Offshore Hydropower Market: Current Analysis and Forecast (2023-2030)

The offshore hydropower market refers to the development and utilization of technologies that harness the energy of waves, tides, and currents in the ocean to generate electricity. Unlike traditional hydropower which uses dams on rivers, offshore hydropower leverages the vast and powerful forces of the open ocean. As concerns about climate change and fossil fuel depletion rise, there's a global push for clean and sustainable energy sources. Offshore hydropower offers a promising renewable option with minimal greenhouse gas emissions.

Offshore Hydropower is expected to grow at a strong CAGR of 7.5% during the forecast period owing to Offshore hydropower being able to help countries reduce their reliance on imported fossil fuels and enhance energy security. Additionally, Offshore wind farms are already being developed in many regions. Offshore hydropower installations could potentially co-locate with wind farms, sharing infrastructure and reducing overall costs.

Based on capacity the market is segmented into large power plants (Above 30MW), small power plants(100KW-30MW), and micro power plants (Below 100KW). Amongst these, the micro power plants (Below 100KW) segment is forecasted to have a significant share in the offshore hydropower market because micro powerplants are technically more feasible. Initial Investment is lower as compared to others segment which is boosting the demand in even developing countries. Additionally, technological advancements and innovation is more convincing and trustable in micro powerplants require less cost in research and development.

Based on application, the market is segmented into tidal current, wave energy converters, oscillating water column, and point absorbers. Amongst these, the tidal current segment has a significant share in the offshore hydropower market because Tidal currents are more predictable than waves, which are more advantageous for grid integration when compared to others. Additionally, Tidal current turbines share similarities with traditional wind turbines through which users can potentially benefit from existing knowledge and infrastructure.

For a better understanding of the market adoption of the offshore hydropower industry, the market is analyzed based on its worldwide presence in countries such as North America (U.S., Canada, and the Rest of North America), Europe (Germany, UK, Netherlands, France, Italy, Spain, Rest of Europe), Asia-Pacific (China, Japan, India and Rest of Asia-Pacific), Rest of World. Europe is a dominating region in offshore because Europe is a global leader in renewable energy development and has ambitious targets for increasing its share of clean energy sources. This policy focuses on creating a supportive environment for innovative technologies like offshore hydropower. Additionally, Many European countries face challenges with traditional renewable sources like solar and wind due to geographical limitations. Offshore hydropower offers a promising alternative, particularly in coastal regions. Furthermore, Europe has a well-established shipbuilding and offshore construction industry with expertise in working in harsh marine environments. This existing infrastructure can be leveraged for the development and deployment of offshore hydropower installations.

Some major players operating in the market include RusHydro, ALSTOM SA, China Yangtze Power, E.on UK plc, DP Energy, Siemens, OceanEnergy, ENGIE, NextEra Energy, and Minesto AB.