July 19, 2024

Concentrated Solar Power Market Is Estimated To Witness High Growth Owing To Increasing Demand for Renewable Energy Sources and Government Initiatives to Promote Clean Energy

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 (CSP) is a technology that harnesses solar power to generate electricity on a large scale. It uses mirrors or lenses to concentrate sunlight onto a receiver, which absorbs the solar energy and converts it into heat. This heat is then used to generate steam, which drives a turbine to produce electricity. CSP has various applications, including power generation, desalination, and industrial processes.

Market Dynamics:

The concentrated solar power market is driven by the increasing demand for renewable energy sources and the need to reduce greenhouse gas emissions. The rising awareness about global warming and climate change has led to a shift towards clean energy alternatives, such as CSP. Moreover, government initiatives and favorable policies, such as tax incentives and feed-in tariffs, are encouraging the adoption of concentrated solar power plants. The growing investments in research and development activities to improve the efficiency and cost-effectiveness of CSP technology are further driving the market growth. However, the high initial investment and the intermittent nature of solar energy may hinder market growth to some extent. Nevertheless, technological advancements and the development of energy storage systems are expected to create lucrative opportunities for the concentrated solar power market.

Segment Analysis:

The concentrated solar power market can be segmented based on technology type, application, and region. In terms of technology type, the dominant segment in the market is the parabolic trough technology. This technology utilizes parabolic mirrors to concentrate sunlight onto a receiver tube, which contains a heat transfer fluid. The heated fluid is then used to generate steam, which drives a turbine to produce electricity. The parabolic trough technology is dominating the market due to its high efficiency, easy scalability, and ability to operate in a wide range of temperatures. Additionally, it has been widely adopted in countries such as Spain, the United States, and Morocco, where large-scale concentrated solar power projects have been successfully implemented.

PEST Analysis:

  • Political: The political factors affecting the concentrated solar power market include government policies and regulations on renewable energy, as well as incentives and subsidies offered to promote the adoption of concentrated solar power technologies.
  • Economic: The economic factors influencing the market include the cost of installation and operation of concentrated solar power plants, as well as the availability of financing options and investment opportunities in the sector.
  • Social: The social factors impacting the market include public awareness and acceptance of renewable energy sources, as well as the social benefits associated with the use of concentrated solar power, such as reduced greenhouse gas emissions and job creation.
  • Technological: The technological factors influencing the market include advancements in solar thermal technology, such as the development of higher efficiency receivers and heat transfer fluids, as well as the integration of energy storage systems to enable the continuous generation of electricity.

Key Takeaways:

The Global Concentrated Solar Power Market Size is expected to witness high growth, exhibiting a CAGR of 10.8% over the forecast period (2023-2030), due to increasing government support for renewable energy and the need to reduce carbon emissions. The parabolic trough technology segment is expected to dominate the market, driven by its high efficiency and widespread adoption in key regions such as Spain, the United States, and Morocco.

In terms of regional analysis, the Middle East and North Africa (MENA) region is projected to be the fastest-growing and dominating region in the market. This is attributed to the region’s abundant solar resources, favorable government policies, and the implementation of large-scale concentrated solar power projects in countries like Morocco, Saudi Arabia, and the United Arab Emirates.

Key players operating in the concentrated solar power market include Siemens AG, General Electric, Abengoa, Acciona S.A., Atlantica Yield plc., Suntrace GmbH, BrightSource Energy, Inc., SolarReserve, LLC., ACWA Power, and Frenell GmbH. These key players are actively involved in research and development activities, strategic partnerships, and mergers and acquisitions to expand their market presence and enhance their technological capabilities.

*Note:
1.  Source: Coherent Market Insights, Public sources, Desk research
2.  We have leveraged AI tools to mine information and compile it