The concentrated solar power market size was calculated at USD 8.55 billion in 2024 and is predicted to attain around USD 45.65 billion by 2034 with a CAGR of 18.24%.

The concentrated solar power (CSP) market is witnessing significant growth as the world shifts toward renewable energy solutions. CSP systems use solar thermal technology to generate electricity by focusing sunlight onto a receiver, which produces heat to drive turbines. Unlike solar PV, CSP can store thermal energy, enabling electricity production even after the sun sets. As energy demand increases and environmental concerns intensify, governments and private investors are accelerating the deployment of CSP projects to reduce reliance on fossil fuels. Advancements in storage technology and system efficiency are expected to drive further market expansion.

Increasing investments in renewable energy infrastructure are fueling CSP market growth. Countries aiming for carbon neutrality are prioritizing CSP due to its ability to deliver dispatchable power. Government policies, tax incentives, and research funding are further accelerating the development of new CSP projects. The demand for energy storage solutions to stabilize electricity grids is another key driver, as CSP plants can store excess heat for later use. Additionally, advancements in heliostat design, molten salt storage, and hybrid CSP systems are enhancing efficiency and reducing costs, making CSP a more viable energy solution.

The CSP market presents opportunities in hybrid renewable energy integration, where CSP is combined with solar PV, wind, or biomass to ensure a stable energy supply. The use of CSP in industrial heat applications and water desalination is gaining traction, particularly in regions with water scarcity. The development of large-scale CSP projects in emerging economies provides additional growth prospects, especially in nations with high solar potential. The rising interest in green hydrogen production using CSP technology is another emerging market segment, as hydrogen is expected to play a crucial role in the global energy transition.

While CSP offers numerous benefits, it faces challenges such as high installation and maintenance costs. Unlike solar PV, CSP requires significant infrastructure investment, making it less attractive to some investors. The land-intensive nature of CSP plants also poses challenges, particularly in regions with limited available space. Weather dependency is another factor, as CSP efficiency declines in areas with frequent cloud cover. Additionally, competition from rapidly declining solar PV and wind energy costs makes it difficult for CSP to scale at the same pace. Addressing these challenges will require continued policy support and technological innovations.

The United States leads in CSP technology innovation, with major projects in states like California and Nevada. Spain remains a key market in Europe, with a strong network of operational CSP plants. The Middle East and North Africa (MENA) region is expected to see the highest CSP growth due to abundant sunlight and increasing investments in renewable energy. China and India are also expanding their CSP capacity as part of their long-term energy strategies. In Latin America and Australia, CSP is gaining attention for its potential to provide stable power in remote areas with high solar exposure.

Segmental Analysis

By Application

Utility: Held approximately 65% of the market share and dominated the global concentrated solar power market. The demand in developing regions like Asia Pacific and the Middle East is expected to drive segment growth due to the rising need for renewable power generation with storage technologies.

Enhanced Oil Recovery: Anticipated to grow significantly, driven by the increasing adoption of concentrated solar power technology for enhanced oil recovery, especially in crude oil-producing regions.

By Technology

Parabolic Trough: Dominated the global concentrated solar power market with around 86% of the market share in 2022, attributed to it being the most advanced and cost-effective technology.

Power Tower: Estimated to be the most opportunistic segment during the forecast period, with large-scale adoption in countries with available land due to improved designs and economic factors.

Linear Fresnel: Expected to witness considerable growth due to the rising usage of cheap glass mirrors, enhanced designs, low installation costs, and easy assembly.