Concentrated Solar Power Market Size, Share, and Trends 2024 to 2034

Concentrated Solar Power Market Size and Companies

The global concentrated solar power market size was valued at USD 6.05 billion in 2022 and is expected to surpass around USD 35.20 billion by 2032, poised to grow at a compound annual growth rate (CAGR) of 19.3% during the forecast period 2023 to 2032.

Growth Factors

The rising concerns over increasing carbon emissions and climate change is shifting the focus towards the adoption of the green and clean energy. The environmental concerns, growing efforts to reduce carbon emission, and the government regulations supporting adoption of renewable energy technologies are some of the prominent factors that drive the growth of the global concentrated solar power market. The integration of the concentrated solar power in the hybrid power plants is expected to drive the market growth in the forthcoming future. Hybrid power plants use two or more technologies for the production of energy. The rising focus on the solar energy has encouraged the integration of the concentrated solar power with the hybrid power plants. The concentrated solar power systems are capable of integrating thermal energy storage system. This can help to generate electricity in cloudy days or in absence of sunlight. Various technologies are available such as Fresnel reflectors, parabolic troughs, and power towers, which can be deployed depending on the conditions and requirements. Therefore, the various benefits associated with the concentrated solar power is expected to boost the market growth during the forecast period.

The globe is witnessing increasing demand for the solar technologies. The technological advancements like proppants, high temperature salts, and sCO2 helps to increase heat transfer capacity with minimal losses. Moreover, the ongoing research & development of new coatings for the receivers to minimize the reflection of light. The concentrated solar power involves low operating costs and has higher efficiencies as compared to that of a solar PV. This factor is estimated to drive the demand for the concentrated solar power solutions over solar PV. Moreover, the concentrated solar power systems are scalable and can use thermal storage to meet the demand. Growing investments towards the sustainable development and shifting focus towards the adoption of clean energy is resulting in the surging demand for the concentrated solar powers. The rising number of solar power plants along with the rising project pipeline to meet the sustainable energy mix is further propelling the growth of the global concentrated solar power market.

Though the concentrated solar power technology is more advanced and efficient than the solar PV but the technical complexities associated with the concentrated solar power plants is a major factor that may restrict the growth of the concentrated solar power market. Moreover, the high capital investments associated with the adoption of the concentrated solar power systems is another factor that may hinder the market growth during the forecast period. The key components used in the parabolic trough and solar towers are too costly. The initial investments constitutes around four-fifth of the total cost of installing the concentrated solar power systems. Further, the operational costs and maintenance costs are associated for efficiently running the concentrated solar power systems. Thus the high costs associated may hamper the market growth.

Statistics, Investments and other Data

• According to China Electricity Council, the overall solar power installation capacity of China has increased by 33.7% in the first quarter of 2023.
• Enel Green Power, the largest player in concentrated solar power (CSP) market built 5,223 Mega Watts of renewable capacity in 2022. The company distributed its 1,137 MW renewable capacity in Europe and 1,985 MW in North America.
• China’s solar associated exports, especially for photovoltaic products grew by 54% (to $52 billion) in 2022.
• While witnessing a strong growth in Western countries, the India’s solar module exports boosted by a whopping rate of 364% in the financial year 2022-23 as compared to 2022. By the year 2024, the county’s renewable energy installation will reach 45 GW.
• The International Energy Agency stated that solar power generation has increased by approximately 26% worldwide in 2022.
• According to the report published by China Electricity Council for January to March 2023, China has installed twice as much solar PV and concentrated solar power plants as coal.

Concentrated Solar Power Market Scope

Concentrated Solar Power Market Dynamics

Market Driver

Government initiatives and fundings

Many governments set ambitious renewable energy targets as part of their climate action plans. These targets often include a specific share of solar energy, which can create a demand for concentrated solar power projects and incentivize investments in technology. Governments can offer attractive feed-in tariffs or provide long-term power purchase agreements with guaranteed electricity prices for concentrated solar power projects developers. These mechanisms provide revenue certainty and make concentrated solar power projects financially viable. Governments may offer financial incentives such as tax credits, grants, or subsidies to support concentrated solar power projects. These incentives can significantly reduce the upfront costs and levelized cost of electricity, making such projects more competitive with conventional power sources.

• In May 2022, the General Office of State Council, China released a new for Development of New Energy Implementation Plan. The plan promotes the development of solar power generation projects in the country. This aims to encourage the solar power generation as peak power generation model in West and other areas of China with good solar conditions.

Governments often allocate funds for research and development in renewable energy technologies, including concentrated solar power projects. These investments foster innovation, drive technological advancements, and lead to cost reductions in concentrated solar power projects systems. Thus, the government initiatives and fundings act as a driver for the market.

Substantial focus on energy storage integration

By incorporating energy storage, concentrated solar power plants can better match electricity supply with demand fluctuations. This helps in maintaining grid stability and balancing the electricity system, which is especially crucial as the share of variable renewable energy sources like solar and wind increases. concentrated solar power with storage can extend its operating hours, producing electricity. This prolonged production of electricity ensures that concentrated solar power plants remain productive throughout the day, enhancing their overall energy output and revenue potential. Energy storage integration can be a retrofit option for existing concentrated solar power plants, providing them with the advantage of storage capabilities without the need for major infrastructure changes. This makes it easier for older concentrated solar power plants to improve their performance and compete effectively in the energy market. Considering the rising demand for energy storage integration solutions, the element is observed to drive the growth of the market.

Market Restraint

High capital investment

Concentrated solar power (CSP) plants require a considerable initial investment in infrastructure, including the construction of mirrors, towers, and thermal storage systems. These components are complex and often custom-designed for each project, contributing to higher costs. plants typically require vast tracts of land with access to direct sunlight. Acquiring and preparing suitable land can be expensive, especially in densely populated or urbanized areas. The uncertainty surrounding government policies, incentives, and subsidies for renewable energy can deter potential investors and lead to delayed project decisions. These projects often require substantial investments in grid integration and transmission infrastructure to connect to the electricity grid, especially if they are located in remote areas. Thus, observed to hamper the growth of the market.

Presence of alternative solutions for electricity generation

The presence of alternative solutions for electricity generation can create certain restraints for the concentrated solar power market. Wind power is the widely used renewable energy source that competes with solar power plants. Wind turbines can be installed onshore or offshore, and the technology has matured enough to offer a cost-effective alternative for electricity generation in areas with favorable wind resources. Concentrated solar power setting is most effective in areas with high direct sunlight and clear skies. In regions with less favorable solar resources, other renewable energy options like wind power or hydroelectricity may be more viable. Such issues create a restraint by hindering the growth of the market.

Market Opportunity

Rising focus on implementing sustainable development goals

Created by the United Nations, Sustainable Development Goals (SDGs) emphasize the need to transition to clean and sustainable energy sources to combat climate change and reduce environmental impacts. Concentrated solar power, as a renewable energy technology, offers a viable solution for producing electricity without greenhouse gas emissions, making it an attractive option for countries seeking to meet their clean energy targets. Implementing concentrated solar power projects often requires collaboration between governments, private companies, and international organizations, supporting SDGs emphasis on strengthening partnerships to achieve the SDGs. As countries and organizations work towards achieving the SDGs, concentrated solar power presents itself as a sustainable, cost-effective, and scalable renewable energy solution, driving increased investments and adoption in the global energy landscape.

Market Challenge

Slower adoption in underdeveloped areas

Underdeveloped areas may have limited financial resources and investment capabilities. The high upfront costs associated with concentrated solar power installations can be a significant barrier, preventing these regions from adopting this technology without external financial support. Implementing and maintaining concentrated solar power projects requires a skilled workforce and technical expertise. Underdeveloped areas might face challenges in accessing and developing the necessary human capital and technical know-how to operate and manage concentrated solar power installations effectively.

Application Insights

Based on the application, the utility application segment accounted for a market share of around 65% and dominated the global concentrated solar power market. The concentrated solar power projects in the developing regions like Asia Pacific and Middle East is expected to significantly drive the growth of this segment. The growing need for generating renewable power along with the storage technologies is expected to augment the market growth. The rising number of residential projects in the developing regions and growing demand for the energy is fostering the growth of this segment. Moreover, the government initiatives to encourage the adoption of the renewable energy sources will positively impact the growth.

Enhanced oil recovery segment is expected to grow at a significant pace during the forecast period. The growing adoption of the enhanced oil recovery concentrated solar power technology especially in the crude oil producing regions is the prominent driver of this segment.

Technology Insights

The parabolic trough segment dominated the global concentrated solar power market, garnering a market share of around 86% in 2022. This dominance is attributable to the parabolic trough technology being the most advanced technologies among all the available technologies. Moreover, it is the cheapest technology, which has driven the growth of this segment.

On the other hand, the power tower is estimated to be the most opportunistic segment during the forecast period. Power tower is witnessing large scale adoption in the countries with availability of vast land, owing to its improved designs, its economy, and other features.

The linear Fresnel segment is expected to witness considerable growth rate. This is attributed to the rising usage of the cheap glass mirrors and enhanced design. Furthermore, the low installation cost and easy assembling process are the major factor that boosts its adoption across the globe.

Region Insights

Asia Pacific accounted for around 44% of the market share and dominated the global concentrated solar power market in 2022. Asia Pacific is witnessing a surge in the installation of the concentrated solar power systems. The surging investments in the concentrated solar power technology for the alleviation of grid locations in the countries like China, is fostering the market growth. The rapid industrialization, rapid urbanization, and rising pollution levels are some of the factors that are fueling the demand for the energy along with the reduction in the carbon emissions. The favorable government policies to encourage the adoption of the green and clean energy is further propelling the growth of the Asia Pacific concentrated solar power market.

North America was the second leading concentrated solar power market in 2020. The increased awareness regarding the benefits of solar energy and shifting focus towards the clean and green energy has augmented the demand for the concentrated solar power market. Moreover, the increased investments towards the adoption of the latest technologies are a significant factor that has boosted the growth of the North America concentrated solar power market.

Key Market Developments

• In January 2020, Hayward Tyler secured its contract from Shanghai Electric. Under this contract, Hayward Tyler had to 950 MW hybrid solar fields at Bin Rashid Al Maktoum Solar Park Phase IV.
• In 2018, United Arab Emirates increased its sustainable energy capacity and reached 2 GW out of 30 GW due to the commissioning of at Bin Rashid Al Maktoum Solar Park in Abu Dhabi.

The concentrated solar power market is moderately fragmented with the presence of several local companies. These market players are striving to gain higher market share by adopting strategies, such as investments, partnerships, and acquisitions & mergers. Companies are also spending on the development of improved products. Moreover, they are also focusing on maintaining competitive pricing.

Concentrated Solar Power Market Companies

• Abengoa Solar
• TSK Flagsol Engineering
• Acciona Energy
• GE Renewable Energy
• Enel Green Power
• Suntrace
• Shams Power
• BrightSource Energy, Inc.
• CSP Services
• ACWA Power
• Atlantica Yield PLC
• Therminol
• SolarReserve
• Chiyoda Corporation

Segments Covered in the Report

By Application

• Enhanced Oil Recovery
• Desalination
• Utility
• Others

By Technology

• Linear Fresnel
• Dish
• Parabolic Trough
• Power Tower

By Capacity:

• Less than 50 MW
• 50 MW to 99 MW
• 100 MW and above

By Operation Type:

• Stand-alone Systems
• With Storage

By Geography

• North America
• U.S.
• Canada
• Europe
• U.K.
• Germany
• France
• Asia-Pacific
• China
• India
• Japan
• South Korea
• Malaysia
• Philippines
• Latin America
• Brazil
• Rest of Latin America
• Middle East & Africa (MEA)
• GCC
• North Africa
• South Africa
• Rest of the Middle East & Africa