Concentrated Solar Power Market Growth Analysis - Market Size, Share, Forecast Trends and Outlook Report (2025-2034)

The global concentrated solar power market, valued at USD 5.81 billion in 2024, has seen substantial growth and offers a renewable, clean source of energy, aiding in the reduction of carbon emissions and dependence on fossil fuels. The market is expected to grow at a compound annual growth rate (CAGR) of 9.00% from 2025 to 2034, potentially reaching USD 13.76 billion by 2034. This growth could enhance energy security by diversifying energy sources and reducing reliance on imported fuels.

Global Concentrated Solar Power Market Growth

The growth of the concentrated solar power market improves energy efficiency by using mirrors to concentrate sunlight, making it more effective than conventional solar panels. As the market expands, costs decrease, making solar power more affordable. Concentrated solar power provides a sustainable, renewable energy source that cuts carbon emissions and enhances energy security through diverse energy sources. A recent report from the Institute for Energy Economics and Financial Analysis (IEEFA) and JMK Research predicts that India’s solar PV module capacity will reach 110 gigawatts (GW) by 2026.

The concentrated solar power market revenue is influenced by job creation in manufacturing, installation, and maintenance, which stimulates local economies. It fosters technological innovation, enhancing cost-effectiveness and efficiency. Concentrated solar power plants are scalable and flexible, allowing them to meet demand and be built in rural areas, providing energy independence, and improving access to underserved regions, thus reducing reliance on imported fuels.

Key Trends and Recent Developments

The concentrated solar power market is expanding driven by technological advancements, integration with energy storage, policy, and government support, as well as the adoption of hybrid systems and grid integration.

April 2024

MIT 247Solar is developing high-temperature concentrated solar power systems with overnight thermal energy storage, offering round-the-clock power and industrial-grade heat. These modular systems can serve as standalone microgrids for remote areas or complement wind and solar farms, providing 24/7 renewable energy and reducing reliance on the grid.

March 2024

The Solar Energy Corporation of India (SECI), a state-owned entity, intends to release a tender for a concentrated solar-thermal power (CSP) storage project by next year. Currently, in the design phase, the tender will be for an initial capacity of 500 MW, offering continuous green energy.

March 2024

Northwest Engineering Corporation Limited (POWERCHINA NORTHWEST) announced the start of construction for the 200MW solar tower CSP project in Delingha, which it is undertaking as an EPC contractor. The 2000MW Delingha solar hybrid project, invested by CGN New Energy, will be built in two phases, each with 800MW of PV and 200MW of CSP.

February 2024

The U.S. Department of Energy (DOE) marked the groundbreaking of its Generation 3 concentrating solar-thermal pilot facility at Sandia National Laboratories. This USD 100 million project aims to develop advanced CSP plants and storage technology capable of providing one gigawatt of storage for one hour, supporting the goal of a 100% clean energy economy by 2050.

Technological Advancements is a Significant Trend in the Concentrated Solar Power Market

Continuous innovations in concentrated solar power (CSP) technology, such as enhanced heliostat designs, advanced thermal storage solutions, and more efficient components, are propelling market growth. These advancements improve CSP's competitiveness by reducing costs, boosting performance, and enhancing energy generation efficiency, making it more globally viable.

Integration with Energy Storage Driving the Demand of the Concentrated Solar Power Market

The integration of CSP with thermal energy storage enables continuous power generation, even when sunlight is unavailable. This capacity to deliver 24/7 electricity is a major factor driving the expansion of CSP applications, particularly in areas with a strong need for dependable, renewable energy sources.

Policy and Government Support Fueling Opportunities in the Concentrated Solar Power Market

Governments worldwide are increasing investments in renewable energy and providing policy support for CSP, including subsidies, tax breaks, and research funding. This regulatory support, particularly in regions such as the Middle East, Europe, and North America, is accelerating CSP growth as part of efforts to achieve net-zero carbon emissions by mid-century.

Hybrid Systems and Grid Integration are Boosting the Concentrated Solar Power Market Growth

CSP is increasingly being incorporated into hybrid energy systems that combine it with other renewable sources like wind and solar PV. These hybrid setups better align energy supply with demand, supporting grid stability and positioning CSP as a crucial component for modern, reliable power grids.

Global Concentrated Solar Power Market Trends

The development of the concentrated solar power market is being accelerated as it can be integrated with existing power grids, providing a reliable source of renewable energy. It uses less water than conventional plants, offering environmental benefits. Concentrated solar power plants have long lifespans, require minimal maintenance, and encourage global collaboration in renewable energy. They also help reduce air pollution and greenhouse gas emissions. According to the Australian Energy Council, rooftop solar in Australia is growing, with the latest data from the Clean Energy Regulator (CER) showing that by the end of 2021, an estimated 3.04 million Australian homes and businesses had a rooftop PV system.

The demand of the concentrated solar power market is rising as systems can be combined with other renewable technologies to create sustainable infrastructure. They are adaptable to various locations, particularly in sunny, arid regions. The market is attracting investment, supporting the development of new projects and technologies. Concentrated solar power also provides energy access to off-grid areas, stimulating local economies and delivering affordable, sustainable energy.

Global Concentrated Solar Power Industry Segmentation

The report titled “Global Concentrated Solar Power Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Technology

• Parabolic Trough
• Power Tower
• Linear Fresnel
• Dish/Engine System

Market Breakup by Component

• Solar Field
• Power Block
• Thermal Energy Storage System

Market Breakup by End Use

• Utilities
• Enhanced Oil Recovery
• Others

Market Breakup by Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa

Global Concentrated Solar Power Market Share

According to the concentrated solar power market analysis, solar fields are crucial in CSP systems, capturing sunlight with mirrors or lenses to generate heat. This heat is then converted into electricity, providing a renewable energy source that lowers greenhouse gas emissions and supports global sustainability goals. In November 2023, Morocco’s Noor CSP plant, located near the Sahara, used thousands of mirrors to direct sunlight onto a central tower, contributing to a renewable energy supply for millions of homes.

The growth of the concentrated solar power market is driven by the power block in CSP systems, which converts thermal energy into electricity using steam turbines. This component boosts efficiency and reliability, ensuring continuous power generation even without sunlight. It is essential for stabilising the energy supply and integrating CSP into the grid. In May 2024, SolStor Energy, a U.S.-based development company, launched projects to deploy CSP with thermal energy storage, focusing on the effective integration of power blocks to provide solar energy overnight.

Competitive Landscape

The concentrated solar power market key players specialise in both photovoltaic (PV) and concentrated solar power (CSP) technologies, providing innovative solutions for clean, renewable energy generation. These companies are dedicated to developing sustainable energy solutions that contribute to reducing greenhouse gas emissions and reliance on fossil fuels.

Abengoa Solar, S.A.

Headquartered in Seville, Spain, Abengoa Solar was established in 2007. The company focuses on the development, construction, and operation of solar power plants worldwide, specialising in both photovoltaic and concentrated solar power (CSP) technologies. Abengoa aims to contribute to sustainable energy production and environmental solutions.

BrightSource Energy, Inc.

It is based in Oakland, California, and was founded in 2006. Specialising in concentrated solar thermal technology, the company develops large-scale solar power plants that provide clean, renewable energy. BrightSource is known for its innovative heliostat and solar tower designs, aiming to revolutionise global solar energy production.

ACWA Power Reinsurance Co Limited

It was founded in 2008, and is headquartered in Riyadh, Saudi Arabia. The company is a global player in energy and water desalination projects, focusing on renewable energy, including solar and wind. It offers reinsurance services and supports sustainable energy solutions in diverse regions.

eSolar, Inc.

Established in 2007 and based in Burbank, California, focuses on developing modular concentrated solar power (CSP) systems. The company uses innovative heliostat technology to create scalable solar power plants, aiming to reduce costs and increase efficiency, contributing to the growth of the renewable energy sector.

Other key players in the concentrated solar power market report are Solarreserve, LLC, and Aalborg CSP A/S., among others.