Wave Energy Converter Market Trend, Share, Growth, Size and Forecast 2032

Wave Energy Converter Industry Prospective:

The global wave energy converter market size was worth around USD 18.52 billion in 2023 and is predicted to grow to around USD 29.48 billion by 2032 with a compound annual growth rate (CAGR) of roughly 5.30% between 2024 and 2032.

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Wave Energy Converter Market: Overview

Wave energy converters (WECs) are equipment used for converting the potential and kinetic energy of waves into more usable energy forms such as electrical or mechanical power. These converters are beneficial for generating clean energy that can be further used for powering the electrical grid, pumping for seawater desalination, and ocean vehicle propulsion. The most common forms of wave energy converters used are terminators, point absorbers, oscillating wave surge, attenuators, submerged pressure differential, oscillating water column, and rotating mass. Currently, the industry offers several types of wave energy converts since the device application continues to differ based on wave conditions or ocean environment. The presence of a number of WECs is one of the leading causes of limited growth in the industry since there is a significant lack of standardization. While the application of wave energy converters offers several benefits, the industry is currently facing a low rate of investments. The projection period may generate high growth opportunities for the market players.

Key Insights:

• As per the analysis shared by our research analyst, the global wave energy converter market is estimated to grow annually at a CAGR of around 5.30% over the forecast period (2024-2032)
• In terms of revenue, the global wave energy converter market size was valued at around USD 18.52 billion in 2023 and is projected to reach USD 29.48 billion, by 2032.
• The market is projected to grow at a significant rate due to the rising demand for renewable energy
• Based on application segmentation, power generation was predicted to show maximum market share in the year 2023
• Based on location segmentation, offshore was the leading segment in 2023
• On the basis of region, Europe was the leading revenue generator in 2023

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Wave Energy Converter Market: Growth Drivers

Rising demand for renewable energy will drive the market demand

The global wave energy converter market is expected to witness high growth due to the increasing demand for renewable energy across the globe. One of the more pressing concerns of the modern global world is the negative environmental impact of exhaustive dependence on nonrenewable energy. The excessive exploitation of natural gas and fossil fuels has a comprehensive impact on the ecosystem. For instance, natural gas extraction is a leading cause of methane release. It is an extremely harmful greenhouse gas. Moreover, natural gas burning also leads to the emission of other intense gasses such as sulfur dioxide (SO2), nitrogen oxides (NOx), and carbon monoxide. These power sources are depleting rapidly as the end-consumption rate is surging exponentially with the rise in industrialization, commercialization, and urbanization. Consumer awareness is also rising steadily as the impact of the overconsumption of non-renewable energy is evident in the constantly changing price of energy units such as petrol and diesel.

Additionally, the supply chain disruptions in the energy sector are directly associated with the growing inflation rate across the globe. Hence, there is a greater need to deploy and harvest renewable energy sources such as solar and wave power. While the former energy type has already gained heavy momentum in the last 5 years, wind energy is witnessing a steady rise in terms of interest and investment from governments and environmental agencies. In 2023, the European Union built around 17 wind power farms following the region’s vision focusing on energy transition by 2030. In March 2024, the Climate Fund Manager, investment advisers, and the Southern African Power Pool (SAPP) announced a new target fund worth USD 1.3 billion which will be used for the construction of high-voltage transmission lines linking several regions in the South African nation.

Rising investments in offshore activities and deep-sea exploration could fuel the market growth rate

Wave energy converters are expected to generate high demand due to the rising investments in offshore activities across the globe. Offshore projects require extensive sea or ocean-appropriate infrastructure that can support all forms of offshore research and development activities. These infrastructure settings have high energy demands that can be met by harnessing the abundantly available wind energy. Additionally, deep-sea exploration projects are on the rise which could further impact the global wave energy converter market.

Wave Energy Converter Market: Restraints

High cost of investments and maintenance could restrict the market expansion rate

The global wave energy converter market is expected to be restricted due to the high cost of investment associated with the construction of WECs. When compared to solar or wind energy, harnessing wave power is more expensive due to the several challenges concerning the construction of large-scale equipment and its maintenance in harsh and unpredictable waters for multiple years. Additionally, the regulatory framework surrounding the permission to use WECs in international waters further deflects potential investment to other areas.

Wave Energy Converter Market: Opportunities

Rising development of novel converters will aid in the market expansion trend

The global wave energy converter market is expected to generate growth opportunities due to the rising development of new and improved converters with higher performance.

In February 2024, a Sweden-based company operating in the wave energy converter sector, CorPower Ocean, announced its device C4 WEC had made a major breakthrough after completing the first cycle of the ocean commissioning program held in Northern Portugal. The new wave energy converter managed to overcome some of the key challenges the device was facing initially in the form of efficient power generation and storm survivability.

In December 2022, researchers at the Indian Institute of Technology (IIT) - Madras developed a new wave energy converter. The electricity-generating tool leverages the power output of the ocean waves and is expected to generate 1 MW of power in the coming three years. The growing focus on the development of WECs that offer all-round services has high growth potential. Since the cost of manufacturing wave energy converters is high, manufacturers are targeting solutions that can be integrated with other energy-generating sources to improve the cost-efficiency of the device.

In October 2023, Hawaii-based startup Wavr LLC announced that it was working on developing a wave energy converter that can be integrated into other renewable energy sources and also offers scalability services. As per company plans, once the design can be made commercially available, it will be sold at a price of USD 2300 consisting of five 40 W solar panels.

Rising partnerships and collaborations domestically and internationally will help in further market expansion

The globalization of the renewable energy industry has led to increased investments in international partnerships which is expected to create a higher growth scope for the global wave energy converter market.

For instance, in August 2023, the Ministry of New and Renewable Energy (MNRE) from India and the U.S. Department of Energy (DOE) announced the launch of U.S. - India Renewable Energy Technology Action Platform (RETAP) as a part of the Strategic Clean Energy Partnership.

Wave Energy Converter Market: Challenges

Achieving optimum efficiency in WECs could be challenging for the industry players

The global industry for wave energy converters faces challenges when trying to optimize the power efficiency of wave energy converters. The current WECs have conversion efficiency below 50% and to maximize energy collection they must be tuned to the specific wave frequency which can be challenging to achieve in harsh weather conditions. The intense environment of the ocean and the seas can further complicate product performance.

Wave Energy Converter Market: Segmentation

The global wave energy converter market is segmented based on application, technology, location, and region.

Based on application, the global market divisions are desalination, power generation, and environmental protection. In 2023, the highest demand was witnessed in the power generation segment. The growing energy needs across industries and increased focus on generating clean energy is fueling the segmental growth rate. In 2022, the global renewable energy market was valued at over USD 900 billion and is expected to emerge as one of the fastest-growing industries during the forecast period.

Based on technology, the global wave energy converter industry is segmented into overtopping devices, oscillating body converters, rotating mass converters, oscillating water columns, and others.

Based on location, the global market segments are offshore, shoreline, and nearshore. In 2023, the highest demand was observed in the offshore segment. The growing investments in offshore projects are expected to drive the segmental demand. However, this equipment has to be extremely advanced in terms of technology. Additionally, wave energy converters can also be placed nearshore in areas with strong waves. As per market research, wave energy, if harnessed efficiently, can create up to 2 Terawatt (TW) per year globally.

Wave Energy Converter Market Report Scope

Wave Energy Converter Market: Regional Analysis

Europe is expected to become the highest revenue-generating market during the forecast period

The global wave energy converter market is expected to witness the highest growth in Europe during the forecast period. The region is one of the largest markets for clean and renewable energy. It has registered massive investments in the renewable sector in the last decade. As per official reports, the European Union has revised its renewable energy vision in the form of Renewable Energy Directive EU/2023/2413. As per the new set of targets, the region has set a minimum target of 42.5% for renewable energy. Countries such as Spain and Scotland are at the forefront of wave energy generation. Around USD 82 million have been allotted from the Horizon Europe 2023-24 funding for the pilot farm demonstrations. In addition to this, the regional players are extensively working on researching and developing the most efficient ways to harness wave energy. They are leading the development trajectory with the successful launch of a new wave energy converter. North America is expected to generate significant growth in the coming years. The US is projected to lead the regional market growth rate. In March 2022, CalWave Power Technologies launched California’s first long-term WEC for harnessing the power of wave energy.

Wave Energy Converter Market: Competitive Analysis

The global wave energy converter market is led by players like:

• Bombora Wave Power
• CorPower Ocean
• RMEnergy
• Ocean Power Technologies
• SINN Power
• Mocean Energy
• Carnegie Clean Energy
• AWS Ocean Energy
• Waves4Power
• Seatricity
• Aquamarine Power (now part of Aegir Wave Power)
• Wavestar
• Eco Wave Power
• Oscilla Power
• Wello Oy.

The global wave energy converter market is segmented as follows:

By Application

• Desalination
• Power Generation
• Environmental Protection

By Technology

• Overtopping Devices
• Oscillating Body Converters
• Rotating Mass Converters
• Oscillating Water Columns

By Location

• Offshore
• Shoreline
• Nearshore

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa