The global wave and tidal energy market is fragmented with over 200 companies currently operational and none holding a dominant share. The development of this technology is still in the nascent phase, which leaves potential scope for new players to introduce innovative technologies. As a result, it is uncertain whether it would consolidate in the near future. The report observes that the duration of prototype testing to project demonstration to eventual large-scale commercial project construction is a long one. Also, constant financial and policy support from respective governments is imperative for the full-fledged commercialization of wave and tidal energy.
The report suggests that strategic alliances are mandatory for small technology developers and special purpose project companies to prosper. These alliances are equally important for players with financial might too, to gain advantage in the fragmented global market for wave and tidal energy. Some of the key players operational in the global wave and tidal energy market are Carnegie Wave Energy Ltd., Pelamis Wave Power Ltd., Ocean Renewable Power Company LLC, Ocean Power Technologies, Inc., Tenax Energy, Atlantis Resources Ltd., AquaGen Technologies, S.D.E. Energy Ltd., and Marine Current Turbines Ltd.
Valued at US$497.7 mn in 2014, the global wave and tidal energy market is estimated to reach a valuation of US$11,345.0 mn by 2024, rising at a robust CAGR of 23.2% during the forecast period of 2016 to 2024.
Oceans Contain Vast Clean Energy Resources
Technological advancements have proven that if harnessed properly, the vast ocean area could prove to be a significant source of sustainable energy, which also is clean and in sync with environmental preservation requirements. Wave and tidal energy enable the exploitation of ocean energy, although they have contrastingly different market dynamics.
Tidal energy is segmented into tidal stream and tidal range energy. The latter is a mature form of energy generation technology and entails the construction of tidal barrages. The former, tidal stream power plants, is a new technology with plenty of scope for development. On the other hand, wave energy is still under forthcoming technology with a relatively new concept. All these segments are expected to witness significant growth in terms of installed capacity and investments during the forecast period.
Geographically, the global market for wave and tidal energy can be segmented into North America, Europe, Asia Pacific, and Rest of the World. Major developments are underway in Europe, which are expected to sustain the region as the most prominent regional market. South Korea has been detected by the report as one of the most significantly developing markets in terms of tidal barrage operations. Wave energy development in Asia Pacific is expected to remain concentrated in Australia.
Heavy Initial Investments Hindering Growth Rate
Preservation of the environment by extending the use of clean energy is a primary focus across the globe, and depleting conventional energy resources call for the development of new resources that are in abundance, Moreover, several governments in developed as well as developing nations are encouraging new energy technologies with supportive long-term policies and subsidies. These factors are expected to drive the global market for wave and tidal energy.
However, return of investment (ROI) remains the most prominent restraint on the global market for wave and tidal energy as entering the market requires high initial investments. Additionally, the commercialization of technology is awaited in this sector as only tidal barrages are currently capable of ROI, while wave and tidal steam are still only a potential concept.
According to the author of the report, “The general trend in the wade and tidal energy market indicates a retraction of grant and venture capital financing. The market would have to be dependent solely upon private equity or debt financing, for which commercial viability of projects is an absolute necessity.” The author suggests primarily focusing on the commercial deployment of these technologies with long-term power sales contracts as priority.
The information presented in this review is based on a Transparency Market Research report, titled, “Wave and Tidal Energy Market (Energy Type - Tidal and Wave) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2016-2024.”
Key Segments of the Global Wave and Tidal Energy Market
Wave and Tidal Energy Market: Type analysis
- Wave energy
- Tidal energy
Wave and Tidal Energy Market: Geography analysis
- North America
- Asia Pacific
- South Korea
- Rest of the World
- South Africa
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