![Concentrated Solar Power (CSP) Market Size Concentrated Solar Power (CSP) Market Summary](https://s3.mordorintelligence.com/concentrated-solar-power-csp-market-market/concentrated-solar-power-csp-market-market-size-image-1735447612355.webp)
Study Period | 2019 - 2030 |
Market Volume (2025) | 11.08 gigawatt |
Market Volume (2030) | 15.49 gigawatt |
CAGR | 6.93 % |
Fastest Growing Market | Asia-Pacific |
Largest Market | Europe |
Market Concentration | High |
Major Players![]() *Disclaimer: Major Players sorted in no particular order |
Concentrated Solar Power (CSP) Market Analysis
The Concentrated Solar Power Market size is estimated at 11.08 gigawatt in 2025, and is expected to reach 15.49 gigawatt by 2030, at a CAGR of 6.93% during the forecast period (2025-2030).
The concentrated solar power (CSP) industry is experiencing significant technological advancement and geographical expansion, particularly in regions with high solar irradiation. Spain continues to lead the global CSP market with an installed capacity of 2.3 gigawatts, demonstrating the technology's viability in regions with favorable solar conditions. The integration of thermal energy storage systems has become a standard feature in modern CSP installations, enabling these facilities to provide reliable power even after sunset. This development has positioned CSP as a crucial technology for addressing grid stability concerns and meeting peak demand requirements in various markets.
The industry is witnessing a surge in hybrid project developments that combine CSP with other renewable technologies. In February 2023, Vast Solar announced plans to construct VS1, a 30 MW/288 MWh concentrated solar power plant in Port Augusta, South Australia, securing approximately USD 65 million in federal government backing. The trend toward hybridization is particularly evident in China, where the government announced plans to start and complete 11 CSP projects with thermal energy storage by 2024, showcasing the industry's movement toward more integrated renewable energy solutions.
The market is experiencing a geographical shift with emerging economies increasingly adopting CSP technology. China's remarkable progress is evident from its cumulative installed capacity reaching 588 MW in 2022, making it one of the fastest-growing markets for CSP technology. The development of CSP projects in new regions is being supported by international collaboration and knowledge transfer, with established players partnering with local entities to implement projects in emerging markets.
The industry is undergoing significant operational improvements through the integration of advanced technologies and automation. The Dubai Electricity and Water Authority (DEWA) has made notable progress in this direction, developing a system to measure atmospheric attenuation resulting from dust and other factors, which enhances the efficiency of heliostats in CSP projects. This focus on technological innovation is complemented by the development of more sophisticated thermal storage solutions, with many new projects incorporating storage capacities of 12 hours or more, significantly improving the dispatchability and reliability of CSP plants.
Concentrated Solar Power (CSP) Market Trends
Declining Cost of Concentrated Solar Power
The concentrated solar power (CSP) industry has witnessed significant cost reductions over the past decade, making it increasingly competitive with conventional power generation technologies. According to the International Renewable Energy Agency (IRENA), the global weighted average levelized cost of electricity (LCOE) for CSP systems declined dramatically by 68% between 2010 and 2021, dropping from USD 0.358/kWh to USD 0.114/kWh. This substantial reduction can be attributed to multiple factors, including lower total installation costs (down 68%), improved capacity factors (up 17%), reduced operations and maintenance expenses (down 10%), and a decrease in the weighted average cost of capital (down 9%). These improvements have made CSP technology more attractive for utility-scale power generation projects worldwide.
The technology's economic viability has been further enhanced by advancements in thermal energy storage capabilities. Between 2010 and 2021, the weighted average number of storage hours increased five-fold, from 3.5 to 17.5 hours, enabling CSP plants to provide more reliable and dispatchable power. This development is exemplified by recent projects like the Cerro Dominador in Chile, which features the highest known storage capacity globally at 17.5 hours. Furthermore, ongoing research and development initiatives are driving additional cost reductions, as demonstrated by the US Department of Energy's Generation 3 Particle Pilot Plant (G3P3) project announced in February 2023. This innovative project utilizes sand-like ceramic particles instead of traditional molten salt, aiming to achieve even greater cost efficiencies and operational improvements in next-generation CSP systems. The focus on cost analysis of concentrated solar power is crucial for understanding these advancements.
Segment Analysis: Technology
Parabolic Trough Segment in Concentrated Solar Power Market
Parabolic trough technology dominates the concentrated solar power market, holding approximately 63% of the market share in 2024. This technology's widespread adoption can be attributed to its proven reliability, cost-effectiveness, and relatively simple operational requirements compared to other CSP technologies. Parabolic trough collectors consist of long U-shaped mirrors with a linear axis tracking system that reflects direct solar radiation along their focal line where an absorber tube is located. The system's operating temperature ranges from 500-700 Kelvin, with a geometric concentration ratio of 30-100, making it particularly suitable for heating applications between 100 to 400°C. The technology's major advantages include lower installation costs and an established track record in commercial operations, though it requires large land areas and high-intensity sunlight for optimal performance.
![Market Analysis of Concentrated Solar Power (CSP) Market: Chart for Technology](https://s3.mordorintelligence.com/concentrated-solar-power-csp-market-market/concentrated-solar-power-csp-market-market-Concentrated-Solar-Power-Market-Market-Share-by-Technology-Segment-2024-1736966190260.webp)
Power Tower Segment in Concentrated Solar Power Market
The power tower segment is experiencing rapid growth in the concentrated solar power market during the forecast period 2024-2029. This growth is driven by the technology's ability to achieve significantly higher temperatures and greater thermodynamic efficiency compared to other CSP technologies. Power towers can integrate thermal energy storage systems effectively, allowing for 24-hour power generation capability. The technology demonstrates particular promise in hybrid power generation systems, where it can be combined with conventional power plants to enhance overall efficiency. Recent developments, such as the US Department of Energy's Generation 3 concentrating solar-thermal pilot project at Sandia National Laboratories, showcase the continued innovation and investment in power tower technology, particularly in advancing high-temperature plants and storage capabilities.
Remaining Segments in CSP Technology Market
Linear Fresnel and Dish/Stirling technologies represent the remaining segments in the concentrated solar power technology market. Linear Fresnel systems offer advantages such as simpler design, lower investment costs, and better land-use efficiency compared to parabolic troughs, though they operate at lower steam temperatures and optical efficiency. The Dish/Stirling technology, while achieving the highest optical efficiencies and conversion rates among all CSP technologies, faces challenges in widespread adoption due to its lack of energy storage capabilities and susceptibility to changes in sun intensity. Both technologies continue to undergo research and development to improve their efficiency and cost-effectiveness, contributing to the overall diversification of CSP technology options.
Segment Analysis: Heat Transfer Fluid
Molten Salt Segment in Concentrated Solar Power Heat Transfer Fluid Market
Molten salt has emerged as the dominant heat transfer fluid in the concentrated solar power market, commanding approximately 59% of the market share in 2024. This significant market position can be attributed to molten salt's superior thermophysical properties, including high heat capacity and thermal conductivity, which allow for extended heat storage periods and higher thermal efficiency. The technology's ability to operate at temperatures up to 704°F, which is considerably higher than the maximum temperature possible with oil-based heat transfer fluids, has made it the preferred choice for large-scale CSP projects. Major CSP installations like the Solana Solar Power Generating Station, with its massive 125,000 metric tons of salt capacity, demonstrate the scalability and effectiveness of molten salt as a heat transfer medium. The segment's growth is further driven by ongoing research and development activities focused on enhancing molten salt properties through the integration of additives such as nanoparticles, which improve heat transfer properties and overall plant efficiency.
Remaining Segments in Heat Transfer Fluid Market
The remaining segments in the heat transfer fluid market include water-based, oil-based, and other heat transfer fluids, collectively accounting for the rest of the market share. Water-based systems offer advantages like lower cost and environmental friendliness but face challenges related to pressure requirements and phase transition issues. Oil-based heat transfer fluids, particularly synthetic oils like Therminol VP-1 and Dowtherm A, continue to play a crucial role in parabolic trough installations despite their temperature limitations. Other heat transfer fluids, including organic Rankine cycle fluids, inorganic fluids, supercritical fluids, and gases like CO2 and helium, represent innovative alternatives that are being explored for specific CSP applications, each offering unique advantages in terms of cost, efficiency, or operational characteristics.
Concentrated Solar Power (CSP) Market Geography Segment Analysis
Concentrated Solar Power Market in North America
The North American concentrated solar power market holds approximately 14% of the global concentrated solar power market share in 2024, primarily driven by developments in the United States. The region's market is characterized by its mature infrastructure and established regulatory frameworks supporting renewable energy adoption. The United States continues to be the major contributor, with significant research and development activities focused on improving CSP technologies and reducing costs. The Department of Energy's ongoing initiatives and technological advancements in thermal storage systems have positioned North America as a key player in the global CSP landscape. The region benefits from excellent solar resources, particularly in the southwestern United States, making it ideal for CSP installations. Despite facing competition from other renewable technologies, particularly photovoltaics, the market maintains its significance through a focus on hybrid systems and enhanced storage capabilities. The region's emphasis on grid stability and baseload power generation continues to drive interest in CSP technology, particularly in areas with high direct normal irradiance.
![Market Analysis of Concentrated Solar Power (CSP) Market: Forecasted Growth Rate by Region](https://s3.mordorintelligence.com/concentrated-solar-power-csp-market-market/concentrated-solar-power-csp-market-market-Concentrated-Solar-Power-Market-Forecasted-Five-Year-Growth-Rate-By-Region-1736521255825.webp)
Concentrated Solar Power Market in Europe
The European concentrated solar power market has demonstrated steady growth with an annual growth rate of approximately 3% from 2019 to 2024, driven primarily by developments in Spain and other Mediterranean countries. The region's commitment to renewable energy transition and ambitious climate goals has created a favorable environment for CSP development. Europe's market is characterized by its advanced technological capabilities and strong research infrastructure, particularly in thermal storage solutions. The region has established itself as a pioneer in CSP technology, with Spain leading the way in deployment and operational expertise. The European Union's supportive policy framework and funding mechanisms have helped maintain market momentum despite economic challenges. The integration of CSP with existing power infrastructure and the focus on hybrid systems has enhanced the technology's appeal. The region's emphasis on reducing dependence on fossil fuels and ensuring energy security continues to drive market development, particularly in southern European countries with high solar resources.
Concentrated Solar Power Market in Asia-Pacific
The Asia-Pacific concentrated solar power market is poised for robust growth with an expected compound annual growth rate of approximately 8% from 2024 to 2029, positioning it as one of the fastest-growing regions globally. The market is primarily driven by China's ambitious renewable energy goals and significant investments in CSP technology. The region's rapid industrialization and increasing energy demands have created a strong foundation for CSP deployment. Countries across the region are increasingly recognizing CSP's potential for providing stable, dispatchable renewable energy. The integration of CSP with existing power infrastructure and the development of hybrid projects has become a key trend. The region benefits from extensive manufacturing capabilities and a strong supply chain, which helps reduce project costs. The combination of favorable government policies, technological advancement, and growing energy demands continues to shape the market landscape. The focus on reducing carbon emissions and achieving energy independence has made CSP an attractive option for many countries in the region.
Concentrated Solar Power Market in South America
The South American concentrated solar power market represents an emerging opportunity in the global CSP landscape, with Chile leading the regional development. The region's exceptional solar resources, particularly in the Atacama Desert, provide ideal conditions for CSP deployment. South American countries are increasingly recognizing CSP's potential for providing reliable renewable energy while addressing grid stability concerns. The market is characterized by growing interest in hybrid systems that combine CSP with other renewable technologies. The region's focus on reducing dependence on conventional power sources and diversifying its energy mix has created favorable conditions for CSP development. The combination of abundant solar resources, increasing energy demands, and supportive government initiatives continues to drive market growth. The region's potential for large-scale projects and the need for stable power supply in remote areas make it an attractive market for CSP technology.
Concentrated Solar Power Market in Middle East & Africa
The Middle East and Africa region represents a significant frontier for concentrated solar power development, leveraging its abundant solar resources and growing energy demands. The region's market is characterized by large-scale projects and innovative technological implementations, particularly in countries like Morocco, UAE, and Saudi Arabia. The combination of excellent solar conditions and increasing focus on renewable energy diversification creates optimal conditions for CSP deployment. The region's emphasis on energy security and sustainable development has positioned CSP as a strategic technology for future power generation. The market benefits from strong government support and significant investment in renewable energy infrastructure. The integration of CSP with desalination projects and industrial processes has created unique applications in the region. The focus on developing local manufacturing capabilities and technical expertise continues to strengthen the market's foundation. The region's commitment to reducing carbon emissions while meeting growing energy demands drives continued interest in CSP technology.
Concentrated Solar Power (CSP) Industry Overview
Top Companies in Concentrated Solar Power Market
The concentrated solar power market is led by established players like ACWA Power, NextEra Energy, ENGIE SA, and Acciona SA, who have demonstrated strong capabilities in project development and operations. These concentrated solar power companies are driving innovation through advanced solar thermal technologies, improved storage solutions, and hybrid configurations combining CSP with photovoltaics. Strategic expansion has focused on high-potential regions like the Middle East, North Africa, and Asia-Pacific, where favorable climate conditions and supportive policies exist. Companies are increasingly pursuing operational excellence through digitalization, predictive maintenance, and automated control systems to optimize plant performance. The industry has seen a trend toward vertical integration, with major players developing in-house capabilities across engineering, procurement, construction, and operations while simultaneously forming strategic partnerships to strengthen their market positions and share technological expertise.
Consolidated Market with Strong Regional Players
The concentrated solar power market exhibits a moderately consolidated structure, characterized by the presence of both global energy conglomerates and specialized CSP technology providers. Large multinational corporations leverage their extensive experience in power generation and substantial financial resources to undertake major CSP projects, while regional specialists contribute through their deep understanding of local markets and specialized technical expertise. The CSP industry has witnessed strategic consolidation through mergers and acquisitions, particularly in regions with established CSP infrastructure and promising growth potential.
The competitive dynamics are shaped by significant barriers to entry, including high capital requirements, technical complexity, and the need for proven operational track records. Market participants are increasingly focusing on geographic diversification and technology specialization to maintain competitive advantages. Joint ventures and strategic alliances have become common, enabling companies to share risks, combine complementary capabilities, and access new markets while managing the substantial investments required for large-scale CSP projects.
Innovation and Efficiency Drive Market Success
Success in the CSP industry increasingly depends on companies' ability to reduce costs through technological innovation and operational efficiency improvements. Market leaders are investing in research and development to enhance thermal storage capabilities, improve solar field designs, and develop more efficient heat transfer systems. Companies must also focus on building strong relationships with utilities and power purchasers, as the concentrated nature of potential customers makes securing long-term power purchase agreements crucial for project viability.
The competitive landscape is further influenced by regulatory frameworks and government support mechanisms, making policy engagement and adaptation capabilities essential for long-term success. Companies need to develop robust risk management strategies to address challenges such as the increasing competition from other renewable energy sources, particularly solar photovoltaics. Future market positions will be determined by the ability to deliver cost-competitive solutions while maintaining technological leadership and operational excellence. Successful players will need to demonstrate flexibility in business models, strong project execution capabilities, and the ability to navigate complex regulatory environments across different markets. The contrast between a concentrated vs. fragmented industry is evident as companies strive to maintain a competitive edge.
Concentrated Solar Power (CSP) Market Leaders
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ACWA Power
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Engie SA
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Acciona SA
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Brightsource Energy Inc.
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Aalborg CSP
- *Disclaimer: Major Players sorted in no particular order
![Concentrated Solar Power (CSP) Market Concentration](https://s3.mordorintelligence.com/concentrated-solar-power-csp-market-market/concentrated-solar-power-csp-market-market_1680160003722_Mar_Conc_-_CSP_Market.webp)
Concentrated Solar Power (CSP) Market News
- February 2023: Vast Solar announced that the Australian Renewable Energy Agency has provided funding of USD 44 million to develop a 30 MW CSP plant in Port Augusta, Australia.
- February 2023: Engineers India Limited floated a tender, inviting technology licensors and suppliers to develop a new CSP project at an undisclosed location. The company has also announced that companies with functional but non-commercialized CSP technologies can participate in the bidding process.
Concentrated Solar Power (CSP) Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Scope of the Study
- 1.2 Market Definition
- 1.3 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW
- 4.1 Introduction
- 4.2 Market Size and Demand Forecast in USD billion, till 2028
- 4.3 Installed CSP Capacity and Forecast in MW, till 2028
- 4.4 Recent Trends and Developments
- 4.5 Government Policies and Regulations
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4.6 Market Dynamics
- 4.6.1 Drivers
- 4.6.1.1 Declining Cost of Concentrated Solar Power Technologies
- 4.6.2 Restraints
- 4.6.2.1 Supportive Government Policies for Other Renewable Energy Sources
- 4.7 Supply Chain Analysis
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4.8 Porter's Five Forces Analysis
- 4.8.1 Bargaining Power of Suppliers
- 4.8.2 Bargaining Power of Consumers
- 4.8.3 Threat of New Entrants
- 4.8.4 Threat of Substitutes Products and Services
- 4.8.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 Technology
- 5.1.1 Parabolic Trough
- 5.1.2 Linear Fresnel
- 5.1.3 Power Tower
- 5.1.4 Dish/Stirling
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5.2 Heat Transfer Fluid
- 5.2.1 Molten Salt
- 5.2.2 Water-based
- 5.2.3 Oil-based
- 5.2.4 Other Heat Transfer Fluids
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5.3 Geography
- 5.3.1 North America
- 5.3.1.1 United States
- 5.3.1.2 Mexico
- 5.3.1.3 Rest of North America
- 5.3.2 Europe
- 5.3.2.1 Germany
- 5.3.2.2 Italy
- 5.3.2.3 France
- 5.3.2.4 Spain
- 5.3.2.5 Rest of Europe
- 5.3.3 Asia-Pacific
- 5.3.3.1 China
- 5.3.3.2 India
- 5.3.3.3 South Korea
- 5.3.3.4 Rest of Asia-Pacific
- 5.3.4 South America
- 5.3.4.1 Brazil
- 5.3.4.2 Chile
- 5.3.4.3 Rest of South America
- 5.3.5 Middle-East and Africa
- 5.3.5.1 United Arab Emirates
- 5.3.5.2 Saudi Arabia
- 5.3.5.3 South Africa
- 5.3.5.4 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Strategies Adopted by Leading Players
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6.3 Company Profiles
- 6.3.1 Nextera Energy Inc.
- 6.3.2 Acciona SA
- 6.3.3 ACWA Power
- 6.3.4 Brightsource Energy Inc.
- 6.3.5 Engie
- 6.3.6 SR Energy
- 6.3.7 Aalborg CSP
- 6.3.8 Chiyoda Corporation
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 Technology Improvements and Integration of Concentrated Solar Power in Hybrid Power Plants
Concentrated Solar Power (CSP) Industry Segmentation
Concentrated Solar Power (CSP) is the technology developed to generate electricity by transforming concentrated sunlight into solar thermal energy. Mirrors reflect solar radiation to a thermal receiver. The collected solar energy is then absorbed and used to heat the heat-transfer fluid (HFT). The heat retained in the fluid is accumulated, which powers a turbine to generate electrical energy.
The concentrated solar power market is segmented by technology, heat transfer fluid, and geography. By technology, the market is segmented into parabolic trough, linear fresnel, power tower, and dish/stirling. Heat transfer fluid: the market is segmented into molten salt, water-based, oil-based, and other heat transfer fluids. The report also covers the market size and forecasts for the concentrated solar power (CSP) market across major regions, such as Asia-Pacific, North America, Europe, South America, and the Middle East and Africa.
For each segment, the market sizing and forecasts have been done based on revenue (USD).
Technology | Parabolic Trough | ||
Linear Fresnel | |||
Power Tower | |||
Dish/Stirling | |||
Heat Transfer Fluid | Molten Salt | ||
Water-based | |||
Oil-based | |||
Other Heat Transfer Fluids | |||
Geography | North America | United States | |
Mexico | |||
Rest of North America | |||
Europe | Germany | ||
Italy | |||
France | |||
Spain | |||
Rest of Europe | |||
Asia-Pacific | China | ||
India | |||
South Korea | |||
Rest of Asia-Pacific | |||
South America | Brazil | ||
Chile | |||
Rest of South America | |||
Middle-East and Africa | United Arab Emirates | ||
Saudi Arabia | |||
South Africa | |||
Rest of Middle East and Africa |
Concentrated Solar Power (CSP) Market Research FAQs
How big is the Concentrated Solar Power Market?
The Concentrated Solar Power Market size is expected to reach 11.08 gigawatt in 2025 and grow at a CAGR of 6.93% to reach 15.49 gigawatt by 2030.
What is the current Concentrated Solar Power Market size?
In 2025, the Concentrated Solar Power Market size is expected to reach 11.08 gigawatt.
Who are the key players in Concentrated Solar Power Market?
ACWA Power, Engie SA, Acciona SA, Brightsource Energy Inc. and Aalborg CSP are the major companies operating in the Concentrated Solar Power Market.
Which is the fastest growing region in Concentrated Solar Power Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in Concentrated Solar Power Market?
In 2025, the Europe accounts for the largest market share in Concentrated Solar Power Market.
What years does this Concentrated Solar Power Market cover, and what was the market size in 2024?
In 2024, the Concentrated Solar Power Market size was estimated at 10.31 gigawatt. The report covers the Concentrated Solar Power Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Concentrated Solar Power Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Concentrated Solar Power (CSP) Market Research
Mordor Intelligence provides comprehensive insights into the concentrated solar power industry through detailed market analysis and consulting services. Our expert team specializes in analyzing developments in CSP technology, including emerging trends in concentrated photovoltaic systems and applications of solar power CSP. The report offers in-depth coverage of CSP companies and their technological innovations. It pays particular attention to concentrated solar power cost analysis and industry dynamics. Our research methodology covers both concentrating solar collectors and advanced CSP solar installations, offering stakeholders a complete view of the market landscape.
The report, available as an easy-to-download PDF, enables stakeholders to make informed decisions through detailed analysis of concentrated photovoltaic market trends and developments in the CSP industry. We provide comprehensive coverage of CSP technology solar applications, including insights into growth patterns in the non-concentrating solar collector market and emerging opportunities. Our analysis particularly benefits investors and industry leaders by offering detailed evaluations of concentrating solar power companies and their strategic positioning. The report includes data on CSP market forecast, assessments of technological advancements, and strategic recommendations for market participants. It is an essential tool for understanding the evolving landscape of concentrated solar power generation.