Concentrated Solar Power (CSP) Market Size
| Study Period | 2019-2029 |
| Base Year For Estimation | 2023 |
| CAGR (2024 - 2029) | 6.93 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Europe |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Concentrated Solar Power (CSP) Market Analysis
The Concentrated Solar Power Market size is estimated at 10.36 gigawatt in 2024, and is expected to reach 14.49 gigawatt by 2029, growing at a CAGR of 6.93% during the forecast period (2024-2029).
- Over the long term, the declining cost of concentrated solar power technologies is expected to drive the market.
- On the other hand, the increasing adoption of solar photovoltaics and other renewable technologies is expected to hinder the market growth during the forecast period.
- Nevertheless, technology improvements and integration of concentrated solar power in hybrid power plants. This will positively impact the environment, and climate change is expected to create several opportunities for Concentrating the solar power market in the future.
- Europe is expected to dominate the market as the solar sector in the region is witnessing new projects at the outset of growing electricity demand and focusing on using renewable energy sources to curb pollution levels, therefore resulting in increasing demand for CSP during the forecast period.
Concentrated Solar Power (CSP) Market Trends
Parabolic Trough Segment to Dominate the Market
- Parabolic-trough collectors (PTCs) consist of long U-shaped mirrors with a linear axis tracking system. The mirrors reflect direct solar radiation along their focal line, where an absorber tube is located. The receiver/absorber tube is made of steel. It has a selective coating that maintains high absorbance in the solar spectrum wavelength range but high reflectance in the infrared spectrum (i.e., it emits as little as possible).
- The most commonly used fluid is thermal oil, although water/steam or molten salt are also used for this configuration. These are some of the most widely deployed configurations for CSPs.
- Parabolic trough collectors are one of the most commonly deployed CSPs around the globe; they can be deployed in domestic heating, desalination, refrigeration systems, industrial heat, power plants, pumping irrigation water, etc. According to the National Renewable Energy Laboratory (NREL), as of June 2022, Parabolic trough accounts for a share of 63.5% of total global CSP installed capacity.
- The Parabolic Trough Collector (PTC) 's operations and maintenance part is slightly complicated compared to its counterparts. The most frequent activities related to solar field operations and maintenance are the periodic measurement of mirror reflectivity and washing. Mirror reflectivity directly affects the amount of valuable thermal energy solar collectors deliver. It may also require tall vehicles or cranes to perform routine cleaning and maintenance.
- For instance, in 2020, researchers from the Indian Institute of Technology Madras created a low-cost Solar Parabolic Trough Collector (PTC) device for concentrating solar energy for industrial uses such as desalination, space heating, and space cooling. This system, created and developed in India, is lightweight and highly efficient under various climate and load circumstances.
- Hence, the parabolic trough is expected to dominate the market for concentrated solar power during the forecast period.
Europe to Dominate the Market
- In Europe, the power sector accounts for more than 75% of greenhouse gas emissions in the region. Increasing the share of renewable energy has become a potential option for the region to tackle climate change.
- The solar sector is witnessing new projects at the outset of growing electricity demand and focusing on using renewable energy sources to curb pollution levels across the region. In 2022, Europe had about 2.3 GW of installed CSP capacity. As per IRENA, by 2030, Europe will likely install 4 GW of concentrated solar power (CSP)
- In Europe, Energy cooperation such as MUSTEC or Market Uptake of Solar Thermal Electricity intends to focus on the collaborative development of CSP projects in the region, given the EU 2030 climate and energy framework. MUSTEC aims to deploy CSP projects in Southern Europe to meet the electricity demand of Central and North European countries.
- Likewise, the EU Solaris ERIC, the European Research Infrastructure for CSP/Solar thermal energy, aims to develop CSP research-related activities and applications. The development of tools and techniques, new capacities, solutions, everyday standards, and protocols to ramp up CSP technology in the region.
- Further, in 2022, the German government introduced a 55% subsidy to install CSP to speed up the clean energy transition to green heating for industrial applications. It also envisages lowering payback time to below three years for CSP technology. This would significantly help CSP installations to increase in Germany.
- Similarly, Spain was the first European country to initiate feed-in-tariff mechanisms for CSP in 2002, which helped ramp up CSP deployment. Moreover, in 2007, Spain commissioned the PS10 solar power tower as the first commercial CSP plant to use tower technology worldwide.
- Further, in 2022, the Ministry of Ecological Transition, Spain, awarded 220 MW capacity for CSP installation through an auction mechanism that would give rise to the development of CSP projects in the country. Spain’s government also announced to float tenders for 600 MW of CSP capacity by 2025.
- Hence, with the increasing installed capacities, Europe is expected to dominate the CSP market during the forecast period.
Concentrated Solar Power (CSP) Industry Overview
The concentrated solar power (CSP) market is moderately consolidated. Some of the key players in this market (in no particular order) include Aalborg CSP, Acciona SA, ACWA Power, Brightsource Energy Inc., and Engie SA., among others.
Concentrated Solar Power (CSP) Market Leaders
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ACWA Power
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Engie SA
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Acciona SA
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Brightsource Energy Inc.
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Aalborg CSP
*Disclaimer: Major Players sorted in no particular order
Concentrated Solar Power (CSP) Market News
- February 2023: Vast Solar announced that the Australian Renewable Energy Agency has provided funding of USD 44 million to develop a 30 MW CSP plant in Port Augusta, Australia.
- February 2023: Engineers India Limited floated a tender, inviting technology licensors and suppliers to develop a new CSP project at an undisclosed location. The company has also announced that companies with functional but non-commercialized CSP technologies can participate in the bidding process.
Concentrated Solar Power (CSP) Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Scope of the Study
- 1.2 Market Definition
- 1.3 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW
- 4.1 Introduction
- 4.2 Market Size and Demand Forecast in USD billion, till 2028
- 4.3 Installed CSP Capacity and Forecast in MW, till 2028
- 4.4 Recent Trends and Developments
- 4.5 Government Policies and Regulations
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4.6 Market Dynamics
- 4.6.1 Drivers
- 4.6.1.1 Declining Cost of Concentrated Solar Power Technologies
- 4.6.2 Restraints
- 4.6.2.1 Supportive Government Policies for Other Renewable Energy Sources
- 4.7 Supply Chain Analysis
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4.8 Porter's Five Forces Analysis
- 4.8.1 Bargaining Power of Suppliers
- 4.8.2 Bargaining Power of Consumers
- 4.8.3 Threat of New Entrants
- 4.8.4 Threat of Substitutes Products and Services
- 4.8.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 Technology
- 5.1.1 Parabolic Trough
- 5.1.2 Linear Fresnel
- 5.1.3 Power Tower
- 5.1.4 Dish/Stirling
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5.2 Heat Transfer Fluid
- 5.2.1 Molten Salt
- 5.2.2 Water-based
- 5.2.3 Oil-based
- 5.2.4 Other Heat Transfer Fluids
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5.3 Geography
- 5.3.1 North America
- 5.3.1.1 United States
- 5.3.1.2 Mexico
- 5.3.1.3 Rest of North America
- 5.3.2 Europe
- 5.3.2.1 Germany
- 5.3.2.2 Italy
- 5.3.2.3 France
- 5.3.2.4 Spain
- 5.3.2.5 Rest of Europe
- 5.3.3 Asia-Pacific
- 5.3.3.1 China
- 5.3.3.2 India
- 5.3.3.3 South Korea
- 5.3.3.4 Rest of Asia-Pacific
- 5.3.4 South America
- 5.3.4.1 Brazil
- 5.3.4.2 Chile
- 5.3.4.3 Rest of South America
- 5.3.5 Middle-East and Africa
- 5.3.5.1 United Arab Emirates
- 5.3.5.2 Saudi Arabia
- 5.3.5.3 South Africa
- 5.3.5.4 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Strategies Adopted by Leading Players
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6.3 Company Profiles
- 6.3.1 Nextera Energy Inc.
- 6.3.2 Acciona SA
- 6.3.3 ACWA Power
- 6.3.4 Brightsource Energy Inc.
- 6.3.5 Engie
- 6.3.6 SR Energy
- 6.3.7 Aalborg CSP
- 6.3.8 Chiyoda Corporation
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 Technology Improvements and Integration of Concentrated Solar Power in Hybrid Power Plants
Concentrated Solar Power (CSP) Industry Segmentation
Concentrated Solar Power (CSP) is the technology developed to generate electricity by transforming concentrated sunlight into solar thermal energy. Mirrors reflect solar radiation to a thermal receiver. The collected solar energy is then absorbed and used to heat the heat-transfer fluid (HFT). The heat retained in the fluid is accumulated, which powers a turbine to generate electrical energy.
The concentrated solar power market is segmented by technology, heat transfer fluid, and geography. By technology, the market is segmented into parabolic trough, linear fresnel, power tower, and dish/stirling. Heat transfer fluid: the market is segmented into molten salt, water-based, oil-based, and other heat transfer fluids. The report also covers the market size and forecasts for the concentrated solar power (CSP) market across major regions, such as Asia-Pacific, North America, Europe, South America, and the Middle East and Africa.
For each segment, the market sizing and forecasts have been done based on revenue (USD).
| Technology | Parabolic Trough | |
| Linear Fresnel | ||
| Power Tower | ||
| Dish/Stirling | ||
| Heat Transfer Fluid | Molten Salt | |
| Water-based | ||
| Oil-based | ||
| Other Heat Transfer Fluids | ||
| Geography | North America | United States |
| Mexico | ||
| Rest of North America | ||
| Geography | Europe | Germany |
| Italy | ||
| France | ||
| Spain | ||
| Rest of Europe | ||
| Geography | Asia-Pacific | China |
| India | ||
| South Korea | ||
| Rest of Asia-Pacific | ||
| Geography | South America | Brazil |
| Chile | ||
| Rest of South America | ||
| Geography | Middle-East and Africa | United Arab Emirates |
| Saudi Arabia | ||
| South Africa | ||
| Rest of Middle East and Africa |
Concentrated Solar Power (CSP) Market Research FAQs
How big is the Concentrated Solar Power Market?
The Concentrated Solar Power Market size is expected to reach 10.36 gigawatt in 2024 and grow at a CAGR of 6.93% to reach 14.49 gigawatt by 2029.
What is the current Concentrated Solar Power Market size?
In 2024, the Concentrated Solar Power Market size is expected to reach 10.36 gigawatt.
Who are the key players in Concentrated Solar Power Market?
ACWA Power, Engie SA, Acciona SA, Brightsource Energy Inc. and Aalborg CSP are the major companies operating in the Concentrated Solar Power Market.
Which is the fastest growing region in Concentrated Solar Power Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Concentrated Solar Power Market?
In 2024, the Europe accounts for the largest market share in Concentrated Solar Power Market.
What years does this Concentrated Solar Power Market cover, and what was the market size in 2023?
In 2023, the Concentrated Solar Power Market size was estimated at 9.64 gigawatt. The report covers the Concentrated Solar Power Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Concentrated Solar Power Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Which is the leading segment in the concentrated solar power CSP Market?
The leading segment in the concentrated Solar Power CSP Market is molten salt.
Concentrated Solar Power (CSP) Industry Report
The global concentrated solar power (CSP) market is projected to experience significant growth, driven by environmental concerns over carbon emissions, efforts to reduce air pollution, and the integration of CSP systems with thermal storage systems. Governments worldwide are incentivizing renewable energy generation through tax credits, grants, and loan programs, encouraging investors and project developers to shift towards renewable power generation. However, the high cost of generation compared to other renewable technologies poses a challenge. Opportunities exist in the use of CSP in desalination and enhanced oil recovery processes, particularly in regions like the Middle East and North Africa. The market is expected to be dominated by the Asia Pacific region, followed by the Middle East and Africa, due to the growing demand for continuous electricity generation and increasing government support for renewable technologies.
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