by The Concentrated Solar Power (CSP) Market is estimated to be valued at US$ 5.29 Bn in 2023 and is expected to exhibit a CAGR of 10.8% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Concentrated Solar Power utilizes mirrors or lenses to concentrate a large area of sunlight onto a small area, which can be used as a heat source. CSP systems capture and concentrate sunlight and then use that energy to drive a traditional steam turabine or engine that creates electricity. Concentrated solar power plants provide clean, sustainable energy helping to meet growing energy needs as well as reduce reliance on fossil fuels. The technology is thus an increasingly important contributor to global efforts to address climate change.
Market key trends:
Concentrated Solar Power market is witnessing high growth owing to increasing focus on renewable energy sources. Renewable energy accounts for an increasing share of power generation globally as more countries transition to sustainable sources of energy. By concentrating solar radiation using mirrors and collectors, CSP technology has a significant role to play in making renewable energy sources more economically viable. Growing investments in utility-scale renewable energy projects by governments and private players is expected to significantly drive the demand for CSP technology over the forecast period. The largest CSP plants currently planned by developers could generate over 5 gigawatts (GW) of electricity, giving this concentrating solar technology an important place among renewable energy options.
Porter’s Analysis
Threat of new entrants: Low capital requirement and established distribution channels pose low threat of new entrants in the concentrated solar power market.
Bargaining power of buyers: Large consumers like utility companies have high bargaining power due to bulk purchase options and ability to switch to other renewable energy sources.
Bargaining power of suppliers: Established component suppliers like lens and mirror manufacturers have moderate bargaining power due to availability of substitutes and technology expertise in the industry.
Threat of new substitutes: Threat from new renewable energy substitutes like solar PV and wind energy is moderate due to high adoption and technological advancements respectively.
Competitive rivalry: Intense competition exists among global players to gain major market share through product innovation and geographical expansion.
SWOT Analysis
Strength: Concentrated solar power has proven technology with large scale deployment globally. Its ability to generate electricity even during cloud covers makes it dispatchable renewable source.
Weakness: High initial investment cost and requirement of large land area for tower design. Molten salt heat transfer equipment require frequent maintenance and replacement.
Opportunity: Increasing carbon reduction targets among nations will drive investments in utility scale renewable projects. Favorable government incentives and policies promote concentrated solar power adoption.
Threats: Unsustainable reduction in subsidy schemes poses funding challenges. Locational constraints and intermittency issues respectively affect project feasibility.
Key Takeaways
The Global Concentrated Solar Power Market is expected to witness high growth, exhibiting CAGR of 10.8% over the forecast period, due to increasing demand for clean and sustainable energy sources across industries and sectors. By 2030, the global CSP market is projected to surpass US$ 12 Bn in value.
Regional analysis: Asia Pacific dominates the global CSP market with over 40% share, led by China which represents over 70% of global installed capacity. Rapid capacity additions and favorable government policies will further drive the Asia Pacific market. North America and Middle East & Africa also represent high growth regional markets.
Key players operating in the concentrated solar power market are Siemens AG, Genarl Electric, Abengoa, Acciona S.A., Atlantica Yield plc., Suntrace GmbH, BrightSource Energy, Inc., SolarReserve, LLC., ACWA Power, Frenell GmbH. Major players are focusing on expanding operational capacities, innovations in energy storage and geographical footprint expansion.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
