Global Wave Energy Market is projected to witness rapid growth on account of high energy demand. Increasing importance for energy production through sustainable sources is expected to positively impact the global market. Favorable regulations and incentive schemes offered by the government as well as venture capital funding will go a long way in attracting new participants and thus complementing the market growth. Drive to increase the share of wave energy in the renewable energy mix is presumed to further boost the market. Cost reductions on account of technological innovations and capacity up-scaling offer requisite opportunities to market participants. High investment costs coupled with long turnover period have increased financial risks for market participants. Such constraints regarding financial viability are expected to hinder the market growth over the forecast period. The above stated are also expected to act as entry barrier to new market participants. Local geography and varied wave patterns also pose a challenge for a uniform wave energy market development.
R&D funding is presumed to be a key factor in the wave energy market development. Increasing R&D to counter challenges in terms of investment and technology are expected to further augment the global market growth. The market currently is at a nascent stage and is thus highly fragmented. Consolidation of the market is expected to be driven by capital availability and innovation capabilities. Special purpose project companies and strategic alliances are expected to be crucial for small technology developers to participate in major global projects.
R&D funding is presumed to be a key factor in the wave energy market development. Increasing R&D to counter challenges in terms of investment and technology are expected to further augment the global market growth. The market currently is at a nascent stage and is thus highly fragmented. Consolidation of the market is expected to be driven by capital availability and innovation capabilities. Special purpose project companies and strategic alliances are expected to be crucial for small technology developers to participate in major global projects.
Though wave energy currently signifies only a miniscule portion of the global energy mix, markets such as Europe, Asia Pacific and North America show promising growth opportunities. Countries such as U.K., Sweden, Spain and Denmark lead the wave energy market in Europe, while China and Australia do the same in Asia. Large scale wave energy projects in Australia and U.S. promise a robust market growth in those regions.
