Wave and tidal energy to reach $1.85B by 2032, commercial deployment by 2031, report finds

The wave and tidal energy market is projected to grow to $1.85 billion by 2032, with ocean-based renewable power expected to move beyond pilot installations and enter early commercial deployment by 2031, according to a report by market research firm DataM Intelligence.

The global wave and tidal energy market reached $983.11 million in 2024 and will be expanding at a CAGR of 8.23% during the forecast period 2025–2032 to reach the expected growth to $1,850.90 million by 2032, representing a reflection of a decisive shift in global renewable energy strategies, where predictability, grid stability, and baseload capability are becoming as critical as decarbonization.

The report states that tidal energy systems accounted for around 58% of the global market in 2024, or roughly $570 million as tidal stream turbines and tidal range systems are benefiting from predictable output, higher capacity factors, and lower technology risk compared to wave energy, making them particularly attractive to utilities and grid operators seeking reliability.

Wave energy systems represented approximately 34% of market value, or $334 million. However, wave energy is expected to gain stronger commercial traction post-2028 as device lifetimes and maintenance economics improve.

“Tidal energy systems will remain the primary commercial driver through 2031, while wave energy will play a critical role in long-term market expansion and technology diversification,” DataM Intelligence says.

The renewed momentum behind wave and tidal energy is said to be rooted in three structural realities shaping energy policy worldwide, including grid reliability becoming a board-level concern, where tidal energy, in particular, provides predictable generation cycles years in advance, enabling grid operators to plan capacity with precision.

The two other reasons why the market is gaining strategic importance are that coastal nations are prioritizing domestic energy security and ocean energy offers localized generation that reduces dependence on imported fuels and long-distance transmission, as well as that offshore infrastructure ecosystems are already in place and expertise developed in offshore wind, subsea cabling, and marine engineering is being redeployed toward wave and tidal systems, reducing project risk and development timelines.

As a result, wave and tidal energy are transitioning from experimental innovation to strategic infrastructure investment, DataM Intelligence said.

Power generation remains the dominant application, accounting for approximately 74% of global market value in 2024, equivalent to $727 million, and will, by 2032, remain the primary revenue driver as commercial-scale tidal arrays and wave farms reach grid-connected maturity. Desalination and other applications represented the remaining 26%, around $256 million, with industrial applications, offshore platforms, and hybrid renewable systems expected to accelerate this segment’s growth beyond 2032.

In terms of regional analysis, Europe continues to lead in installed capacity and technology development, particularly in the UK, France, Norway, and Portugal, since supportive regulatory frameworks, offshore engineering expertise, and long-term decarbonization targets make it a technology incubator for the sector.

Asia-Pacific is expected to deliver the fastest growth rate beyond 2027, driven by coastal population density, rising electricity demand, and strong government interest in marine renewables across Japan, South Korea, and parts of Southeast Asia.

The U.S. is emerging as a critical long-term market, driven by extensive coastlines, strong R&D ecosystems, and federal clean energy programs. In 2024, the U.S. accounted for an estimated 38% of global market value, equivalent to $370+ million. Key growth drivers include federal support for marine energy demonstration projects, strong research activity along the Pacific Northwest and Alaska, integration of tidal energy into remote and island grids, and growing interest from utilities seeking predictable renewable output.

By 2032, the U.S. alone is projected to account for nearly 40% of global wave and tidal energy deployments, positioning it as a cornerstone market for commercialization.

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