PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1684312
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1684312
Concentrated Solar Power Market size was valued at US$ 6,540.54 Million in 2024, expanding at a CAGR of 27.92% from 2025 to 2032.
Concentrated Solar Power (CSP) refers to a technology that generates electricity by using mirrors or lenses to focus sunlight onto a small area, typically a receiver, which absorbs the concentrated solar energy. This heat is then used to produce steam that drives a turbine connected to a generator. CSP is mainly used in large-scale power plants and can store energy in thermal form for later use, allowing for electricity generation even when the sun isn't shining. Unlike traditional photovoltaic (PV) solar, which converts light directly into electricity, CSP is more suited for utility-scale applications in sunny regions with high direct sunlight. The market for CSP is growing due to the increasing demand for renewable energy solutions and advancements in energy storage technologies. CSP has the potential to reduce reliance on fossil fuels and contribute to reducing carbon emissions. However, its widespread adoption is influenced by factors such as high initial costs, geographic limitations, and competition from other renewable energy sources.
Concentrated Solar Power Market- Market Dynamics
Government incentives and subsidies drive investment in renewable energy projects.
Government incentives and subsidies are critical drivers for the growth of the concentrated solar power (CSP) market. These policies provide financial support, making CSP projects more economically feasible and attractive to investors. Federal tax credits, grants, and renewable energy targets encourage both public and private sector investments in CSP technologies. In the U.S., programs like the Investment Tax Credit (ITC) and the Department of Energy's Loan Guarantee Program have played a vital role in reducing upfront costs. Such incentives enable developers to overcome financial barriers and accelerate the deployment of CSP plants.
Educational institutions and research bodies contribute through innovative advancements, lowering costs and improving performance. According to the U.S. Department of Energy's (DOE) National Renewable Energy Laboratory (NREL), CSP technologies could contribute up to 16% of total U.S. electricity by 2050 with continued investment and policy support. This data underscores the importance of government action in driving the future growth of CSP.
Concentrated Solar Power Market- Key Insights
As per the analysis shared by our research analyst, the global market is estimated to grow annually at a CAGR of around 27.92% over the forecast period (2025-2032)
Based on Technology segmentation, Parabolic Trough was predicted to show maximum market share in the year 2024
Based on Components segmentation, Thermal Energy Storage Systems (TESS) was the leading Components in 2024
Based on Application segmentation, Electricity Generation was the leading Application in 2024
Based on Power Rating segmentation, Above 250 MW was the leading Power Rating in 2024
Based on end user segmentation, Utilities was the leading end user in 2024
On the basis of region, North America was the leading revenue generator in 2024
The Global Concentrated Solar Power Market is segmented on the basis of Technology, Components, Application, Power Rating, End User, and Region.
The market is divided into four categories based on Technology: Parabolic Trough, Solar Tower, Linear Fresnel Reflector, Dish Stirling System. The Parabolic Trough technology is the most prominent and dominant in the Concentrated Solar Power (CSP) market. This technology has been widely adopted due to its proven efficiency, scalability, and ability to integrate with thermal energy storage systems. Parabolic trough systems are cost-effective and have been deployed in large-scale commercial projects, such as those in the Mojave Desert, making them the preferred choice for CSP plants worldwide. Their ability to generate power consistently, even after sunset, further boosts their significance in the market.
The market is divided into five categories based on Components: Solar Collectors, Power Block, Thermal Energy Storage Systems, Control Systems & Software, and Balance of Systems. Among these segments, Thermal Energy Storage Systems (TESS) are the most significant in the Concentrated Solar Power (CSP) market. These systems allow CSP plants to store excess heat during sunny hours and generate electricity even when sunlight is not available, such as at night or during cloudy periods. This capability significantly enhances the reliability and flexibility of CSP plants, making them more viable for grid integration. As the demand for consistent, dispatchable renewable energy increases, thermal energy storage is crucial for improving the economic and operational performance of CSP systems, which contributes to its dominance in the market.
Concentrated Solar Power Market- Geographical Insights
The North American concentrated solar power (CSP) market is experiencing significant growth due to increasing demand for clean energy solutions and technological advancements. The U.S. is the leading player in this region, with states like California, Nevada, and Arizona offering favorable sunlight conditions and government incentives for renewable energy. CSP plants are gaining traction due to their ability to store energy for extended periods, offering a solution to intermittent power generation from other renewables.
Mexico has also shown growing interest in CSP, driven by its solar potential and renewable energy targets. However, challenges such as high initial costs, grid integration issues, and competition from other renewable sources like solar photovoltaic (PV) limit the broader adoption of CSP in the region. Nevertheless, the North American CSP market continues to evolve as a promising sector for sustainable energy development.
The dominant country in the North American concentrated solar power (CSP) market is the United States, particularly due to its abundant solar resources and supportive policies. States like California and Nevada have been at the forefront, with large-scale CSP projects such as the Ivanpah Solar Electric Generating System. The U.S. benefits from federal and state-level incentives, as well as significant investments in renewable energy infrastructure. This strong policy and economic support make the U.S. the leader in CSP development within North America.
The competitive landscape of the Concentrated Solar Power (CSP) market is characterized by a mix of established energy giants, specialized CSP developers, and emerging startups. Key players like Abengoa Solar, BrightSource Energy, and Siemens Energy lead the market with extensive experience, large-scale projects, and a strong technological presence. These companies are focused on driving innovation in CSP systems, such as improving efficiency and reducing costs. Additionally, companies like SolarReserve and Acciona Energy emphasize developing integrated CSP solutions with energy storage to enhance grid stability. While major industry players continue to dominate, smaller firms and startups are carving out niches with new technologies and novel approaches to CSP implementation. The market is also shaped by regional players in sunny areas such as the Middle East, North Africa, and the U.S. Southwest, where CSP is more viable due to high solar radiation. However, CSP faces competition from other renewable sources, especially photovoltaic (PV) solar and wind power, which are more cost-competitive in many regions.
In February 2025, the "Mission 300" summit saw development banks pledge billions to speed up Africa's transition to green energy by 2030. While specific funding for CSP was not mentioned, the initiative highlighted a broader commitment to renewable energy across the continent.