Concentrated solar power (CSP) technology uses mirrors to focus sunlight and concentrate it onto a small area to produce intense heat. This heat can be used to produce steam to drive turbines that generate electricity. CSP technology offers utilities an innovative way to store solar energy as heat for electricity generation when the sun is not shining.
The global concentrated solar power market is estimated to be valued at US$ 5.86 billion in 2024 and is expected to exhibit a CAGR of 5.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Rapid decarbonization of the power sector is expected to be a major driver for the concentrated solar power market over the forecast period. According to the International Energy Agency (IEA), clean energy technologies need to account for more than 80% of global electricity generation by 2050 to achieve net-zero emissions and climate neutrality. Concentrated solar power is an efficient renewable energy technology that can produce firm dispatchable power to complement intermittent renewable sources like solar PV and wind power. Many countries are adopting policies and targets to phase down fossil fuel based power generation and accelerate deployment of clean energy resources like CSP to achieve their climate goals. This is expected to boost the demand for concentrated solar power installations globally.
Strength: Concentrated Solar Power (CSP) is a renewable energy source that produces electricity directly from sunlight. It can also store thermal energy and enable electricity generation when the sun is not shining.
Weakness: CSP plants require a large area of land for deployment of mirrors/lenses. Cloudy weather conditions can also decrease power generation efficiency.
Opportunity: Increasing global efforts towards the adoption of renewable energy provides significant growth opportunities for CSP. Rapid technological advancements are making CSP more efficient and cost-competitive with conventional power sources.
Threats: Subsidy cuts and policy changes in key markets can impact the development of new CSP projects. Cheaper renewable alternatives like solar PV also pose competitive threats.
Global Concentrated Solar Power Market Size is expected to witness high growth over the forecast period of 2023 to 2030 supported by favorable renewable energy policies and climate change initiatives across countries.
The CSP market is dominated by the Asia Pacific and Middle East & Africa regions due to the abundance of solar resources. Countries like China, India, Saudi Arabia, South Africa and UAE are spearheading the development of large-scale CSP plants. Fast-tracking of projects in these growth markets will be critical to meeting the forecasted demand.
Key players operating in the Concentrated Solar Power market are Airbus Group, Alcoa Corporation, Arconic Corporation, Boeing, Bombardier Inc., Collins Aerospace, Elbit Systems Ltd., Teijin, Lockheed Martin Corporation, and Triumph Group, Inc. These companies are investing in R&D to enhance efficiencies and drive down costs through economies of scale. Strategic partnerships for project development across global markets will also be important for leadership positions.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it