Concentrated Solar Power Market Size & Share 2025 to 2034

Concentrated Solar Power Market Size

The global concentrated solar power market size was valued at USD 5.4 billion in 2024 and is estimated to grow at a CAGR of 8.3% from 2025 to 2034. Concentrated Solar Power (CSP) focuses sunlight onto a small receiver by reflecting it with the aid of mirrors. The light absorbed is converted into heat which produces steam that drives a turbine connected to a generator in turn producing electricity.
 

The market for CSP will be driven by the ability of CSP plants to store energy for later use which represents significant competitive advantage over other renewable sources, such as wind and solar PV which are reliant on the availability of energy. Further, the progression of technology, improved funding strategies, and widespread deployment complemented with the rising investments in R&D by key industry players to enhance the competitiveness of CSP vis-a-vis other energy generation methods will enhance the business environment.

Rising electricity consumption owing to surge in residential, commercial, and industrial activities has heightened the demand for electricity, pushing a shift towards clean energy sources for power generation. Additionally, growing population along with spike in tourism across the Middle East and Latin America will augment the market growth.
 

Concentrated Solar Power Market Trends

The industry expansion is driven with the introduction of storage systems such as molten salt due to their enhanced efficiency and low cost. The utility companies are increasingly adopting CSP systems with storage to gain greater flexibility at the plants and provide power when required, thereby improving the product demand. For instance, in February 2023, renewable developer Vast Solar obtained more than USD 44.5 million funding from the Australian Renewable Energy Agency for the construction of a CSP plant with storage VS1. They have lower LCOE, which renders these systems feasible and affordable even at the times of high inflation, which may increase the expansion opportunities.
 

Concentrated Solar Power Market Analysis

Based on capacity, the concentrated solar power >100 MW is anticipated to reach more than USD 4 billion by 2034, owing to booming project pipeline in the Middle East and Asia Pacific and surging demand for renewable energy production. Introduction of hybrid systems, combining CSP with photovoltaic solar technology, have gained attention for their ability to optimize energy generation and storage, stimulating the capacity demand. In addition, increasing global energy demand and the push to reduce greenhouse gas emissions, will influence the market statistics.
 

Based on technology, the concentrated solar power market from power tower segment is set to register more than CAGR 2% CAGR through 2034, on account of its superior concentration ratios and operational efficiency. Widespread adoption of two-axis solar tracking heliostats and their ability to function at elevated temperatures and provide elevated storage capacity will strengthen the product demand. Furthermore, government policies, subsidies, and feed-in tariffs have been crucial in the development of CSP plants. Countries including Spain, UAE and China have played leading roles in incentivizing the projects, driving the business scenario.
 

China concentrated solar power market revenue to cross USD 1 billion by 2034, on account of high solar irradiance levels and competitive manufacturing costs. Because of strict pollution regulations, there will be forward strides in ‘business as usual’ regarding cleaner CSP renewable technologies. For example, in 2023, the China Solar Thermal Alliance (CSTA) initiated the launching of new CSP projects which will be expected to figure in the gigawatt scale renewable energy complexes targeted for completion by 2025-2026. This will further enhance the industry’s prospects due to system efficiencies improvements, heat storage, and cost effectiveness.
 

Concentrated Solar Power Market Share

The concentrated solar power (CSP) industry is a new cutting edge and aggressive market segment of renewable energy focused on capturing solar power by the construction of huge solar powered electricity generating plants. The CSP industry consists of several large companies, many of which are involved in the development, construction, and operation of CSP plants. Further, the market is diverse, with companies offering different technologies and variations of CSP systems. The companies are focusing on various R&D activities and funding programs to deploy efficient and reliable technologies to reduce the overall investment in solar projects.
 

Concentrated Solar Power Market Companies

Eminent players operating in the concentrated solar power industry are:

Concentrated Solar Power Industry News:

• In April 2024, Vast Solar entered in an agreement for a 30 MW thermal CSP plant with over 8 hours of energy storage in South Australia. Further, the front-end engineering and design on the project will be completed in August 2024 with construction works to commence later in the year.
   
• The largest CSP plant was opened in Dubai in December 2023, constituting an integrated part of Phase IV of the Mohammed Bin Rashed Solar Park. The USD 4.3 Billion investment for the 950 MW plant will utilize three hybrid technologies. It will have a thermal storage capacity of 5,907 MWh and will feature a molten salt receiver on the top of the solar power tower.
   

This concentrated solar power market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue and volume in “USD Million and MW” from 2021 to 2034, for the following segments:

Market, By Technology

• Parabolic Trough
• Linear FR
• Power Tower

Market, By Capacity

• ≤ 50MW
• >50 MW to ≤100 MW
• >100 MW

Market, By Storage

• With Storage
  • Molten Salt
  • Others 
• Without Storage

The above information has been provided for the following countries:

• Greece
• France
• China
• India
• Israel
• UAE
• Kuwait
• Morocco
• South Africa
• Saudi Arabia
• Chile
• Brazil