The global concentrated solar power market was valued at USD 4.8 billion in 2021 and is projected to hit USD 9.7 billion by 2027, growing at a compound annual growth rate (CAGR) of 9.8% from 2021 to 2027.
Growing awareness about renewable sources of energy, along with government regulations to reduce the carbon footprint, is driving the market.
Changing preferences for clean sources of energy over non-renewable sources of energy is projected to propel the market growth over the projected timeframe. Supportive government initiations and regulations on reducing greenhouse gas (GHG) and carbon emissions will further augment market growth. Increasing power demand, along with growing investments to enhance the efficiency index, will offer an incentive to the business growth.
Significant reduction in the cost of components, along with favorable government incentives, such as carbon credits and energy certificates, will drive the concentrated solar power (CSP) market over the projected period. Regulatory authorities across the globe have been inspiring grid integration by making it a cheap alternative source as compared to non-renewable sources of energy.
CSP technology can store solar energy during the day time and also post-sunset, which is a supposed advantage that it bids over all the other contending technologies. Consistent power supply, coupled with suppleness in usage backing in bridging the supply and demand deficit, faced by various countries, specifically in the developing countries, is driving the CSP demand. However, concentrated solar power technology is capital intensive as compared to other solar power generation technologies, which can be a limitation for its adoption over the projected period.
Growth in ecological issues based on carbon emissions results in the need to decrease air pollution. This, in turn, increases the demand for renewable sources of energy, like solar energy. Hence, these factors are also expected to support the growth of the market. However, the high cost witnessed throughout CSP energy production limits business growth. Besides, increasing investments from diverse market players in the renewable energy sector provide profitable growth opportunity for the business.
The market in Asia Pacific proposes profitable opportunities for manufacturing companies owing to quick installation to generate solar power energy so as to increase renewable power generation capacity. China is actively enhancing the growth of the market to deal with its pollution issues and develop its local manufacturing industrial sector. Besides, the availability of labor has led to a surge in energy production through CSP, which energizes the growth of the market.
Rise in Renewable Energy Generation Shares Drives the Market Growth
The concentrating solar power market outlook appears promising mainly due to the continually growing energy demand worldwide. Additionally, the rise in CSP installations in commercial & industrial and utility-scale applications positively impacts the concentrating solar power market growth.
The use of thermal energy storage tanks is much easier than storing electricity. As a result, CSP is often dispatchable even when the sun isn't shining. This is a major factor boosting the concentrating solar power market size. In addition, growing government initiatives and investments in large CSP plant installations benefit the concentrating solar power market revenues.
High Costs Associated with Installation and Maintenance of CSP Restrict the Market Growth.
Concentrated solar power systems tend to be large, utility-scale projects capable of providing a lot of electricity as a power source to the grid. Resultantly, CSP systems require a significant amount of land with direct sunlight. Unlike solar PV, they're not used in residential applications. Limited availability of places to build these types of systems impedes market growth.
Besides, a concentrated solar power system is an expensive technology in terms of installation costs and Levelized cost of energy (LCOE) compared to solar PV. Also, being newer technology, CSP requires more specialized technology and installation practices, increasing the overall costs of these projects.
COVID-19 Impacts on the CSP Market
The novel COVID-19 pandemic did not affect much to the concentrating solar power industry. The pandemic increased the energy demand, reassuring a robust rise in the renewable energy market. Due to the increased energy demand, especially from the industrial sectors, the renewable energy market kept growing steadily throughout 2020.
Also, the cost of renewable continued to fall in 2020, despite disruptions of the pandemic. The cost of electricity from utility-scale concentrating solar power declined by 16% during 2020 alone. The concentrating solar power market is rapidly returning to normal and is projected to pick up further.
Based on the application, the market is segregated as utility, EOR, desalination, and others. The utility application segment accounted for the largest revenue share of 65% in 2021. The growth of the segment is determined by important concentrated solar power project developments across the Middle East and Africa and the Asia Pacific, primarily in Saudi Arabia, Morocco, the UAE, and China. Additionally, demand for CSP from the utility areas is motivated by the need to generate renewable power with storage technologies to provide increasing electricity needs across the residential areas.
The utility segment is anticipated to witness significant growth over the forecast period mainly owing to the favorable government initiatives and regulations on increasing the adoption of renewable energy sources. Various financial and economic benefits, including Feed-in Tariffs (FiT) and tax credits, presented by the government authorities will enhance the segment growth till 2027.
The Enhanced Oil Recovery (EOR) application segment is gaining ground at a fast pace and is anticipated to account for over 123.0 MW in terms of capacity by 2027. In this application, steam produced by concentrated solar power farms is drove into oil fields for tertiary recovery. The adoption of such technology in the crude oil-producing nations will encourage the CSP market growth. In 2019, the others segment was valued at USD 904.6 million and is expected to witness considerable growth over the projected period owing to on-going R&D in the market.
Based on the technology, the market is segregated as parabolic trough, dish, linear fresnel, and power tower. The parabolic trough technology segment accounted for the largest revenue share of 86% in 20121 owing to high penetration of the design, along with easy installation and convention.
The power tower concentrated solar power technology segment was valued at USD 390 million in 2021 and is anticipated to witness a subsequent rise in installed capacity over the projected period, mainly owing to economically assessed products, along with improved designs and many other aids. Power tower technology of the market is witnessing a large scale adoption, specifically in nations with land availability, as large areas form a criterion for installing power towers.
The linear fresnel technology segment is projected to reach USD 652.0 million by 2027. The segment growth is primarily attributed to the usage of cheaper flat glass mirrors and the simple design associated with the technique. Besides, these systems require a lesser amount of concrete support structure and steel, indicating their reduced installation cost and easy assembly process.
Asia Pacific dominated the CSP market in 2021 with a revenue share of 44% owing to the upsurge in installations of concentrated solar power plants. China is projected to grow at a significant rate from 2020 to 2027. This is primarily attributed to growing investment in concentrated solar power for alleviating grid locations, which, in turn, is driving the market. Additionally, the need to produce continuous renewable power energy to support rising fiscal activities is boosting the market growth in the region. Europe is likely to expand at a revenue-based CAGR of 16.4% from 2020 to 2027 owing to favorable government policies across numerous nations in the region.
North America emerged as the second-largest regional market in 2021 and it was valued at USD 912 million. In MEA, continuing sizable investments in development, along with the changing focus of investors toward green energy alternatives, will favor the market growth, where Morocco is among the top adopters of concentrated solar power in the globe.
The key players contributing in the global concentrated solar power market growth include Abengoa, Acciona, SolarReserve, BrightSource Energy, ACWA Power, GE Energy, Suntrace, SCHOTT, Frenell GMBH, and Siemens. In order to stay competitive in the concentrated solar power industry, these market players are adopting strategies such as acquisition, partnership, product launch, and agreement. Abengoa is actively present in the high growth concentrated solar power market of China. Abengoa have been participating with engineering and technology in two of China’s commercial CSP projects in progress, which include 50MW Yumen Royal Tech Parabolic Trough and 50MW Luneng Haixi Molten Salt Tower CSP plants.
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The Concentrated Solar Power market research report covers definition, classification, product classification, product application, development trend, product technology, competitive landscape, industrial chain structure, industry overview, national policy and planning analysis of the industry, the latest dynamic analysis, etc., and also includes major. The study includes drivers and restraints of the global market. It covers the impact of these drivers and restraints on the demand during the forecast period. The report also highlights opportunities in the market at the global level.
The report provides size (in terms of volume and value) of Concentrated Solar Power market for the base year 2019 and the forecast between 2020 and 2027. Market numbers have been estimated based on form and application. Market size and forecast for each application segment have been provided for the global and regional market.
This report focuses on the global Concentrated Solar Power market status, future forecast, growth opportunity, key market and key players. The study objectives are to present the Concentrated Solar Power market development in United States, Europe and China.
It is pertinent to consider that in a volatile global economy, we haven’t just conducted Concentrated Solar Power market forecasts in terms of CAGR, but also studied the market based on key parameters, including Year-on-Year (Y-o-Y) growth, to comprehend the certainty of the market and to find and present the lucrative opportunities in market.
In terms of production side, this report researches the Concentrated Solar Power capacity, production, value, ex-factory price, growth rate, market share for major manufacturers, regions (or countries) and type.
In terms of consumption side, this report focuses on the consumption of Concentrated Solar Power by regions (countries) and application.
Buyers of the report will have access to verified market figures, including global market size in terms of revenue and volume. As part of production analysis, the authors of the report have provided reliable estimations and calculations for global revenue and volume by Type segment of the global Concentrated Solar Power market. These figures have been provided in terms of both revenue and volume for the period 2016 to 2027. Additionally, the report provides accurate figures for production by region in terms of revenue as well as volume for the same period. The report also includes production capacity statistics for the same period.
With regard to production bases and technologies, the research in this report covers the production time, base distribution, technical parameters, research and development trends, technology sources, and sources of raw materials of major Concentrated Solar Power market companies.
Regarding the analysis of the industry chain, the research of this report covers the raw materials and equipment of Concentrated Solar Power market upstream, downstream customers, marketing channels, industry development trends and investment strategy recommendations. The more specific analysis also includes the main application areas of market and consumption, major regions and Consumption, major Chinese producers, distributors, raw material suppliers, equipment providers and their contact information, industry chain relationship analysis.
The research in this report also includes product parameters, production process, cost structure, and data information classified by region, technology and application. Finally, the paper model new project SWOT analysis and investment feasibility study of the case model.
Overall, this is an in-depth research report specifically for the Concentrated Solar Power industry. The research center uses an objective and fair way to conduct an in-depth analysis of the development trend of the industry, providing support and evidence for customer competition analysis, development planning, and investment decision-making. In the course of operation, the project has received support and assistance from technicians and marketing personnel in various links of the industry chain.
Concentrated Solar Power market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies’ focus related to Concentrated Solar Power market.
Prominent players in the market are predicted to face tough competition from the new entrants. However, some of the key players are targeting to acquire the startup companies in order to maintain their dominance in the global market. For a detailed analysis of key companies, their strengths, weaknesses, threats, and opportunities are measured in the report by using industry-standard tools such as the SWOT analysis. Regional coverage of key companies is covered in the report to measure their dominance. Key manufacturers of Concentrated Solar Power market are focusing on introducing new products to meet the needs of the patrons. The feasibility of new products is also measured by using industry-standard tools.
Key companies are increasing their investments in research and development activities for the discovery of new products. There has also been a rise in the government funding for the introduction of new Concentrated Solar Power market. These factors have benefited the growth of the global market for Concentrated Solar Power. Going forward, key companies are predicted to benefit from the new product launches and the adoption of technological advancements. Technical advancements have benefited many industries and the global industry is not an exception.
New product launches and the expansion of already existing business are predicted to benefit the key players in maintaining their dominance in the global market for Concentrated Solar Power. The global market is segmented on the basis of region, application, en-users and product type. Based on region, the market is divided into North America, Europe, Asia-Pacific, Latin America and Middle East and Africa (MEA).
In this study, the years considered to estimate the market size of Concentrated Solar Power are as follows:
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- Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and policy aspects
- Regional and country level analysis integrating the demand and supply forces that are influencing the growth of the market.
- Market value USD Million and volume Units Million data for each segment and sub-segment
- Competitive landscape involving the market share of major players, along with the new projects and strategies adopted by players in the past five years
- Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players
In-depth interviews and discussions were conducted with several key market participants and opinion leaders to compile the research report.
This research study involved the extensive usage of both primary and secondary data sources. The research process involved the study of various factors affecting the industry, including the government policy, market environment, competitive landscape, historical data, present trends in the market, technological innovation, upcoming technologies and the technical progress in related industry, and market risks, opportunities, market barriers and challenges. The following illustrative figure shows the market research methodology applied in this report.
Market Size Estimation
Top-down and bottom-up approaches are used to estimate and validate the global market size for company, regional division, product type and application (end users).
The market estimations in this report are based on the selling price (excluding any discounts provided by the manufacturer, distributor, wholesaler or traders). Market share analysis, assigned to each of the segments and regions are achieved through product utilization rate and average selling price.
Major manufacturers & their revenues, percentage splits, market shares, growth rates and breakdowns of the product markets are determined through secondary sources and verified through the primary sources.
All possible factors that influence the markets included in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. The market size for top-level markets and sub-segments is normalized, and the effect of inflation, economic downturns, and regulatory & policy changes or others factors are accounted for in the market forecast. This data is combined and added with detailed inputs and analysis from Vision Research Reports and presented in this report.
Market Breakdown and Data Triangulation
After complete market engineering with calculations for market statistics; market size estimations; market forecasting; market breakdown; and data triangulation. Extensive primary research was conducted to gather information and verify and validate the critical numbers arrived at. In the complete market engineering process, both top-down and bottom-up approaches were extensively used, along with several data triangulation methods, to perform market estimation and market forecasting for the overall market segments and sub-segments listed in this report.
Secondary Sources occupies approximately 25% of data sources, such as press releases, annual reports, Non-Profit organizations, industry associations, governmental agencies and customs data, and so on. This research study includes secondary sources; directories; databases such as Bloomberg Business, Wind Info, Hoovers, Factiva (Dow Jones & Company), TRADING ECONOMICS, and avention; Investing News Network; statista; Federal Reserve Economic Data; annual reports; investor presentations; and SEC filings of companies.
In the primary research process, various sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information for this report. The primary sources from the supply side include product manufacturers (and their competitors), opinion leaders, industry experts, research institutions, distributors, dealer and traders, as well as the raw materials suppliers and producers, etc.
The primary sources from the demand side include industry experts such as business leaders, marketing and sales directors, technology and innovation directors, supply chain executive, end users (product buyers), and related key executives from various key companies and organizations operating in the global market.
The study objectives of this report are: