Concentrated Solar Power Market Size, Share & Trends Analysis Report By Application (Utility, EOR, Desalination), By Technology, By Region- Global Industry Analysis, Share, Growth, Regional Outlook and Forecasts, 2024-2033

The global concentrated solar power market size was exhibited at USD 5.60 billion in 2023 and is projected to hit around USD 14.39 billion by 2033, growing at a CAGR of 9.9% during the forecast period of 2024 to 2033.

Key Takeaways:

• Asia Pacific dominated the CSP market in 2023 with a revenue share of 45.0%, owing to the upsurge in installations of concentrated solar power plants.
• The utility application segment accounted for the largest revenue share of 63.9% in 2023. 
• The parabolic trough technology segment accounted for the largest revenue share of 85.0% in 2023 

Concentrated Solar Power Market by Overview 

The concentrated solar power (CSP) market stands at the forefront of renewable energy innovation, offering a promising solution to the world's growing energy demands while addressing climate change concerns. This comprehensive overview delves into the intricate landscape of the CSP market, examining its evolution, current state, and future prospects.

Concentrated Solar Power Market Growth

The growth of the concentrated solar power (CSP) market is underpinned by several key factors driving its expansion. Firstly, the increasing global emphasis on renewable energy as a sustainable alternative to fossil fuels fuels the demand for CSP technology. With growing concerns over climate change and environmental sustainability, CSP offers a clean and abundant source of power generation, attracting investments and driving market growth. Moreover, advancements in CSP technology, including improvements in efficiency, cost reduction, and energy storage capabilities, enhance the competitiveness of CSP plants compared to traditional energy sources. Additionally, supportive government policies, incentives, and renewable energy targets incentivize the deployment of CSP projects, further stimulating market growth. The scalability and flexibility of CSP systems, along with their ability to provide dispatchable power, make them attractive options for addressing energy needs across various sectors and regions. Overall, these factors collectively contribute to the robust growth of the concentrated Solar Power market, positioning it as a vital component of the global renewable energy transition.

Concentrated Solar Power Market Report Scope

Concentrated Solar Power Market Dynamics

• Technological Advancements:

The CSP market is characterized by ongoing technological advancements aimed at enhancing the efficiency, reliability, and cost-effectiveness of CSP systems. Innovations in receiver design, heat transfer fluids, thermal storage, and solar collector materials have led to significant improvements in the performance of CSP plants. Additionally, advancements in molten salt storage, power block components, and control systems enable CSP plants to operate more efficiently and provide grid stability through dispatchable power generation. Furthermore, research and development efforts focused on next-generation CSP technologies, such as hybrid systems integrating photovoltaic and CSP technologies, further expand the potential applications and market opportunities for CSP.

• Market Expansion and Global Deployment:

The CSP market is experiencing rapid expansion and deployment globally, driven by increasing energy demand, renewable energy targets, and climate change mitigation efforts. While historically concentrated in regions with abundant solar resources, such as the Middle East, North Africa, and the southwestern United States, CSP deployment is now expanding to new markets worldwide. Emerging economies in Asia, Latin America, and Africa are increasingly investing in CSP projects to meet their growing energy needs and reduce dependence on fossil fuels. Moreover, supportive government policies, incentives, and procurement programs, coupled with declining technology costs, are accelerating CSP deployment in both developed and developing markets. Additionally, advancements in CSP technology and project financing models enable innovative deployment approaches, such as hybridization with other renewable energy technologies and integration with industrial processes.

Concentrated Solar Power Market Restraint

• High Initial Capital Costs:

One of the primary restraints hindering the widespread adoption of Concentrated Solar Power is the high initial capital costs associated with CSP projects. CSP plants require significant upfront investment for construction, including the installation of specialized equipment such as solar collectors, thermal storage systems, and power block components. Additionally, the complexity of CSP technology and the need for specialized infrastructure further contribute to the high capital costs. As a result, the upfront investment required for CSP projects can be prohibitively expensive compared to other renewable energy technologies, such as solar photovoltaic (PV) and wind power. High capital costs pose challenges for project developers in securing financing and achieving acceptable returns on investment, particularly in markets with limited access to capital or where electricity prices are low. 

• Land and Water Requirements:

Another significant restraint impacting the CSP market is the land and water requirements associated with CSP projects. CSP plants typically require large land areas for solar field deployment, as well as access to water for cleaning solar collectors, cooling systems, and thermal storage operations. In regions with limited available land or water resources, securing suitable sites for CSP development can be challenging and may face opposition from local communities or environmental concerns. Additionally, water scarcity and competition for water resources pose risks to the sustainability of CSP projects, particularly in arid or water-stressed regions where CSP deployment is most favorable. Addressing land and water constraints through site selection optimization, water conservation measures, and alternative cooling technologies will be crucial for mitigating environmental impacts and ensuring the long-term viability of CSP projects.

Concentrated Solar Power Market Opportunity

• Energy Storage Integration:

One of the most promising opportunities in the CSP market lies in the integration of energy storage technologies. CSP plants equipped with thermal energy storage (TES) systems have the unique ability to store excess heat energy generated during the day and utilize it to generate electricity during periods of low solar irradiance or at night. This capability enables CSP plants to provide dispatchable and reliable power, addressing the intermittency challenges associated with solar energy generation. As energy storage technologies continue to advance and costs decline, the integration of TES with CSP plants presents significant opportunities for enhancing grid stability, supporting renewable energy integration, and meeting peak demand. Additionally, the flexibility offered by energy storage enables CSP plants to participate in ancillary services markets, providing additional revenue streams and improving the economic viability of CSP projects.

• Hybridization and Co-Located Projects:

Another promising opportunity in the CSP market is the development of hybrid and co-located projects that integrate CSP with other renewable energy technologies or industrial processes. Hybridization allows CSP plants to complement their solar thermal generation with other renewable energy sources, such as photovoltaic (PV) solar or wind power, to optimize energy output and enhance grid reliability. Co-located projects, such as solar-wind hybrids or CSP-biomass hybrids, leverage synergies between different energy sources to maximize resource utilization, reduce costs, and minimize environmental impact. Furthermore, integrating CSP with industrial processes, such as desalination, mineral processing, or hydrogen production, creates additional revenue streams and enhances the economic viability of CSP projects. Hybridization and co-location offer opportunities for CSP developers to diversify their project portfolios, mitigate risks, and leverage existing infrastructure and resources to maximize project value. 

Concentrated Solar Power Market Challenges

• Intermittency and Variability:

One of the primary challenges hindering the widespread adoption of Concentrated Solar Power is the inherent intermittency and variability of solar energy. Unlike traditional power plants fueled by fossil fuels or nuclear energy, CSP plants rely on direct sunlight for electricity generation, making them susceptible to fluctuations in weather conditions, seasonal variations, and diurnal cycles. Cloud cover, dust storms, and atmospheric conditions can significantly reduce solar irradiance levels, leading to fluctuations in power output and affecting the reliability and predictability of CSP plants. Moreover, the mismatch between peak solar generation and peak electricity demand poses challenges for grid integration and system stability. 

• Competition from Other Renewable Energy Sources:

Another significant challenge facing the CSP market is the increasing competition from other renewable energy sources, particularly solar photovoltaic (PV) and wind power. Solar PV and wind power technologies have experienced rapid growth and significant cost reductions in recent years, making them increasingly competitive with CSP in terms of capital costs, levelized cost of electricity (LCOE), and project economics. Additionally, solar PV and wind power offer advantages such as scalability, simplicity, and faster deployment compared to CSP, which relies on complex thermal energy conversion processes and specialized equipment. As a result, CSP faces challenges in attracting investment and securing market share, particularly in regions where solar PV and wind power dominate the renewable energy landscape. 

Segments Insights:

Application Insights

Based on the application, the market is segregated as utility, EOR, desalination, and others. The utility application segment accounted for the largest revenue share of 63.9% in 2023. The growth of the segment is determined by important concentrated solar power project developments across the Middle East and Africa and the Asia Pacific, primarily in Saudi Arabia, Morocco, the UAE, and China. Additionally, demand for CSP from the utility areas is motivated by the need to generate renewable power with storage technologies to provide increasing electricity needs across the residential areas.

The utility segment is anticipated to witness significant growth over the forecast period mainly owing to the favorable government initiatives and regulations on increasing the adoption of renewable energy sources. Various financial and economic benefits, including Feed-in Tariffs (FiT) and tax credits, presented by the government authorities will enhance the segment growth till 2033.

The Enhanced Oil Recovery (EOR) application segment is gaining ground at a fast pace and is anticipated to account for over 123.0 MW in terms of capacity by 2033. In this application, steam produced by concentrated solar power farms is driven into oil fields for tertiary recovery. The adoption of such technology in crude oil-producing nations will encourage CSP market growth. In 2023, the other segment was valued at USD 904.6 million and is expected to witness considerable growth over the projected period owing to ongoing R&D in the market.

Technology Insights

Based on the technology, the market is segregated as parabolic trough, dish, linear fresnel, and power tower. The parabolic trough technology segment accounted for the largest revenue share of 85.0% in 2023 owing to high penetration of the design, along with easy installation and convention.

The power tower concentrated solar power technology segment was valued at USD 388 million in 2023 and is anticipated to witness a subsequent rise in installed capacity over the projected period, mainly owing to economically assessed products, along with improved designs and many other aids. Power tower technology in the market is witnessing a large-scale adoption, specifically in nations with land availability, as large areas form a criterion for installing power towers.

The linear fresnel technology segment is projected to reach USD 652.0 million by 2033. The segment growth is primarily attributed to the usage of cheaper flat glass mirrors and the simple design associated with the technique. Besides, these systems require a lesser amount of concrete support structure and steel, indicating their reduced installation cost and easy assembly process.

Regional Insights

Asia Pacific dominated the CSP market in 2023 with a revenue share of 45.0% owing to the upsurge in installations of concentrated solar power plants. China is projected to grow at a significant rate from 2020 to 2033. This is primarily attributed to growing investment in concentrated solar power for alleviating grid locations, which, in turn, is driving the market. Additionally, the need to produce continuous renewable power energy to support rising fiscal activities is boosting the market growth in the region. Europe is likely to expand at a revenue-based CAGR of 16.4% from 2020 to 2033 owing to favorable government policies across numerous nations in the region.

North America emerged as the second-largest regional market in 2023 and it was valued at USD 910.4 million. In MEA, continuing sizable investments in development, along with the changing focus of investors toward green energy alternatives, will favor the market growth, where Morocco is among the top adopters of concentrated solar power in the globe.

Some of the prominent players in the concentrated solar power market include:

• Abengoa
• BrightSource Energy, Inc.
• Siemens Energy
• Acciona
• Aalborg CSP
• TSK Fl
• ACWA POWER
• INITEC Energía
• Torresol Energy
• Enel Spa
• Trivelli Energia srl
• Grün leben GmbH

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Nova one advisor, Inc. has segmented the global concentrated solar power market.

Application

• Utility
• EOR
• Desalination
• Others

Technology

• Parabolic Trough
• Linear Fresnel
• Dish
• Power Tower

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)