Wave Energy Market/Wave Energy Converter Market - By Technology , By Deployment , By Application and By Geography - Opportunity Analysis & Industry Forecast, 2024-2030.

Wave Energy Market/Wave Energy Converter Market Overview:

Wave Energy Market/Wave Energy Converter Market size is estimated to reach $244.6 million by 2030, growing at a CAGR of 18.3% during the forecast period 2024-2030. A Wave Energy Converter is a device that harnesses the energy of ocean waves and converts it into usable electricity. These devices are typically deployed in coastal areas with significant wave activity. With the growing interest in renewables, tidal energy emerged as a potential source especially in costal areas. Factors such as growing focus on reducing dependency on fossil fuels to achieve net zero and the shift towards promoting tidal energy as clean energy drive the market growth. Advancements in oscillating water column, oscillating body converters and overtopping converters also stimulate the market. In addition, rising infrastructural projects related to hydropower generation along with government regulatory frameworks, investments and initiatives towards promoting renewable energy transition further drive the market growth during the forecast period

Modular and Scalable Systems are emerging as key trends in the wave energy market, driven by the growing need for flexible, adaptable energy solutions. These systems allow for greater customization and efficient deployment in various geographical and technological contexts, enhancing their practical applications across a range of energy demands. For instance, in October 2023, Hawaii-based startup Wavr LLC began developing a wave energy converter designed to be scalable and integrated with other renewable energy technologies. The company plans to offer a version that incorporates five 40 W solar panels, priced at $2,300, making it an affordable and customizable option for diverse energy needs. This approach allows for easy expansion and integration with existing infrastructure, aligning with the industry's shift towards versatile and efficient systems. Another significant trend is the innovation in pumped hydro storage, which is enhancing the viability of wave energy as a stable renewable energy source. Pumped hydro storage provides a solution to the intermittent nature of wave energy by allowing excess power generated during peak wave periods to be stored and used during times of lower energy production. This storage capability is crucial for improving the reliability and continuous supply of wave energy to power grids.  These initiatives signal a promising future for wave energy as an increasingly viable and sustainable energy solution.

Market Snapshot: 

Wave Energy Market/Wave Energy Converter Market- Report Coverage:

The “Wave Energy Market/Wave Energy Converter Market Report - Forecast (2024-2030)” by IndustryARC, covers an in-depth analysis of the following segments in the Wave Energy Market/Wave Energy Converter Market.

COVID-19 / Ukraine Crisis - Impact Analysis:  

The Covid-19 pandemic had a notable impact on the wave energy market by disrupting supply chains and delaying project timelines. The global lockdowns and travel restrictions affected the manufacturing and transportation of key components required for wave energy systems, such as power converters, floating platforms and other critical infrastructure. This caused delays in the construction and deployment of wave energy projects, particularly those that were in the planning or early installation phases. 

The Russia-Ukraine war led to increased uncertainty in traditional energy supplies, particularly natural gas and oil, driving up prices and intensifying the need for alternative renewable energy sources. As Europe, especially, seeks to reduce its dependence on Russian energy, there is greater momentum to invest in homegrown, sustainable energy solutions like wave energy, which could provide a stable and long-term alternative. This geopolitical shift spurred governments to accelerate their renewable energy transition plans, with wave energy emerging as a viable option for coastal nations looking to diversify their energy portfolios.

Key Takeaways:

• Europe Dominates the Market

Europe is the leading region in the Wave Energy Market in 2023 spearheading the transition to renewable and clean energy. With extensive coastlines in most of its member states, Europe has a significant advantage in harnessing ocean energy. According to an April 2024 article by the Innovation News Network, the European Union displayed strong political support for ocean energy, designating it as a strategic technology in the Net-Zero Act and setting ambitious renewable energy targets in the revised Renewable Energy Directive (RED III). The EU's offshore renewable energy strategy includes specific goals for wave and tidal power deployment, with the potential to generate 100 GW from ocean energy by 2050, accounting for 10% of Europe’s current electricity demand. In 2023, 53 MW of tidal energy capacity, distributed across 11 projects, received support and is set for deployment between 2026 and 2028. The market is further driven by increasing installations of wave energy systems, rising capacity targets for ocean energy technology, and a growing shift towards clean energy. According to the European Commission, ocean energy, including wave and tidal power, is expected to play a key role in Europe’s energy systems and industrial sectors by 2030, with the EU’s strategy aiming for the installation of 1-3 GW of ocean energy capacity by 2030 and reaching 60 GW by 2050.

•  Near Shore is the Largest Segment

In the Wave Energy Market and Wave Energy Converter market, the near-shore segment is the largest due to its proximity to the coast, which makes installation, maintenance, and energy transmission more efficient. These systems take advantage of moderate wave energy and require less infrastructure compared to offshore systems. Additionally, near-shore locations offer easier access for repairs and monitoring, which helps reduce operational costs. The availability of suitable coastal areas and the increasing demand for renewable energy in coastal regions further contribute to the growth and dominance of this segment. According to the Ocean Energy Council, a wave breaking along a mile of coast can release 35,000 horsepower of energy., In January 2024, Finnish company AW-Energy successfully developed WaveRoller, a technology that converts ocean wave energy into electricity. This system operates in near-shore areas, typically between 0.3 to 2 km from the shore, at depths ranging from 8 to 20 meters. Depending on tidal conditions, it is either mostly or fully submerged and anchored to the seabed, demonstrating the practical application and advantages of near-shore wave energy systems. Additionally, near-shore systems are increasingly being seen as a more cost-effective and scalable solution for generating renewable energy. The ease of integration with local grids and the potential for hybrid energy systems combining wave and solar or wind energy are also accelerating the adoption of these technologies. As the technology matures, there is growing interest in expanding the deployment of near-shore systems globally, especially in regions with strong wave activity and growing energy needs.

• Power Generation is the Largest Segment

Power generation remains the primary application of wave energy converters, driven by the growing global demand for clean and renewable energy sources. According to a March 2023 article by NREL, ocean waves possess vast amounts of power; in the U.S., they are capable of providing nearly 60% of the country's annual electricity needs. Wave energy offers a consistent and predictable supply of power, making it a reliable and sustainable alternative to traditional energy sources. Unlike solar and wind, which are intermittent, wave energy can provide continuous energy, making it particularly valuable for regions with strong, consistent coastal waves. Governments and utilities worldwide are increasingly investing in wave energy projects to meet decarbonization goals and reduce reliance on fossil fuels. In July 2021, the U.S. Department of Energy announced a federal funding initiative of $27 million aimed at research and development (R&D) projects focused on improving the efficiency of converting ocean waves into carbon-free electricity. This initiative is part of the broader push to make wave energy technologies commercially viable and to support efforts toward achieving net-zero emissions by 2050. With its scalability and the potential for integration into existing energy grids, wave energy is poised to play a key role in the future of sustainable power generation. As technologies advance, wave energy is expected to become more cost-effective, further driving its adoption across global markets, especially in coastal areas with high energy needs. The growing focus on hybrid renewable energy systems, combining wave with other energy sources like wind and solar, will also enhance the overall reliability and efficiency of renewable energy generation.

• Growing Number of Hydropower Generation Projects to Drive the Market

Hydroelectricity is emerging as one of the key commercialized energy sources contributing to the global transition towards renewable energy. The sector is experiencing rapid growth due to increased investments and strong government support, including approvals and funding for hydropower generation projects. According to the International Energy Agency (IEA), India is set to add approximately 26,000 MW of hydropower capacity by 2030, driven by enhanced government policy support and initiatives aimed at bolstering clean energy infrastructure. Additionally, as reported in an April 2024 Energy World article, there are currently hydroelectric power projects with a combined capacity of 15 GW under construction in India. This expansion will boost the country’s hydroelectric capacity by more than 50%, from 42 GW to 67 GW by 2031-32, as stated by the Ministry of Power. This expansion of hydroelectric capacity is a significant step in India’s efforts to meet its growing energy demands while reducing reliance on fossil fuels. Hydropower projects not only support grid stability but also help in providing long-term, low-cost electricity to regions with high energy needs. In addition, these projects contribute to job creation, regional development, and improved infrastructure, which further supports their economic viability. As the focus on clean and sustainable energy intensifies, hydroelectricity, with its ability to provide consistent, renewable power, is expected to remain a key player in the global energy mix. Moreover, innovations in hydropower technology, such as small modular plants and pumped storage systems, are expected to increase efficiency and reduce environmental impacts, making hydropower even more attractive as a solution for the future.

• High CapEx to Hamper the Market

One of the primary challenges hindering the widespread adoption of wave energy technology is the high capital expenditure (CapEx) associated with its development and deployment. The complex engineering involved in designing and constructing wave energy converters, coupled with the harsh marine environment, necessitates substantial upfront investments. This high CapEx can discourage potential investors and developers as the return on investment may be relatively slow particularly compared to more established renewable energy technologies like wind and solar power. Additionally, the complex nature of wave energy systems can lead to increased operational and maintenance costs further impacting the overall economic viability of such projects.

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Key Market Players: 

Product/Service launches, approvals, patents and events, acquisitions, partnerships, and collaborations are key strategies adopted by players in the Wave Energy Market/Wave Energy Converter Market. The top 10 companies in this industry are listed below:

1. Eco Wave Power
2. Carnegie Clean Energy
3. Ocean Power Technology 
4. Marine Power Systems 
5. Sinn Power Gmbh 
6. Wave Swell Energy
7. Nemos Gmbh
8. Corpower Ocean
9. Aquanet Power
10. Havkfraft AS

Scope of the Report: 

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