Concentrated Solar Thermal Market Research Report By Application (Power Generation, Industrial Process Heat, Water Desalination), By Technology (Parabolic Trough, Solar Tower, Linear Fresnel), By End-User (Utilities, Independent Power Producers, Industrial Companies, Municipalities), By Capacity (50 MW, 50-100 MW, 100-300 MW, 300 MW and above) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2032

Global Concentrated Solar Thermal Market Overview:

As per MRFR analysis, the Concentrated Solar Thermal Market Size was estimated at 6.06 (USD Billion) in 2022. The Concentrated Solar Thermal Market Industry is expected to grow from 6.84 (USD Billion) in 2023 to 20.5 (USD Billion) by 2032. The Concentrated Solar Thermal Market CAGR (growth rate) is expected to be around 12.97% during the forecast period (2024- 2032).

Key Concentrated Solar Thermal Market Trends Highlighted

The economics of solar thermal power systems is expanding considerably, driven by the government's support, increasing energy needs, and a quest for alternative clean energy sources. Some emerging countries, mainly in the regions with abundant sunshine work to expand the market as they try to minimize the carbon footprint energy growth causes. Increasing knowledge about the importance of CST to the environment is aiding the increase of the market. 

The development of technologies like better solar tracking devices and thermal storage features is improving the productivity and economics of CST plants and, thus, their attractiveness in comparison to other predominate sustainable energy resources. The development of CST technologies in conjunction with traditional energy carriers, such as fossil fuels and biomass, is also developing owing to the possibility of obtaining concentrated solar power that is more cognate and controllable.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Concentrated Solar Thermal Market Drivers

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  Increasing Demand for Renewable Energy

  
  

The primary driver of the Global Concentrated Solar Thermal Market Industry is the increasing demand for a renewable energy source for the reduction of emissions that aggravate climate change. Governments around the world are establishing directiveness and regulations to promote the benefits of clean energy processes and associated concentrated solar thermal systems. CST is a dependable and cost-effective means of employing the energy of the sun to produce electricity and is optimal for utility companies, independent power producers, and industries to decrease the level of carbon dioxide.The increasing recognition of the environmental advantages of CST and its potential contribution to the sustainable energy employed is the crucial aspect that drives the market.

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  Technological Advancements and Cost Reductions

  
  

Technological advancements in CST systems have significantly improved their efficiency and reduced their costs. Innovations in solar collector design, thermal storage technologies, and power conversion systems have made CST more competitive with other renewable energy sources. The declining costs of CST components, such as solar mirrors and heat exchangers, have also contributed to the market's growth. As technology continues to evolve, CST systems are expected to become even more efficient and cost-effective, further driving market expansion.

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  Government Incentives and Support

  
  

Government incentives and support play a crucial role in driving the Global Concentrated Solar Thermal Market Industry. Many countries have implemented feed-in tariffs, tax credits, and other financial incentives to encourage the deployment of CST systems. These incentives help reduce the upfront investment costs for developers and make CST projects more economically viable. Additionally, government research and development programs support innovation and technology advancement in the CST industry, contributing to the market's long-term growth.

Concentrated Solar Thermal Market Segment Insights:

Concentrated Solar Thermal Market Application Insights

The Global Concentrated Solar Thermal Market is divided into three major applications: Power Generation, Industrial Process Heat and Water Desalination. Owing to the rising demand for renewable sources of energy and increasing government initiatives to reduce carbon emissions, Power Generation will account for over 60% of the worldwide revenue. Industrial Process Heat will experience robust market growth as a consequence of the augmented utilization of such systems in industries such as food manufacturing, chemicals, textiles, and a number of other sectors in which concentrated solar thermal systems have been employed before to provide heat.

Similarly, Water Desalination will proliferate at a consistent rate on account of the mounting scarcity of water in numerous parts of the world. Notably, the market size for Power Generation was USD 4.2 billion in 2023 and is estimated to extend until USD 12.5 billion by 2032, with a compound annual growth rate of 13.2%. Industrial Process Heat was worth USD 1.5 billion in 2023 and is expected to develop to USD 4.5 billion by 2032, with a CAGR of 12.5%. Additionally, Water Desalination is projected to reach USD 3.5 billion by 2032 and register a CAGR of 11.8%.Key insights for each application segment: Power Generation: Concentrated solar thermal power plants use curved mirrors or other types of lenses to focus the sunlight on a receiver, which converts the heat into steam. 

The steam is then forced through a turbine containing a generator. One of the salient advantages of concentrated solar thermal power plants is the fact that they can store thermal energy, such that they are able to produce electricity continuously, even when there is neither light nor heat from the sun. Industrial Process Heat: Concentrated solar thermal systems can provide heat for a variety of industrial processes, which include food manufacturing, chemicals, and textiles, with a view to reducing energy costs and carbon emissions for these industries. Water Desalination: Concentrated solar thermal technology can desalinate water, that is, remove salt from the water. It is becoming more and more imperative in places where there is scarce water.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Concentrated Solar Thermal Market Technology Insights

The Global Concentrated Solar Thermal Market is segmented by technology into Parabolic Trough, Solar Tower, and Linear Fresnel. Parabolic Trough technology occupies the majority of the market, and this trend is to be continued in the following years. By 2023, Parabolic Trough technology is to account for over 60% of the Global Concentrated Solar Thermal Market revenue. However, Solar Tower technology is to demonstrate the highest growth rate during the forecast period, namely 13.5%. This type is the most effective and economizes on land. Linear Fresnel technology is to be used more widely in the nearest years because this option is the cheapest and keeps the least number of technological hurdles.The Global Concentrated Solar Thermal Market is to reach $20.5 billion by 2032.

Concentrated Solar Thermal Market End-User Insights

The global concentrated solar thermal market is segmented into end-users such as utilities, independent power producers (IPPs), industrial companies, and municipalities. Utilities are the primary end-users of concentrated solar thermal power plants, accounting for over 60% of the global market revenue in 2023. The demand for concentrated solar thermal power from utilities is driven by government incentives, such as feed-in tariffs and renewable portfolio standards, which promote the adoption of renewable energy sources. IPPs are also significant end-users, with a market share of around 25% in 2023.IPPs invest in concentrated solar thermal power plants to sell electricity to utilities or directly to consumers. Industrial companies, such as mining and manufacturing facilities, are increasingly adopting concentrated solar thermal power to reduce their operating costs and meet their sustainability goals. Municipalities are also investing in concentrated solar thermal power to provide clean and reliable energy to their communities.

Concentrated Solar Thermal Market Capacity Insights

The Global Concentrated Solar Thermal Market is segmented by capacity into '50 MW', '50-100 MW', '100-300 MW', and '300 MW and above'. Among these segments, the '100-300 MW' segment is expected to hold the largest market share in 2023, accounting for around 40% of the Global Concentrated Solar Thermal Market revenue. The '300 MW and above' segment is also expected to grow significantly, with a CAGR of 15.5% from 2023 to 2032. This growth is attributed to the increasing demand for large-scale solar thermal power plants.

Concentrated Solar Thermal Market Regional Insights

The Global Concentrated Solar Thermal Market is segmented into North America, Europe, APAC, South America, and MEA. North America is expected to hold the largest market share in 2023 due to the increasing demand for renewable energy sources and government initiatives to promote clean energy. The European market is also expected to witness significant growth due to the growing awareness of the benefits of concentrated solar thermal technology. The Asia-Pacific region is expected to be the fastest-growing market due to the increasing demand for energy in developing countries such as China and India.The South American and MEA markets are expected to grow at a moderate pace due to the limited availability of resources and the high cost of concentrated solar thermal technology.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Concentrated Solar Thermal Market Key Players And Competitive Insights:

Major players in the Concentrated Solar Thermal Market industry are constantly vying for dominance, leading to fierce competition in the market. Leading Concentrated Solar Thermal Market players are investing heavily in research and development to gain a competitive edge. They are also forming strategic partnerships to gain access to new technologies and markets. The Concentrated Solar Thermal Market development is largely driven by government initiatives and policies aimed at promoting renewable energy sources. Governments worldwide are offering incentives such as tax breaks and subsidies to encourage the adoption of Concentrated Solar Thermal Market solutions. 

This has led to increased investments in Concentrated Solar Thermal Market projects, driving market growth. One of the leading companies in Concentrated Solar Thermal Market is Acciona. The company is headquartered in Spain and has a global presence. Acciona has been involved in the development and construction of several major Concentrated Solar Thermal Market projects worldwide. The company's expertise in solar energy and its strong financial position make it a formidable competitor in the Concentrated Solar Thermal Market. Acciona is committed to innovation and is constantly investing in research and development to improve its Concentrated Solar Thermal Market offerings.

A key competitor of Acciona in the Concentrated Solar Thermal Market is Abengoa. The company is also headquartered in Spain and has a global presence. Abengoa is a leading provider of renewable energy solutions, including Concentrated Solar Thermal Market. The company has been involved in the development and construction of some of the world's largest Concentrated Solar Thermal Market projects. Abengoa's strong track record and financial stability make it a strong competitor in the Concentrated Solar Thermal Market. The company is focused on expanding its global reach and is constantly looking for new opportunities to grow its business.

Key Companies in the Concentrated Solar Thermal Market Include:

• Torresol Energy


• Ausra


• TSK


• SkyFuel


• SolarReserve


• Abengoa


• Solar Millennium


• Enel Green Power


• Sener


• Heliogen


• SENER


• BrightSource Energy


• Acciona

Concentrated Solar Thermal Market Industry Developments

The Concentrated Solar Thermal Market is poised to witness significant growth in the coming years, driven by increasing demand for renewable energy sources and government initiatives to reduce carbon emissions. In 2023, the market was valued at USD 6.84 billion and is projected to reach USD 20.5 billion by 2032, exhibiting a CAGR of 12.97%. Key market trends include the rising adoption of parabolic trough and solar tower technologies, advancements in thermal energy storage systems, and the growing popularity of hybrid solar-fossil fuel power plants. Recent developments in the market include the commissioning of the world's largest parabolic trough solar plant in Morocco and the announcement of plans to build a massive solar tower project in China. Governments worldwide are implementing supportive policies, such as feed-in tariffs and tax incentives, to encourage the adoption of concentrated solar thermal technology.

Concentrated Solar Thermal Market Segmentation Insights

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  Concentrated Solar Thermal Market Application Outlook

  
  
  
  
  • Power Generation
  
  
  • Industrial Process Heat
  
  
  • Water Desalination
  
  
  
  


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  Concentrated Solar Thermal Market Technology Outlook

  
  
  
  
  • Parabolic Trough
  
  
  • Solar Tower
  
  
  • Linear Fresnel
  
  
  
  


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  Concentrated Solar Thermal Market End-User Outlook

  
  
  
  
  • Utilities
  
  
  • Independent Power Producers
  
  
  • Industrial Companies
  
  
  • Municipalities
  
  
  
  


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  Concentrated Solar Thermal Market Capacity Outlook

  
  
  
  
  • 50 MW
  
  
  • 50-100 MW
  
  
  • 100-300 MW
  
  
  • 300 MW and above
  
  
  
  


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  Concentrated Solar Thermal Market Regional Outlook

  
  
  
  
  • North America
  
  
  • Europe
  
  
  • South America
  
  
  • Asia Pacific
  
  
  • Middle East and Africa