The global wave and tidal energy market is undergoing a significant transformation, with projections indicating growth from USD 983.11 million in 2024 to USD 1,850.90 million by 2032. This expansion, driven by an 8.23% compound annual growth rate, reflects a strategic shift in renewable energy strategies, where grid stability and predictability are becoming as crucial as decarbonization.
Unlike solar and wind, wave and tidal energy offer highly forecastable generation profiles, making them strategic complements to intermittent renewables. By 2031, ocean-based renewable power is expected to move beyond pilot installations and enter early commercial deployment. This transition is fueled by targeted government support, rising offshore energy investments, and accelerating technological maturity across wave and tidal systems.
The renewed momentum behind wave and tidal energy is rooted in three structural realities shaping energy policy worldwide. First, 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. Second, coastal nations are prioritizing domestic energy security. With over 70% of the global population living near coastlines, ocean energy offers localized generation that reduces dependence on imported fuels and long-distance transmission. Third, 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.
Market segmentation analysis reveals that power generation remains the dominant application, accounting for approximately 74% of global market value in 2024. 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% in 2024, with growing traction in water-stressed coastal regions.
Tidal energy systems accounted for an estimated 58% of the global market in 2024, benefiting from predictable output, higher capacity factors, and lower technology risk compared to wave energy. Wave energy systems represented approximately 34% of market value, with advancements in point absorbers, oscillating water columns, and modular device designs steadily improving survivability and cost efficiency.
Regionally, the United States is emerging as a critical long-term market, driven by extensive coastlines, strong R&D ecosystems, and federal clean energy programs. Europe continues to lead in installed capacity and technology development, particularly in the UK, France, Norway, and Portugal. 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.
The competitive environment is defined by companies combining marine engineering expertise, grid integration capabilities, and long-term project development strategies. Key players include Carnegie Clean Energy, Orbital Marine Power, Ocean Power Technologies, Inc., Sae Renewables, ORPC, Inc., and Andritz. 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.
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, and integration with offshore wind and hybrid energy systems.
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.