Ocean Power Market Size and Share
Market Overview
| Study Period | 2020 - 2030 |
|---|---|
| Market Volume (2025) | 0.52 gigawatt |
| Market Volume (2030) | 2.5 gigawatt |
| Growth Rate (2025 - 2030) | 36.89% CAGR |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Europe |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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Ocean Power Market Analysis by Mordor Intelligence
The Ocean Power Market size in terms of installed base is expected to grow from 0.52 gigawatt in 2025 to 2.5 gigawatt by 2030, at a CAGR of 36.89% during the forecast period (2025-2030).
Rapid movement from pilot arrays to commercial roll-outs follows the convergence of maturing technologies, deepening policy incentives, and growing investor appetite. Tidal stream systems currently dominate commercial deployment, but Ocean Thermal Energy Conversion (OTEC) attracts the fastest influx of capital as operators seek round-the-clock renewable generation. Falling levelized costs, strengthened supply chains, and hybrid hydrogen or aquaculture co-location models amplify value creation. Meanwhile, regional policy leadership by Europe ensures early revenue visibility, yet Asia-Pacific’s accelerating build-out signals a geographical rebalancing that will reshape global project pipelines.
Key Report Takeaways
- By technology, tidal energy led with 99.2% of the ocean power market share in 2024, while OTEC is projected to expand at a 120.2% CAGR through 2030.
- By application, power generation captured 78.1% share of the ocean power market size in 2024, whereas desalination is advancing at a 41.5% CAGR to 2030.
- By end-user, utilities and independent power producers held 68.5% of demand in 2024, yet industrial users are forecast to grow fastest at a 43.8% CAGR to 2030.
- By geography, Europe accounted for 48.6% of the installed capacity, while Asia-Pacific is poised to register the highest regional CAGR at 39.9% through 2030.
Global Ocean Power Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Renewable-energy targets & policy incentives | 8.2% | Global, with early gains in Europe, Asia-Pacific | Medium term (2-4 years) |
| Declining LCOE for tidal & wave technologies | 6.5% | Europe & North America core, spill-over to APAC | Long term (≥ 4 years) |
| Predictable baseload resource availability | 4.8% | Global | Medium term (2-4 years) |
| Offshore hydrogen & aquaculture co-location | 3.1% | North America & EU, APAC emerging | Long term (≥ 4 years) |
| Naval decarbonisation requirements | 2.8% | North America & EU primarily | Medium term (2-4 years) |
| Island-grid resilience programmes | 1.9% | APAC core, spill-over to Caribbean, Pacific Islands | Short term (≤ 2 years) |
| Source: Mordor Intelligence | |||
Renewable-energy targets & policy incentives
Global net-zero pledges spur tailored funding and streamlined permitting. The UK’s GBP 1.5 million Saltire Fund accelerates MeyGen’s 40-turbine build-out, while Wales channels £8 million into Morlais, the continent’s largest consented tidal site. The United States earmarked USD 45 million for its first commercial tidal demonstrations, marking a historic federal signal to investors. Brussels’ BlueInvest program channels equity to innovators such as SeaQurrent’s TidalKite, aiming to double installed European tidal capacity within the decade.[1]European Commission, “BlueInvest Success Stories,” europa.euCanada complements trans-Atlantic alignment with USD 9.4 million for four tidal arrays, demonstrating a cohesive North American policy front.
Declining LCOE accelerates commercial viability
Manufacturing scale and design refinement are compressing costs toward offshore wind parity. Techno-economic modeling indicates wave-energy costs below EUR 50/MWh in top-resource zones by mid-century, aided by automated tuning converters now exporting power in Portugal. OTEC projects in tropical markets already price electricity near USD 0.30/kWh, competitive where diesel exceeds USD 0.25/kWh. Subsea hubs and wet-mate connectors allow developers such as SIMEC Atlantis to cluster turbines and cut cabling costs. Carbon-fiber rotors that passed 20-year accelerated tests further reduce structural mass by 30%, shrinking capex envelopes.
Predictable baseload resource availability complements intermittent renewables
Ocean resources produce highly forecastable power curves, easing grid balancing as wind-solar shares climb. Alaska’s Cook Inlet holds 80 TWh of annual tidal potential—enough to meet up to 20% of Railbelt demand by 2035. Wave sites deliver capacity factors above 35% in optimal zones, compared with 25-45% for offshore wind. OTEC plants run with 90%+ availability and generate millions of liters of fresh water, a compelling proposition for island grids. Europe estimates 11 GW of tidal stream potential, with France’s Raz Blanchard alone representing 3.4 GW under development.
Offshore hydrogen production creates synergistic value chains
Producing hydrogen at sea avoids onshore grid bottlenecks and trims transmission losses. Wave-driven electrolysis could lower delivery costs 25-40% versus land-based pathways. Hybrid platforms marry fish farming to energy modules, monetizing idle sea space and aligning with environmental zoning. The U.S. Navy’s Climate Action 2030 plan, seeking 65% emissions cuts by 2030, escalates maritime hydrogen demand. ‘Plug-and-play’ tidal zones, such as Morlais, embed shared export infrastructure to lure industrial co-locators.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| High CAPEX & financing hurdles | -7.3% | Global | Short term (≤ 2 years) |
| Complex environmental permitting | -4.9% | North America & EU primarily | Medium term (2-4 years) |
| Advanced-composite supply bottlenecks | -3.2% | Global, with acute impacts in Europe & North America | Short term (≤ 2 years) |
| Non-standard grid-code compliance | -2.1% | Global, with regulatory variations by region | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
High CAPEX requirements challenge project financing
First-of-a-kind arrays confront steep capital intensity, mirroring offshore wind’s cost uplift to USD 3,475/kW in 2024. Venture rounds, such as CorPower’s EUR 32 million Series B1, highlight appetite yet underscore the sums needed for scale. U.S. analysts foresee USD 100 billion required to achieve 30 GW offshore wind by 2030, a barometer for ocean technologies. Government tax credits under the Inflation Reduction Act and Horizon Europe grants remain pivotal bridges to bankability.
Complex environmental permitting delays project development
Emergent devices traverse overlapping federal, state, and local jurisdictions that evolved for conventional projects. NOAA’s recent Atlantic Shores review imposed seasonal moratoria, noise controls, and multi-species monitoring, illustrating compliance complexity.[2]Federal Register, “Incidental Take Regulations for Atlantic Shores South,” federalregister.govThe 2024 State-of-the-Science report lists 86 marine installations needing intensive ecological studies, elongating timelines. FERC hydrokinetic licences require cross-agency consultation, adding administrative overhead. Streamlined pathways, typified by Maine’s general permit and BOEM’s modernization rule, aim to shorten project gestation without sacrificing safeguards.
Segment Analysis
By Technology: OTEC drives next-generation growth
Tidal systems retained 99.2% of 2024 capacity, validating years of operational data from Scotland’s MeyGen and four additional UK sites contracted to supply 41 MW. The ocean power market size for tidal continues to expand through wet-mate hubs that enable multi-turbine lines on a single export cable. Yet the spotlight now shifts to OTEC, projected to register a 120.2% CAGR to 2030 as developers like Global OTEC commission Dominique, the first commercial-scale plant, underscoring investor appetite for 24/7 tropical baseload.
Manufacturing ecosystems respond with carbon-fiber rotor lines verified for 20-year lifetimes and automated wave-tuning algorithms that lift output while containing fatigue loads. Hybrid schemes blend wave and wind on shared moorings, slicing per-megawatt costs 15-25%. Collectively, these advances align the ocean power market with broader renewable supply chains, fostering modular export of standardized components.
Note: Segment shares of all individual segments available upon report purchase
By Application: Desalination emerges as a high-growth opportunity
Electricity supply (power generation) accounted for 78.1% of 2024 installations, underscoring utilities’ preference for predictable tidal rhythms and robust wave devices now exporting power from Hawaii. Subsea hubs reduce cabling redundancy and unlock the ocean power market's size benefits of scale economics. Desalination, however, races ahead at a 41.5% CAGR as coastal water stress intensifies. Wave-driven reverse-osmosis plants circumvent grid inefficiencies, cutting energy needs by up to 40%.[3]U.S. Department of Energy, “Marine Energy Funding Opportunities,” energy.gov Continuous OTEC systems simultaneously deliver power and 2 million liters of fresh water per MW daily, creating compelling dual-service propositions. Emerging maritime propulsion and data-platform applications illustrate the breadth of use cases as commercial demonstration widens.
By End-User: Industrial demand accelerates
Utilities and Independent Power Producers commanded 68.5% of demand in 2024 after locking in Contracts for Difference at GBP 198/MWh for 15 years, guaranteeing revenue visibility. Yet industrial buyers seek round-the-clock green energy to decarbonize production lines, propelling a 43.8% CAGR outlook. Data centers already negotiate direct connections to the expanding MeyGen array, linking predictable tidal output to 24/7 compute loads. Offshore aquaculture, port electrification, and local manufacturing clusters around Wales’ Morlais project amplify new-age industrial offtake views, anchoring the long-run ocean power market share of non-utility demand.
Note: Segment shares of all individual segments available upon report purchase
Geography Analysis
Europe held 48.6% of installed capacity in 2024, leveraging the UK’s 1 GW tidal ambition and Scotland’s record six years of unplanned-maintenance-free MeyGen operation. Complementary investment arrives through Wales’ GBP 8 million Morlais scheme and French developments at Raz Blanchard, underpinning a regional pipeline exceeding 3.4 GW.
Asia-Pacific posts the top regional CAGR at 39.9%, catalyzed by Japan’s 1.1 MW Naru Strait installation and SIMEC Atlantis’s Nagasaki hub for regional engineering. The Philippines lit Southeast Asia’s first tidal plant via HydroWing modules, and China’s offshore wind supply base transfers manufacturing know-how into marine energy fabrication, bolstered by Taiwan’s 1.82 GW offshore hubs.
North America accelerates with USD 112.5 million federal grants for wave prototypes and the 2025 opening of Oregon’s PacWave South, the continent’s first grid-connected wave test site.[4]Yale Environment 360, “Oregon’s PacWave South Launch,” e360.yale.edu Canada’s USD 9.4 million tidal program and Alaska’s 200 MW Cook Inlet prospect round out a trilateral surge that repositions the continent on the global deployment map.
Competitive Landscape
Competition remains moderate as incumbent pioneers scale abroad and newcomers secure pivotal alliances. SIMEC Atlantis showcases six-year, maintenance-free performance at MeyGen while divesting non-core engineering to sharpen project execution and pursue Japanese contracts. Orbital Marine Power readies multi-turbine projects and eyes U.S. market pathways, leveraging floating-platform know-how.
Wave-specialist CorPower Ocean secured EUR 32 million to develop the UK’s largest wave array at EMEC, validating private capital’s faith in wave LCOE trajectories. Eco Wave Power exemplifies rapid commercialization by completing U.S. floater production and partnering with Shell for Port of Los Angeles deployment. Supply-chain alliances, including SKF’s reliability program and Sustainable Marine’s 20-year rotor validation, underline the primacy of component durability in harsh marine settings.
Strategic funding programs such as Scotland’s Saltire grants and Europe’s Horizon budgeting anchor technology maturation, yet project-finance innovation will dictate long-run leaderboards as capacity targets scale from hundreds to thousands of megawatts.
Ocean Power Industry Leaders
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SIMEC Atlantis Energy
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Orbital Marine Power
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Ocean Power Technologies Inc.
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Eco Wave Power Global AB
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Carnegie Clean Energy
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- July 2025: Eco Wave Power Global AB has inked a deal with C&S Welding Inc. to set up its wave energy floaters and energy conversion unit at the Port of Los Angeles.
- July 2025: Wales and Galicia collaborate to advance tidal energy blade technology, enhancing the efficiency and effectiveness of tidal energy systems through an international partnership.
- May 2025: CorPower Ocean, a Swedish wave energy developer, has inked a berth agreement to establish a 5 MW wave energy array at the European Marine Energy Centre (EMEC) in Orkney, Scotland.
- May 2025: The Welsh Government has demonstrated its commitment to renewable energy by investing GBP 2 million in Inyanga Marine Energy Group, a tidal energy company. This funding will support testing advanced tidal turbines in real-sea conditions at the Morlais tidal energy site, located off Ynys Môn (Anglesey).
Global Ocean Power Market Report Scope
| Tidal Energy |
| Wave Energy |
| Ocean Thermal Energy Conversion (OTEC) |
| Salinity-Gradient (Blue Energy) |
| Power Generation |
| Desalination |
| Marine Propulsion |
| Data & Telecom Platforms |
| Utilities and IPPs |
| Industrial |
| Commercial |
| North America | United States |
| Canada | |
| Mexico | |
| Europe | United Kingdom |
| France | |
| Spain | |
| Netherland | |
| Denmark | |
| Russia | |
| Rest of Europe | |
| Asia-Pacific | China |
| India | |
| Japan | |
| South Korea | |
| ASEAN Countries | |
| Australia and New Zealand | |
| Rest of Asia-Pacific | |
| South America | Brazil |
| Argentina | |
| Colombia | |
| Rest of South America | |
| Middle East and Africa | United Arab Emirates |
| Saudi Arabia | |
| South Africa | |
| Egypt | |
| Rest of Middle East and Africa |
| By Technology | Tidal Energy | |
| Wave Energy | ||
| Ocean Thermal Energy Conversion (OTEC) | ||
| Salinity-Gradient (Blue Energy) | ||
| By Application | Power Generation | |
| Desalination | ||
| Marine Propulsion | ||
| Data & Telecom Platforms | ||
| By End-User | Utilities and IPPs | |
| Industrial | ||
| Commercial | ||
| By Region | North America | United States |
| Canada | ||
| Mexico | ||
| Europe | United Kingdom | |
| France | ||
| Spain | ||
| Netherland | ||
| Denmark | ||
| Russia | ||
| Rest of Europe | ||
| Asia-Pacific | China | |
| India | ||
| Japan | ||
| South Korea | ||
| ASEAN Countries | ||
| Australia and New Zealand | ||
| Rest of Asia-Pacific | ||
| South America | Brazil | |
| Argentina | ||
| Colombia | ||
| Rest of South America | ||
| Middle East and Africa | United Arab Emirates | |
| Saudi Arabia | ||
| South Africa | ||
| Egypt | ||
| Rest of Middle East and Africa | ||
Key Questions Answered in the Report
What is the projected capacity of global ocean power by 2030?
Installed capacity is forecast to reach 2,500 MW by 2030, rising from 520 MW in 2025 at a 36.89% CAGR.
Which technology segment is expanding the fastest?
OTEC is set to grow at a 120.2% CAGR through 2030, outpacing tidal, wave and salinity-gradient systems.
Which region is expected to register the quickest growth?
Asia-Pacific is projected to post a 39.9% CAGR to 2030, driven by new tidal deployments in Japan and the Philippines.
How large is Europe’s share in current deployments?
Europe held 48.6% of installed capacity in 2024, anchored by the United Kingdom’s tidal strategy and French projects.
What key factor is reducing ocean energy’s levelized cost of electricity?
Cost declines stem from subsea hub innovations, composite rotor optimization and larger manufacturing scale that collectively lower infrastructure outlays.
Why is ocean energy attractive for desalination?
Wave and OTEC systems can directly power reverse-osmosis units, cutting energy costs up to 40% and delivering dual electricity-water outputs in water-scarce coastal markets.
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