A sizeable proportion of some 200 companies associated with the development of wave and tidal energy are involved in building technologies for energy converter devices. The market is currently fragmented and the industry still in a very nascent stage with ample scope of developing technologies for harnessing and distributing the wave and tidal energy. As a result time is ripe for new players to enter the market with innovative technologies.
In the near future, large original equipment manufacturers (OEMs) are predicted to foray into the market through acquisitions of smaller technology developers or by creating special purpose project companies. Small technology developers, on the other hand, would likely tie-up with large OEMs to speedily commercialize their technologies. On account of the fragmented nature of the market and massive room for growth with innovative technologies, the global wave and tidal energy market is forecasted to expand at an eye-popping CAGR of 23.2% from 2016 to 2024. It is expected to reach a value of US$11345.0 mn in 2024 from US$497.7 mn in 2014.
Rapid Capacity Installations to Power Market in Europe
Geographically, the global wave and tidal energy market has been segmented on the basis of major regions such as North America, Europe, Asia-Pacific, and the Rest of the World. Europe is predicted to be the hotbed of activities with a swift pace of capacity installations and technological developments for wave and tidal stream plants. France already has a 240 MW tidal power plant which has been operational since 1966 and comes second in terms of production capacity in the world. Scotland is an attractive place for project development because of the presence of a large number of companies and robust government support.
Powered by South Korea, which is forecasted to clock a stellar growth vis-à-vis tidal barrage operations, the Asia Pacific market is slated to expand at a rapid pace in the years ahead. In fact, South Korea is home to the gigantic tidal power plant that surpasses all others in terms of output capacity. Wave energy development in Asia Pacific will likely be concentrated in Australia. The wave and tidal energy industry in North America so far has lagged others on account of insufficient financial grants and stifling governmental sanctions.
Market Battles Steep Costs with Technology yet to go Mainstream
In the nascent global wave and tidal energy market, so far only tidal barrages have been able to generate returns on investments through the sale of electricity. The tidal barrages in France and South Korea bear testimony to the fact. However, tidal stream and wave power plants are not yet primed for generating power at grid parity levels and the underpinning technology is still to become mainstream. Once the technology is commercialized, costs would come down and companies would be able to receive equity and debt financing crucial for becoming profitable.
Wide-Scale Implementation to Bring Down Price and Stimulate Market
At present, the steep price of constructing wave and tidal energy power plants is a major market restraint. However, substantial cost reductions will be inevitable as the industry moves on from prototype testing to wide-scale implementation of the technology. “Companies are predicted to attain economies of scale from the manufacture of energy converter devices and from the construction of on-shore grid connection infrastructure. Further, the power plants will enjoy cost benefits from the sharing of fixed infrastructure. These are the primary factors likely to propel the wave and tidal energy market,” explains the analyst of the report.
This review is based on the findings of a TMR report titled “Wave and Tidal Energy Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2016 - 2024.”
Wave and Tidal Energy Market, by Type:
- Wave energy
- Tidal energy
Wave and Tidal Energy Market, by Geography
- North America
- Asia Pacific
- South Korea
- Rest of the World
- South Africa
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