Concentrated Solar Power Market Size, Share & Trends Analysis Report By Technology (Parabolic Trough, Linear Fresnel, Dish, Power Tower), By Application, By Region, And Segment Forecasts, 2025 - 2030

Concentrated Solar Power Market Trends

The global concentrated solar power market size was valued at USD 8.13 billion in 2024 and is projected to grow at a CAGR of 7.1% from 2025 to 2030. This growth is driven by increasing environmental concerns and the global push to reduce carbon emissions, as CSP technology offers a clean and sustainable energy solution. Government incentives and policies promoting renewable energy, such as feed-in tariffs, tax credits, and subsidies, encourage investments in concentrated solar power (CSP) projects. Technological advancements and declining costs of CSP components, including mirrors, receivers, and thermal energy storage systems, make CSP more competitive with other energy sources.

Government policies and regulations play a crucial role in shaping the CSP market. In the U.S., the Investment Tax Credit (ITC) has been a significant driver, providing a 30% tax credit for solar energy systems, including CSP, which has been extended through 2023. The Clean Development Mechanism (CDM) under the Kyoto Protocol also supports CSP projects by allowing developed countries to invest in renewable energy projects in developing countries to earn carbon credits. In India, the National Action Plan on Climate Change (NAPCC) and the Jawaharlal Nehru National Solar Mission (JNNSM) are key initiatives promoting the deployment of CSP technologies.

Technology Insights

The parabolic trough segment accounted for the largest share of 81.3% in 2024 due to the maturity and proven reliability of parabolic trough technology, which uses long, curved mirrors to focus sunlight onto a receiver tube containing a heat transfer fluid. The heated fluid is then used to generate steam, driving a turbine to produce electricity. Parabolic trough systems are well-established, with several large-scale commercial plants operating worldwide. Their ability to integrate thermal energy storage systems, providing consistent power even during non-sunny periods, makes them a preferred choice for utility-scale CSP projects.

The dish segment is expected to grow at a CAGR of 12.3% from 2025 to 2030. Dish Stirling systems, a type of CSP technology, use a parabolic dish to concentrate sunlight onto a receiver mounted on a central tower. The concentrated sunlight heats a gas in the receiver, which drives a Stirling engine connected to a generator. Dish Stirling systems offer high efficiency and the potential for modular, scalable installations. Their ability to provide high-temperature heat and suitability for remote and off-grid applications drive their growth.

Application Insights

The utilities segment dominated the global concentrated solar power market in 2024, primarily due to the increasing demand for large-scale renewable energy projects. Utilities are leveraging CSP technology to generate electricity on a commercial scale, benefiting from its ability to provide stable and dispatchable power. CSP plants can integrate thermal energy storage systems, allowing them to supply electricity even during non-sunny periods, which enhances grid stability and reliability. This capability makes CSP an attractive option for utilities aiming to meet renewable energy targets and reduce their carbon footprint.

The desalination segment is projected to grow at the fastest CAGR of 15.2% over the forecast period. The increasing global water scarcity and the need for sustainable freshwater solutions drive this rapid growth. CSP technology is used to power desalination plants, which convert seawater into potable water. Integrating CSP with desalination offers a dual benefit: it provides a renewable energy source and addresses the critical issue of water shortage. As more regions face water stress, the demand for CSP-powered desalination plants is expected to rise significantly, making it the fastest-growing application segment in the CSP market.

Regional Insights

North America concentrated solar power market dominated the total revenue of the global concentrated solar power market with a revenue share of 28.9% in 2024, driven by significant investments in renewable energy infrastructure and supportive government policies. The region's emphasis on reducing greenhouse gas emissions and transitioning to sustainable energy sources has facilitated the expansion of CSP projects. Technological advancements and the presence of major industry players further strengthen North America's competitive edge, enabling it to capture a substantial share of the global market.

U.S. Concentrated Solar Power Market Trends

The U.S. concentrated solar power market held a leading position in 2024, fueled by federal and state-level incentives to promote renewable energy. Key initiatives, such as tax credits and grants, have encouraged investment in CSP technologies, leading to the development of large-scale solar plants. The growing demand for clean energy solutions and a maturing technological landscape have positioned the U.S. as a frontrunner in CSP deployment, setting a benchmark for other regions.

Europe Concentrated Solar Power Market Trends

Europe held a significant revenue share of the global concentrated solar power market in 2024. Countries including Spain and Italy have been pivotal in advancing CSP technology, supported by robust policy frameworks and funding mechanisms. However, the market faces challenges, including competition from other renewable sources and regulatory hurdles. Nevertheless, Europe’s focus on innovation and its integration of CSP with other renewable technologies indicate a resilient market poised for future growth.

Asia Pacific Concentrated Solar Power Market Trends

The Asia Pacific concentrated solar power market is anticipated to grow fastest during the forecast period. This growth can be attributed to increasing energy demands, rapid industrialization, and a growing recognition of the need for sustainable energy solutions. Countries such as China and India are leading the charge, implementing ambitious solar energy targets and investing heavily in CSP projects. The region's unique geographical advantages, such as high solar insolation, further enhance its potential, positioning Asia Pacific as a key player in the global CSP landscape.

Key Concentrated Solar Power Company Insights

Some of the key companies in the Concentrated solar power market include Abengoa, BrightSource Energy, Inc., Siemens Energy, Acciona, and Aalborg CSP.

• Abengoa is a key player in the concentrated solar power market, known for its innovative solar thermal technologies and large-scale projects. The company has developed several notable CSP plants globally, focusing on integrating energy storage solutions to enhance efficiency and reliability.

• Aalborg CSP specializes in delivering tailored solutions for the concentrated solar power market. The company focuses on enhancing the performance of CSP systems through advanced thermal storage and integration with other renewable technologies.

Recent Developments

• In September 2024, Masdar announced a plan to acquire Saeta Yield, a prominent independent developer, owner, and operator of renewable energy assets. Saeta Yield possesses expertise across the entire value chain of renewable energy projects. However, the acquisition does not encompass a regulated portfolio of 350 MW of concentrated solar power assets, which will remain under the ownership of Brookfield.

• In October 2023, Australian researchers achieved a significant breakthrough in concentrated solar power storage by heating ceramic particles to a record-breaking temperature using concentrated sunlight. This advancement could pave the way for more efficient and reliable solar energy storage solutions. The innovative approach involves dropping ceramic particles through a beam of concentrated sunlight, allowing them to absorb and store thermal energy for extended periods. This technology offers a promising alternative to traditional energy storage methods such as lithium-ion batteries, which face challenges such as cost, self-discharge, and safety concerns.

Concentrated Solar Power Market Report Scope

Global Concentrated Solar Power Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global concentrated solar power market report based on technology, application, and region:

• Technology Outlook (Volume, MW; Revenue, USD Billion, 2018 - 2030)

  • Parabolic Trough

  • Linear Fresnel

  • Dish

  • Power Tower

• Application Outlook (Volume, MW; Revenue, USD Billion, 2018 - 2030)

  • Utilities

  • EOR

  • Desalination

  • Others

• Regional Outlook (Volume, MW; Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

  • Europe

    • Spain

    • Italy

  • Asia Pacific

    • China

    • Japan

  • Latin America

    • Brazil

    • Argentina

  • Middle East and Africa (MEA)

    • Morocco

    • Algeria