The concentrated solar power market size was valued at USD 8.55 billion in 2024 and is predicted to attain around USD 45.65 billion by 2034 with a CAGR of 18.24%.
Concentrated Solar Power Market Key insights
- Asia Pacific held the largest share of the global market in 2024, accounting for 44% of the total.
- North America is anticipated to register the fastest CAGR over the forecast period.
- By application, the utility segment accounted for the highest market share in 2024.
- By application, the enhanced oil recovery segment is projected to grow at a notable CAGR from 2025 to 2034.
- By technology, the parabolic trough segment led the market in 2024 with the largest share.
- By technology, the power tower segment is expected to be the fastest growing during the forecast period.
How AI is Powering the Future of Concentrated Solar Power
Artificial Intelligence (AI) is increasingly revolutionizing Concentrated Solar Power (CSP) systems by improving efficiency, reliability, and cost-effectiveness. Through predictive maintenance and real-time monitoring, AI enables early detection of equipment issues, reducing downtime and maintenance costs. It also plays a critical role in solar resource forecasting, helping CSP plants accurately predict solar irradiance and adjust operations accordingly for maximum energy output.
AI further enhances CSP performance by optimizing heliostat positioning, managing thermal energy storage, and dynamically adjusting operational parameters for peak efficiency. It also supports design optimization and energy demand forecasting, ensuring better alignment with grid requirements and market participation. Overall, AI empowers CSP plants to operate smarter, more efficiently, and with greater adaptability to fluctuating conditions.
What is Concentrated Solar Power (CSP)?
Concentrated Solar Power (CSP) is a renewable energy technology that uses mirrors or lenses to concentrate a large area of sunlight onto a small area. The concentrated solar energy is then used to heat a fluid, which produces steam that drives a turbine connected to a generator, thereby producing electricity. Unlike photovoltaic (PV) systems, which convert sunlight directly into electricity, CSP generates power through thermal energy.
Key Components of a CSP System:
- Solar Collectors (Mirrors or Lenses): Focus sunlight onto a receiver.
- Receiver: Absorbs the concentrated solar energy and transfers the heat to a working fluid.
- Heat Transfer System: Carries the heat to the power block.
- Power Block (Turbine/Generator): Converts thermal energy into electricity.
- Thermal Energy Storage (Optional): Stores excess heat (commonly in molten salt) for electricity generation during non-sunny periods or at night.
Main Types of CSP Technologies:
- Parabolic Trough Systems: Curved mirrors focus sunlight onto a central tube carrying a heat-transfer fluid.
- Power Tower (Central Receiver) Systems: Heliostats (flat mirrors) track the sun and reflect sunlight onto a receiver at the top of a tower.
- Linear Fresnel Reflectors: Use flat or slightly curved mirrors to focus sunlight onto a fixed receiver.
- Dish Stirling Systems: Parabolic dish reflects sunlight onto a receiver at the focal point, typically powering a Stirling engine.
Advantages of CSP:
- Thermal energy storage allows power generation even when the sun isn’t shining.
- Scalability for large utility-scale power plants.
- Low carbon emissions and a clean energy source.
- Hybridization potential with fossil fuels or other renewables.
Market Drivers
Key drivers include the global push toward renewable energy, rising electricity demand, and advancements in thermal storage technology. Supportive government policies, incentives, and increasing concerns over carbon emissions are also encouraging CSP adoption, especially in sun-rich regions.
Market Opportunities
Opportunities in the CSP market lie in hybrid systems that combine CSP with PV or fossil fuels, as well as applications in industrial heating and green hydrogen production. Emerging markets with high solar potential, particularly in Africa, the Middle East, and Latin America, offer significant growth prospects.
Market Challenges
The CSP market faces challenges such as high upfront costs, long development timelines, and geographic limitations due to its reliance on direct sunlight. Competition from cheaper PV and battery technologies also limits its broader adoption.
Regional Outlook of the Concentrated Solar Power (CSP) Market
Asia-Pacific
- Market Size and Growth: Asia-Pacific dominated the global CSP market in 2024, accounting for approximately 44% of the market share, with a valuation of USD 3.76 billion. The region is projected to grow at a CAGR of 18.37%, reaching USD 20.31 billion by 2034.
- Key Drivers:
- Rapid industrialization and urbanization are increasing energy demand while driving efforts to reduce carbon emissions.
- Favourable government policies promoting green energy adoption.
- Significant investments in CSP technology, particularly in countries like China, aimed at improving grid infrastructure.
- Challenges: High capital costs and land requirements may limit adoption in certain areas.
North America
- Market Position: North America was the second-largest CSP market as of 2020.
- Key Drivers:
- Increased awareness about the benefits of solar energy and a shift toward clean energy sources.
- Investments in advanced technologies to enhance CSP system efficiency.
- Challenges: Competition from other renewable energy sources, such as wind power, may restrain growth.
Europe
- Europe has been a prominent player in CSP development due to strong government support and established renewable energy targets. Countries like Spain have historically been leaders in CSP installations. However, competition from cheaper renewable energy sources like wind and photovoltaic solar is a challenge.
Middle East & Africa
- The Middle East & Africa region offers immense potential for CSP due to abundant sunlight and large tracts of land suitable for installations.
- Government initiatives and international partnerships are fostering growth, but financial constraints and political instability in certain areas may slow adoption.
Latin America
- Latin America is emerging as a promising market for CSP due to increasing focus on renewable energy to meet growing electricity demands.
- Challenges include high upfront costs and limited technical expertise in some countries.
Concentrated Solar Power Market Companies
- Abengoa Solar
- TSK Flagsol Engineering
- Acciona Energy
- GE Renewable Energy
- Enel Green Power
- Suntrace
- Shams Power
- BrightSource Energy, Inc.
- CSP Services
- ACWA Power
- Atlantica Yield PLC
- Therminol
- SolarReserve
- Chiyoda Corporation
