Rise in demand for electricity from the coastal communities and availability of wave energy sources have boosted the growth of the global wave energy market. On the other hand, high capital investment & insufficient infrastructure hinder the market growth.

Wave energy is the one of the renewable energies extracted from the ocean source, other being tidal currents, tidal range, biofuels from marine biomass and others. Wave energy converters are used to convert kinetic and potential energy of ocean waves into electricity. Wave energy possesses various advantages such as renewable, eco-friendly, wide availability, reliability and others. Wave energy has great potential among the all forms of renewable energy in the future.

Abundant availability of ocean wave energy is anticipated to fuel the growth of the market in the upcoming years. In addition, increase in demand for electricity from coastal communities is also another factor driving the market growth during the forecast period. However, high capital investment and insufficient infrastructure are the key factors hindering the wave energy market growth in the upcoming years. Rise in R&D activities on extracting wave energy efficiently is expected to create opportunity for the key players in the market.

Global wave energy market is projected to reach $141.1 million by 2027, growing at a CAGR of 17.8% from 2020 to 2027. Increase in demand for electricity from the coastal communities and easy and abundant availability of wave energy sources drive the growth of the global wave energy market. The market across Europe dominated to market in 2019, accounting for more than half of the market. The Covid-19 pandemic resulted in a temporary shutdown on plants and the construction of new projects to curb the spread of coronavirus.

On the basis of application, the market is divided into power generation, water desalination, pumping of water, and environmental protection. The power generation segment held the largest share in 2019, accounting for more than half of the total revenue of the market. However, the environmental protection segment is projected to portray the highest CAGR of 18.0% during the forecast period.

Depending on the technology, the oscillating body converter (OBC) segment held the highest market share of around 53.6% in 2019, and is expected to maintain its dominance during the forecast period. This is owing to the key characteristics of oscillating body converter such as high operating efficiency, small size, reliability and others.