The world is looking for new ways to generate clean energy. Solar and wind power have led the charge, but now, tidal and wave energy are stepping up. These sources have huge potential. Unlike the sun and wind, ocean energy is predictable and consistent. But how viable is it? How much is the market growing? What does the future hold?
1. The global tidal and wave energy market was valued at approximately $500 million in 2023 and is projected to exceed $3 billion by 2030
The market is growing fast. A sixfold increase in just seven years is no small feat. This growth is fueled by increasing investments, better technology, and stronger policies.
Businesses should look at how they can position themselves in this expanding sector. Manufacturing companies can explore opportunities in turbine production. Engineering firms can specialize in ocean energy infrastructure.
Investors should consider funding startups that are innovating in this space.
2. The tidal and wave energy sector is expected to grow at a CAGR of 25-30% from 2023 to 2030
Why This Growth Rate Matters for Businesses and Investors
The projected growth rate of 25-30% annually is not just a number—it’s a clear signal of momentum in the renewable energy sector. For businesses, this expansion presents a golden opportunity to carve out market share early.
For investors, it’s a chance to back a high-growth industry with strong government support, technological advancements, and increasing global demand for sustainable energy.
With this rapid growth, companies that position themselves strategically can secure long-term contracts, establish supply chain dominance, and even influence policy directions. The market is still young, meaning the biggest players of tomorrow are being built today.
3. The UK leads in tidal energy capacity, with over 50% of Europe’s tidal energy projects
Why the UK Dominates the Tidal Energy Market
The UK isn’t just participating in the tidal energy race—it’s leading it. With over half of Europe’s tidal energy projects based in British waters, the UK has cemented itself as the global hub for this renewable energy source.
This leadership isn’t by chance. It’s a result of strategic government support, a rich natural resource base, and an innovation-driven private sector that’s continuously pushing the boundaries of marine energy.
For businesses looking to enter or expand in tidal energy, the UK presents unmatched opportunities. From funding and infrastructure to policy support and talent pools, the ecosystem is primed for long-term success.
4. Wave energy has an estimated global technical potential of over 29,500 TWh/year, exceeding current global electricity demand
This is a staggering number. The potential of wave energy alone could power the entire world. The challenge is harnessing this energy effectively and affordably.
Companies should focus on innovation. Better energy conversion technologies, more durable materials, and improved infrastructure are key areas where businesses can make a real impact.
5. Tidal stream energy has a theoretical potential of over 1,200 TWh/year, enough to power over 100 million homes
Why This Potential Matters for Businesses and Investors
Tidal stream energy isn’t just another renewable energy source—it’s a game-changer with untapped potential. With a theoretical capacity of 1,200 TWh annually, tidal energy could power entire nations, creating a reliable and predictable source of clean electricity.
For businesses, this means enormous opportunities in technology development, infrastructure, energy trading, and international expansion.
Unlike solar and wind, tidal power is not intermittent—it follows the moon’s gravitational pull, making it one of the most predictable renewable energy sources available.
This stability is a key advantage for utilities, investors, and industries looking to secure long-term, steady energy supplies.
6. The European Marine Energy Centre (EMEC) has tested more marine energy technologies than any other site globally
EMEC is a hub for ocean energy innovation. It provides companies with real-world testing conditions. This allows for better technology development and faster deployment.
Startups should look at partnering with EMEC or similar testing facilities. Access to real-world conditions can help refine and improve technologies before large-scale deployment.
7. The US Department of Energy estimates that wave energy alone could supply 66% of the US electricity demand
Why This Is a Massive Business Opportunity
The fact that wave energy alone could supply two-thirds of the US electricity demand is a staggering statistic. It signals that the country has a largely untapped, predictable, and sustainable power source sitting off its coasts. For businesses, this isn’t just an environmental win—it’s an economic one.
With the US grid shifting toward renewables, wave energy has the potential to be a cornerstone of the nation’s future power infrastructure.
Early movers who develop the right technologies, secure coastal rights, and forge strategic partnerships will be in prime position to capitalize on this billion-dollar industry before it reaches mass adoption.
8. Canada has the potential to generate over 35 GW of tidal energy, particularly in the Bay of Fundy
We know Canada boasts a massive 35 GW tidal energy potential, particularly concentrated in the Bay of Fundy. But what does that really mean for businesses looking to get involved? It’s not just about raw numbers; it’s about strategic opportunities and navigating a developing market.
Mapping the Bay of Fundy: Identifying Prime Locations
The Bay of Fundy isn’t a uniform expanse. Within it, certain areas possess significantly higher tidal ranges and flow velocities, making them ideal for turbine deployment. Think about it: pinpointing these “hotspots” is crucial for maximizing energy output and minimizing infrastructure costs.
For businesses, this means investing in detailed hydrographic surveys and collaborating with local experts who possess intimate knowledge of the Bay’s dynamics. Understanding the specific nuances of each potential site is paramount.
Navigating Regulatory Frameworks: A Step-by-Step Approach
While the potential is vast, navigating Canada’s regulatory landscape for tidal energy can be complex. From environmental assessments to securing permits, businesses must adopt a proactive and systematic approach.
This involves engaging with relevant federal and provincial agencies early in the process. Consider forming strategic partnerships with local communities and First Nations groups, as their involvement can streamline approval processes and foster long-term project sustainability.
A clear, phased approach to regulatory compliance is key to avoiding costly delays and ensuring project viability.
9. China leads Asia in tidal energy deployment, with a total installed capacity of 3.9 MW in Zhejiang Province
Why China’s Tidal Energy Leadership Matters for Global Markets
China’s position as Asia’s tidal energy frontrunner is not just a regional development—it’s a strategic move that signals a shift in the global renewable energy race.
With 3.9 MW of installed capacity in Zhejiang Province, China is demonstrating its commitment to harnessing marine energy, and this is just the beginning.
For businesses, this presents an enormous opportunity. China’s aggressive push into tidal energy means increased government backing, expanded infrastructure, and a growing market for technology providers, developers, and supply chain players.
Those who engage early in this market will be well-positioned to establish dominance before competition intensifies.
10. France’s La Rance tidal power plant has been operational since 1966 and generates 240 MW
The La Rance tidal power plant, operational since 1966 and generating 240 MW, isn’t just a historical footnote. It’s a living laboratory, offering invaluable insights for businesses seeking to invest in long-term tidal energy projects.
Deciphering La Rance’s Operational Data: Predictive Maintenance and Optimization
La Rance’s decades of operation have generated a treasure trove of data on turbine performance, environmental impact, and maintenance requirements. For businesses, this data is gold.
Think about it: by analyzing La Rance’s operational history, companies can develop predictive maintenance strategies, optimize turbine design for longevity, and minimize downtime. This data can also assist in creating better and more accurate environmental impact reports.
La Rance’s Grid Integration: Lessons for Modern Energy Systems
Integrating a large-scale tidal power plant into the existing grid was a pioneering feat in the 1960s. Today, with the increasing adoption of renewable energy sources, La Rance’s experience offers valuable lessons for grid operators and developers.
For businesses, this means understanding the technical challenges and solutions associated with grid integration, including frequency regulation, voltage control, and energy storage. Learning from La Rance’s successful integration can help streamline the process for future tidal energy projects.
11. South Korea’s Sihwa Lake tidal power station has an installed capacity of 254 MW, the world’s largest tidal energy plant
Why Sihwa Lake’s Success Is a Blueprint for Future Tidal Energy Projects
South Korea’s Sihwa Lake Tidal Power Station isn’t just a milestone in renewable energy—it’s a proof of concept that tidal power can be deployed at a massive scale.
With an installed capacity of 254 MW, it stands as the world’s largest tidal energy plant, generating clean electricity while repurposing existing coastal infrastructure.
For businesses, this project provides invaluable insights into how tidal energy can be scaled, integrated into existing energy grids, and leveraged for commercial success.
It also signals South Korea’s long-term commitment to marine energy, opening up significant opportunities for companies involved in technology development, infrastructure, and energy investment.
12. Wave and tidal energy projects received over $300 million in investments in 2022 alone
Investment is ramping up. This indicates that confidence in the industry is growing.
For startups, this is a sign to take action. Securing funding now, before the market becomes saturated, will be crucial. Investors should also look at promising companies with scalable solutions.
13. The European Commission aims to install 100 MW of ocean energy by 2025 and scale up to 1 GW by 2030
Why This Ambitious Plan Creates a Golden Opportunity for Businesses
The European Commission’s goal of scaling ocean energy from 100 MW in 2025 to 1 GW by 2030 is not just a policy directive—it’s a massive business opportunity.
This roadmap signals serious investment in marine renewables, creating a thriving market for developers, technology providers, and infrastructure specialists.
For businesses, the next few years will be critical. Companies that align with this expansion early will have the first-mover advantage, securing contracts, forming partnerships, and shaping the future of ocean energy before the market becomes saturated.
14. The UK government has pledged £20 million annually for tidal stream projects through its Contracts for Difference (CfD) scheme
A Major Boost for Tidal Energy Expansion
The UK’s pledge of £20 million per year for tidal stream projects under the Contracts for Difference (CfD) scheme is more than just financial backing—it’s a strategic move to accelerate the commercial viability of tidal energy.
For businesses eyeing opportunities in this sector, this commitment provides a clear signal: the government is serious about scaling up tidal power as a key renewable energy source.
Unlike other renewables, tidal energy offers unparalleled predictability. Unlike wind and solar, where energy output fluctuates based on weather conditions, tidal streams are governed by lunar cycles, making them far more reliable.
This reliability makes tidal energy a prime candidate for investment, particularly as the UK seeks to strengthen its energy security and reduce reliance on imported fossil fuels.
15. The cost of tidal energy is expected to decrease to $100/MWh by 2035, making it competitive with offshore wind
Why This Cost Reduction Signals a Turning Point for Businesses
Tidal energy has long been seen as an expensive, niche technology, but that perception is rapidly changing. With costs projected to drop to $100/MWh by 2035, tidal energy is on track to compete directly with offshore wind, one of the world’s leading renewable energy sources.
This shift represents a pivotal moment for businesses, investors, and policymakers looking to capitalize on the next wave of clean energy innovation.
For businesses, this means tidal energy will no longer be an experimental or high-risk investment.
As costs fall and deployment scales up, companies that enter the market early will have a significant advantage in securing prime project sites, technology patents, and government incentives.
16. Over 500 patents for wave and tidal technologies have been filed in the last five years
Innovation is accelerating. The surge in patents shows that companies and researchers are actively improving tidal and wave energy technologies. New turbine designs, better energy storage methods, and enhanced materials are being developed to make these energy sources more viable.
Businesses should consider investing in R&D to create proprietary technologies. For startups, securing patents can make them more attractive to investors.
Entrepreneurs looking to enter the market should explore licensing opportunities to leverage existing patented technologies rather than starting from scratch.
17. Scotland’s MeyGen project is the largest tidal stream array in the world, with a planned capacity of 398 MW
The MeyGen project is proving that tidal energy can be scaled up. It has successfully delivered power to the UK grid and continues to expand. The lessons learned from this project will help other countries develop large-scale tidal arrays.
Investors should pay close attention to projects like MeyGen. As more data comes in, the cost efficiency of tidal energy will improve. Companies in the renewable sector should study the MeyGen model and look for ways to replicate its success in regions with strong tidal resources.
18. The global ocean energy workforce is expected to grow to over 20,000 jobs by 2030
As the industry expands, so does job creation. The demand for engineers, marine biologists, and project managers in tidal and wave energy will continue to rise.
Educational institutions should develop specialized programs in marine energy technology. Companies should invest in training to ensure they have a skilled workforce ready to meet the industry’s demands.
Governments can also create job transition programs to help workers from fossil fuel industries move into ocean energy roles.
19. The EU’s Blue Economy Strategy estimates that ocean energy could provide 10% of Europe’s electricity by 2050
Europe is setting long-term goals to integrate ocean energy into its power grid. This means continued investment and policy support for tidal and wave energy projects.
For businesses, this is an opportunity to establish partnerships with EU-funded projects. Investors should align with European companies developing scalable marine energy solutions.
Governments outside Europe should observe and learn from the EU’s approach to implementing large-scale marine energy integration.
20. The levelized cost of energy (LCOE) for tidal stream projects has dropped from $700/MWh in 2010 to below $200/MWh in 2023
Cost reduction is one of the most important factors for the long-term success of tidal energy. In just over a decade, the cost has fallen significantly, and further reductions are expected.
Companies should focus on developing technologies that further reduce costs. Innovations in maintenance, materials, and energy storage can contribute to making tidal energy more affordable. Investors should look at companies working on cost-saving solutions to gain a competitive edge.
21. More than 10 countries have implemented national policies or funding initiatives for wave and tidal energy development
Governments worldwide are recognizing the potential of tidal and wave energy. Funding initiatives, tax incentives, and policy frameworks are being put in place to support the industry.
Businesses should take advantage of government support. Companies should stay updated on policy changes and apply for available grants and funding. Investors should focus on regions where governments are actively supporting marine energy projects.
22. Ocean energy has received over $4 billion in total global investment since 2000
While this is a large investment, it is still small compared to other renewable energy sectors. However, as technology improves and costs decline, more investors will enter the market.
Businesses should prepare for increased competition. Those who establish themselves early will be better positioned to attract funding when larger institutional investors enter the space. Startups should focus on securing early-stage funding before the market becomes crowded.
23. The global ocean energy capacity could reach 40 GW by 2050 if supportive policies and R&D continue
40 GW is a significant amount of power—enough to replace several fossil fuel plants. However, achieving this goal will require continued research, funding, and infrastructure development.
Governments must provide stable policy frameworks to encourage long-term investments. Businesses should align their strategies with projected industry growth. Investors should support companies that focus on scaling up production and infrastructure.
24. Over 200 marine energy devices have been deployed globally for testing and commercial operations
This number shows that many different technologies are being tested, but it also highlights that the industry is still in a development phase. The challenge now is to refine these technologies and scale them for commercial use.
Companies should focus on standardization. The industry needs to move from experimental devices to proven, bankable technologies. Investors should look for companies that have successfully tested and refined their technology in real-world conditions.
25. The US Wave Energy Prize competition saw a 300% increase in energy capture efficiency among finalist devices
Efficiency improvements are critical for wave and tidal energy to become mainstream. The dramatic increase in energy capture efficiency shows that the industry is making rapid progress.
Startups should continue refining their devices to improve efficiency. Governments should sponsor similar competitions to accelerate innovation. Investors should look at companies achieving high efficiency in energy conversion.
26. The UK has an estimated 11 GW of economically viable wave and tidal energy potential
This represents a massive untapped energy source. The UK has some of the strongest wave and tidal currents in the world, making it an ideal location for large-scale deployment.
Companies should push for projects that make use of this resource. The UK government should ensure that policies support long-term investment in wave and tidal energy. Investors should focus on companies developing projects in high-potential areas.
27. South Korea plans to develop 2.5 GW of tidal energy by 2040 to reduce dependence on fossil fuels
South Korea’s plan is ambitious but necessary. The country relies heavily on imported energy, and developing its tidal resources will enhance energy security.
Businesses in the region should look for opportunities in tidal infrastructure development. Investors should explore partnerships with South Korean companies leading in marine energy. Other nations should observe and consider similar energy diversification strategies.
28. Japan is investing over $100 million in tidal and wave energy pilot projects through 2030
Why Japan’s Investment in Marine Energy Is a Game-Changer
Japan’s commitment to investing over $100 million in tidal and wave energy pilot projects is not just about expanding its renewable energy mix—it’s a strategic move to secure energy independence and reduce reliance on fossil fuel imports.
With limited land for large-scale solar and wind farms, Japan is turning to its vast coastal waters to harness the power of the ocean.
For businesses, this investment represents a prime opportunity to enter a rapidly growing market. Japan is not just funding research—it’s actively supporting the commercialization of marine energy technologies, infrastructure development, and grid integration.
Companies that align with Japan’s energy transition strategy now can establish themselves as key players before the market reaches full-scale deployment.
29. Norway’s Havkraft Wave Energy system has demonstrated over 90% efficiency in energy capture in recent tests
This is a significant breakthrough. High efficiency is one of the key factors in making wave energy commercially viable. If these results hold up in large-scale applications, it could change the economics of wave energy.
Companies should study Havkraft’s technology to see how it can be applied elsewhere. Investors should pay attention to companies that are improving energy capture efficiency. Governments should support high-efficiency marine energy projects through grants and incentives.
30. The global ocean energy sector could generate $76 billion in economic benefits by 2050 through job creation and industry growth
The economic impact of tidal and wave energy goes beyond just electricity production. New industries, supply chains, and service sectors will emerge as marine energy expands.
Governments should prioritize ocean energy as a key part of their economic development plans. Businesses should explore opportunities in related industries such as marine engineering, energy storage, and offshore infrastructure. Investors should look at ocean energy not just as a power source but as a growing economic sector.
wrapping it up
Tidal and wave energy are no longer just futuristic concepts; they are becoming serious contenders in the global energy mix.
The statistics make it clear—this industry is expanding at an unprecedented pace. Investment is rising, technology is improving, and more countries are committing to marine energy as a key part of their renewable strategies.
