Waves and Tidal Energy Market to Approach USD 1.85 Billion by 2032 as Governments Scale Predictable Ocean Power for Grid Stability and Energy Security
AUSTIN, Texas and TOKYO, Dec. 17, 2025 /PRNewswire/ -- According to DataM Intelligence, the global Waves and Tidal Energy Market reached USD 983.11 million in 2024 and is projected to grow to USD 1,850.90 million by 2032, expanding at a CAGR of 8.23% during the forecast period 2025–2032.
This growth reflects a decisive shift in global renewable energy strategies, where predictability, grid stability, and baseload capability are becoming as critical as decarbonization. Unlike solar and wind, wave and tidal energy offer highly forecastable generation profiles, positioning them as strategic complements to intermittent renewables in national energy mixes.
By 2031, ocean-based renewable power is expected to move beyond pilot installations and enter early commercial deployment, driven by targeted government support, rising offshore energy investments, and accelerating technological maturity across wave and tidal systems.
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Why Wave and Tidal Energy is Gaining Strategic Importance
The renewed momentum behind wave and tidal energy is not driven by climate goals alone. It is rooted in three structural realities shaping energy policy worldwide.
- Grid reliability has become a board-level concern. As solar and wind penetration rises, power systems face increased volatility. Tidal energy, in particular, provides predictable generation cycles years in advance, enabling grid operators to plan capacity with precision.
- Coastal nations are prioritizing domestic energy security. With over 70% of global population living near coastlines, ocean energy offers localized generation that reduces dependence on imported fuels and long-distance transmission.
- Offshore infrastructure ecosystems are already in place. Expertise developed in offshore wind, subsea cabling, and marine engineering is now being redeployed toward wave and tidal systems, reducing project risk and development timelines.
As a result, wave and tidal energy is transitioning from experimental innovation to strategic infrastructure investment.
Market Segmentation Analysis
By Application
Power generation remains the dominant application, accounting for approximately 74% of global market value in 2024, equivalent to USD 727 million. This segment benefits from long-term power purchase agreements, government-backed demonstration projects, and integration into island grids, coastal communities, and remote industrial facilities. By 2032, power generation will remain the primary revenue driver as commercial-scale tidal arrays and wave farms reach grid-connected maturity.
Desalination and other applications represented the remaining 26% (around USD 256 million). This segment is gaining traction in water-stressed coastal regions, where wave-powered desalination systems reduce energy costs and carbon intensity. Industrial applications, offshore platforms, and hybrid renewable systems are expected to accelerate this segment's growth beyond 2032.
According to DataM Intelligence analysis, 'Power generation will continue to anchor market expansion through 2032, while desalination applications will deliver higher growth rates in select geographies.'
By Technology
Tidal energy systems accounted for an estimated 58% of the global market in 2024, or roughly USD 570 million. Tidal stream turbines and tidal range systems are benefiting from predictable output, higher capacity factors, and lower technology risk compared to wave energy. This makes tidal systems particularly attractive to utilities and grid operators seeking reliability.
Wave energy systems represented approximately 34% of market value, or USD 334 million. While wave energy faces greater engineering complexity, advancements in point absorbers, oscillating water columns, and modular device designs are steadily improving survivability and cost efficiency. Wave energy is expected to gain stronger commercial traction post-2028 as device lifetimes and maintenance economics improve.
According to DataM Intelligence, 'Tidal energy systems will remain the primary commercial driver through 2031, while wave energy will play a critical role in long-term market expansion and technology diversification.'
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Regional Analysis
United States
The United States is emerging as a critical long-term market, driven by extensive coastlines, strong R&D ecosystems, and federal clean energy programs. In 2024, the U.S. accounted for an estimated 38% of global market value, equivalent to USD 370+ million.
Key Growth Drivers:
- Federal support for marine energy demonstration projects
- Strong research activity along the Pacific Northwest and Alaska
- Integration of tidal energy into remote and island grids
- Growing interest from utilities seeking predictable renewable output
By 2032, the U.S. alone is projected to account for nearly 40% of global wave and tidal energy deployments, positioning it as a cornerstone market for commercialization.
Europe
Europe continues to lead in installed capacity and technology development, particularly in the UK, France, Norway, and Portugal. Supportive regulatory frameworks, offshore engineering expertise, and long-term decarbonization targets make Europe a technology incubator for the sector.
Asia-Pacific
Asia-Pacific is expected to deliver the fastest growth rate beyond 2027, driven by coastal population density, rising electricity demand, and strong government interest in marine renewables across Japan, South Korea, and parts of Southeast Asia.
Competitive Landscape
The competitive environment is defined by companies combining marine engineering expertise, grid integration capabilities, and long-term project development strategies.
Carnegie Clean Energy: Continues to advance wave energy commercialization through modular CETO systems, with growing focus on grid-connected and desalination applications.
Orbital Marine Power: Has established leadership in tidal stream turbines, demonstrating multi-megawatt deployments with high-capacity factors and grid reliability.
Ocean Power Technologies, Inc: Focuses on wave-powered systems for offshore power, data, and defense-adjacent applications, leveraging hybrid use cases to accelerate adoption.
Sae Renewables and ORPC, Inc: Scaling tidal solutions across utility-grade projects, emphasizing predictable generation and grid integration.
Andritz: Leveraging its global hydro and energy infrastructure expertise, plays a critical role in turbine technology, power electronics, and large-scale project execution.
Emerging innovators such as Aquanet Power, Yam Pro Energy, BioPower Systems, and AW-Energy continue to strengthen the technology pipeline through device optimization and survivability improvements.
From a strategic perspective, partnerships between technology developers, utilities, and offshore infrastructure providers are becoming the dominant go-to-market model.
WHAT WILL DEFINE THE MARKET BY 2031–2032
Looking ahead, the waves and tidal energy market is expected to undergo a clear structural transition.
By 2031, the market will approach USD 1.7 billion, driven primarily by:
- Commercial tidal arrays moving beyond pilot scale
- Standardization of device design and subsea components
- Declining installation and maintenance costs
- Integration with offshore wind and hybrid energy systems
According to DataM Intelligence analysis, tidal energy systems will remain the largest revenue-generating segment, while power generation applications will account for the majority of installed capacity.
By 2032, wave and tidal energy will be positioned as:
- A strategic baseload renewable rather than an experimental technology
- A critical enabler of grid stability in high-renewable systems
- A complementary solution to offshore wind and solar
- A viable decarbonization pathway for coastal and island economies
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Executive Takeaway
For energy executives, policymakers, and technology leaders, wave and tidal energy is no longer a speculative bet. It is a measured, infrastructure-driven growth opportunity aligned with long-term grid resilience, predictable renewable output, and energy security priorities.
Organizations that engage early-through pilot projects, partnerships, and technology validation-will be best positioned to capture value as the market transitions into commercial scale during the next decade.
Related Report:
- Wave Energy Market Approaches Commercial Scale as Grid Operators and Energy Majors Invest in Next-Generation Marine Power.
- Wind Turbine Market Positioned for Large-Scale CAPEX Expansion as Grid Modernization and Net-Zero Targets Intensify.
- Solar Energy Market Enters Next Investment Phase as Utilities and Corporates Accelerate Grid-Scale and Distributed Solar Deployment.
- Waste-to-Energy Market Gains Strategic Momentum as Governments and Utilities Invest in Circular Energy Infrastructure.
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