The wave energy converter market involves the capture of kinetic and potential energy from ocean surface waves to generate electricity. Wave energy converters use wave motion to power water turbines or pump hydraulics to drive electrical generators. They offer advantages such as low environmental impact, predictable output, and nearly limitless fuel source. Governments across the globe are promoting renewable energy sources to reduce dependence on fossil fuels and mitigate climate change risks. Growing focus on the development of ocean energy resources presents a key opportunity for the wave energy converter market.
The global wave energy converter market is estimated to be valued at US$ 19.52 billion in 2024 and is expected to exhibit a CAGR of 4.2% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the wave energy converter market include Ocean Power Technologies, Marine Power Systems, Eco Wave Power, SINN Power GmbH, NEMOS GmbH, INGINE Inc., Carnegie Clean Energy, CorPower Ocean, AW-Energy Oy, AWS Ocean Energy, Wello Oy, HavKraft AS, Wave Dragon, Wave Swell, and Aquanet Power. Ocean Power Technologies and Marine Power Systems currently lead the market with their array of wave energy converter products.
Wave Energy Converter Market Trends Growing environmental concerns and policy support for renewable energy have led to a surge in demand for wave energy technologies in recent years. Countries with high wave energy potential such as the UK, Portugal, and Australia are investing heavily in wave farms and pilot projects.
Advancements in materials, power take-off systems, and mooring technologies have improved the efficiency and durability of wave energy converters. Developers are working on next-generation concepts such as oscillating water columns and overtopping devices to optimize wave energy extraction.
Market Trends
Increasing investments in offshore renewable energy - Several governments are implementing fiscal incentives and tenders to encourage the commercialization of offshore wind and wave energy projects. This is expected to boost investments in wave energy converters.
Focus on development of utility-scale wave farms - Major players are collaborating to develop multi-MW wave farms through innovative floating converter designs and optimized mooring systems. Utility-scale deployment holds potential to achieve grid parity for wave energy.
Market Opportunities
Growing interest from remote communities and islands - Islands and coastal regions dependent on imported diesel for electricity see wave energy as a means to transition to indigenous renewable sources. This presents an opportunity for small and modular wave energy systems.
Integration with existing infrastructure - Developers are exploring ways to leverage existing offshore oil & gas platforms and pipelines to reduce costs associated with wave energy projects. Such integrated solutions could expedite the adoption of wave energy converters.
Wave Energy Converter Market Impact of COVID-19
COVID-19 pandemic has significantly impacted the growth of wave energy converter market. The stringent lockdowns imposed across various countries led to temporary suspension of manufacturing facilities. This significantly disrupted the supply chain and logistics for raw materials procurement and product distribution. Furthermore, travel restrictions impacted installation and commissioning of new wave energy projects. This led to delays in project timelines during 2020 and 2021. However, growing focus on renewable energy and need to reduce dependence on fossil fuels is expected to drive investments in wave energy post-pandemic. Government incentives and subsidies are focusing on renewable sector to aid economic recovery. Initiatives such as Build Back Better plan in US are expected to boost investments in offshore renewable energy projects including wave energy in coming years. Accelerated digital transformation during pandemic has paved way for remote monitoring solutions for wave farms. This is likely to reduce O&M costs and facilitate quicker commissioning of new systems.
Geographical Regions where market is concentrated
Europe accounts for more than 50% of global wave energy converter installations in terms of value as of 2024. Countries such as UK, Portugal, Spain, Ireland and Norway are early adopters of wave energy technology and have built commercial wave farms. Government support through incentives, permitting streamlining and funding has propelled the growth of emerging sector in these countries. Asia Pacific region is expected to grow at fastest pace, driven by investments in South Korea, China and Australia. Incentives supporting Wave Energy research in countries like Australia, Chile and US west coast are attracting device developers and private capital to these regions.
Fastest Growing Region
Asia Pacific region is projected to witness highest CAGR in wave energy converter market during forecast years of 2024 to 2031. Countries like South Korea, China, Philippines, Vietnam, Indonesia etc. offer large untapped market potential propelled by growing investments in offshore renewable sector. Rising demand for clean energy, supportive government policies through incentives and targets for renewable ocean energy are driving the growth. Initiatives such as Japan's 5th Strategic Energy Plan aiming to derive 1 GW of power from ocean energy by 2030 are likely to boost technology deployment in APAC. Developing economies are witnessing rising number of pilot wave energy projects with private sector participation. Advent of new device designs suitable for local wave climates and investments in smart grid infrastructure are factors expected to accelerate the market growth in Asia Pacific.
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