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Ocean Thermal Energy Conversion (OTEC) Market Recent Trends, Future Growth, Insights, Share and Forecasts

Global OTEC Market: Introduction

Ocean Thermal Energy Conversion (OTEC) power generation makes use of temperature differences between upper surface layer and deeper layers of the sea. OTEC operates with temperature differences of around 20°C or more.
OTEC seems especially suitable and economically viable for remote islands in tropical seas where generation can be combined with other functions such as air-conditioning and fresh water production. Thus, companies are investing significantly in the technology.
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Key Drivers and Restraints of Global OTEC Market

OTEC could provide electricity for 24 hours a day throughout the entire year. This provides significant advantage over other renewable energy sources, as other energy sources such as solar and wind are dependent on natural factors such as sun, wind, and weather. This indicates a rise in the adoption of OTEC. The maximum available energy from OTEC is not limited by land, shorelines, water, environmental impact, and human impact.
Governments of countries across the globe are enacting stringent regulations to reduce the emission of carbon and greenhouse gases. This is another key driver of the global OTEC market. Implementation of these regulations has compelled companies to seek more environmentally-friendly energy solutions. Thus, companies are now investing increasingly in the development of OTEC.
High investment costs and availability of cheaper alternate power sources are major factors restraining the global OTEC market. Solar and wind energy requires lower initial investment compared to OTEC.
Global OTEC Market: Segmentation

The global OTEC market can be segmented based on type and application
Based on type, the global OTEC market can be divided into closed cycle, open cycle, and hybrid cycle. In terms of demand, the closed cycle segment is expected to expand at a faster pace in the near future.
In terms of application, the global OTEC market can be segregated into land based and floating. The land based segment is anticipated to expand at a fast-paced CAGR during the forecast period owing to the lower cost compared to the floating application.
Global OTEC Market: Regional Outlook

Based on region, the global OTEC market can be classified into North America, Asia Pacific, Europe, Latin America, and Middle East & Africa
Rapid industrialization and modernization is estimated to boost the OTEC market in in Asia Pacific in the near future. China and Japan are the leading countries in terms of number OTEC projects in the world. This trend is projected to continue during the forecast period. Furthermore, increase in awareness about the environment is anticipated to boost the demand for OTEC in the region.
The market in North America and Europe is projected to expand significantly during the forecast period. North America and Europe are the leading regions in terms of renewable projects in the world. Governments of countries in these regions are investing significantly in renewable energy projects. They have introduced stringent regulations on lowering carbon emissions and greenhouse gases in these regions. Thus, demand for OTEC is likely to increase considerable in North America and Europe in the near future.
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Key Players Operating in Global OTEC Market

Ocean Thermal Energy Corporation
Makai Ocean Engineering, Inc.
Yokogawa India Ltd.
Xenesys Inc.
Allseas
TransPacific Energy
EuroSMC S.A.
Okinawa Prefecture
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