Wave Energy Converter Market Is Estimated To Witness High Growth Owing To Increasing Investments in Wave Energy Technology

The Wave Energy Converter Market is estimated to be valued at US$ 19.52 Bn in 2024 and is expected to exhibit a CAGR of 4.3% over the forecast period 2024- 2031, as highlighted in a new report published by Coherent Market Insights.

Key Market Dynamics:

The Wave Power Converter market is expected to grow significantly during the forecast period. This is mainly due to increased investment by the government and various private organizations. In R&D activities related to wave energy technology, for example, the EU invested more than €300 million between 2007 and 2013 in wave energy demonstration projects across Europe. It is also focusing on the global deployment of wave energy converters. It focuses on using renewable energy sources to produce electricity increasing concerns about greenhouse gas emissions.

Key Market Trends:

Decentralized Wave Energy Systems

The wave energy converter market is witnessing growing demand for decentralized wave energy systems owing to their wide range of applications including power supply for remote islands and offshore installations. Decentralized systems can be installed near the shoreline or connected directly to small scale end-users and are relatively cheaper and easier to install and maintain as compared to utility scale projects. Rising adoption of microgrids and distributed renewable energy solutions is expected to boost the sales of decentralized wave energy converters.

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Public-Private Partnerships

Governments across various countries are promoting public-private partnerships and funding mechanisms to encourage private investment in wave energy projects. This is positively impacting the development of wave energy technologies. For instance, in September 2020, the U.S. Department of Energy announced an investment of over US$ 20 million for researching and developing next-generation wave energy systems through public-private partnerships under the Wave Energy Prize program. Such initiatives are propelling the wave energy converter market growth.

Market Opportunities

Oscillating Water Column Technology

The oscillating water column technology segment accounted for the major share of the global wave energy converter market in 2024, at around USD 8 bn. In this technology, waves cause a water column to rise and fall, driving air through a turbine in the process. As water level changes, it separates and traps air and drives it through a turbine that generates energy. Its simple and robust design makes it suitable for locations with varying wave conditions. It requires less maintenance compared to other technologies as there are fewer moving components involved.

Points Absorber Technology

The points absorber technology segment is expected to witness the highest CAGR during the forecast period. Point’s absorbers make use of floating buoys, which are connected via hydraulic system to a land-based generator. As waves pass beneath the buoy, it moves up and down, pumping high-pressure fluid to motors which drive electrical generators. Points absorbers can effectively harness low frequency and small waves. Their flexible design allows installation in deep waters and can generate power even during small wave conditions.

Key Market Takeaways

The global wave energy converter market is expected to register a CAGR of 4.3% during the forecast period 2024-2031 due to the increasing demand for renewable energy sources and development of the coastal sector.

Technology Insights expects a dominant position for vibrating water column blocks in 2024 with its simple design and the ability to create energy from changing the state of waves with location insights Nearshore wave energy converters are expected to grow at a higher CAGR during the forecast period.

Because the installation and assembly process is easier compared to offshore applications. When separated by region North America dominates the global market with more than 30% share by 2024 due to government-backed regulations and presence of key players. Europe and Asia Pacific are lucrative markets.

Competitor Insights:

Marine Power System

Eco Wave Power

SINN Power GmbH

Recent Developments in Wave Energy Converter Market

Recent Breakthroughs in Wave Energy Technology in 2023

Significant progress was made in wave energy technology throughout 2023. Several companies successfully deployed new and improved wave energy converters off the coasts of North America, Europe, and Australia. These breakthroughs promise to accelerate the commercialization of wave power globally.

In June 2023, Australian wave energy firm Oceanic launched a 1 MW wave energy array off the coast of Victoria. This commercial-scale project utilizes 20 of Oceanic’s OWC-500 oscillating water column devices, which capture the up and down motion of waves to drive an air turbine. The $30 million project marked the largest wave farm to date and is expected to power around 1000 homes annually. Oceanic aims to replicate the success of this farm with larger future installations.

Emerging Markets for Wave Power in 2024

While Europe and North America remain hotspots for wave energy development, several new regions are emerging as potential growth markets in 2024 and beyond. Pilot projects installed this year showcase efforts to establish robust supply chains and demonstration sites in these nascent wave power markets.

In July 2024, the first ever wave energy device was connected to Indonesia’s power grid on the island of Belitung. Developed by Indonesian company PT. Powertek, the 50 kW gyroscope-like point absorber marked a milestone for the country’s ambitions to utilize its substantial wave resources. With strong government backing, Indonesia is aiming for 100 MW of installed wave capacity by 2030, spurring interest from European and Australian developers.

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