Tidal power market set to reach $10 billion by 2031

The global wave and tidal energy market is expected to be valued in the region of $10 billion by 2031, according to a new report.

The analysis, by Astute Analytica, valued the sector at some $478 million in 2022 and says it is projected to generate a revenue of around $10 billion by 2031 at a compound annual growth rate (CAGR) of 43% during the forecast period. 

According to the report, as of 2021, global installed capacity for wave and tidal energy was approximately 530 MW and is projected to grow at a CAGR of around 43% from 2023 to 2031, reaching a total installed capacity of over 2,238 MW by 2031. 

This growth is expected to be driven by technological advancements, increased investments, and favourable policies to promote the adoption of renewable energy sources.

The report also notes that the European Union (EU) has allocated EUR300 million for wave and tidal energy projects between 2021 and 2027 under the Horizon Europe program, focusing on research, innovation, and market uptake.

Meanwhile, the US Department of Energy (DOE) has provided more than $100 million in funding for wave and tidal energy projects in recent years, with plans to further support research and development initiatives.

The UK government has also set aside £160 million for the development of tidal and wave energy projects, aiming to generate 30% of the country’s electricity from offshore renewable sources by 2030 and the Australian Renewable Energy Agency (ARENA) has invested over A$50 million in various marine energy projects, including wave and tidal power.