The wave energy converter market size is expected to advance at a CAGR of 4.70% during 2022–2030, to reach USD 30.44 million by 2030. The growing pollution issues by the utilization of traditional fuel sources and the inadequate availability of these fuels such as oil, gas, and coal in conjunction, and the increasing investments in cleaner energy generation are the key driving factors of the market.
Renewable resources are present abundantly in nature and are ecologically friendly. Along with this, the rising usage of different electric equipment, including air conditioners, heaters, refrigerators, and many more, is increasing the consumption of energy across the world. Moreover, the spending power of consumers has significantly increased as living standards have improved. The increasing use of utilities and various advanced technologies has led to an increase in global power consumption. In order to fulfill the increased demand, more power-producing capacity is required. Thus, the rising power utilization limit overall will give vigorous opportunities to this industry in the forecast period.
Additionally, the growing population is also contributing to the increasing electricity demand along with the rising focus on the utilization of clean sources. Hence, this factor is further boosting the demand for wave energy converters.
According to the World Bank, per capita electricity consumption increased more than 100-fold across the world. Various countries, such as the U.S., Canada, the U.K., Japan, Germany, and South Korea, have high annual per capita energy consumption. The amount of electricity consumed in these countries is rising because of the wide utilization of electric appliances, including radiators, climate control systems, coolers, and many more.
The growing population also limits the amount of availability of land while also raising the demand for electricity. This results in a situation where there is not enough space or a business case for building land-based power plants. The need for power plants in coastal areas has increased as a result of these reasons. These regions and their residents may benefit from the production of clean energy using converters, which is boosting the wave energy converter market growth.
The North American market is expected to grow at a growth rate, of 5.8%, during the forecast period. This can be ascribed to the potential of the industry, marine renewable resources, the presence of established players, and government initiatives along with research and development. Approximately 40% of Americans live in coastal communities, and waves are the most reliable renewable source. According to the U.S. Energy Information Administration, the primary consumption of energy in the country is 97.33 quadrillion British thermal units (Btu) in 2021. This huge amount of consumption in the nation is contributing to the huge demand for wave energy converters.
In addition, the U.S. is self-sufficient with domestically produced energy. The total production of all energy-producing facilities is 4.1 trillion kWh, which is 105% of the country's own usage. Alongside the utilization of pure energy, imports, production, and exports plays a significant role in the U.S. market growth.
The most-significant wave energy converter market players are Ocean Power Technologies Inc., SINN Power GmbH, Able Technologies LLC, NEMOS GmbH, Carnegie Clean Energy, Wave Swell, Acquanet Power, Hann-Ocean Co. Ltd., Marine Power Systems, and Resolute Energy.