MarketsandMarkets: Global Tidal Energy Market to Reach $198.5 Million by 2031

en.Wedoany.com Reported - On September 16, market research firm MarketsandMarkets released its latest tidal energy market forecast, projecting that the global tidal energy market will grow from $50.6 million in 2026 to $198.5 million in 2031, with a compound annual growth rate of 31.4% from 2026 to 2031. According to the firm, the global tidal energy market was approximately $40.5 million in 2025, with the forecast covering the period from 2023 to 2031.

The report divides the tidal energy industry chain into tidal turbines, power take-off systems, foundations, submarine cables, control systems, offshore installation, project development, operations and maintenance, and power generation. MarketsandMarkets believes that the global market is transitioning from the technology R&D and single-unit demonstration stage to the pre-commercial array and early commercial deployment stage, with Europe already having a relatively large number of demonstration projects and policy support, and markets such as the UK and France having formed relatively clear project pipelines.

In terms of deployed capacity, as of the end of 2023, global cumulative installed tidal stream capacity was approximately 41.4 MW, of which Europe accounted for approximately 30.5 MW. In recent years, the UK has continued to secure tidal stream projects through the Contracts for Difference (CfD) mechanism, signing 53 MW in the 2023 CfD allocation round and adding 28 MW in 2024. According to MarketsandMarkets, the UK's contracted tidal stream project pipeline has reached approximately 121–122 MW. These projects are generating equipment and engineering demand for tidal turbines, submarine cables, offshore engineering installation, and long-term operations and maintenance services.

The UK project pipeline continues to grow. In February 2026, HydroWing's Ynni'r Lleuad project secured an additional 10 MW of support in the UK's CfD AR7a, bringing the project's planned capacity to 30 MW when combined with the 20 MW previously awarded. The project plans to deploy 18 HydroWing HW3 tidal energy devices, each with a capacity of 1.67 MW, with the first device planned for deployment in the Morlais area of Wales in 2027 and the third phase planned for delivery in 2030. Dimension Network previously reported on the contract milestone for the additional 10 MW for this project.

Financing activities by tidal energy companies are also beginning to extend toward commercial projects and manufacturing capacity expansion. MarketsandMarkets cites examples including Sweden's Minesto, which completed a €10.7 million equity financing in 2023; Nova Innovation, which secured £6.4 million in financing from the Scottish National Investment Bank to expand tidal turbine manufacturing and international market presence; and Orbital Marine Power, which secured an additional £7 million investment in December 2025 for commercial tidal energy projects and overseas expansion.

Minesto's tidal energy project in the Faroe Islands has also entered the project financing and commercialization preparation stage. The company secured a SEK 22 million loan in 2025 and received SEK 25 million in funding from the Swedish Energy Agency for the Faroe Islands tidal energy microgrid project; in 2026, it also obtained project development assistance from the European Investment Bank to advance the 10 MW Dragon Farm project in EU waters, and plans to raise €25 million in financing around the project. Dimension Network previously reported on the financing milestone for the aforementioned 10 MW project.

In terms of regional distribution, MarketsandMarkets lists Europe as the market with the highest degree of tidal energy commercialization at present, while noting that North America and the Asia-Pacific region are expanding their project pipelines through demonstration projects, coastal electrification, and marine renewable energy investment. The UK, France, Canada, South Korea, and Japan are listed as major follow-on markets. The report's 2031 forecast of $198.5 million corresponds to the tidal energy industry market revenue scale, not the total global tidal energy project investment or installed capacity.