The concentrated solar power market is estimated to be valued at US$ 5.86 Bn in 2023 and is expected to exhibit a CAGR of 10.% over the forecast period from 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Concentrated solar power (CSP) is a technology that generates solar power by using mirrors or lenses to concentrate a large area of sunlight onto a small area. CSP systems use tracking systems to focus sunlight on receivers called solar collectors. The concentrated heat is then used to drive traditional steam turbines or engines that produce electricity. CSP technologies provide an efficient way to store solar energy as heat so the power can also be dispatched when the sun is not shining. Some key uses and applications of concentrated solar power include utility-scale electricity generation, industrial process heat production, and solar thermal propulsion.
Market Dynamics:
The concentrated solar power market is expected to witness significant growth over the forecast period owing to rising concerns about carbon emissions from conventional power sources. According to the U.S. Energy Information Administration (EIA), the electric power industry is responsible for about 38% of total carbon dioxide emissions in the United States. Growing emphasis on decarbonizing the power sector through transition to renewable energy sources is expected to drive the adoption of concentrated solar power technology in the coming years. Additionally, advancements in thermal energy storage technologies are enabling CSP plants to effectively supply electricity even when the sun is not available. This is making CSP technology more competitive compared to other renewable options and boosting its demand globally.
SWOT Analysis
Strength: Concentrated Solar Power (CSP) is a renewable source of energy and has very low carbon footprint. CSP systems require less land area as compared to photovoltaic systems for generating same amount of electricity. CSP technologies such as parabolic troughs and power towers are mature and commercially viable.
Weakness: High initial investment cost for setting up CSP plants act as a barrier. CSP plants are location dependent and require direct sunlight for most of the day, limiting their application.
Opportunity: Increasing global support through funding and initiatives to promote renewable sources of energy will drive the growth of CSP market. Growing demand for base load power generation from renewable sources also poses opportunities.
Threats: Fluctuating costs of raw materials may increase the costs of components and parts. Unexpected natural calamities can disrupt the operations of CSP plants.
Key Takeaways
Global Concentrated Solar Power Market Size is expected to witness high growth, exhibiting CAGR of 10% over the forecast period, due to increasing investments in renewable energy adoption across countries. Government incentives and subsidies to promote solar energy will also boost market revenues. Projects such as mega solar parks connecting multiple CSP plants are gaining traction worldwide.
Regional analysis: Asia Pacific region dominates the global CSP market with over 35% share, led by China, India, and Japan. Abundant solar resources and favorable government policies supporting renewable energy in the region drives the market. Countries in MEA such as South Africa, Saudi Arabia, and UAE are also emerging as fast growing markets for CSP owing to increasing focus on utilizing indigenous renewable energy sources.
Key players: 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. These companies are focusing on capacity additions through new projects and strategic partnerships 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
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