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There are a number of market factors that affect how the Concentrated Solar Power (CSP) market works and grows. These factors reflect larger trends in the use of green energy and the move toward cleaner power sources. One important reason is that the world is putting more and more effort into fighting climate change and lowering carbon pollution. As countries try to keep their environmental promises and goals, CSP stands out as a strong option because it can produce energy without releasing greenhouse gases, which is in line with the main market factor of environmental sustainability.
Constant improvements in solar thermal technologies, heat storage, and system parts help CSP systems work better, be more cost-effective, and be more efficient overall. To keep CSP competitive with other types of green energy and traditional power sources, the market factor of technology growth is very important. Research and development efforts will continue to shape the market for concentrated solar power, and technical progress will remain a key factor in this regard.
Cost-effectiveness of CSP compared to other energy sources is a key business factor. Even though CSP projects may have higher start-up costs, the levelized cost of energy (LCOE) is going down thanks to new technologies and economies of scale. As the price of CSP drops, the market factor of economic feasibility gets stronger. This makes utilities, investors, and project managers more interested in CSP projects. Costs are going down, which makes CSP a financially reasonable choice for long-term power production.
A lot of market factors affect the use of CSP. Energy security and grid safety are two of the most important ones. CSP systems can provide dispatchable power through energy storage, which helps with the fact that solar energy isn't always available. As the percentage of green energy in the total energy mix rises, grid safety becomes a more notable market factor. The fact that CSP helps keep the grid stable makes it more appealing as a reliable and controlled power source. This changes the way the market works in places where grid dependability is important.
How feasible a project is depends on how much sunlight there is and how much land is ideal for CSP sites. A strong CSP growth is more likely to happen in places with high Direct Normal Irradiance (DNI) and good geographical conditions. The supply of resources in the market affects where CSP projects are located, with some areas using their solar resources to help the market grow.
In the CSP field, market forces that affect how to finance and spend are also very important. How possible CSP projects are depends on the types of funds that are available, such as project financing, private investments, and government help. Securing the funds needed to build and use CSP systems depends on how appealing a business opportunity is in the market. It's becoming more and more important for the market factor of funding to shape the Concentrated Solar Power industry as new financing models come out and financial companies learn more about the risks and returns of CSP.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Market Size Value In 2022 | USD 5.1 Billion |
| Market Size Value In 2023 | USD 5.9 Billion |
| Growth Rate | 17.10% (2023-2032) |
Concentrating Solar Power Market Highlights:
Global Concentrating Solar Power Market Overview:
Concentrating Solar Power Market Size was valued at USD 5.1 Billion in 2022. The Concentrating Solar Power market industry is projected to grow from USD 5.97 Billion in 2023 to USD 21.11 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 17.10% during the forecast period (2023 - 2032). Growing environmental concerns over carbon emissions and initiatives by the government to enable renewable technologies are the key market drivers enhancing market growth.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Concentrating Solar Power Market Trends
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Growth in deployment and market expansion is driving the market growth
The deployment and expansion growth are driving market CAGR for Concentrating Solar Power. One driving factor behind this expansion is the increasing recognition of CSP's unique advantages, including its ability to provide baseload power, dispatch ability, and potential for hybridization with other energy sources. CSP plants are often integrated with conventional or photovoltaic systems, creating hybrid power plants that offer a more stable and reliable electricity supply. Moreover, government support through favorable policies and financial incentives has played a crucial role in the market expansion of CSP. Various countries have implemented feed-in tariffs, tax incentives, and renewable energy targets to promote the adoption of CSP technology. These initiatives have attracted investments and encouraged the development of CSP projects, thereby contributing to the market's growth trajectory.
Additionally, one prominent trend in the CSP market is the continuous advancement of technology to enhance capability, reduce costs, and improve the overall performance of CSP systems. Innovations such as advanced receiver designs, heat transfer fluids, and thermal energy storage systems have significantly increased the conversion efficiency and operational flexibility of CSP plants. Furthermore, research and development efforts are focused on next-generation CSP technologies, such as tower systems with higher temperatures and more efficient photovoltaic-thermal hybrid systems. These advancements are expected to further enhance the competitiveness of CSP in the energy market and contribute to its widespread adoption in the coming years.
Another important trend in the CSP market is the continuous effort to reduce costs and enhance the competitiveness of CSP technology. Historically, the high capital costs associated with CSP projects have hindered their widespread deployment. However, rapid progress has been made in reducing costs through economies of scale, technological advancements, and improved project development practices.
For instance, the CSP market is seeing several major trends shaping the technology's future. These include the increasing deployment of CSP with energy storage, the increasing use of hybrid CSP-PV systems, and the increasing focus on cost reduction. As these trends continue, CSP will likely play a more important role in meeting the world's growing demand for renewable energy driving the Concentrating Solar Power market revenue.
Concentrating Solar Power Market Segment Insights:
Concentrating Solar Power Component Insights
The Concentrating Solar Power market segmentation, based on components, includes solar fields, power blocks, and thermal storage. The solar fields segment dominated the market. The solar field includes mirrors or lenses that concentrate sunlight onto a receiver. This component is crucial for capturing solar energy effectively. It consists of mirrors/lenses, tracking systems, and supporting structures.
Concentrating Solar Power End-Use Insights
The Concentrating Solar Power market segmentation, based on end use, includes utilities, enhanced oil recovery, and others. The utilities category generated the most income, where large-scale power plants supply electricity to the grid. These plants can provide consistent and reliable electricity, making them suitable for meeting the energy demands of cities and regions.
Concentrating Solar Power Technology Insights
The Concentrating Solar Power market segmentation, based on technology, includes parabolic troughs, power towers, and linear Fresnel and dish/engine systems. The parabolic troughs category generated the most income. It uses curved mirrors arranged in a parabolic shape to concentrate sunlight onto a receiver tube containing a heat transfer fluid. The heated fluid then develops steam and drives a turbine to outgrowth electricity.
Figure 1: Concentrating Solar Power Market, by Technology, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Concentrating Solar Power Regional Insights
By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Concentrating Solar Power market area will have significant growth in the market. The country has several large-scale CSP projects, particularly in the southwestern states with good solar resources. The U.S. government has provided financial incentives and policy support to promote CSP development. In addition, research and development efforts have focused on improving the efficiency and cost-effectiveness of CSP technologies.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: Concentrating Solar Power Market Share By Region 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe's Concentrating Solar Power market accounts for the second-largest market share due to adopting renewable energy. The region is driven by ambitious renewable energy targets and the need to reduce greenhouse gas emissions. The European Union's support for clean energy initiatives and research programs has further stimulated the growth of the CSP market in the region. Further, the German Concentrating Solar Power market held the largest market share, and the UK Concentrating Solar Power market was the fastest-growing market in the European region.
The Asia-Pacific Concentrating Solar Power Market will dominate the CAGR from 2023 to 2032. The government's strong commitment to reducing carbon emissions and diversifying its energy mix has been a key driver. The region's growing population, industrialization, and need for sustainable energy sources make CSP attractive. Moreover, China’s Concentrating Solar Power market held the largest market share, and the Indian Concentrating Solar Power market was the fastest-growing market in the Asia-Pacific region.
Concentrating Solar Power Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development to expand their product lines, which will help the Concentrating Solar Power market grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The Concentrating Solar Power industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.
Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the Concentrating Solar Power industry to benefit clients and increase the market sector. The Concentrating Solar Power industry has offered some of the most significant medical advantages in recent years. Major players in the Concentrating Solar Power market, including Abengoa Solar SA (Spain), Acciona Energy (Spain), GE Renewable Energy (France), TSK Flagsol Engineering GmbH (Germany), Enel Green Power (Italy), Bright Source Energy (US), Atlantica Yield PLC (UK), eSolar Inc. (US), Solar Reserve (US), ACWA Power (Saudi Arabia), Chiyoda Corporation (Japan), Alsolen (Morocco), and others, are attempting to increase market demand by investing in research and development operations.
Abengoa, S.A., founded in 1941, and located in Seville, Spain, was a Spanish international company in the green infrastructure, energy, and water sectors. It invests in research in sustainable technology and implements the technologies in Spain as well as all over the globe. The technologies include Concentrating Solar Power and desalination. In January 2022, Abengoa finished the construction of three 200 MW parabolic trough plants as a part of phase 4 of the Mohammed Bid Rashid Solar Park mega-project outside Dubai. The company contracted with the phase IV EPC contractor Shanghai Electric Group and oversaw the parabolic trough plants' technology, design, engineering, and construction.
Bright Source Energy, Inc., founded in 2004 and located in Oakland, California, USA, is a corporation that designs, builds, finances, and operates utility-scale solar power plants. It is one of the top 10 greentech startups in the world. In April 2019, BrightSource Energy, along with General Electric, for the project, had a 121 MW capacity solar field that became useful in 2019. GE was responsible for the solar power station's engineering, procurement, and construction (EPC), with BrightSource providing advanced solar field technology.
Key Companies in the Concentrating Solar Power market include
- Abengoa Solar SA (Spain)
- Acciona Energy (Spain)
- GE Renewable Energy (France)
- TSK Flagsol Engineering GmbH (Germany)
- Enel Green Power (Italy)
- BrightSource Energy (US)
- Atlantica Yield PLC (UK)
- eSolar Inc. (US)
- SolarReserve (US)
- ACWA Power (Saudi Arabia)
- Chiyoda Corporation (Japan)
- Alsolen (Morocco)
Concentrating Solar Power Industry Developments
June 2021: ACWA made a discharging contract with Eskom Holdings SOC Ltd and secured several USD million in funding to build the biggest Concentrating Solar Power plant in South Africa. Redstone CSP is directed to have a bearing capacity of 100 MW and is ready to enter financial operations in the 4th quarter of 2023. The plant will have a 12-hour thermal storage system to cater to the power demand of nearly 200,000 homes 24/7.
March 2020: Shouhang Hightech Energy Tech. Co., Ltd. accepted the agreement on investment with the government of Gansu Province for the Jinta 100MW Molten Tower CSP Project. The project is to end by 2021.
Concentrating Solar Power Market Segmentation
Concentrating Solar Power Component Outlook
- Solar Field
- Power Block
- Thermal Storage
Concentrating Solar Power End-Use Outlook
- Utilities
- Enhanced Oil Recovery
- Others
Concentrating Solar Power Technology Outlook
- Parabolic Trough
- Power Tower
- Linear Fresnel
- Dish/Engine System
Concentrating Solar Power Regional Outlook
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North America- US
- Canada
-
Europe- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
-
Asia-Pacific- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
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Rest of the World- Middle East
- Africa
- Latin America
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