July 12, 2024

The Future of Concentrated Solar Power Market: Rising Effort towards Renewable Energy Adoption

Market Overview:

The Concentrated Solar Power Market is estimated to be valued at US$ 5.29 Bn in 2023 and is expected to exhibit a CAGR of 10.8% over the forecast period (2023-2030), as highlighted in a new report published by Coherent Market Insights. Concentrated solar power (CSP) is a technology that utilizes mirrors or lenses to concentrate a large amount of sunlight onto a small area. This concentrated solar energy can then be converted into electricity using various methods such as steam turbines, Stirling engines, or thermophotovoltaic cells. The ability to store excess energy in the form of molten salt and the flexibility to generate electricity even during cloudy conditions make concentrated solar power an attractive option for renewable energy adoption. The increasing demand for clean energy sources coupled with government support and favorable regulatory policies is expected to drive the growth of the concentrated solar power market.

Market Dynamics:

The concentrated solar power market is expected to witness significant growth over the forecast period due to two primary drivers. Firstly, the rising global focus on reducing greenhouse gas emissions and promoting sustainable energy sources is propelling the adoption of concentrated solar power. With its ability to provide clean, renewable energy without producing harmful emissions, concentrated solar power systems are being increasingly considered as a viable alternative to conventional power generation methods. Secondly, the declining cost of concentrated solar power technologies, coupled with technological advancements, is making this renewable energy option more economically viable. As the cost of solar panels and energy storage solutions continue to decrease, the overall cost of establishing and operating concentrated solar power plants is expected to reduce, further driving market growth.

Market Key Trends:

Concentrated Solar Power Market is witnessing a key trend of increasing government initiatives and favorable policies to promote renewable energy sources. Governments across the globe are implementing favorable incentives and policies to encourage the adoption of concentrated solar power systems. For instance, countries like China, India, and the United States have introduced various financial subsidies, tax benefits, and feed-in tariffs to attract investments in the concentrated solar power market. This trend is driven by the need to reduce greenhouse gas emissions, achieve energy security, and promote sustainable development.

SWOT Analysis:

  • Strength: Concentrated solar power systems offer a reliable and efficient option for large-scale power generation and help reduce dependence on fossil fuels. They provide a sustainable and clean energy source that can contribute to greenhouse gas emissions reduction.
  • Weakness: High upfront costs of concentrated solar power systems, compared to other renewable energy sources like solar photovoltaic, pose a challenge for their widespread adoption. Additionally, the intermittent nature of sunlight hampers continuous power generation, requiring energy storage solutions to be deployed alongside.
  • Opportunity: The increasing need for energy security and the rising demand for electricity in developing economies present significant growth opportunities for the concentrated solar power market. Furthermore, technological advancements in energy storage systems and solar thermal technologies are expected to improve the efficiency and reliability of concentrated solar power systems.
  • Threats: The availability and accessibility of alternative renewable energy sources, such as wind and solar photovoltaic, pose a threat to the concentrated solar power market. Additionally, fluctuations in government policies and uncertain regulatory frameworks can create uncertainties for investors, impacting market growth.

Key Takeaways:

The Global Concentrated Solar Power Market Growth is expected to witness high, exhibiting a CAGR of 10.8% over the forecast period (2023-2030), due to increasing government initiatives and favorable policies to promote renewable energy sources. The market is projected to reach a market size of US$ 5.29 billion by 2023.

In terms of regional analysis, Asia-Pacific is expected to be the fastest-growing and dominating region in the concentrated solar power market. This growth is attributed to the increasing population, rapid industrialization, and emerging economies like China and India focusing on renewable energy development.

Key players operating in the Concentrated Solar Power Market include Siemens AG, General Electric, Abengoa, Acciona S.A., Atlantica Yield plc., Suntrace GmbH, BrightSource Energy, Inc., SolarReserve, LLC., ACWA Power, and Frenell GmbH. These key players are actively involved in strategic initiatives such as partnerships, mergers and acquisitions, and product innovations to expand their market presence and strengthen their competitive position.

*Note:
1.  Source: Coherent Market Insights, Public sources, Desk research
2.  We have leveraged AI tools to mine information and compile it