Global Wave Energy Market - 2022-2029

Global Wave Energy Market - 2022-2029

Market Overview

The global wave energy market reached US$ XX million in 2021 and is expected to reach US$ XX million by 2029, growing at a CAGR of XX% during the forecast period (2022-2029).

Wave energy converters collect and convert the energy inherent in ocean waves into electricity. The three main categories are oscillating water columns, which use trapped air pockets in a water column to drive a turbine; oscillating body converters, which are floating or submerged devices that generate electricity by moving up and down, forwards and backward and side to side; and overtopping converters, which use reservoirs to create a head and then drive turbines. Furthermore, each category can be divided into subcategories based on the technologies used to convert waves into pneumatic/mechanical energy, power systems, structures and positioning within the ocean.

Wave energy converters (WECs) capture the energy in ocean waves to generate electricity. Each technology utilizes different solutions to absorb energy from waves and can be involved depending on the water depth and location (near shore, shoreline, offshore). Although a broad range of technologies signals that the sector has not yet reached convergence, it also reveals the many alternatives to harnessing wave power under diverse conditions and emplacements.

Market Dynamics

The global wave energy market is expected to boost with the rapid transition from fossil-based energy to renewable energy.

Rapid transition from fossil-based energy to renewable energy

Businesses are adapting to the energy transition, transforming the global energy industry from fossil-based energy production and consumption systems to renewable energy sources, as more investors and companies seek greater certainty in accounting for long-term climate risks and opportunities. Technological breakthroughs and a cultural push toward sustainability have made it possible to transition from nonrenewable energy sources like oil, gas and coal to renewable energy.

The International Energy Agency ( IEA) forecasts the world's total renewable-based power ability to increase 50% between 2019 and 2024. Wave energy takes up to 80% of marine energy and is the most profitable type of marine energy and is widely available around the world. Wave energy features a high power density, generally 30 kW/m, which is 10 times greater than solar and 5 times greater than wind. Advanced predictive techniques can predict waves 10 h to several days in advance. Wave energy is available across the oceans; the annual wave energy extraction prospect can reach 8000 to 80,000 TWh. In 2022, The U.S. Department of Energy announced US$ 25 million in funding for eight projects on wave energy technologies. The projects will be based on wave energy converter testing, wave energy R&D and the advancement in wave energy converter designs.

Lack of investments and expertise in the sector

The market is still dominated by university spin-offs and start-up companies, focusing on obtaining technologies to pre-commercial status, promoting access to research facilities or supporting new demonstration sites at sea. Government funding through public research and development investments has been key in this process. The expansion of wave energy technology to wave farms necessitates new and distinct expenditures and requirements. In addition to the RD&D requirements, funding and government grants and policy support are required to attract the private investment necessary for large-scale deployment. Investment tax credits, feed-in tariffs, power purchase agreements, and production tax credits are all possible policy options for attracting investors and end-users.

When comparing wave energy to tidal, the lower maturity level of wave energy can be seen when looking at the 2.3 MW installed capacity. Unlike tidal turbines, where several early phases of large-scale projects are being installed and are expected to be completed soon, wave energy is still in the testing and demonstration phase, with several small-scale projects. 25 of the 33 grid-connected devices are part of three multi-device programs, all of which have been providing energy for several years. Although they have relatively low capacities of less than 20 kW per unit, they are the closest to commercial installation that has been witnessed in the industry thus far.

COVID-19 Impact Analysis

The COVID-19 outbreak has had significant negative effects on wave energy project development in many regions, including Europe and Asia. Projects are coming to a halt and many could be facing delayed completion dates as a result. It is becoming clearer that renewable energy (particularly wave energy) is an important part of handling the climate crisis and an effective solution to the global economic crisis that Covid-19 has created. European wave and tidal energy capacity installations jumped in 2021, as the ocean energy sector saw deployments retrogress to pre-pandemic levels and a significant increase in investment. Ocean Energy Europe revealed that 2.2 megawatts of tidal stream capacity were installed in Europe in 2021, compared to just 260 kilowatts in 2020. 681 kW of wave energy was installed in 2021, a threefold increase compared to 2020.

In India, the government has extended help to the renewable sector amid the second wave of the COVID-19 pandemic by extending two-and-a-half months for power projects with commissioning dates. The Ministry of New and Renewable Energy has notified the changes that will avert developers from the penalty for delaying the commissioning of projects beyond the approved timelines.

Segment Analysis

The global wave energy market is segmented based on technology, location, end-user and region.

Demand for wave energy for electricity generations has increased to attain Net Zero Emissions Scenario

The global wave energy market is segmented into power generation, desalination, and others based on end-user.

Between 2019 and 2020, electricity generation from marine technologies increased by an expected 400 GWh (+33%), much more than in past three years. However, to meet the Net Zero Emissions by 2050 Scenario, which aims for 27 TWh of power output in 2030, the wave energy technology must be deployed significantly more quickly. In the Net Zero Emissions Scenario, by 2050, ocean power generation will increase by 33% between 2020 and 2030, equating to 1 GW of yearly capacity expansions. While advanced projects of 10 kW to 1 MW for power generation are deployed (mostly in Canada, UK, Australia, China and Denmark), these small commercial projects remain expensive because the economies of necessary scale for significant cost reductions have not yet been realized.

Wave Energy is another sort of ocean-based renewable energy source that generates electricity by harnessing the power of the waves. In contrast to tidal energy, which is based on the ebb and flow of the tides, wave energy is based on the vertical movement of the surface water, which produces tidal waves. Wave power converts the periodic up-and-down movement of ocean waves into electricity by deploying equipment on the water's surface that catches the mechanical energy produced by the waves and converts it to electricity.

The energy contained in ocean waves is tremendous. Waves off the shores of the U.S have a theoretical yearly energy potential of 2.64 trillion kilowatt-hours, which is equivalent to nearly 66% of U.S electricity generation in 2020.

The west coasts of the U.S and Europe and the coasts of New Zealand and Japan have potential sites for harnessing wave energy. Different methods and technologies for converting and capturing wave energy to electricity are evolving. The methods include placing devices on or below the water surface and anchoring devices to the ocean floor.

Geographical Analysis

Europe is expected to hold a significant market share because of abundant marine energy resources in the countries

Wave energy and tidal energy can satisfy up to 20% of the UK's electricity demand, representing a 30-to-50 gigawatt installed capacity. The UK is currently seen as a leader and focal point for developing wave technologies because it has abundant marine energy resources. The UK is uniquely positioned to benefit from this type of renewable energy and design-related wave services with its excellent marine resource.

However, the industry is still in its early stages and further research is required to determine how best to exploit these assets. Today, full-size wave energy prototypes are being tested at sea. The advanced device developers plan and build the first multi-device wave energy farms around Europe, notably in the UK, Spain, Portugal and Italy. Once built, the pilot farms will serve as a basis for commercializing wave energy technology and creating a new European industry.

Funded by the European Union's Horizon research and innovation program, the three-year IMPACT project is currently seeking to accelerate testing device development and lower the technology cost as part o advancement in wave energy converter technologies. The objective of IMPACT is to design and manufacture novel test rigs covering up to 75% of WEC subsystems that influence the WEC's Levelized cost of energy (LCOE). The 250kW Dual Hardware-in-the-loop testing platform, test criteria and metrics aim to decrease the test time by 50% while improving the WEC reliability.

Competitive Landscape

The global wave energy market is consolidated and is still in an early stage with a handful of players. Major players in the market include Seabased, Eco Wave Power, Carnegie Clean Energy, SINN Power, CorPower, Ocean Power Technology, Mocean Energy, AW Energy, Carnegie Clean Energy, Mocean Energy, Wave Swell Energy, among others.

The major players in the market are known to incorporate numerous market strategies to achieve growth in global wave energy market; these include new projects, grants, R&D and collaborations.

Seabased

Overview: Seabased delivers cost-competitive renewable energy solutions from wave to grid. The company aims to develop and lead the potentially enormous wave energy market. Seabased has been doing ocean testing for over 10 years and has experience managing every aspect of turnkey wave parks. The company has been awarded the European Commission's Seal of Excellence and is a beneficiary of multiple grants, currently including OESA, two Interreg grants and Dual Ports.

Product Portfolio:

Seabased wave power parks: It produces electricity by transforming and absorbing the kinetic energy of the waves into electrical energy suitable for grid use. The Wave Energy Convertors comprise buoys to magnetize weights - translators - in the generators that rest on the seafloor.

Key Development: In 2021, Seabased signed an agreement with the Bermuda government to develop a 40-MW commercial wave power park. The project would meet about 10% of Bermuda's energy demand.

Why Purchase the Report?

To visualize the global wave energy market segmentation by technology, location, end-user and region and understand key commercial assets and players.

Identify commercial opportunities in the global wave energy market by analyzing trends and co-development.

Excel data sheet with numerous data points of wave energy market-level with four segments.

PDF report consisting of cogently put together market analysis after exhaustive qualitative interviews and in-depth market study.

Technology mapping available as excel consists of key products of all the major market players

The global wave energy market report would provide approximately 61 tables, 53 figures and almost 194 pages.

Target Audience 2022

Service Providers/ Buyers

Industry Investors/Investment Bankers

Research & Development Companies

Governments

Education & Research Institutes

Research Professionals

Emerging Companies

Manufacturers

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