Wave Energy Converter Market Size and Trends

The wave energy converter Market size is valued US$ 19.52 Bn in 2024 and is expected to reach US$ 26.15 Bn by 2031, growing at a compound annual growth rate (CAGR) of 4.3% from 2024 to 2031. Wave energy converters are devices that are deployed in the oceans to harness the kinetic energy from ocean surface waves and convert it to useable electric power. There are a few main types of wave energy converters including point absorbers, attenuators, and overtopping devices.

Wave Energy Converter Market Trends:

Increasing focus on small and modular systems: The increasing focus on small and modular systems is having a significant influence on the wave energy converter market. There is a growing recognition that larger, more monolithic systems have historically faced challenges in terms of high costs and long development timelines. In contrast, modular and scalable designs allow for incremental improvement and deployment, which helps drive down costs over time. Manufacturers and project developers are increasingly opting for modular set-ups that can be tested, validated and improved at smaller pilot scales before full commercial roll-out.

Modular systems also offer more flexibility in terms of installation and maintenance. Arrays of smaller wave energy devices can be placed closer to shore at sites with variable wave climates and sea conditions. They can be installed and serviced individually using smaller vessels and cranes, bringing significant cost savings compared to servicing larger single unit systems. For example, the Mocean Energy Wave Converter deployed off the coast of Leith in Scotland uses modular 'Blue X' devices that are 10 meters long each and can be installed and maintained independently. This modular, scalable approach was a key factor in the project receiving a £4 million grant from Wave Energy Scotland in 2022. For instance, AWS Ocean Energy, a wave energy converter company, announced plans to pursue a multi-MW commercial array deployment off the coast of Portugal using multiple independent modules.

Emergence of ocean observation technologies: The emergence of advanced ocean observation technologies is greatly influencing the wave energy converter market by enabling more accurate forecasting and site assessment capabilities. New technologies like ocean buoys equipped with wave sensors, current meters and weather monitoring devices are providing real-time hydrodynamic data from remote offshore locations. This data is valuable for wave energy technology developers during the design, testing, and optimization phases of their products. Developers can better understand the wave climate profiles at potential installation sites which helps minimize risks for demonstration projects.

One such example is the European Marine Energy Centre (EMEC) located off the coast of Orkney Islands, Scotland which has been one of the leaders in facilitating wave and tidal testing. EMEC operates an extensive ocean monitoring network of over 20 wave buoys and current meters in coastal waters around the islands. The high-fidelity wave and current data collected since 2004 has supported over 80 wave and tidal projects hosted at their testing facilities. This data is publicly available to developers and has been widely used in validating wave energy conversion design tools and performance models against real sea conditions. The improved site characterization abilities have bolstered developer confidence in waves technologies and accelerated the pipeline of wave energy converter designs moving from scale models to full-scale prototypes. For instance, the US Department of Energy estimates that wave power capacity along U.S. coastlines alone could potentially meet over 20% of the nation's current electricity needs.