Nations Industrial Development Organization (UNIDO), workforce displacement and temporary project suspensions during the peak of the pandemic presented challenges, but the market is now on track for sustained expansion.
As demand for clean energy solutions accelerates, the wave and tidal energy industry is set to become a cornerstone of the global renewable energy mix. With advancements in hydro power generation and growing interest in water desalination, this sector presents compelling investment opportunities for forward-thinking investors.
SAE Renewables Limited (LON:SAE) was founded in 2005 as a supplier of tidal stream turbines, SAE quickly grew to include development of tidal stream projects and is the majority owner of MeyGen, the world’s largest tidal stream energy project.
