Concentrated Solar Power Market Research Report By Technology (Parabolic Trough, Solar Power Tower, Linear Fresnel, Dish Stirling, Hybrid System), By Component (Solar Collector, Receiver, Heat Transfer Fluid, Thermal Storage System, Power Block), By Application (Electricity Generation, Industrial Process Heat, Desalination, Heating, Cooling), By End Use (Utility Scale, Commercial, Residential) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2035

Global Concentrated Solar Power Market Overview:

As per MRFR analysis, the Concentrated Solar Power Market Size was estimated at 5.04 (USD Billion) in 2023. The Concentrated Solar Power Market Industry is expected to grow from 5.51(USD Billion) in 2024 to 15 (USD Billion) by 2035. The Concentrated Solar Power Market CAGR (growth rate) is expected to be around 9.52% during the forecast period (2025 - 2035).

Key Concentrated Solar Power Market Trends Highlighted

Driven by the rising demand for renewable energy solutions and worldwide initiatives to cut dependence on fossil fuels, the Global Concentrated Solar Power (CSP) industry is seeing notable expansion. Governments all over the globe are enacting encouraging policies and incentives meant to increase the use of renewable energy, which has strengthened CSP technology investments. The focus on lowering greenhouse gas emissions and hastening transitions toward clean energy systems drives this trend mostly. The need for sustainable electricity production options like CSP grows as countries promise aggressive climate targets. The CSP industry offers several possibilities to be investigated.

Emerging markets, especially in areas with strong solar irradiation, provide notable possibilities for CSP growth. Middle Eastern and North African nations have shown a desire to use solar energy and create major CSP initiatives. Moreover, developments in hybrid systems combining CSP with other renewable sources are gaining popularity as they provide improved efficiency and reliability of electricity supply. These changes may open doors for knowledge exchange, investment, and collaboration among nations eager to grow their renewable energy portfolios. Of late, there has been a clear movement toward creative CSP technologies, including thermal energy storage systems that allow energy dispatch during non-sunny hours.

This feature solves typical solar power intermittency problems as well as improves the feasibility of CSP as a baseload power source. CSP is slowly becoming more competitive in comparison to other energy sources with continuous research and development. Driven by technology developments, encouraging legislation, and an always-growing awareness of sustainable energy demands, the Concentrated Solar Power Market overall offers the possibility of significant growth.

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

Concentrated Solar Power Market Drivers

Increasing Demand for Renewable Energy

Rising demand for renewable energy sources is driving notable movement in the Concentrated Solar Power Market Industry. Governments worldwide are establishing lofty goals to cut greenhouse gas emissions. The European Union, for example, aims to cut emissions by 55% by 2030 compared to 1990 levels, hence supporting the move toward renewable sources like concentrated solar power. According to the International Renewable Energy Agency, around 82% of new power capacity added worldwide in the last five years was from renewable sources.

This increase in demand is significant as it shows a worldwide dedication to sustainable energy solutions, hence supporting market expansion for concentrated solar power technology.

Technological Advancements in Solar Technology

Technological developments are helping to improve the efficiency and cost-effectiveness of concentrated solar power systems. Innovations like heat transfer fluids and improved tracking systems enhance energy capture. According to the National Renewable Energy Laboratory, technological developments may increase solar thermal efficiency by as much as 10-20% by 2030. Not only does this increase in efficiency make concentrated solar power more feasible, but it also encourages more widespread use, hence supporting the Concentrated Solar Power Market Industry in attaining its expansion potential.

Government Incentives and Policies

The expansion of the Concentrated Solar Power Market Industry depends on encouraging government policies and incentives. Many countries are providing subsidies, tax refunds, and monetary incentives to promote solar project growth. The Investment Tax Credit, for instance, has been important in encouraging investment in renewable energy technology in the United States; since its beginning, solar projects have been implemented more than 70% more. These regulations not only promote investment but also raise public knowledge about the possibilities of concentrated solar power, hence hastening market expansion.

Increasing Energy Consumption Globally

Another major factor influencing the Concentrated Solar Power Market Industry is the growing worldwide energy consumption. The International Energy Agency estimates that by 2040, world energy needs will rise by 30%. Countries are being driven by this always-rising need for energy to consider renewable sources like concentrated solar power to diversify their energy mix and guarantee energy security. High energy-consuming nations are especially looking to this technology as it provides a sustainable and resource-abundant answer to satisfy future energy requirements.

Concentrated Solar Power Market Segment Insights:

Concentrated Solar Power Market Technology Insights

The Concentrated Solar Power Market focuses heavily on various technologies that drive its growth and sustainability. Among these technologies, the Parabolic Trough system stands out significantly, projected to achieve a valuation of 2.05 USD Billion in 2024, increasing to 5.5 USD Billion by 2035. This segment dominates due to its reliability and efficiency in converting solar energy into thermal energy, making it a preferred choice for large-scale power plants. Another noteworthy technology is the Solar Power Tower, with expected valuations of 1.5 USD Billion in 2024 and growing to 4.0 USD Billion in 2035; this technology is vital for its ability to store energy, enabling power generation even when sunlight is not available.Additionally, the Linear Fresnel technology, which is anticipated to be valued at 0.75 USD Billion in 2024 and rise to 2.0 USD Billion by 2035, offers a cost-effective solution with a simpler design and lower land requirements, thus supporting localized power generation projects. The Dish Stirling technology, while comparatively smaller in valuation at 0.5 USD Billion in 2024, is expected to increase to 1.5 USD Billion by 2035; it highlights a niche area of the market, focused on small-scale power production for remote locations, further diversifying the market's offerings.The Hybrid System segment, valued at 1.71 USD Billion in 2024 with a projection of 2.0 USD Billion in 2035, integrates conventional energy sources, providing a balanced approach for energy generation and enhancing grid stability. Each of these technologies plays a significant role in the collective growth of the Concentrated Solar Power, Solar Power UAV driven by rising demands for renewable energy and government support for solar initiatives globally. The insight into the Technology segment reveals an evolving landscape where advancements in efficiency, scaling capabilities, and cost-effectiveness align with global energy goals.

As these technologies mature, they are poised to meet rising energy demands while contributing to environmental sustainability, a critical factor in the current energy transition. The trends in technological innovation are reflected in the market data, showcasing a robust opportunity for investors and stakeholders in promoting clean energy solutions on a global scale.

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

Concentrated Solar Power Market Component Insights

The Concentrated Solar Power Market, particularly in the Component segment, is positioned for substantial growth and innovation as it addresses the evolving energy landscape. By 2024, the overall market is expected to be valued at USD 5.51 billion, reflecting a significant interest in renewable energy technologies. The segmentation within this market includes critical components such as Solar Collectors, Receivers, Heat Transfer Fluids, Thermal Storage Systems, and Power Blocks, each playing a vital role in the efficiency and effectiveness of concentrated solar power systems.Solar Collectors are essential for harnessing solar energy, while Receivers are crucial for converting it into usable heat. Heat Transfer Fluids aid in transporting thermal energy to where it is needed, and Thermal Storage Systems are increasingly important for storing energy for later use, maximizing energy dispatchability. Meanwhile, Power Blocks convert thermal energy into electrical power, representing a key area of technological advancement in the industry. With a global push for sustainable energy transitioning, the emphasis on these components is expected to drive market dynamics, enhancing performance and efficiency across the board while catering to growing energy demands.

Concentrated Solar Power Market Application Insights

The Concentrated Solar Power Market is projected to reach a valuation of 5.51 billion USD by 2024, showcasing the market's robust growth driven by increasing demand for renewable energy applications. Within this market, the application segment plays a crucial role in various sectors, significantly bolstering the overall market growth. Electricity generation stands out as a prominent application, serving both residential and industrial needs by providing a sustainable alternative to fossil fuels. Industrial process heat is another important application, offering industries an efficient way to meet thermal energy requirements while reducing greenhouse gas emissions.Desalination is gaining traction due to its ability to provide fresh water in arid regions, leveraging solar energy for sustainable water supply solutions. Furthermore, heating and cooling applications continue to evolve, enhancing energy efficiency in HVAC systems. Overall, the Concentrated Solar Power Market segmentation reflects a diverse range of applications that address energy needs while promoting environmental sustainability, aligning with global energy policies aiming for greater reliance on renewable energy sources.

Concentrated Solar Power Market End Use Insights

The Concentrated Solar Power Market is experiencing significant growth, driven by its diverse applications across various end-use sectors. In 2024, the market is valued at 5.51 USD Billion, highlighting the increasing demand for renewable energy solutions worldwide. The segmentation within the market comprises Utility Scale, Commercial, and Residential applications, each playing a critical role in the overall energy landscape. The Utility Scale segment is particularly impactful, providing large-scale energy production and contributing to national grid stability, while the Commercial sector focuses on business properties adopting solar technology to reduce energy costs and enhance sustainability.The Residential segment also holds importance as more homeowners invest in solar solutions for energy independence and environmental benefits. A key driver for growth in the Concentrated Solar Power Market is the rising awareness and incentives for clean energy, although challenges such as initial investment costs and infrastructure development remain present. Overall, the market statistics show a robust trajectory, and the growth potential across these end-use applications reflects the ongoing global transition towards sustainable energy sources.

Concentrated Solar Power Market Regional Insights

The Concentrated Solar Power Market is set to exhibit significant growth across various regions. In 2024, North America holds a market value of 1.25 USD Billion, making it a key player, with a projected growth to 3.3 USD Billion by 2035, reflecting a strong interest in renewable energy initiatives. Europe follows closely with a valuation of 1.75 USD Billion in 2024, advancing to 4.5 USD Billion in 2035, driven by robust government policies promoting sustainable energy solutions. The APAC region has a market value of 1.5 USD Billion in 2024, with expectations to reach 4.0 USD Billion by 2035, indicating an increasing focus on clean energy technologies to combat pollution.South America, while smaller at 0.6 USD Billion in 2024, is anticipated to grow to 1.7 USD Billion by 2035, showcasing emerging opportunities in solar energy projects. Meanwhile, the MEA region starts at 0.41 USD Billion in 2024, escalating to 1.5 USD Billion by 2035, as countries prioritize diversification of energy sources. The dynamic growth across these regions underscores the expanding demand and significant potential of the Concentrated Solar Power Market, driven by factors such as technological advancements and favorable regulatory frameworks facilitating market growth.

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

Concentrated Solar Power Market Key Players and Competitive Insights:

The Concentrated Solar Power Market showcases a dynamic landscape driven by advancements in technology and increasing demand for renewable energy sources. As nations strive to transition to sustainable energy solutions, concentrated solar power (CSP) has emerged as a viable alternative due to its ability to generate electricity through solar radiation, thus offering significant potential for large-scale energy production. The competitive landscape is characterized by both established players and emerging companies investing in innovation, research, and development to enhance the efficiency and cost-effectiveness of CSP technologies. This sector is influenced by governmental policies and incentives aimed at fostering the growth of renewable energy, making it a focal point for stakeholders looking to capitalize on eco-friendly energy solutions.ENGIE is a prominent player in the Concentrated Solar Power Market, boasting a robust market presence across various regions. The company's strengths lie in its experience in developing, operating, and maintaining renewable energy projects, which positions it as a leader in CSP technology. ENGIE has focused on optimizing its operations to maximize efficiency and reliability while reducing costs. Furthermore, the company has successfully formed strategic partnerships and collaborations to enhance its technical capabilities and expand its project portfolio. This strategic emphasis on innovation and sustainability has enabled ENGIE to capture a significant market share and respond effectively to the growing global demand for cleaner energy options.Abengoa has established itself as a formidable entity in the Concentrated Solar Power Market, recognized for its innovative approaches and comprehensive service offerings. The company specializes in developing and constructing CSP plants, providing key products and services that include innovative solar thermal technologies. Abengoa's market presence spans multiple continents, allowing it to leverage diverse geographic opportunities while addressing local energy demands. The company's strengths are reflected in its commitment to research and development, leading to breakthroughs in energy generation efficiency. Additionally, Abengoa has pursued strategic mergers and acquisitions to enhance its operational capabilities and expand its footprint in the renewable energy sector, solidifying its position as a dependable provider of concentrated solar power solutions on a global scale.

Key Companies in the Concentrated Solar Power Market Include:

• ENGIE




• Abengoa




• Crescent Dunes Solar Energy




• Alsolen




• Acciona




• BrightSource Energy




• Areva




• BHEL




• China National Power




• Aalco




• SENER




• First Solar




• SolarReserve




• Siemens




• L and T

Concentrated Solar Power Market Industry Developments

Recent developments in the Concentrated Solar Power Market have revealed a significant push towards renewable energy solutions as countries seek to reduce carbon emissions. Companies like ENGIE and Abengoa are at the forefront with ongoing projects aimed at expanding their solar energy footprints. In September 2023, a strategic partnership was formed between BrightSource Energy and Alsolen to enhance technology sharing in concentrated solar thermal systems. Meanwhile, market valuations have exhibited growth due to increased investments, particularly in solar farms, contributing to an optimistic outlook for firms such as First Solar and SolarReserve.

In October 2022, China's China National Power announced a substantial investment in solar projects in North Africa, further emphasizing the global nature of the market. Mergers and acquisitions have also taken place; in August 2023, Acciona acquired a stake in a solar facility previously owned by SENER, indicating consolidation trends in the sector. Overall, the market is witnessing heightened activity as companies adapt to evolving energy policies and embrace sustainable practices to fulfill global energy demands.

Concentrated Solar Power Market Segmentation Insights

Concentrated Solar Power Market Technology Outlook

• Parabolic Trough




• Solar Power Tower




• Linear Fresnel




• Dish Stirling




• Hybrid System

Concentrated Solar Power Market Component Outlook

• Solar Collector




• Receiver




• Heat Transfer Fluid




• Thermal Storage System




• Power Block

Concentrated Solar Power Market Application Outlook

• Electricity Generation




• Industrial Process Heat




• Desalination




• Heating




• Cooling

Concentrated Solar Power Market End Use Outlook

• Utility Scale




• Commercial




• Residential

Concentrated Solar Power Market Regional Outlook

• North America




• Europe




• South America




• Asia Pacific




• Middle East and Africa

Report Attribute/Metric	Details
Market Size 2023	5.04(USD Billion)
Market Size 2024	5.51(USD Billion)
Market Size 2035	15.0(USD Billion)
Compound Annual Growth Rate (CAGR)	9.52% (2025 - 2035)
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Base Year	2024
Market Forecast Period	2025 - 2035
Historical Data	2019 - 2024
Market Forecast Units	USD Billion
Key Companies Profiled	ENGIE, Abengoa, Crescent Dunes Solar Energy, Alsolen, Acciona, BrightSource Energy, Areva, BHEL, China National Power, Aalco, SENER, First Solar, SolarReserve, Siemens, L and T
Segments Covered	Technology, Component, Application, End Use, Regional
Key Market Opportunities	Technological advancements in CSP systems, Growing demand for renewable energy, Government incentives for solar adoption, Increasing investment in clean energy projects, Expansion in emerging markets
Key Market Dynamics	Government incentives and policies, Technological advancements, and innovations, Increasing energy demand, Environmental sustainability initiatives, High initial investment costs
Countries Covered	North America, Europe, APAC, South America, MEA