February 21, 2024

Concentrated Solar Power Market is expected to be Flourished by Increasing Demand for Renewable Energy Sources

Concentrated solar power (CSP) utilizes mirrors or lenses to concentrate a large area of sunlight onto a small area. It is a cost-effective technology used for utility-scale electricity generation. CSP systems are capable of storing thermal energy and delivering electricity for several hours even when the sun is not shining.

The global Concentrated Solar Power Market is estimated to be valued at US$ 6.76 Mn in 2024 and is expected to exhibit a CAGR of 5.1% over the forecast period 2024 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

 Advances in CSP technology such as use of low-cost thermal storage solutions and high mirror reflectivity materials have decreased the LCOE of CSP significantly over the past few years. This is encouraging the installation of utility-scale CSP projects across regions with high direct normal irradiance. Cost competitiveness achieved through technological improvements in CSP plants is expected to propel the market growth over the forecast period.

SWOT Analysis
Strength: Concentrated solar power has zero operational emissions and uses renewable energy source i.e. sun. It provides dispatchable power which can be stored to meet demand.
Weakness: High initial capital investment is required to set up concentrated solar power plants. They are dependent on weather conditions and solar irradiation level. Storage technology needed to make power available when sun is not shining increases costs.
Opportunity: Increasing focus on renewable energy and decarbonization of power grids provide growth opportunities. Developing low cost energy storage solutions can boost commercial viability.
Threats: Intermittent nature of solar energy poses challenges. Subsidy cuts and policy changes in key markets can adversely impact growth. Rising competition from other renewable sources like solar PV and wind.

Key Takeaways
The Global Concentrated Solar Power Market Size  is expected to witness high growth.

Regional analysis: Central Europe, Middle East & Africa regions are currently dominating the Concentrated Solar Power market owing to increasing investment in solar projects. The markets in Asia Pacific region especially countries like India and China are expected to showcase highest growth during the forecast period.

Key players operating in the Concentrated Solar Power are Airbus Group, Alcoa Corporation, Arconic Corporation, Boeing, Bombardier Inc., Collins Aerospace, Elbit Systems Ltd., Teijin, Lockheed Martin Corporation, and Triumph Group, Inc. These players are focusing on capacity expansion and partnerships to strengthen their position in the market. For instance, in 2022, Airbus Group partnered with Qatar Airways to develop zero-emission hydrogen-powered aircraft by 2035.

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