Global wave and tidal energy market is expected to grow at a CAGR of 42.5% and reach $3.9 billion by 2025, according to a report published by Grand View Research, Inc.
Ocean energy is witnessing significant development in terms of new projects in various economies including the UK, Ireland, Sweden, Portugal, Thailand, India, Japan, China, Canada, and U.S., which is likely to fuel market growth over the coming years, the report states. On the other hand, high cost and socio-economic and environmental barriers are likely to restrain the development of the market over the 2018-2025 period.
Nevertheless, the report expects the projected growth to be fuelled by the need to reduce dependency on fossil fuels, increasing investments, and supportive government regulations.
Asia Pacific is expected to be a lucrative market for the technology due to government initiatives, the report states.
The number of companies in the global wave and tidal energy market has increased in recent years, and these companies are constantly making significant efforts to advance their technologies and deploy novel and improved equipment, the report points out. R&D, new project developments, partnerships, and acquisitions are some of the major strategies being adopted by the companies in the industry.
Wave energy is likely to register significant growth in the coming years based on extensive R&D and new project developments in numerous economies including Ireland, Sweden, Portugal, U.S., China, and New Zealand, according to the report. The tidal segment, which dominated the market on the account of high technological know-how, could see its growth somewhat hindered by environmental concerns related to the technology.