Europe Wave and Tidal Energy Market Outlook to 2030

Europe Wave and Tidal Energy Market Overview

• The Europe Wave and Tidal Energy Market is valued at USD 635 million, driven primarily by the regions ambitious renewable energy targets and substantial investments in sustainable energy infrastructure. With several countries aiming to diversify their energy mix and reduce carbon footprints, wave and tidal energy are gaining prominence. This market growth is supported by technological innovations and government incentives promoting clean energy sources.

• Leading the market are countries like the United Kingdom and France. The UK dominates due to its advanced R&D capabilities and numerous coastal regions suitable for harnessing wave and tidal energy, while France has a robust offshore infrastructure and supportive governmental policies. These nations are key players in shaping the European wave and tidal energy landscape.
• Horizon Europe, the EUs primary funding program for research and innovation, has allocated EUR 1 billion to marine energy projects between 2021 and 2027, with specific funds directed toward wave and tidal technologies. As of 2024, EUR 200 million has been disbursed, providing financial support to multiple projects focused on improving energy capture efficiency and grid integration.

Europe Wave and Tidal Energy Market Segmentation

By Technology: The market is segmented by technology into oscillating water columns, point absorbers, attenuators, tidal stream devices, and barrage and lagoon systems. Tidal stream devices hold the largest market share within this segment, as they efficiently convert kinetic energy from tidal currents into electricity. The ease of implementation in coastal areas and scalability have led to their widespread adoption, particularly in the UK, which has extensive tidal resources.

By End-User: The market is segmented by end-user into utility, industrial, residential, and commercial sectors. The utility segment dominates due to the large-scale power generation capacities required to meet national energy demands. Utilities have access to more substantial funding, making large tidal and wave energy installations feasible, especially in areas like France and Spain, where utility companies actively invest in renewable energy solutions to meet government mandates.

Europe Wave and Tidal Energy Market Competitive Landscape

The market is led by a combination of established players and innovative startups. The dominance of companies like SIMEC Atlantis and Orbital Marine Power showcases the role of both established firms and emerging tech-focused players in this space.

Europe Wave and Tidal Energy Market Analysis

Market Growth Drivers

• Increased Investments in Marine Energy Infrastructure: Investment in marine energy infrastructure across Europe has been on the rise, with over EUR 1.1 billion dedicated to wave and tidal energy projects by 2024. These investments are directed toward enhancing grid connectivity and expanding pilot projects, contributing to the increased capacity for wave and tidal energy generation.
• Energy Demand Rise in Coastal Regions: The rising energy demand in Europes coastal regions, driven by an estimated population of over 190 million people living near the coast, has put a strong emphasis on renewable energy sources like wave and tidal power. The demand for clean and locally sourced power is projected to reach nearly 900 TWh by 2025 in these regions alone, pushing governments and private sectors to prioritize renewable solutions, including wave and tidal energy, to reduce dependence on traditional energy imports.
• Emission Reduction Goals by the European Union (EU): The EU has set aggressive goals for emission reduction, aiming to achieve net-zero emissions by 2050. This has catalyzed the adoption of clean energy sources, with wave and tidal energy representing a promising area. In 2024, the EU allocated EUR 300 million toward ocean energy research and development, with 40% dedicated explicitly to the wave and tidal sector, demonstrating a committed shift toward marine renewables as a critical component of the future energy mix.

Market Challenges

• High Initial Costs and Long Payback Periods: Despite advancements, the capital cost of developing wave and tidal projects in Europe remains high, with initial costs averaging around EUR 6 million per megawatt for full-scale projects. The extended payback period, typically exceeding 15 years, poses financial challenges for stakeholders, especially when compared to other renewable sources like wind and solar energy, where costs have significantly reduced.
• Environmental and Regulatory Barriers: Stringent environmental regulations related to marine biodiversity protection add to the complexity of deploying wave and tidal projects. In 2024, the European Marine Board reported that nearly 30 proposed projects faced delays due to regulatory restrictions, which require extensive assessments to mitigate impacts on marine ecosystems.

Europe Wave and Tidal Energy Market Future Outlook

Over the next five years, the European Wave and Tidal Energy industry is poised to expand, fueled by continuous innovation, supportive policies, and large-scale infrastructure projects. The increasing involvement of both private and public sector investments, along with technological advances, is expected to drive robust growth.

Future Market Opportunities

• Expansion of Marine Renewable Energy Zones: Over the next five years, European countries are projected to designate additional marine renewable energy zones, with an expected 500 square kilometers added by 2029. These zones will enable large-scale deployment of wave and tidal projects, creating an ecosystem that fosters innovation and reduces project costs.
• Rise of Floating Wave Energy Platforms: Floating wave energy platforms, a technology expected to advance by 2029, will increase flexibility in site selection, enabling deployment in deeper waters. By 2028, these platforms are anticipated to contribute an additional 150 MW to Europes wave energy capacity, driven by ongoing R&D investments.