Market Introduction

The global concentrated solar power market was valued at USD 8.65 billion in 2024 and grew at a CAGR of 23% from 2025 to 2034. The market is expected to reach 68.55 billion by 2034. The increasing energy needs will drive the growth of the global concentrated solar power market.

Renewable energy technology of Concentrated Solar Power (CSP) produces electricity through mirrors or lenses by concentrating solar energy. A CSP system uses light concentration to direct solar power into a receiver unit through which heat energy gets produced. Steam production from heat energy powers a turbine that drives an electricity generator through mechanical connection. The technology in CSP operates through thermal energy rather than photovoltaic solar panels which use direct light conversion for power. The operation of CSP systems happens through big power plants situated where solar radiation levels reach their maximum in deserts. The storage capability of CSP gives the technology the power to produce electricity during times when sunlight does not shine. The thermal energy storage systems based on molten salt allows operators to keep heat stored for prolonged periods ranging from hours to days. The thermal storage system in CSP delivers better performance than photovoltaic solar or wind energy since it enables dependable and sustained electricity production. CSP will exercise a major influence on clean energy development during future years as technology continues to improve.

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Recent Development

• In the high-altitude deserts of Jiuquan, Gansu province, China, the 750 MW Akesai Huidong CSP-PV facility has been put into service by SDIC Gansu New Energy, a Chinese renewable energy business. The site has a 640 MW solar plant and a 110 MW CSP tower. The solar thermal segment, which is the largest project in China to combine these two solar energies sources, covers 16.5 km² and extends 2 km². To get beyond the unpredictability and erratic nature of pure photovoltaic plants, the concept combines concentrated solar thermal and photovoltaic systems. The CSP system ensures steady power generation for up to eight hours by storing solar energy in molten salt for release at night, while photovoltaic panels provide electricity during the day. This hybrid configuration improves economic feasibility and streamlines grid interconnection.

Market Dynamics

Drivers

Development of advanced technology – The main driver from within the CSP industry stems from continuous technological improvements in solar mirrors along with receivers and energy storage systems. CSP performances increase and its market viability strengthens through technological developments. Scientists developed molten salt storage systems for thermal applications which extended the capability of concentrating solar power to deliver continuous baseload power after heat capture at any time during or without solar availability. Technological progress combined with scaled manufacturing operations and improved operational practices reduced the entire lifecycle expenses of CSP systems. The price reduction benefits CSP technology so it becomes more affordable than alternative power technologies and conventional energy methods. The energy production cost lowers due to new advances in heat transfer fluids and heat exchanger systems which promote operational efficiency. Thermal storage operated by CSP provides reliable power delivery which along with technological improvements makes this generation method continuously more economically viable for large power requirements. The factors position CSP as a dependable and competitive actor in renewable energy markets by resolving issues connected to cost effectiveness and sustainability.

Restraints

Costs and certain technological limitations – The market factors limiting the adoption of CSP stem from expensive installation costs alongside technological issues that increase project duration. CSP systems face a major internal barrier from their need for large upfront investments to install the equipment. Operating concentrated solar power systems requires major initial investments toward purchasing materials and land acquisition while funding other components of the infrastructure as well. The high expenses associated with CSP impede its competitiveness relative to PV solar and wind power solutions since they present lower installation costs. CSP encounters technological difficulties because of its current limitations. The current generation of CSP technology suffers from efficiency constraints which primarily affect both thermal storage capabilities and energy transformation procedures. When operating on large-scale centralized systems the technology finds less suitability in responding to various energy needs than flexible systems such as PV. Construction projects that involve CSP plants take longer than typical renewable power facilities do while the upfront costs remain high which results in delayed returns on investment.

• In 2026, the Ivanpah Solar Power Plant in San Bernardino County, California, which was formerly the biggest of its kind in the world, will cease operations. The huge project's co-owner, NRG Energy, has declared plans to close it because of inefficiencies and competition from less expensive photovoltaic (PV) solar technology. One of the first projects in the United States to offer utility-scale power to consumers was the Mojave Desert concentrated solar power plant, which started operations ten years ago. Pacific Gas & Electric said in a statement that it has negotiated a deal with the owners of the plant, notably NRG Energy Inc., to terminate their agreements with Ivanpah.

Opportunities

Favourable regulatory environment – The financial sustainability of CSP exists through government-backed incentives which include renewable energy mandates as well as tax credits and energy subsidies. The increasing energy requirements of developing countries with expanding sectors and developing populations drives substantial demand for dependable and expandable power systems. The extensive electricity production capability of CSP makes it an effective answer to growing energy requirements. The worldwide drive for emission reduction has led to CSP recognition as a zero-emission technology that supports worldwide efforts for developing a low-carbon economy. The growing need for energy security together with reliable grid management represents a major driver for the rise of CSP. The storage capabilities of CSP and its ability to produce dispatchable power boost its demand in places that want to minimize fossil fuel usage while stabilizing their electrical grids.

Segment Analysis

Regional segmentation analysis

The regions analyzed for the market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. North America emerged as the most significant global concentrated solar power market, with a 38% market revenue share in 2024.

The United States leads CSP development because states that include California Nevada and Arizona show particularly favourable solar insolation rates suitable for building CSP plants. The CSP market continues to grow in North American regions because both government-supported entities and private investors actively fund CSP projects throughout these areas. The financial viability of CSP projects depends significantly on federal and state incentives which offer grants and tax credits as supporting measures. Renewable energy requirements established by the U.S. government and multiple state authorities motivate power sector companies to integrate CSP systems for their clean energy transition plans.

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• John Cockerill and L&T Energy Green Tech Ltd (LTEGL), the step-down arm of Larsen & Toubro, will investigate potential joint ventures in thermal energy storage and concentrated solar power. For the partnership, the two businesses recently inked a Memorandum of Understanding (MoU). Under the terms of the Memorandum of Understanding, John Cockerill and L&T Energy Green Tech Ltd (LTEGL) will find and create opportunities for cooperation in engineering solutions, component supply, and manufacturing that are essential to the deployment and execution of thermal energy storage and concentrated solar power projects.  John Cockerill's knowledge in concentrated solar power and thermal energy storage technology is combined with L&T's comprehensive experience in manufacturing, EPC, and services.

Technology type Segment Analysis

The technology type segment is divided into Parabolic Trough Systems, Solar Tower Systems, Dish Stirling Systems and Linear Fresnel Systems. The Parabolic Trough Systems segment dominated the market, with a market share of around 36% in 2024. Parabolic Trough Systems maintain dominance in the worldwide Concentrated Solar Power sector because they demonstrate high efficiency along with scalability and affordable operation rates that benefit massive power generation projects. The technology directs sunlight toward a receiver tube along the focal line of the curved mirrors known as parabolic troughs. The tube contains heat-harnessing fluid which absorbs concentrated sunlight that creates steam to power a turbine generator. The most successful commercial implementation of CSP technology arises from parabolic trough systems since numerous global plants operate with this design. Parabolic troughs dominate the market because they have mature technology alongside proven performance at utility scale. These power systems continue to operate for decades giving operators essential information about performance and maintenance alongside assessment of long-term reliability. The basic construction of parabolic trough systems makes them simpler to construct and operate and maintain when compared to CSP technologies that employ solar towers or dish Stirling systems. Parabolic trough technology achieves economic efficiencies through scale-based growth because it provides affordable capital expenditures at project start-up for operators.

Application Segment Analysis

The application segment is divided into utility-scale power plants, commercial and industrial applications and desalination and water treatment. The utility-scale power plants segment dominated the market, with a market share of around 38% in 2024. The plants produce vast amounts of electricity that spans between tens and hundreds of megawatts thus making them appropriate for joining national and regional power grids. The large scale of utility plants creates economic advantages that decrease electricity generation costs thus making CSP electricity comparable to fossil fuels or nuclear power. CSP utility plants find preference because they offer dispatchable power capabilities which distinguish them from intermittent power sources such as wind and photovoltaic solar. The expansion of CSP facilities at utility scale has benefited from public incentives alongside renewable energy requirements coupled with environmental emission reduction efforts by governments. The development of these plants requires combined financial support from public institutions and private funding entities through government-provided incentives. Emerging markets face increasing energy demand while utility-scale CSP plants prove to be the primary choice for massive sustainable electricity generation thus establishing their strong position in the CSP market sector.

End-user Segment Analysis

The end-user segment is divided into government and utilities and private sector. The government and utilities segment dominated the market, with a market share of around 61% in 2024. The demand for Concentrated Solar Power (CSP) receives essential impetus from government policies and targets promoting renewable energy adoption because numerous governments utilize subsidies and grants together with tax credits to incentivize renewable energy implementation. CSP becomes more appealing to utilities after such financial incentives are introduced. Utilities serve as the organizations that manage national and regional energy requirements. The main providers of energy known as utilities are developing renewable energy sections including CSP to enhance their power generation and lower their carbon footprint and achieve sustainability targets. The CSP market grows when governments establish renewable energy goals through standard regulatory systems which support big-scale CSP operations. The CSP market expands globally through the combination of strong backing from governments and utilities which have significant resources at their disposal.

Some of the Key Market Players

• Aalborg CSP
• Abengoa S.A.
• Acciona, S.A.
• ACWA Power
• Cobra Group
• Enel Green Power
• First Solar Inc.
• Neoen
• SCHOTT AG
• SENER Grupo de Ingeniería S.A.
• Siemens Energy
• Torresol Energy

Report Description

• Market Introduction
• Market Dynamics
• Segment Analysis
• Some of the Key Market Players