Wave & Tidal Energy Market Size - By Application (Power Generation, Desalination), Forecast, 2025 – 2034

Wave & Tidal Energy Market Size

The global wave & tidal energy market was valued at USD 1.81 billion in 2024 and is estimated to grow at a CAGR of over 7.7% from 2025 to 2034.  Continuous improvements in energy conversion systems, deployment methods, and advanced materials are enhancing the efficiency and affordability of these technologies, strengthening their potential to become a significant part of the global renewable energy mix.
 

Increased funding in ocean-based projects by the government in the form of grants, subsidies, and pilot programs will be instrumental in driving innovation and determining commercial viability. These projects are designed to facilitate the growth of new technologies and provide a sustainable framework for the large-scale deployment of wave and tidal energy. The British government re-affirmed its commitment to tidal power by granting six new schemes a total of 28 MW tidal stream capacity under its Contracts for Difference framework in 2024. It is the third successive Allocation Round that includes a specific budget for tidal Stream Energy.
 

The increasing demand for reliable and predictable sources of energy will make tidal power a viable option for renewable energy portfolios. Availability of marine resources, ocean covering more than 70% of the planet's surface, will give the huge untapped potential for tidal and wave energy application. In addition, lower greenhouse gas emissions, reduced carbon footprint and more predictable power supply than from conventional sources of power will also impact technological development.
 

Growing strategic partnerships and collaboration between industry leaders, governments, and research bodies will improve business opportunities. This allows for the sharing of knowledge and common investment in infrastructure. For instance, in February 2025, the Morlais tidal energy project in Wales with a possible capacity of up to 240 MW. The Welsh Government has invested approximately USD 10 million in increasing grid capacity and developing an industrial cluster, enabling local economic development and green energy production.
 

Wave & Tidal Energy Market Trends

• Government funding from developing countries in wave and tidal energy projects will improve the business environment. Governments of the UK and France procured 70 MW of tidal stream capacity altogether in 2023, leading to the extensive development of the industry. This assistance is vital in overcoming finance challenges and progressing towards commercialization.
   
• Increased technological innovation, such as power take-off systems (PTOs) designed to harness intermittent wave patterns and convert them into grid-compatible electricity, a step towards commercial success, will propel the wave and tidal energy industry forward. Continued research into creating innovative projects will continue to shape the business environment. Examples include the Sotenas project in Sweden and Wello's Penguin prototype at EMEC, utilizing new technologies tested in actual sea conditions.
   
• Rising emphasis on expanding and adopting wave and tidal energy as a potential energy source will foster the industry outlook. Tidal and wave technologies are expected to provide as much as 300 gigawatts of power by 2050, which will cut the carbon emissions in considerable amount. This prospect is drawing investors and governments globally. For instance, the MeyGen project in Scotland has already proved the viability of tidal stream technology, opening the door for bigger deployments.
   
• Growing technological advancements and increased investment in full-scale prototypes will bring the energy sector closer to commercial viability. Furthermore, improved reliability and efficiency in power generation are making these sources more suitable for grid integration, thereby influencing the industry outlook.
   

Wave & Tidal Energy Market Analysis

• The wave & tidal energy market was valued at USD 1.81 billion, USD 1.81 billion, and USD 1.81 billion in 2022, 2023, and 2024, respectively. The industry is segmented into power generation, desalination, and others based on application.
   
• The power generation sector is projected to grow by more than USD 2.59 billion by 2034 on account of rising global concerns over climate change and the need to reduce greenhouse gas emissions. Key players' ongoing investments in adopting wave & tidal energy for power generation will enhance the business projections. For instance, in 2024, Eco Wave Power is developing the first U.S. onshore wave power installation at the Port of Los Angeles, featuring 8 paddles, each roughly car-sized, spanning 21 meters of wharf space. Its energy conversion unit fits within a standard shipping container.
   
• The desalination segment of wave and tidal energy will grow at a CAGR of 8.3% due to its sustainable benefits, including reduced environmental impact and increased water accessibility. New entrants are getting backed by government bodies to boost desalination application adoption in the wave & tidal industry. In August 2024, The Ocean Oasis DESALIFE project, backed by a USD 7.2 million EU grant, demonstrated the use of wave power for desalination in the Canary Islands. Producing fresh water without adding emissions, it supports global renewable energy goals
   
• Furthermore, rising development of innovative technologies, including the Ocean Oasis DESALIFE project, which uses wave power for desalination in the Canary Islands. In addition, affordable technologies such as the Wave2O process lower desalination costs, which further encourages the use of wave power in this market.
   

• As of 2024, North America holds more than 4% of the market share, which is expected to improve further by 2034. The U.S. wave and tidal energy market was valued at USD 65.7 million, USD 66.6 million, and USD 67.5 million in 2022, 2023, and 2024, respectively.
   
• Government funding in alternative sources of energy is one of the major reasons for the growth of the wave and tidal energy market in the U.S. The Department of Energy invested USD 45 million in 2024 to promote marine energy, including the PacWave South Project off the coast of Oregon, which will produce 20 MW of wave energy by 2025. This investment facilitates the creation of essential infrastructure and technologies required to efficiently harness marine energy.
   
• The wave and tidal energy market in Europe is expected to expand to more than USD 1.57 billion by 2034, owing to positive government policies and funding in marine energy schemes. The emphasis on the reduction of carbon emissions and fulfilling renewable energy requirements further accelerates the market. The government of France has invested about USD 71.2 million to fund the 17.5 MW FloWatt tidal energy project, which is a substantial investment in tidal energy. This project is crucial for the development of the sector as it aims to make France a pioneer in tidal energy development.
   
• The Asia Pacific tidal and wave energy market will be expanding at a CAGR of 7.6% from the period between 2025 and 2034, with government policy support and funding on wave and tidal energy technology. In countries such as China, extensive investments in research and development are being done to establish indigenous turbine manufacturers and make demonstration projects available. China has commissioned Zhejiang Province's 3.4 MW tidal project at the close of 2023 for the electrification of the coasts as part of national carbon neutrality targets.
   
• Besides, the region experiences fast economic growth, population sensitivity, and resource availability to enable it to be among the leading markets for tidal and wave energy. China, Japan, and India have high-renewable targets, encouraging their use for reduced dependence on fossil fuels as well as less climate change. State funding schemes as well as policies aimed at minimizing environmental pollution, increase the drive to expand technologies based on marine power in the area.
   

Wave & Tidal Energy Market Share

• The top three players, including AquaWave & Tidal Power, Minesto, and Nova Innovations, which collectively account for almost 30.2% market share of the wave & tidal energy industry. Firms are focused on strategic collaborations and emerging technologies in a bid to achieve greater market traction. Minesto is taking the lead through tidal kite technology, which captures tidal flows using underwater kites and promises a more efficient and cost-effective remedy. Nova Innovations is scaling up its tidal array proposals, for instance, the Shetland Tidal Array, to extend energy output and supply.
   
• Leading players in the wave and tidal energy sector are considering strategic partnerships with government agencies to build technological capability. For example, in 2022, the European Marine Energy Centre works with industry partners to design and test novel tidal and wave energy technologies so that they can be commercially successful and grid compliant. The partnership reduces development risk and cost.
   
• Leading firms are also focusing on innovations in design and materials to make tidal and wave energy systems more efficient and resilient. Firms are taking the help of government incentives and finance opportunities to further these innovations and increase their stakes in the tidal and wave energy sector.
   

Wave & Tidal Energy Market Companies

• Eco Wave Power Global is consolidating its position in the wave energy industry. The company generated revenue of USD 0.16 million in 2024 and raised USD 3 million via an offering to the public in 2024. Eco Wave Power's 2024 R&D expenditure stood at approximately USD 0.536 million, reflecting its expenditure on new ventures. The firm is developing significant projects, including a 20 MW wave energy project in Portugal, and is therefore a growing wave energy industry leader.
   
• Orbital Marine Power is among the emerging companies in the wave and tidal energy sector, with an estimated revenue of USD 7.6 million in 2024. Orbital Marine Power finances its tidal energy schemes through investors and government grants. In August 2022, it was given approximately USD 4.3 million by the Scottish Government to continue developing its technology. The capital supports new tidal Stream Energy solutions development.
   

Eminent players operating in the wave & tidal energy market are:

• AquaWave & Tidal Power
• BioPower Systems
• CorPower Ocean
• Carnegie Clean Energy
• Eco Wave Power Global
• Inyanga Marine Energy Group
• Minesto
• Nova Innovations
• Orbital Wave & Tidal Power
• Ocean Renewable Power Company
• SINN Power
• SSE Renewables

Wave & Tidal Energy Industry News:

• In October 2024, Inyanga Marine Energy initiated a crowdfunding campaign to ramp up the commercialization of its patented tidal power technology, HydroWing. This comes on the heels of the company successfully raising a significant USD 53 million for significant tidal energy initiatives.
   
• In February 2024, Minesto launched its Dragon 12 tidal power plant on the Faroe Islands. The 12-MW power plant harnesses ocean currents through a subsea kite and produces electricity from them, the first for utility-grade tidal power generation. The project underlines Minesto's groundbreaking strategy for efficiently harnessing tidal power.
   
• In October 2023, Scientists at IIT Madras patented a hybrid power system that combines wind and tidal energy without any hiccups. Tailored for coastal regions, this innovation aims to address regional energy demands. A cost-effective prototype is being worked on currently through 3D printing and advanced technologies, focusing on scalability as well as affordability.
   

The wave & tidal energy market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue and volume in “USD Million & MW” from 2021 to 2034, for the following segments:

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Market, By Application

• Power generation
• Desalination
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • France
  • Spain
  • UK
  • Norway
• Asia Pacific
  • China
  • India
  • South Korea
• Rest of World