Global Concentrating Solar Power Market – Industry Trends and Forecast to 2030

The Concentrating Solar Power Market is experiencing robust expansion, with market size projected to increase from (10.17 Billion) 2024 to (45.65 Billion) 2030, demonstrating a consistent year-over-year growth rate of 18.24%. Concentrating Solar Power Market Size, Share, Competitive Landscape and Trend Analysis Report, by Types (Desalination, Enhanced Oil Recovery, Utility, Others), , by Technology (Linear Fresnel, Dish, Parabolic Trough, Power Tower), by Capacity (50 MW to 99 MW, Less than 50 MW, 100 MW and above) , by Operation Type (Stand-alone Systems, With Storage) And Regions (North America (United States, Canada, Mexico), South America (Brazil, Argentina, Chile, Rest of South America), Europe (Germany, France, Italy, United Kingdom, Benelux, Nordics, Rest of Europe), Asia Pacific (China, Japan, India, South Korea, Australia, Southeast Asia, Rest of Asia-Pacific), MEA (Middle East, Africa)) : Industry Forecast and Opportunity Analysis for 2024 - 2030

The Concentrated Solar Power (CSP) market focuses on using mirrors or lenses to concentrate sunlight onto a small area, which heats a thermal transfer fluid. This fluid then produces steam that drives a turbine to generate electricity. Unlike photovoltaic (PV) systems, which can convert sunlight directly into electricity, thermal solar utilizes thermal energy and thus allows for thermal energy storage (TES). In this way, CSP plants can continue to provide electricity when the sun isn't shining, thus providing dispatchable power to supplement intermittent supply from solar PV and wind. The CSP market is all about reliable, dispatchable renewable electricity supply generation, especially in areas with very high direct normal irradiance (DNI). Because of its characteristics of integrating TES, it can provide baseload or peak energy generation and, thus, provide an option for solar with these qualities. CSP has several additional advantages, especially in grid stability and energy storage, essential for the transition to a grid offering high renewable energy. But the effect at the moment is overshadowed by rapidly declining prices in PV technology.

Concentrating Solar Power Report Highlights

Report Metrics	Details
Forecast period	2019-2030
Base Year Of Estimation	2024
Growth Rate	CAGR of 18.24%
Forecast Value (2030)	USD 45.65 Billion
By Product Type	Desalination, Enhanced Oil Recovery, Utility, Others
Key Market Players	Suntrace Acciona Energy Therminol Shams Power TSK Flagsol Engineering ACWA Power GE Renewable Energy SolarReserve CSP Services Atlantica Yield PLC BrightSource Energy, Inc. Enel Green Power Abengoa Solar Chiyoda Corporation
By Region	North America (United States, Canada, Mexico) South America (Brazil, Argentina, Chile, Rest of South America) Europe (Germany, France, Italy, United Kingdom, Benelux, Nordics, Rest of Europe) Asia Pacific (China, Japan, India, South Korea, Australia, Southeast Asia, Rest of Asia-Pacific) MEA (Middle East, Africa)

Concentrating Solar Power Market Trends

One key trend is the integration of thermal energy storage systems, which allow CSP plants to deliver electricity even during non-sunny hours, enhancing grid reliability. The cost of CSP-generated electricity has dropped by over 50% in the last decade due to innovations in solar concentrators, heat transfer media, and power cycles. Technologies like parabolic troughs and solar towers dominate the market due to their efficiency and scalability, while emerging solutions such as ceramic particle-based heat storage show promise for further cost reductions and performance improvements.

Concentrating Solar Power Market Leading Players

The key players profiled in the report are GE Renewable Energy, SolarReserve, Therminol, Enel Green Power, Suntrace, Acciona Energy, BrightSource Energy, Inc., ACWA Power, Shams Power, Abengoa Solar, CSP Services, Atlantica Yield PLC, TSK Flagsol Engineering, Chiyoda Corporation

Growth Accelerators

Increasing interest in dispatchable solar thermal power generation enhanced the commercialization of CSP. CSP with thermal energy storage (TES) can supply energy on demand unlike solar photovoltaics (PV) or wind. Therefore, it stabilizes the electric grid, enabling cheap and controllable input of thermal energy in demand at times of variable renewable energy supply. This dispatchability is extremely important for compensating the fluctuations with renewable energy inputs and providing firm power in the regions with high solar irradiance. Market drivers inducing CSP incorporation never stop with decarbonization and serious emission targets. TES integration is its major distinguishing factor towards increasing renewable influence within the energy makeup. On the other hand, just in simple terms, the ongoing developments that will reduce the cost and improve the efficiency of power plants, as well as potential hybridization with other renewable sources, provide impetus to this advancing market. There is also an increasing demand for long-duration energy storage, and CSP with thermal storage can meet that requirement.

Concentrating Solar Power Market Segmentation analysis

The Global Concentrating Solar Power is segmented by Type, and Region.
By Type, the market is divided into Distributed Desalination, Enhanced Oil Recovery, Utility, Others . Geographically, the market is assessed across key Regions like North America (United States, Canada, Mexico), South America (Brazil, Argentina, Chile, Rest of South America), Europe (Germany, France, Italy, United Kingdom, Benelux, Nordics, Rest of Europe), Asia Pacific (China, Japan, India, South Korea, Australia, Southeast Asia, Rest of Asia-Pacific), MEA (Middle East, Africa) and others, each presenting distinct growth opportunities and challenges influenced by the regions.

Competitive Landscape

The competitive landscape of the concentrating solar power (CSP) market is comprised of a rather finite number of key players, given high capital investment and specific technology requirements. CSP project development, engineering, procurement, and construction are the main players in the industry. Technological innovations, especially those that foster thermal energy storage (TES) or heat transfer fluids, have become competitive differentiators. Inter-technological competition between CSP systems, e.g., between parabolic trough vs. linear Fresnel vs. power tower systems, also exists. The CSP market is facing fierce competition from fast-falling costs of photovoltaics (PV) and battery storage technologies that keep on rising. Such competition, however, does not limit a focus on hybrid solutions combining CSP plants with either PV or other renewable sources of supply to provide additional enhancement of grid stability and reliability. Future competition will depend on how well CSP players can deliver their technology in the face of rising costs and efficiency and across new solutions that meet the challenges of grid integration and dispatchability.

Challenges In Concentrating Solar Power Market

The Concentrating Solar Power (CSP) industry faces several challenges, the main ones being their high initial cost and complex infrastructural requirements. Unlike photovoltaic (PV) solar systems, CSP projects entail considerable investments for land, mirrors, and thermal storage systems, rendering them unfeasible in price-sensitive markets. Also, CSP plants only function on direct sunlight, thus being only considered feasible in areas that receive high solar radiation, such as deserts. Therefore, this geographical setting limits its acceptance, leading to a greater dependence on favourable policies and subsidies to boost market growth. Another serious challenge stems from the competition of swiftly advancing technologies for PV and battery storage. Falling prices for PV panels and lithium-ion batteries considerably strengthen large-scale solar energy projects against CSP, and in turn, CSP is offered less demand. Also, CSP plants have complex maintenance and water-intensive cooling systems, which pose a challenge in dry areas with scarce water resources.

Risks & Prospects in Concentrating Solar Power Market

Key growth areas envisaged are hybrid CSP plants integrated with PV systems and energy storage solutions for an uninterrupted power supply. With huge solar irradiation and supportive government policies, the emerging markets of the Middle East, Africa, and Latin America tend to provide lucrative opportunities. CSP's increasing potential for industrial heat applications and green hydrogen production would further widen its market reach. Regionally, North America and Europe are at the forefront regarding technology advancement and project deployment, with Spain and the U.S. being the most prominent players. Rapid growth of CSP projects is occurring in the Asia-Pacific region, with especially noteworthy government support in China and India. The Middle East and North African (MENA) region is coming forward as the other major market for CSP with the Noor Energy complex in Dubai and other similar initiatives. These regions are investing heavily in CSP infrastructure to diversify the energy mix and reduce over-reliance on fossil fuels.

Key Target Audience

, The primary target audience within the Concentrating Solar Power (CSP) market consists of government agencies, utility firms, and industrial sectors searching for sustainable energy solutions. These governments are an important link in the provision of policies, incentives, and funding in promoting CSP as part of renewable energy strategies. Utility firms support CSP for grid stabilization by providing large-scale renewable power, particularly in areas that receive high solar irradiation. In addition, industrial sectors such as mining, manufacturing, and desalination benefit from CSP by providing high-temperature heat for various processes.,, , Another very important audience is made up of investors, technology providers, and research institutions dedicated to improving the efficiency of CSP technologies. Because of their long-term potential for stable energy generation, private equity and renewable energy investors are seeking out opportunities to invest in CSP projects. Demand is also being fuelled by environmental organizations and sustainability-oriented companies promoting CSP toward global decarbonization efforts, especially in sun-drenched areas like the Middle East, North Africa, and southwestern United States.

Merger and acquisition

The Concentrated Solar Power (CSP) market has witnessed remarkable numbers when it comes to recent mergers and acquisitions that are intended to complement portfolios in renewable energy and to further boost solar thermal technology. In September next year, Masdar, the renewable energy developer from the UAE, acquired Saeta Yield for $1.4 billion. Wind farms and solar plants in Spain and Portugal were included, with a total of 745 megawatts of operating capacity and planned development of an additional 1.6 gigawatts. It falls under Masdar's goal to expand upon its renewable energy footprint in Europe and thereby into the EU's net-zero emissions target by 2050. Another state development is that BP completed a 100% acquisition of solar power developer Lightsource BP with the purchase of the last 50.03% stake from its founders and management in October 2024. This transaction was part of BP's strategy for increasing low-carbon and biofuels production. The deal is valued at 400 million pounds or $518 million. All these strategic moves are in the context of general trends, where energy companies place their investments in CSP and related renewable technologies in view of the diversification of energy portfolios and broader sustainability initiatives. >

Analyst Comment

The present scenario of the Concentrating Solar Power (CSP) market depicts a fusion of promising opportunities and possible threats. Although the prime advantage of this technology is the integrated thermal energy storage (TES), which allows delivering dispatchable renewable power, it is increasingly facing competition from declining costs of photovoltaic (PV) systems. The most promising source markets are those with high direct normal irradiance (DNI), such as in the Middle East, North Africa, and parts of the United States. Government initiative and policy support for grid stability and long-duration energy storage are imperative drivers for CSP adoption.