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The wave and tidal energy market size is forecast to increase by USD 1.40 billion, at a CAGR of 29.47% between 2023 and 2028. The market is experiencing increased demand driven by several key factors. A major driver is the rising popularity of clean energy technologies, as both consumers and businesses seek sustainable alternatives to traditional energy sources. This growing preference is accompanied by advancements in energy conversion technologies, which enhance the efficiency and effectiveness of harnessing renewable energy. Innovations in this field contribute to the development of more effective and cost-efficient solutions, fueling further market growth. Additionally, there is a heightened focus on hybrid and multi-renewable energy systems. These systems integrate various renewable sources, such as solar, wind, and hydro, to create more reliable and versatile energy solutions. This emphasis on diversified energy systems addresses the need for stability and efficiency in renewable energy production. Together, these factors rising clean energy adoption, technological advancements, and the shift toward hybrid systems are driving robust growth in the market. The report includes historic market data from 2018-2022.
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The power generation segment is estimated to witness significant growth during the forecast period. There is a growing recognition of the need for sustainable and clean energy alternatives to mitigate the impact of climate change. Wave and tidal energy offer a predictable and consistent power source, complementing intermittent renewable sources such as solar and wind.
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In the power generation application segment, market players are focusing on various emerging technologies, and products are emerging. Another example is the SeaGen tidal turbine system by Atlantis Resources, which operates underwater to harness tidal currents and generate power. Therefore, such factors will drive the growth of the global wave and tidal energy market through the power generation segment during the forecast period.
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North America is estimated to contribute 33% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The US was the major revenue-generating country in North America In 2023. Canada also holds a major share of the North American wave and tidal energy market in 2023.
In addition, increasing investments in wind and tidal energy projects are also fueling the growth of the regional market. Furthermore, hydropower plays an important role in fulfilling the energy demand in North America. The US Department of Energy is supporting the development of 50 GW of hydropower by 2050 in the US. Thus, such factors are expected to drive the growth of the market in North America during the forecast period.
The market is advancing as a promising avenue for sustainable power generation. Utilizing the Earth's surface and harnessing the energy from ocean surface waves and tidal movements, technologies like Wave Energy Converters (WECs) and Tidal Stream Generators (TSGs) are becoming increasingly significant. These systems capture the energy from marine waves and wind driven waves to convert it into electricity generation. Tidal turbines, oscillating water columns, and tidal stream generator are key components in this technology segment, contributing to ocean energy generation. These innovations are crucial for sustainable source of energy, often replacing the need for traditional dams and reservoirs. Tidal barrages and pumping of water systems and water engineering projects leverage tidal motions to generate electricity, offering a green technology solution that complements wave energy converters. As interest grows in sustainable power generation, this sector promises to enhance our ability to generate clean energy from the oceans.
Rise in global energy demand Is the key factor driving market growth. According to the International Energy Agency (IEA), in 2021, the global economy grew at a rate of 6.0% as compared with 2020. This growth in electricity demand is being propelled by emerging economies such as India and China. Additionally, the global population is expected to grow significantly. Consequently, with the growth of the population and the resulting increase in economic activities, the electricity demand is expected to grow significantly in the next five years.
Moreover, factors such as the electrification of the heat and transportation sectors, the growth in the number of electronically connected devices, and the digitalization of modern economies have been encouraging the electrification of global energy systems. The demand for energy services such as air-conditioning is expected to rise in households in tandem with the growth in income levels during the forecast period. Thus, such factors are expected to drive the growth of the market during the forecast period.
The rising popularity of clean energy technologies is the primary trend shaping market growth. Due to rapid urbanization and industrialization across the world, there has been significant growth in the global electricity demand. Around 70% of this growth in the global energy demand was met by fossil fuel. Furthermore, the growth in global energy demand was mainly driven by Asian countries such as China and India. Besides, electricity generation and heat generation have been the largest sources of CO2 emissions and account for more than 42% of global CO2 emissions in 2022.
Consequently, there has been a rising demand for clean energy sources, such as wave and tidal energy, globally to lower carbon emissions. Therefore, there has been a rise in the adoption of renewable energy sources for power generation. Thus, with the rising adoption of clean energy sources, the global wave and tidal energy market is expected to grow significantly during the forecast period.
High capital costs associated with wave and tidal energy projects is a challenge that affects market growth. The substantial upfront investment required for research, development, and deployment deters potential investors and developers. The complexity of designing and engineering robust systems capable of withstanding harsh marine conditions further contributes to the financial burden. These high capital costs hinder the scalability and commercial viability of wave and tidal projects. Investors are often cautious due to the uncertainties surrounding technology performance, long payback periods, and the risk of project failure.
Consequently, the reluctance to commit significant financial resources inhibits the widespread adoption and deployment of wave and tidal energy technologies. This challenge is particularly acute when compared to more established and cost-competitive renewable energy sources such as solar and wind. As a result, the wave and tidal energy sector struggles to attract the necessary funding and private investments required for large-scale projects. Thus, such factors may impede market growth during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market growth and forecasting research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
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The market is gaining momentum as a key player in green technologies and sustainable power generation. Leveraging ocean wave power and tidal energy, this sector supports government sustainable projects and water projects, aligning with global efforts to reduce greenhouse gases and replace coal and oil. Technologies such as tidal stream generators and tidal fences are at the forefront of this marine renewable energy sector, offering innovative solutions for energy security and economic positioning. Investment plans from both the public and private sectors are driving advancements in water infrastructure and water management development, enhancing employment generation, and promoting environment-friendly initiatives. Climatic conditions play a role in the effectiveness of these technologies, with the wind and tidal industry continually adapting to local environmental friendly factors. The ongoing Scapa testing phase highlights the commitment to optimizing these technologies, ensuring that wave and tidal energy segment continue to evolve as a viable component of the green energy landscape.
Market Scope |
|
Report Coverage |
Details |
Page number |
147 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 29.47% |
Market Growth 2024-2028 |
USD 1.40 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
28.67 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 33% |
Key countries |
US, Canada, China, UK, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Andritz AG, Aquagen Technologies Inc., BioPower Systems Pty Ltd., Blue Energy Canada Inc., Carnegie Clean Energy Ltd., CorPower Ocean, Eco Wave Power Global AB, Mocean Energy Ltd., Nova Innovation Ltd., Ocean Power Technologies Inc., Ocean Renewable Power Co. Inc., Orbital Marine Power, Simec Atlantis Energy Ltd., SINN Power GmbH, SSE Plc, Storage and Display Equipment Ltd., Tenax Energy Solutions, TOCARDO B.V., Verdant Power Inc., and Wello Oy |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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