Market Dynamics
Introduction
Wave energy converters (WECs) are a new and exciting advancement in the renewable energy market. WECs use the kinetic energy of ocean waves to generate electrical power. Wave energy is very consistent and renewable, and renewable sources of energy have some of the highest energy density of their renewable cousins. WECs can be in point absorbers, oscillating water columns, and attenuators. All of these have different designs for different marine environments and energy needs. With the world moving towards the diversification of its energy supply and removing its reliance on fossil fuels, wave energy could become increasingly popular, since it can provide a reliable base-load of power, particularly for coastal countries.
Wave energy converters will hold increasing appeal as the shift to renewable energy dramatically picks up momentum globally. Government support, innovation, coupled with established marine energy infrastructure is fueling the market for WECs; while the technology is at a very early-stage relative to wind and solar—countries, such as the UK, Portugal, Sweden and Australia, have successfully advanced WEC technologies under public-private partnerships, governmental funding, and test centers. Climate goals set the developing world on a pathway toward 'net-zero' emissions; there will be an increasing variety of decentralized and hybrid renewable energy systems, among which WECs will be in a great position to contribute to a worldwide clean energy portfolio.
Market Driver
The primary catalyst for the wave energy converter market is the worldwide transition to decarbonized energy systems that are accessing previously untapped renewable sources like ocean energy. Due to the high predictability, minimal aesthetic concerns, and the capability to generate energy in the absence of solar or wind, wave energy will bolster the energy market. As governments and utilities look to meet their net-zero commitments while satisfying energy security and reliability needs, wave energy will become a more appealing resource, most particularly in coastal and island nations with predictable wave resources and limited land space.
Recent Market JVs and Acquisitions:
A few strategic alliances, including M&As, JVs, etc., have been performed over the past few years:
- In December 2023, CorPower Ocean partnered with TotalEnergies and InnoEnergy.
Market Segments' Analysis
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Segmentations
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List of Sub-Segments
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Segments with High-Growth Opportunity
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Technology-Type Analysis
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Point Absorber, Oscillating Water Column, Attenuator, Overtopping Device, Rotating Mass/Archimedes Screw, and Submerged Pressure Differential Devices
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Point Absorbers are expected to remain dominant in the coming years.
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Location of Deployment-Type Analysis
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Onshore, Nearshore, and Offshore
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Offshore deployment is anticipated to hold the largest share of the market in the upcoming years.
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Application-Type Analysis
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Power Generation for Grid, Desalination, Marine and Island Microgrids, Remote Monitoring Stations & Navigation Aids, and Military and Research Applications
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Power Generation for Grid is expected to be the largest application type in the market.
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End User-Type Analysis
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Utilities & Independent Power Producers, Government and Research Institutions, Ports & Maritime Authorities, Defense & Offshore Infrastructure, and Water Utilities
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Utilities & Independent Power Producers are expected to be the largest end-user type in the market.
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Region Analysis
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North America, Europe, Asia-Pacific, and The Rest of the World
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Europe is expected to maintain its reign over the forecast period.
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By Technology Type
“Point absorbers are expected to remain dominant in the market during the forecast period.”
Point absorbers are the leading technology in the WEC market given their relatively simple designs, ease of scalability, and capability to adapt to marine environments. Point absorbers can extract energy from all directions, can be deployed independently or in arrays, and therefore cover a range from pilot to pre-commercial projects. Companies such as Ocean Power Technologies and CorPower Ocean are moving this technology forward.
Point absorbers are, in general, smaller, modular in scope, and therefore less capital-intensive and more versatile than larger-scale attenuators or complex overtopping devices. With the potential to be multidisciplinary devices in ocean samples, there is more interest in investment and testing in various geo-spatial arrangements, rather than in Europe and North America.
By Location of Deployment Type
“Offshore is expected to be the dominant market during the forecast period.”
Offshore wave energy projects predominate in the marketplace due to access to higher-quality and more consistent wave energy resources, resulting in conversion to higher levels of energy output. Offshore systems can avoid coastal interferences and support larger capacity installations, which are more suited to utility-scale power generation.
While onshore and nearshore devices are easier to maintain, they are nonetheless compromised by wave dissipation, where waves lose energy traveling toward shore, and limitations associated with land use. Since the introduction of subsea cabling and mooring systems, offshore deployment has proven to be more acceptable and preferable for advancing the scaling of wave energy projects around the world.
By Application Type
“Power generation for the grid is expected to be the dominant application type in the market during the forecast period.”
Generating power for the electricity grid is still the primary application for wave energy converters. Governments and utilities are pursuing clean energy integration, and wave energy provides a promise of clean, predictable, and almost base-load compatible renewable energy option that can be integrated with the intermittency of wind and solar.
Desalination and more remote ‘marine’ applications, while generating interest as additional niche opportunities are newer and much smaller than the utility scale projects, which are in early stage development in the UK, Portugal, Australia and the U.S. Various supportive mechanisms (e.g., feed in tariffs, power purchase agreements, green hydrogen development, etc.) will entrench the future of wave power into the global grid supply.
By End User Type
“Utilities & Independent power producers are anticipated to be the dominant force in the market during the forecast period.”
Utilities and Independent Power Producers (IPPs) are usually the primary end-users in the market for wave energy converters. These end-users are investing in renewable sources to begin incorporating electricity from wave energy onto the existing utility grids. Essentially, these market participants have the financial capabilities and existing infrastructure to trial pilot projects, investigate performance over a longer duration, and eventually expand activity through scaling within the markets they serve. Utilities and IPPs are involved as both are active in Europe, particularly where regulatory frameworks place a value on clean energy through feed-in tariffs to encourage early adopter status for marine renewables.
In addition to the financial capabilities of utilities and IPPs, the predictability of wave energy allows utilities and IPPs to bundle renewable sources like wave energy with more intermittent solar and wind sources of energy so that the more predictable wave energy output can balance those intermittent sources. The renewed long-term interest from utilities and IPPs will set the groundwork for revenue streams that both recognize and reward the diversification of renewable asset sources, in particular, coastal and island grid systems that fulfil operating objectives via political climate objectives, issuance of green bonds, and/or carbon offset or credit initiatives.
Regional Analysis
Europe is expected to remain the largest market for wave energy converters during the forecast period.”
The global market for wave energy converters is anchored in Europe (and the Northeast Atlantic region) as an outcome of early investments and regulatory support, and the development of a robust research and development infrastructure. The region contains some of the most highly developed wave energy testing and demonstration sites in the world, such as the European Marine Energy Centre (EMEC) in the United Kingdom and the Biscay Marine Energy Platform (BiMEP) in Spain. Countries such as Portugal, Scotland, Ireland, and Sweden are actively pursuing public-private partnerships, pilot deployments, and funding grants in wave energy development to reach commercialization of novel concepts.
Adding to this momentum, the European Union has made renewable marine energy relying on onsite wave energy a "strategic priority" within the context of the Green Deal and its climate-neutral goals for 2050. With considerable investment, inter-country collaboration, and established developers like CorPower Ocean and Mocean Energy, it is expected that Europe will continue to be the leader and outpace competitors in the marine renewable devices, including wave energy converters, through the forecast period.
Report Features
This report provides market intelligence most comprehensively. The report structure has been kept so that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:
- Market structure: Overview, industry life cycle analysis, supply chain analysis.
- Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
- Market trend and forecast analysis.
- Market segment trend and forecast.
- Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
- COVID-19 impact and its recovery curve.
- Attractive market segments and associated growth opportunities.
- Emerging trends.
- Strategic growth opportunities for the existing and new players.
- Key success factors.
The wave energy converter market is segmented into the following categories.
Wave Energy Converter Market, by Technology Type
- Point Absorber (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of World)
- Oscillating Water Column (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of World)
- Attenuator (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of World)
- Overtopping Device (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of World)
- Rotating Mass/Archimedes Screw (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of World)
- Submerged Pressure Differential Devices (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of World)
Wave Energy Converter Market by Location of Deployment Type
- Onshore (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of World)
- Nearshore (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of World)
- Offshore (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of World)
Wave Energy Converter Market by Application Type
- Power Generation for Grid (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of World)
- Desalination (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of World)
- Marine and Island Microgrids (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of World)
- Remote Monitoring Stations & Navigation Aids (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of World)
- Military and Research Applications (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of World)
Wave Energy Converter Market by End-User Type
- Utilities & Independent Power Producers (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of World)
- Government and Research Institutions (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of World)
- Ports & Maritime Authorities (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of World)
- Defense & Offshore Infrastructure (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of World)
- Water Utilities (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of World)
Wave Energy Converter Market by Region
- North America (Country Analysis: The USA, Canada, and Mexico)
- Europe (Country Analysis: Germany, France, The UK, Russia, and the Rest of Europe)
- Asia-Pacific (Country Analysis: Japan, China, India, and Rest of Asia-Pacific)
- Rest of the World (Country Analysis: Brazil, Saudi Arabia, and Others)
