Tidal Energy Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The tidal energy market is valued at around $ 821 million in 2023 and is projected to grow significantly to $ 4 billion by 2032, growing at a CAGR of 15.71% from 2024 to 2032. The growth of this market is mainly due to the growing recognition of tidal energy as a viable and sustainable alternative to traditional energy sources, driven by the need for clean energy solutions to combat climate change and energy security issues. The market is also driven by the advancement of tidal energy technology, increased investment in the development of offshore wind farms and the implementation of government policies to reduce carbon emissions. In addition, improvements in the design and performance of tidal energy projects will lead to a significant increase in the efficiency and cost-effectiveness of tidal energy. Various key players, such as Atlantis Resources, Marine Current Turbines and Siemens-Gamesa, are actively pursuing strategic initiatives, such as strategic alliances and research and development, to take advantage of the growing demand for clean energy. These efforts are expected to accelerate the adoption of tidal energy solutions, which will help to drive the growth of the market in the coming years.

Regional Market Size

Regional Deep Dive

Tidal Energy Market is gaining momentum around the world, with each region demonstrating its own unique dynamics and potential for growth. North America is characterized by its long coastline and substantial investment in the technology. Europe leads the way in terms of regulatory frameworks and advanced projects. Asia-Pacific is a rapidly developing market, with increasing energy demand and government support for sustainable energy. The Middle East and Africa is a mixed bag, with some countries pursuing tidal energy as part of their diversification plans. Latin America is at an early stage of development, but its extensive coastline and commitment to the sustainable energy goal makes it a promising market.

Europe

• The European Union has set ambitious targets for renewable energy, with countries like the UK and France leading the way in tidal energy projects, such as the MeyGen project in Scotland, which is one of the largest tidal stream projects in the world.
• Regulatory frameworks in Europe, such as the Renewable Energy Directive, are incentivizing investments in tidal energy, fostering collaboration between private companies and government entities to accelerate project development.

Asia Pacific

• China is investing heavily in tidal energy, with projects like the Jiangxia Tidal Power Station, which is expected to significantly contribute to the country's renewable energy capacity and reduce reliance on fossil fuels.
• Australia's government has introduced policies to support marine energy technologies, including tidal energy, as part of its broader commitment to achieving net-zero emissions by 2050, encouraging local companies to innovate in this space.

Latin America

• Brazil is beginning to explore tidal energy potential, with research institutions studying the feasibility of harnessing tidal currents along its extensive coastline, which could lead to future project developments.
• Chile has shown interest in marine energy, including tidal energy, as part of its commitment to renewable energy, with government programs aimed at promoting research and development in this area.

North America

• In the United States, the Department of Energy has backed tidal energy with a number of initiatives, including the Tidal Energy Advanced Research and Development (TERD) program, which aims to make the technology more efficient.
• The Fundy Ocean Research Centre for Energy in Canada is already engaged in the development of tidal energy in the Bay of Fundy, where the tides are among the highest in the world, and where it is therefore possible to exploit this energy in a unique way.

Middle East And Africa

• Countries like Oman are exploring tidal energy as part of their efforts to diversify energy sources, with the government initiating feasibility studies for potential tidal energy projects along its coastline.
• The African Development Bank is considering funding for renewable energy projects, including tidal energy, in coastal nations, which could lead to increased investment and development in the sector.

Did You Know?

“The Bay of Fundy in Canada has the highest tidal range in the world, with tides that can reach up to 16 meters (52 feet), making it an ideal location for tidal energy generation.” — National Geographic

Segmental Market Size

Tidal energy plays a key role in the renewable energy sector, which is experiencing a period of steady growth. The principal reasons for this are the urgent need to combat climate change and the favourable regulations in this field, such as the feed-in tariffs and the renewable energy targets set by governments. Technological developments in tidal energy are also increasing the commercial viability of tidal energy projects. At present tidal energy is in the process of being developed in a commercial scale, with notable projects such as the Meygen project in Scotland and the Sihwa Lake Tidal Power Station in South Korea. The main application of tidal energy is the production of electricity for the local communities and for the national grid. The favourable climate for the development of tidal energy is also being influenced by the worldwide commitments to sustainable development and the legislations relating to the reduction of carbon dioxide emissions. In addition, the development of new underwater-turbine and energy-storage systems is shaping the future of tidal energy, which is a promising avenue for the development of the renewable energy sector.

Future Outlook

The Tidal Energy Market is expected to show significant growth from 2023 to 2032, when it will reach $ 4.0 billion, which translates into a CAGR of 15.71%. The world's shift to the use of renewable energy sources is a response to the growing need for energy and the need to combat climate change. The shift to the use of tidal energy is expected to continue, as governments and the private sector continue to invest heavily in the development of sustainable energy. The tidal energy market is expected to continue to grow in coastal regions, where tidal resources are abundant. In the coming years, several technological developments, such as improved tidal stream generators and energy conversion systems, will further increase the efficiency and cost-effectiveness of tidal energy projects. In addition, government initiatives such as feed-in tariffs and green certificates will further stimulate the market. Also, the integration of tidal energy with other forms of renewable energy and the development of energy storage solutions will play a key role in shaping the market. In the future, as the market matures, the need for public-private collaboration to overcome existing challenges will be essential.