by Concentrated solar power (CSP) utilizes mirrors or lenses with tracking systems to focus a large area of sunlight onto a small area. CSP systems generally have the advantage over photovoltaic cells in that they can store thermal energy and continue producing electricity even when the sun is not shining. This makes CSP a highly reliable source for delivering renewable baseload and dispatchable solar energy. The technology is gaining popularity for utility-scale electricity generation and other industrial applications that need high-temperature heat. CSP systems are increasingly seen as an important enabler for transitioning to carbon-free energy systems as they can be combined with thermal energy storage to generate solar power even when solar resources are limited or unavailable.
The global Concentrated Solar Power market is estimated to be valued at US$ 5.86 billion in 2023 and is expected to exhibit a CAGR of 5.1% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Key Trends:
One of the major trends driving the concentrated solar power market is the falling costs of CSP technology. Component prices, particularly for solar collectors, thermal storage and system balance of plant have all declined significantly over the past decade due to increased production volumes and manufacturing improvements. Further technological innovations will continue reducing costs towards grid parity with conventional electricity generation. According increasing policy support for renewables across many countries, the CSP sector is poised for strong growth especially in sunbelt regions. Many governments also see CSP with storage as an important complement to variable wind and solar PV power, thus enhancing overall renewable energy integration into grids and energy systems.
Porter’s Analysis
Threat of new entrants: The high capital requirements and economies of scale in production and operations pose significant barriers for new companies.
Bargaining power of buyers: Individual buyers have limited bargaining power compared to large utility companies and governments that make bulk purchases.
Bargaining power of suppliers: Specialized components and proprietary technologies give some suppliers an edge in negotiations.
Threat of new substitutes: Renewable technologies like solar photovoltaics and wind power provide alternatives but concentrated solar power still has advantages for utility-scale renewable energy production.
Competitive rivalry: Major players compete on the basis of technology, cost competitiveness, scope of solutions, and geographic presence.
Key Takeaways
The Global Concentrated Solar Power Market Size is expected to witness high growth. The global Concentrated Solar Power market is estimated to be valued at US$ 5.86 billion in 2023 and is expected to exhibit a CAGR of 5.1% over the forecast period 2023-2030.
The regional analysis shows that North America dominated the market in 2020 owing to the presence of leading developers and pilot projects in the US. Europe is also a major market on account of supportive policies and initiatives for renewable energy adoption in key countries. The Asia Pacific region is anticipated to be the fastest growing market during the forecast period with China and India emerging as high potential markets. Rising focus on tapping solar resources and reducing dependence on coal and natural gas for power generation will drive the adoption of concentrated solar power technologies in the region.
Key players operating in the concentrated solar power market are Airbus Group, Alcoa Corporation, Arconic Corporation, Boeing, Bombardier Inc., Collins Aerospace, Elbit Systems Ltd., Teijin, Lockheed Martin Corporation, and Triumph Group, Inc. These companies are focusing on product innovations, partnerships, and geographical expansion to strengthen their market position.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
