We are WavePower Energies, a climate-focused sustainable energy company that seeks to transform how communities generate and utilize electrical power. Ocean waves represent a largely underestimated source of energy, and our novel technologies harness their power to drive eco-friendly solutions worldwide. Our analyses of the untapped potential of wave motion and the global movement toward clean energy have shown promising results when it comes to the desirability and feasibility of our technological products.
TAM: Total Available Market
A 2011 Intergovernmental Panel on Climate Change report presented estimates for the global potential for wave energy generation. Those estimates were the basis for the since-established theoretical maximum wave energy potential in the worldwide market: 30,000 terawatt-hours per year, almost 20% of the 2019 worldwide energy consumption. [1] With this in mind, along with the average $0.12 kilowatt-hours per year cost of global electricity for businesses, WavePower Energies is looking at an opportunity of almost $36 billion annually. [2]
SAM: Served Available Market
To approach the SAM, we asked ourselves: “How much money can realistically be produced from wave energies around the world?” We explored this question by researching the annual costs of electricity in a number of countries where the application of wave energy technologies had the most potential–scientifically (what coastal areas have wave patterns that are compatible with wave energy conversion technology) as well as economically (what areas contain communities that can afford our technology?). We chose to target six main coastal communities in areas where wave-power-generation is high to pilot our technology and create a SAM population reach estimate. [4] [5]
| Country | Coastal Population |
| United States | 100 million |
| United Kingdom | 3 million |
| Ireland | 1.9 million |
| Greenland | 56,000 |
| Australia | 18.7 million |
| New Zealand | 3.84 million |
| Total: 127.94 million |
We were able to find the approximate SAM dollar value for wave energy technologies in the United States, which comes out to ~ 20 million USD [6]. If WavePower Energies were to target the above countries, which present the highest levels of geographic feasibility for the setup of wave power plants and transmission lines, we can use extrapolation of the United States values to establish a SAM value of: 20 * 1.28 = $26 million.
SOM: Segmented Obtainable Market
Our team brainstormed at length regarding the businesses and corporations where applications of wave energy technologies were most viable and most desired. We discovered that while desalination and other scientific efforts account for ~40% of the total market revenue in wave power at present, ~60% is accounted for by power generation. While WavePower Energies is a force in the current wave energy market, we accounted for market competition dominating ~40% of the current market [7]. With these figures in mind, we expect the SOM to be 20 million USD * 0.6 * 0.4 = $8.4 million.
