Wave And Tidal Energy Market – Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented By Type (Wave Energy, Tidal Energy), By Technology (Tidal stream generator, Oscillating Water Columns, Tidal turbines, Tidal barrages, Tidal fences), By Application (Power generation, Desalination) By Region, By Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 1.71 Billion
CAGR (2026-2031)	25.18%
Fastest Growing Segment	Tidal Energy
Largest Market	Europe
Market Size (2031)	USD 6.58 Billion

Market Overview

The Global Wave And Tidal Energy Market will grow from USD 1.71 Billion in 2025 to USD 6.58 Billion by 2031 at a 25.18% CAGR. Wave and tidal energy technologies utilize the kinetic and potential power of ocean surface movements and gravitational tidal currents to generate electricity. This market is primarily propelled by the critical need for predictable renewable baseload power to complement intermittent sources like wind and solar, alongside stringent government mandates for decarbonization and energy security. According to Ocean Energy Europe, in 2025, the pipeline of publicly funded planned deployments for the sector reached 165 megawatts across fifteen farms. This significant project pipeline highlights the growing commitment to scaling marine energy infrastructure to meet global net-zero targets.

However, the sector faces a substantial challenge regarding the high initial capital expenditures and the levelized cost of electricity compared to established renewables. Developing robust infrastructure capable of surviving harsh marine environments requires substantial investment, which often deters commercial financing and impedes rapid market expansion.

Key Market Drivers

The implementation of favorable government policies and financial incentives serves as the primary catalyst for the Global Wave And Tidal Energy Market. Governments are increasingly establishing revenue support mechanisms, such as Contracts for Difference (CfD) and ring-fenced budgets, to de-risk projects and bridge the gap to commercial viability. These frameworks provide long-term price stability for developers, encouraging the deployment of utility-scale arrays despite high upfront costs. According to Offshore Energy, September 2024, in the 'UK awards six tidal stream projects with Contracts for Difference in Allocation Round 6', the UK government successfully awarded contracts to six tidal stream projects totaling 28 MW at a strike price of £172/MWh. Such dedicated policy support not only secures a route to market for emerging technologies but also fosters confidence among supply chain partners and private investors.

Simultaneously, substantial investments in marine energy research and development are accelerating the technological maturity of wave and tidal converters. Public and private funding is critical for advancing device reliability, optimizing power take-off systems, and validating performance in real-world marine environments. According to Renewables Now, October 2024, in the 'EU grants support to two tidal energy projects in France', the European Union’s Innovation Fund awarded €51 million to two major tidal energy initiatives aimed at delivering approximately 29 MW of capacity. This influx of capital facilitates the transition from prototype testing to multi-device farms, directly addressing the sector's need for scale. Furthermore, according to the U.S. Department of Energy, in 2024, the department announced a new investment of over $18 million to support 27 research and development projects focused on advancing marine energy technologies.

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Key Market Challenges

The Global Wave And Tidal Energy Market is significantly constrained by high initial capital expenditures and the resulting elevated levelized cost of electricity. Unlike established renewable technologies such as wind and solar, which benefit from mature supply chains and economies of scale, marine energy technologies are largely in pre-commercial phases. This maturity gap necessitates heavy upfront spending on bespoke component manufacturing and specialized installation vessels, making the unit cost of energy generation uncompetitively high. Consequently, utility-scale adoption is frequently delayed as developers struggle to demonstrate financial viability to off-takers without substantial subsidies.

This cost burden directly restricts access to commercial financing, as private investors remain cautious about the technical risks and long payback periods associated with operating in harsh marine environments. The continued reliance on public funding mechanisms rather than organic private capital flows creates a bottleneck for rapid industry expansion. According to Ocean Energy Europe, in 2025, publicly announced private investments in the ocean energy sector totaled just €60 million for the period since 2023. This limited influx of private capital underscores the difficulty developers face in securing the necessary equity to transition from pilot projects to large-scale commercial arrays, effectively hampering broader market growth.

Key Market Trends

The Shift Toward Powering Remote Coastal and Island Communities is becoming a primary market trajectory, driven by the urgent need to replace expensive and polluting diesel generators in off-grid regions. Unlike mainland grids where marine energy must compete with low-cost wind and solar, island microgrids offer a high-value entry point where predictability and energy security command a premium. This trend is accelerating as technologies mature to a point where they can reliably anchor localized energy systems, effectively decoupling remote populations from volatile fossil fuel supply chains. According to Ocean Energy Europe, April 2025, in the 'Ocean Energy Stats & Trends 2024' report, tidal energy is already competitive with island diesel generation after just 32 MW of cumulative installations, underscoring the immediate economic viability of this application for decentralized power markets.

Simultaneously, the market is defined by the Deployment of Full-Scale Commercial Demonstration Units, marking a decisive move from single-device testing to multi-megawatt arrays. Developers are now prioritizing the validation of bankability and survivability at utility scale to unlock private institutional capital and overcome the pre-commercial "valley of death." This phase involves rigorous testing of array interactions, shared infrastructure, and operation and maintenance procedures in high-energy sea states. According to Energy Global, December 2025, in the 'CorPower Ocean to lead POWER-Farm EU project' article, CorPower Ocean was selected to lead the €30 million POWER-Farm EU project, which aims to demonstrate the reliability and commercial competitiveness of wave energy farms, further solidifying the pathway toward large-scale industrial rollout.

Segmental Insights

The Tidal Energy segment represents the most rapidly expanding component of the Global Wave and Tidal Energy Market. This accelerated growth is primarily driven by the inherent predictability of tidal cycles, which offers grid operators reliable power generation schedules unlike the variability associated with wave resources. Furthermore, tidal stream technology has demonstrated superior commercial maturity and operational success in recent deployments compared to alternative marine technologies. Consequently, institutional investors and government agencies are increasingly prioritizing tidal infrastructure projects to enhance energy security, thereby fostering the substantial development of this specific market segment.

Regional Insights

Europe holds the leading position in the global wave and tidal energy market due to extensive government support and established infrastructure. The region benefits significantly from the presence of the European Marine Energy Centre, which offers essential testing facilities for developers to validate their technologies. Furthermore, the European Commission actively promotes sector growth through funding initiatives such as Horizon Europe and favorable renewable energy directives. This strong regulatory framework reduces investment risks and accelerates commercialization, ensuring that Europe remains the central hub for marine energy projects compared to other global regions.

Recent Developments

• In December 2024, Spiralis Energy unveiled its novel tidal energy system, the Axial Skelter, on the island of Alderney. The company presented the technology, which features a unique screw-like design made from recycled plastic segments, to the local community as part of a broader campaign to demonstrate the viability of tidal power. Unlike conventional turbines, this system is designed to be modular, scalable, and safe for marine life, with no fast-moving external parts. The unveiling marked the beginning of a pilot phase intended to prove the system's capability to generate predictable, cost-effective electricity for island communities and eventually national grids.
• In October 2024, Eco Wave Power entered into a strategic collaboration by signing an agreement with I-Ke International Ocean Energy Co. to supply its first wave energy generation unit in Taiwan. This partnership marks the company's official entry into the Asian market and aims to leverage its onshore wave energy technology for a pilot project on the Taiwanese coastline. The agreement entails the sale of a turnkey conversion unit to be fully financed by the partner, with plans to potentially expand the project to a 400 MW commercial capacity. This collaboration highlights the growing international adoption of wave energy solutions for coastal power generation.
• In April 2024, Mocean Energy completed a rigorous 12-month offshore testing program for its Blue X wave energy converter, which was retrieved to shore in Orkney. This breakthrough research initiative, conducted as part of the Renewables for Subsea Power project, involved connecting the device to a Halo underwater battery storage system. The testing successfully demonstrated the system’s ability to provide reliable low-carbon power and communications to subsea equipment, offering a sustainable alternative to traditional umbilical cables. The data gathered during this period is intended to support the development of future commercial-scale wave energy devices.
• In February 2024, Minesto achieved a significant commercial milestone by commissioning its utility-scale tidal energy kite, the Dragon 12, in the Faroe Islands. The 1.2 MW device, which weighs 28 tons and spans 12 meters, successfully delivered its first electricity to the national grid, validating the scalability of the company's technology. Anchored to the seabed, the kite operates on a unique principle by flying in a figure-eight trajectory to harness the power of tidal flows. The Chairman of Minesto described this achievement as the most significant moment in the company’s history, marking a crucial step towards the large-scale build-out of tidal power parks.

Key Market Players

• Andritz AG
• Nova Innovation Ltd
• Orbital Marine Power Ltd
• MAKO Turbines Pty Ltd
• SIMEC Atlantis Energy Ltd
• Hydroquest SAS
• Sustainable Marine Energy Ltd
• Lockheed Martin Corporation

By Type	By Technology	By Application	By Region
Wave Energy Tidal Energy	Tidal stream generator Oscillating Water Columns Tidal turbines Tidal barrages Tidal fences	Power generation Desalination	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Wave And Tidal Energy Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Wave And Tidal Energy Market, By Type:

• Wave Energy
• Tidal Energy

• Wave And Tidal Energy Market, By Technology:

• Tidal stream generator
• Oscillating Water Columns
• Tidal turbines
• Tidal barrages
• Tidal fences

• Wave And Tidal Energy Market, By Application:

• Power generation
• Desalination

• Wave And Tidal Energy Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE