Tidal Energy Market Size, Share, Growth, Trends, and Global Industry Analysis: By Method (Tidal Barrage, Tidal Stream, Tidal Turbine, Others), By Installation Depth (Shallow waters, Transitional waters, Deep waters), By Energy Converter (Horizontal Axis Turbines, Vertical Axis Turbines, Tidal Kites) and Region Forecast 2020-2031

Tidal Energy Market size was valued at US$ 1,603.7 million in 2024 and is projected to reach US$ 8,784.01 million by 2031 at a CAGR of 27.5% from 2025-2031. Moreover, the U.S. Tidal Energy Market is projected to grow at a CAGR of 28% over the forecast period. The market refers to the industry focused on the generation of electricity through the natural rise and fall of ocean tides, utilizing technologies such as tidal stream generators, tidal barrages, and dynamic tidal power systems. This renewable energy source harnesses the kinetic and potential energy of tidal movements, offering a predictable and environmentally friendly alternative to fossil fuels. Tidal energy is particularly attractive due to its consistency and reliability, as tidal patterns can be accurately forecasted years in advance. The market encompasses various components including infrastructure development, equipment manufacturing, and grid integration.

The market is gaining momentum as countries prioritize decarbonization and transition to clean energy sources. With growing concerns over climate change and the depletion of conventional energy resources, governments and private sector players are increasingly investing in ocean-based renewable technologies. Europe, especially the United Kingdom and France, leads in tidal energy development, while emerging economies in Asia-Pacific are also exploring untapped potential. Technological advancements, supportive regulatory frameworks, and coastal infrastructure development are expected to drive the market’s growth in the coming years.

Facts & Figures

• The MeyGen project in Scotland is recognized as the world's largest tidal stream power project. Currently operational with a capacity of 6 MW, it has plans to expand up to 400 MW. In 2023, the project generated 10.2 GWh of electricity, showcasing the potential of tidal stream technology in contributing to renewable energy goals.
• France's Rance Tidal Power Station, located in Brittany, was the first tidal power station globally and held the title of the largest for 45 years. With an installed capacity of 240 MW, it produces around 500 GWh of electricity each year, demonstrating the long-term viability of tidal energy projects.

Key Developments

• In October 2024, HydroWing, a division of Inyanga Marine Energy Group, signed a binding agreement with Indonesia's state-owned electricity company, PLN, to develop the country's first tidal energy plant. The 10 MW project is planned for East Nusa Tenggara, leveraging the region's strong tidal currents resulting from the Pacific and Indian Oceans' throughflow.
• In February 2024, Swedish company Minesto successfully deployed its 1.2 MW Dragon 12 tidal energy kite in the Faroe Islands. This innovative technology, tethered to the seabed, harnesses tidal currents to generate electricity.
• In December 2024, Inyanga Marine Energy Group announced the design blueprint for a 20 MW tidal energy project at Morlais in Wales. The project will utilize the innovative HydroWing technology, incorporating Tocardo T3 turbines.

Tidal Energy Market Segmentation

Based on the method

• Tidal Stream
• Tidal Barrage
• Tidal Turbine
• Others

Among the various methods, tidal stream technology is emerging as the leading segment in the tidal energy market, driven by its lower environmental impact and modular scalability. Tidal stream systems function similarly to underwater wind turbines, harnessing the kinetic energy of fast-flowing tidal currents without the need for large-scale infrastructure like dams or barrages. This method offers a cost-effective and less intrusive alternative, making it increasingly attractive to investors and policymakers. The predictability of tidal flows ensures a consistent energy yield, while advancements in turbine efficiency and floating platform designs are reducing installation and maintenance costs. Nations with strong tidal currents, such as the United Kingdom and South Korea, are prioritizing tidal stream projects due to their adaptability to various marine environments and minimal disruption to aquatic ecosystems. As a result, the tidal stream method is anticipated to lead the market’s growth trajectory, supported by favorable regulations, environmental considerations, and technological innovation.

Based on the installation depth

• Shallow waters
• Transitional waters
• Deep waters

Of the segments by installation depth, shallow water installations are expected to dominate the tidal energy sector owing to their ease of access, reduced installation costs, and simplicity of maintenance. Shallow waters, generally less than 30 meters in depth, provide the perfect sites for installing tidal turbines and stream generators, particularly in coastal sites with high tidal currents. These areas involve simpler infrastructure, easier anchoring and cabling, and dramatically lower capital investments than projects in deeper water. Shallow water projects are also easier to monitor and service more frequently and with less risk, which makes them appealing for pilot programs and early-stage development. These include countries such as the UK, France, and a large part of Southeast Asia using their shallow water areas to employ scalable tidal installations that are poised to feed immediately into their renewable energy strategies. Consequently, installations in shallow waters will come to dominate the sector, especially now that governments around the world opt for nearshore, low-cost renewable sources of energy.

Based on the energy converter

• Horizontal Axis Turbines
• Vertical Axis Turbines
• Tidal Kites

Horizontal axis turbines are anticipated to lead the tidal energy market based on the energy converter type, primarily due to their technological maturity, high energy efficiency, and operational reliability. These turbines function similarly to traditional wind turbines, with blades that rotate around a horizontal axis, making them highly effective in capturing the kinetic energy of tidal currents. Their design allows for optimal alignment with water flow, resulting in higher energy output per unit compared to other converter types. Horizontal axis turbines have been extensively tested and deployed in numerous pilot and commercial-scale projects, particularly in regions with strong tidal streams such as the United Kingdom and Canada. Their proven performance, combined with ongoing design enhancements such as improved blade materials and corrosion resistance, supports their scalability and long-term viability. As global interest in marine renewable energy grows, horizontal axis turbines are expected to remain the dominant technology, driven by their efficiency, engineering familiarity, and deployment success.