Ocean power encompasses different technologies that extract energy from ocean waves, marine currents, tides, offshore winds, and temperature differences between warm surface water and cooler deep water. Ocean power technologies are regarded as a sustainable source of renewable energy with minimal environmental impact. Rising concerns about greenhouse gas emissions leading to global warming and rapid depletion of fossil fuels have increased the focus on developing clean and green ocean power solutions.
The global ocean power market is estimated to be valued at US$ 3,981.8 Mn in 2024 and is expected to exhibit a CAGR of 19.% over the forecast period 2024 to 2031.
Ocean Power Market Size provides a stable and predictable source of electricity as ocean waves and tides can be accurately predicted months in advance. Ocean power offers scope for small and large-scale deployment to meet the energy needs of remote coastal and offshore communities.
Key Takeaways
Key players operating in the ocean power market are AWS Ocean Energy, CalWave, Ocean Harvesting, CorPower Ocean, Applied Technologies Company Ltd., Aqua-Magnetics Inc., Atargis Energy Corporation, Able Technologies L.L.C., Alba tern Ltd, Aquagen Technologies, Aqua-Magnetics Inc, Biopower Systems Pty Ltd., Blue Energy Canada Inc., Carnegie Clean Energy Limited, Minesto AB, Nova Innovation Ltd., Mocean Energy, Andritz Hydro Hammerfest, Ocean Renewable Power Company LLC, and Tenax Energy. Ocean power technologies such as tidal stream generators, wave energy converters, ocean current turbines, salinity gradient power, and others offer opportunities for reliable zero-carbon energy production.
The favorable policy support in the form of subsidies, tax incentives, and renewable purchase obligations provided by governments in countries including the US, UK, Portugal, and Korea is expected to boost ocean power market growth. The ocean energy sector is gaining momentum globally with countries like the UK, China, Canada, France, and Australia investing heavily in ocean energy demonstration projects and commercial arrays to harness the potential of ocean renewable resources.
Market Drivers
The key drivers contributing to the growth of the ocean power market include rising investments in clean energy technologies by governments worldwide, declining cost of ocean energy technologies through advancements, and increasing support in the form of subsidies and financial incentives by governments. Rapid urbanization coupled with industrialization has increased the global energy demand exponentially which is further fueling the adoption of alternative clean energy sources including ocean power. Ocean renewable energy can play a significant role in transitioning from fossil fuels towards sustainable energy systems.
PEST Analysis
Political: Ocean power is dependent on regulations and policies put forth by governing bodies for research funding, permits for project development and installation, as well as incentives for purchasing ocean power. Favorable political conditions promote the adoption of ocean power technologies.
Economic: The high initial costs of developing ocean power technologies and installing ocean power projects make the industry dependent on subsidies and incentives to be economically viable. Market growth depends on supportive economic conditions and costs coming down with technological advancements and broader adoption.
Social: Ocean power is a renewable and sustainable energy source with minimal environmental impact. Growing environmental awareness and concerns around climate change are driving social acceptance of newer green technologies. Widespread public support gives confidence to investors.
Technological: Advances are being made in design of tidal turbines, wave energy converters and otherocean power technologies to improve energy extraction efficiency, reduce costs, and enable large-scale deployment in various sea states and oceanic conditions. Further technological progress is crucial to commercialization.
In terms of value, the ocean power market is currently concentrated in Europe, particularly United Kingdom, France, and Norway. These countries have ambitious targets for ocean energy and support research with favorable incentives. The Asia Pacific region is projected to be the fastest growing market during the forecast period owing to increasing focus on renewable sources in China, Japan, and Southeast Asia to meet energy demands in a sustainable manner.
The Ocean Power Market Regional Analysis is also expected to witness high growth in North America, particularly United States, supported by government initiatives and presence of several technology providers. Countries with long coastlines such as Australia and those in Latin America are recognized as future potential markets for ocean power as the technology matures and costs decline further through economies of scale.
About Author - Ravina Pandya
Ravina Pandya,a content writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemicals and materials, etc. With an MBA in E-commerce, she has expertise in SEO-optimized content that resonates with industry professionals. LinkedIn Profile