April 14, 2024
Wave Energy Converter Market

Wave Energy Converter Market Is Estimated To Witness High Growth Owing To Supportive Government Policies

The wave energy converter market has been gaining traction globally due to the abundant availability of waves as a renewable source of energy. Wave energy converters help harness the kinetic energy of ocean waves and convert it into usable electrical energy. These devices have several advantages such as zero carbon emission, reliable generation, and continuous availability as compared to intermittent sources. With rising energy demands and growing focus on environmental sustainability, wave energy converters are emerging as a promising renewable technology.

The global wave energy converter market is estimated to be valued at US$ 19.52 billion in 2024 and is expected to exhibit a CAGR of 4.2% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the wave energy converter market are Ocean Power Technologies, Marine Power Systems, Eco Wave Power, SINN Power GmbH, NEMOS GmbH, INGINE Inc., Carnegie Clean Energy, CorPower Ocean, AW-Energy Oy, AWS Ocean Energy, Wello Oy, HavKraft AS, Wave Dragon, Wave Swell, and Aquanet Power.

The Wave Energy Converter Market Trends provides numerous opportunities for players in areas such as developing cost-effective technologies, integrated grid solutions, hybrid systems, and larger deployment projects. Government incentives and investments are encouraging more private funding in wave energy.

Europe dominated the global market in 2021 owing to supportive policies and ambitious renewable energy targets in countries such as the UK, Portugal, and Denmark. However, with falling technology costs and increasing investments, Asia Pacific and North America are projected to witness fastest growth during the forecast period.

Market Drivers

Supportive government policies towards renewable energy generation play a vital role in driving the demand for wave energy converters. Many governments offer financial incentives such as investment subsidies, tax credits, and feed-in-tariffs to encourage commercial deployment of these technologies. For example, the US government initiated a loan guarantee program of $400 million for wave and tidal energy projects. This improves the business case for wave converter developers and attracts more private capital.

PEST Analysis

Political: The government policies and regulations play a key role in promoting clean energy. Various countries provide subsidies and incentives for companies developing wave energy converters to make the technology commercially viable.

Economic: Investments in renewable energy are increasing globally to reduce dependence on fossil fuels and mitigate climate change. The development of cost-effective wave energy conversion technology can attract more investments in this sector.

Social: Rising environmental concerns related to carbon emissions are driving the demand for cleaner power sources. Wave energy, being renewable and carbon-neutral, receives acceptance from the public and stakeholders.

Technological: Continuous research is being carried out to develop efficient and durable wave energy devices that can function under harsh marine conditions. New materials and digital technologies help improve the performance and reliability of wave energy converters.

Most of the market activity in terms of value is concentrated in Europe, especially countries with large coastlines like the UK, Portugal, Ireland and Norway. These regions have a high potential for wave energy and the governments are supporting various pilot and commercial projects.

The Asia Pacific region is projected to be the fastest growing market during the forecast period. Countries like China, Japan, South Korea and India are investing in wave energy to meet their renewable energy targets and address power deficit issues in coastal areas. Development of indigenous wave energy technology will boost the regional market.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it.