Harnessing the ocean’s predictable power, the market is advancing beyond demonstration projects. Tidal energy, with its proven technology and reliability, is attracting significant commercial interest and investment, firmly establishing its role in the global energy transition.
Chicago, Nov. 05, 2025 (GLOBE NEWSWIRE) — The global wave and tidal energy market was valued at US$ 7.1 billion in 2024 and is expected to reach US$ 17.7 billion by 2033, growing at a growing 43.0% from 2025-2033.
The global energy sector is at a pivotal juncture, driven by stringent decarbonization goals under frameworks like the Paris Agreement. Nations are actively seeking reliable, clean power sources to ensure energy security. In this context, the wave and tidal energy market is transitioning from a nascent concept to a strategic necessity. Unlike intermittent renewables, the predictable nature of marine currents offers a unique grid-balancing advantage. This reliability is attracting significant attention from governments and utilities, particularly in coastal nations like the United Kingdom and Canada, who see it as a key to a stable, diversified, and sustainable energy future.
Download Sample Pages: https://www.astuteanalytica.com/request-sample/wave-and-tidal-energy-market
This momentum is backed by tangible action. Governments are enacting robust policies and injecting substantial capital to de-risk pioneering projects. The United States, through its Department of Energy, and the European Union, via its Horizon Europe program, are prime examples. These bodies are funding the critical shift from single-device prototypes to commercially viable, multi-megawatt arrays. This concerted effort is accelerating technological maturity, lowering costs, and building a project pipeline that firmly establishes the wave and tidal energy market as a formidable player in the global pursuit of net-zero emissions.
Key Findings in Wave and Tidal Energy Market
| Market Forecast (2033) | US$ 17.7 billion |
| CAGR | 43.0% |
| Largest Region (2024) | Europe (46.20%) |
| By Type | Tidal Energy (87.10%) |
| By Technology | Tidal Energy (87.10%) |
| By Application | Power Generation (81.50%) |
| Top Drivers |
|
| Top Trends |
|
| Top Challenges |
|
Europe’s Expanding Project Pipeline Signals A New Era of Commercial Deployment
Europe is unequivocally leading the world in Wave and tidal energy market , with a publicly funded pipeline of 165 MW slated for deployment over the next five years. This pipeline is not theoretical; it comprises 15 distinct ocean energy farms, demonstrating a strategic move towards array-scale power generation. The publicly supported wave energy project pipeline in Europe has now reached 13 MW. More impressively, Europe’s tidal stream pipeline includes 152 MW of capacity. This capacity will be deployed across 11 pre-commercial farms within the next five years, with Scotland’s Orkney Islands and France’s Normandy region emerging as key development hubs.
The year 2024 was a testament to this progress, with five developers, including leaders like Orbital Marine Power, deploying new devices in European waters. These installations encompassed three new tidal turbines and two full-scale wave energy converters, adding a combined capacity of 1.418 kW. A major milestone was achieved when SIMEC Atlantis Energy’s MeyGen tidal project in Scotland reached its full 6 MW operational capacity in December 2024. The deployment of its fourth turbine solidifies MeyGen’s status as a flagship project, providing invaluable operational data to the global wave and tidal energy market.
Government Funding Initiatives are De-Risking and Propelling Market Innovation Forward
Robust public funding is the lifeblood of this capital-intensive sector, bridging the gap to commercial viability. The United States Department of Energy (DOE) demonstrated strong commitment by channeling US$ 141 million in public support to ocean energy in 2024. This brings the total US public investment over the last five years to a substantial US$ 591 million. In September 2024, the DOE further catalyzed the wave and tidal energy market by announcing a funding opportunity of up to US$ 112.5 million. This funding aims to advance the commercial readiness of wave technologies by supporting up to 17 promising projects.
This financial support is strategically allocated to foster innovation from lab to sea. The US DOE designated over US$ 18 million for 27 research projects in December 2024. An additional US$ 14.5 million was allocated in January 2024 for foundational research at universities, anticipating up to 33 awards. In Europe, the EU’s Horizon Europe program is set to provide €8 million in 2025 for two critical technology projects. Since its inception in 2021, Horizon Europe has already funded 15 ocean energy projects with €51 million, directly boosting the competitiveness of the European wave and tidal energy market.
Soaring Private Investment Signals Strong Investor Confidence in Commercial Returns
The sector’s maturation is attracting significant private capital, a clear sign of growing investor confidence. Publicly announced private investments in Europe’s ocean energy sector have totaled €60 million since 2023. Swedish developer CorPower Ocean stands out, securing a notable €18.2 million investment in February 2025 from the European Innovation Council Accelerator. This package consisted of a €2.6 million grant and a €15.6 million equity investment. Further underscoring its bankability, CorPower Ocean also closed a US$ 33 million Series B1 funding round in October 2024, enabling it to scale up manufacturing.
This financial momentum is complemented by revenue generation and novel corporate offtake agreements. Scotland’s Orbital Marine Power reported estimated revenues of US$ 7.6 million in 2024 from its operational O2 turbine. The broader renewable sector shows a trend that will benefit marine energy. A collective virtual Power Purchase Agreement was formed in late 2023 for 12 fashion brands to procure clean energy. Similarly, as of early 2025, solar developer Lightsource bp has secured 10 power purchase agreements totaling 1.3GW, indicating a robust corporate demand for 24/7 clean power that a mature wave and tidal energy market can fulfill.
Rapid Technological Advancements are Driving Efficiency and Enhancing System Reliability
Innovation in device engineering is yielding remarkable performance gains in the Wave and tidal energy market. A 2024 study on a novel negative spring technology for Wave Energy Converters demonstrated an efficiency increase of up to 12.7%. Research in 2025 confirmed that Oscillating Body Converters, like those developed by CorPower Ocean, hold a dominant market position. Design optimizations are proving transformative. Studies in 2025 showed that performance improvements in Oscillating Water Columns can range from 1.19 to an astonishing 839 times, showcasing the vast potential for engineering enhancements.
These advances are not limited to hydrodynamics. Next-generation turbine blades made from composite materials, including flax fiber and recyclable resin, are being developed to reduce environmental impact and cost. AI and real-time adaptive controls are also being integrated to maximize energy capture. In a real-world application, Eco Wave Power’s EWP-EDF One project at the Port of Jaffa in Israel achieved an average power output of 13% of its installed capacity in the first quarter of 2025. It also hit a peak production of 40KW, providing crucial data for future deployments.
Falling Costs and Favorable Economics Pave the Way For Market Competitiveness
Achieving cost parity with other renewables is the ultimate goal, and progress is tangible. In the UK’s 2024 Contracts for Difference (CfD) Allocation Round 6, tidal stream projects secured contracts at a strike price of £172/MWh. This guaranteed revenue stream is crucial for attracting project finance. A forward-looking 2025 study projects that wave power could achieve an LCOE below €70/MWh by 2035 in resource-rich areas. The same study forecasts wave power becoming cost-competitive with offshore wind in the 2040s, a critical inflection point for the global wave and tidal energy market.
System-level economic modeling reveals the broader value of marine energy. For a 2032 scenario in Northern Scotland, integrating 343 MW of wave power is projected to decrease the grid’s LCOE from €99.68/MWh to €95.45/MWh. In a constrained 2040 grid scenario, the LCOE is projected to plummet from €294/MWh to €130/MWh with wave energy’s inclusion. By 2050, that figure is expected to fall from €235/MWh to €95/MWh. Meanwhile, the reference price for tidal projects awarded in the EU for 2024 was €204/MWh, setting a strong benchmark for the industry.
The Expanding Ocean Energy Sector is Becoming A Powerful Economic Engine
The growth of the wave and tidal energy market is poised to create a substantial number of high-skilled jobs. The parallel offshore wind industry provides a compelling forecast, projected to support 56,000 jobs in the U.S. by 2030. In 2024, the EU’s offshore wind sector already supported about 47,000 full-time equivalent (FTE) jobs, with 28,000 being direct employment. For context, the entire U.S. clean energy sector employed over 3.5 million Americans in 2024, highlighting the massive job-creation potential of the energy transition.
Projections specific to marine energy are highly encouraging. The UK’s tidal stream sector alone is estimated to create up to 22,500 FTE jobs by 2050. A comprehensive 2025 study projected that the European tidal sector could generate nearly 1.2 million job-years of employment by 2050. This translates into direct economic stimulus. The development of 6.2 GW of tidal stream capacity in the UK is estimated to inject £4.5 billion into the UK economy between 2024 and 2050, revitalizing coastal communities and building a new industrial base.
Proactive Regulatory Frameworks are Now Creating A Stable Investment Climate Across Wave and Tidal Energy Market
Clear and supportive government policies are essential for long-term investment security. The UK government has demonstrated unwavering support by implementing its third consecutive ringfenced budget for tidal stream energy in its 2024 CfD auction. In the EU, the FuelEU Maritime Regulation, effective January 1, 2025, mandates a 2% reduction in the greenhouse gas intensity of marine fuels. This regulation, applying to all ships over 5,000 gross tonnes, creates a new market for green electricity and fuels, which can be supplied by ocean power projects.
The United States is also creating a more favorable policy landscape. The Marine Energy Technology Acceleration Act was introduced in 2024, potentially unlocking up to US$ 1 billion in funding. The same year saw the introduction of the Blue Ocean Energy Innovation Act to fund critical R&D. Most importantly, the U.S. government finalized “tech neutral tax credits” for clean energy projects, effective January 15, 2025. This policy provides crucial financial certainty and levels the playing field, significantly boosting the prospects of the domestic wave and tidal energy market.
Tailor This Report to Your Specific Business Needs: https://www.astuteanalytica.com/ask-for-customization/wave-and-tidal-energy-market
Grid Integration and Global Expansion are Hallmarks of a Maturing Industry
The predictable nature of marine energy makes it a valuable asset for grid stability. The maritime energy storage system market is projected to reach US$ 139 million in 2025 and is forecasted to grow at a CAGR of 11.3% through 2033. The broader marine energy storage market was valued at approximately US$ 2.5 billion in 2025 and is projected to hit US$ 8 billion by 2033. A 2024 study highlighted a hybrid grid integrating remote platforms in the North Sea. Importantly, a 2032 model for Northern Scotland shows that including wave power reduces energy storage needs from 179 GWh to 110 GWh.
While Europe leads the wave and tidal energy market , the industry is now global. In 2024, Europe’s cumulative ocean energy production hit 106 GWh, with 13.4 GWh from tidal. The UK has 83 MW of contracted tidal capacity in Scotland and 38 MW in Wales. Momentum is building elsewhere. In Asia, a February 2025 partnership between BPCL and Eco Wave Power aims to develop projects in India. In the U.S., 12,378 MW of offshore wind capacity was linked to offtake agreements as of May 2024. Environmentally, a 2024 OES-Environmental report identified 86 key projects undergoing assessment (40 tidal, 39 wave), with tidal’s lifecycle emissions estimated at less than 22 grams of CO2 equivalent per kilowatt-hour.
Key Companies Profiled:
- Applied Technologies Company, Ltd.
- Aquagen Technologies
- BioPower Systems Pty. Ltd.
- Blue Energy Canada Inc.
- Carnegie Clean Energy Ltd.
- Corpower Ocean AB
- Eco Wave Power AB
- Nova Innovation Ltd.
- Ocean Power Technologies Inc.
- Ocean Renewable Power Company, LLC
- Orbital Marine Power
- Pelamis Wave Power
- SIMEC Atlantis Energy Ltd
- Tidal Lagoon Plc
- Verdant Power, Inc.
- Other Prominent Players
Key Market Segmentation:
By Type:
- Wave Energy
- Tidal Energy
By Technology:
- Wave Energy
- Floats or Pitching Devices
- Oscillating Water Columns
- Tapered Channel
- Point Absorber
- Attenuators
- Terminator Device
- Tidal Energy
- Barrages or Dams
- Tidal Fences
- Tidal Turbines
By Application:
- Power Generation
- Desalination
By Region:
- North America
- Europe
- Asia Pacific
- Middle East & Africa (MEA)
- South America
Need a Detailed Walkthrough of the Report? Request a Live Session: https://www.astuteanalytica.com/report-walkthrough/wave-and-tidal-energy-market
About Astute Analytica
Astute Analytica is a global market research and advisory firm providing data-driven insights across industries such as technology, healthcare, chemicals, semiconductors, FMCG, and more. We publish multiple reports daily, equipping businesses with the intelligence they need to navigate market trends, emerging opportunities, competitive landscapes, and technological advancements.
With a team of experienced business analysts, economists, and industry experts, we deliver accurate, in-depth, and actionable research tailored to meet the strategic needs of our clients. At Astute Analytica, our clients come first, and we are committed to delivering cost-effective, high-value research solutions that drive success in an evolving marketplace.
Contact Us:
Astute Analytica
Phone: +1-888 429 6757 (US Toll Free); +91-0120- 4483891 (Rest of the World)
For Sales Enquiries: [email protected]
Website: https://www.astuteanalytica.com/
Follow us on: LinkedIn | Twitter | YouTube
CONTACT: Contact Us: Astute Analytica Phone: +1-888 429 6757 (US Toll Free); +91-0120- 4483891 (Rest of the World) For Sales Enquiries: [email protected] Website: https://www.astuteanalytica.com/
Disclaimer: The above press release comes to you under an arrangement with GlobeNewswire. Business Upturn takes no editorial responsibility for the same.