The global concentrated solar power market size was valued at US$ 41.73 billion in 2021 and is expected to surpass around US$ 133.43 billion by 2030, poised to grow at a compound annual growth rate (CAGR) of 13.8% during the forecast period 2022 to 2030.
The rising concerns over increasing carbon emissions and climate change is shifting the focus towards the adoption of the green and clean energy. The environmental concerns, growing efforts to reduce carbon emission, and the government regulations supporting adoption of renewable energy technologies are some of the prominent factors that drive the growth of the global concentrated solar power market. The integration of the concentrated solar power in the hybrid power plants is expected to drive the market growth in the forthcoming future. Hybrid power plants use two or more technologies for the production of energy. The rising focus on the solar energy has encouraged the integration of the concentrated solar power with the hybrid power plants. The concentrated solar power systems are capable of integrating thermal energy storage system. This can help to generate electricity in cloudy days or in absence of sunlight. Various technologies are available such as Fresnel reflectors, parabolic troughs, and power towers, which can be deployed depending on the conditions and requirements. Therefore, the various benefits associated with the concentrated solar power is expected to boost the market growth during the forecast period.
The globe is witnessing increasing demand for the solar technologies. The technological advancements like proppants, high temperature salts, and sCO2 helps to increase heat transfer capacity with minimal losses. Moreover, the ongoing research & development of new coatings for the receivers to minimize the reflection of light. The concentrated solar power involves low operating costs and has higher efficiencies as compared to that of a solar PV. This factor is estimated to drive the demand for the concentrated solar power solutions over solar PV. Moreover, the concentrated solar power systems are scalable and can use thermal storage to meet the demand. Growing investments towards the sustainable development and shifting focus towards the adoption of clean energy is resulting in the surging demand for the concentrated solar powers. The rising number of solar power plants along with the rising project pipeline to meet the sustainable energy mix is further propelling the growth of the global concentrated solar power market.
Though the concentrated solar power technology is more advanced and efficient than the solar PV but the technical complexities associated with the concentrated solar power plants is a major factor that may restrict the growth of the concentrated solar power market. Moreover, the high capital investments associated with the adoption of the concentrated solar power systems is another factor that may hinder the market growth during the forecast period. The key components used in the parabolic trough and solar towers are too costly. The initial investments constitutes around four-fifth of the total cost of installing the concentrated solar power systems. Further, the operational costs and maintenance costs are associated for efficiently running the concentrated solar power systems. Thus the high costs associated may hamper the market growth.
Report Scope of the Concentrated Solar Power Market
|Market Size by 2030||USD 133.43 Billion|
|Growth Rate from 2022 to 2030||
CAGR of 13.8%
|Asia Pacific Market Share in 2020||42%|
|Parabolic Trough Segment Market Share in 2020||85%|
|Forecast Period||2022 to 2030|
|Segments Covered||Application, Technology, Operation Type, Capacity, Geography|
|Companies Mentioned||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|
Based on the application, the utility application segment accounted for a market share of around 64%, and dominated the global concentrated solar power market. The concentrated solar power projects in the developing regions like Asia Pacific and Middle East is expected to significantly drive the growth of this segment. The growing need for generating renewable power along with the storage technologies is expected to augment the market growth. The rising number of residential projects in the developing regions and growing demand for the energy is fostering the growth of this segment. Moreover, the government initiatives to encourage the adoption of the renewable energy sources will positively impact the growth.
Enhanced oil recovery segment is expected to grow at a significant pace during the forecast period. The growing adoption of the enhanced oil recovery concentrated solar power technology especially in the crude oil producing regions is the prominent driver of this segment.
The parabolic trough segment dominated the global concentrated solar power market, garnering a market share of around 85% in 2020. This dominance is attributable to the parabolic trough technology being the most advanced technologies among all the available technologies. Moreover, it is the cheapest technology, which has driven the growth of this segment.
On the other hand, the power tower is estimated to be the most opportunistic segment during the forecast period. Power tower is witnessing large scale adoption in the countries with availability of vast land, owing to its improved designs, its economy, and other features.
The linear Fresnel segment is expected to witness considerable growth rate. This is attributed to the rising usage of the cheap glass mirrors and enhanced design. Furthermore, the low installation cost and easy assembling process are the major factor that boosts its adoption across the globe.
Asia Pacific accounted for around 42% of the market share and dominated the global concentrated solar power market in 2020. Asia Pacific is witnessing a surge in the installation of the concentrated solar power systems. The surging investments in the concentrated solar power technology for the alleviation of grid locations in the countries like China, is fostering the market growth. The rapid industrialization, rapid urbanization, and rising pollution levels are some of the factors that are fueling the demand for the energy along with the reduction in the carbon emissions. The favorable government policies to encourage the adoption of the green and clean energy is further propelling the growth of the Asia Pacific concentrated solar power market.
North America was the second leading concentrated solar power market in 2020. The increased awareness regarding the benefits of solar energy and shifting focus towards the clean and green energy has augmented the demand for the concentrated solar power market. Moreover, the increased investments towards the adoption of the latest technologies are a significant factor that has boosted the growth of the North America concentrated solar power market.
Key Market Developments
The concentrated solar power market is moderately fragmented with the presence of several local companies. These market players are striving to gain higher market share by adopting strategies, such as investments, partnerships, and acquisitions & mergers. Companies are also spending on the development of improved products. Moreover, they are also focusing on maintaining competitive pricing.
Some of the prominent players in the global concentrated solar power market include:
Segments Covered in the Report
By Operation Type:
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