Concentrating Solar Power (CSP) Market size is anticipated to surpass USD 162.74 Billion by the end of 2035, growing at a CAGR of 29.9% during the forecast period, i.e., 2023-2035. In the year 2022, the industry size of concentrating solar power was over USD 7.05 Billion.The growth of the market can be attributed to the rising demand for solar energy for the production of electricity. Solar PV is rapidly becoming the most cost-effective alternative for new electricity generation in most of the world, which is projected to drive investment in the next years. According to the International Energy Agency, global solar PV power generation climbed by a record 179 TWh in 2021, representing a 22% increase over 2020. Solar PV accounted for 3.6% of worldwide electricity generation in 2016, and it is still the third largest renewable energy technology after hydropower and wind.
In addition to these, factors that are believed to fuel the concentrating solar power market growth of concentrating solar power include the rising production of electricity by the use of solar energy and the low cost of solar-powered electricity. According to the statistics of IRENA, the global weighted average levelized cost of electricity (LCOE) of new utility-scale solar PV declined 13% year on year to USD 0.048/kWh. Furthermore, In Europe in 2021, the lifetime cost per kWh of new solar and wind power added was at least four to six times less than the marginal generating costs of fossil fuels in 2022. On the other hand, the growing burden on fossil fuel usage and the rising need to reduce carbon emission is also expected to augment the market growth.
Growth Drivers
Challenges
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~29.9% |
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Base Year Market Size (2022) |
~USD 7.05 Billion |
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Forecast Year Market Size (2035) |
~USD 162.74 Billion |
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Regional Scope |
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Component (Solar Field, Power Block, Thermal Energy Storage Systems)
The global concentrating solar power market is segmented and analyzed for demand and supply by component into solar field, power block, and thermal energy storage systems. Out of the three components of thermal energy storage systems, the thermal energy storage systems segment is estimated to gain the largest market share in the year 2035. The growth of the segment can be attributed to the increasing demand for energy in the time of emergencies and power outages. Thermal energy storage has the ability to raise worldwide potential long-duration storage, or LDES, capacity from roughly 1 TW to 3 TW to between 2 TW and 8 TW by 2040. Furthermore, the rising investment to boost energy conversion is also expected to augment the segment growth. In 2022, the global investment in energy transition technologies, including energy efficiency, reached an all-time high of USD 1.3 trillion. To keep on track, the annual investment must be tripled.
Application (Residential, Non-Residential, Utility)
The global concentrating solar power market is also segmented and analyzed for demand and supply by application into residential, non-residential, and utility. Amongst these three segments, the non-residential segment is expected to garner a significant share in the year 2035. Solar energy can be utilized to create heat for a wide range of industrial applications, such as water desalination, increased oil recovery, food processing, chemical production, and mineral processing. In addition to this, solar water desalination has the ability to treat extremely concentrated brines from seawater, underground aquifers, and industrial wastewaters, which would otherwise be difficult to clean for use in urban, agricultural, and industrial water sources. The growth of the segment is expected on the account of rising demand for energy from both the commercial and industrial sectors. Power consumption in the worldwide industrial sector has increased by 3% since 2000. Furthermore, the global industrial and commercial sectors consumed around 0.14 trillion kWh, or approximately 3% of overall energy consumption.
Our in-depth analysis of the global market includes the following segments:
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By Technology |
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By Component |
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By Type |
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By Application |
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North American Market Forecast
The concentrating solar power market in North America is projected to be the largest with a share of about ~35% by the end of 2035. The growth of the market can be attributed majorly to the rising demand for energy from the commercial and industrial sectors. The industrial sector accounted for around 35% of total US end-use energy consumption and nearly 32% of overall US energy consumption in 2019. Developing solar technology for industrial processes contributes to the U.S. Department of Energy Solar Energy Technology Office's objective of creating a carbon-free energy sector by 2050. Moreover, the rising effort by the government to boost the production of renewable energy is also expected to drive market growth in the region. Green Power Partnership (GPP) is a volunteer program launched by the U.S. government that assists organizations in their green energy procurement by providing professional advice, technical support, tools, and resources.
APAC Market Statistics
The Asia Pacific concentrating solar power market is estimated to be the second largest, registering a share of about ~25% by the end of 2035. The growth of the market can be attributed majorly to the rising production of renewable energy. China and India both intend to grow installed renewable energy capacity to more than 50% by 2025 and 2030, respectively. India is the world's third-largest renewable energy generator, with non-fossil fuels accounting for 40% of installed electrical capacity. Moreover, China and India both intend to grow installed renewable energy capacity to more than 50% by 2025 and 2030, respectively. India is the world's third-largest renewable energy generator, with non-fossil fuels accounting for 40% of installed electrical capacity. Moreover, the rising installation of solar PV systems is also expected to boost the concentrating solar power market growth in the region. By July 2021, China's total installed residential PV capacity surpassed 30 GW, with around 2 million residential units hosting solar PV systems.
Europe Market Forecast
Further, the concentrating solar power market in the Europe, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2035. The growth of the market can be attributed majorly to the rising use of solar energy for the production of electricity. According to the European Commission, in 2020, the EU solar market grew by 18 GW, with solar energy accounting for 5.2% of total EU electricity generation. Solar energy is the fastest-increasing source of electricity in the EU. Besides this, solar power costs have dropped by 82% in the previous decade, making it the most cost-effective source of electricity in many parts of the EU.
Shouhang Hightech Energy Technology Co., Ltd. announced the investment agreement with Gansu Province for the Jinta for building the molten salt tower concentrating solar power project of 100 MW capacity.
ACCIONA announced the opening of Ceero Dominador concentrated solar power plant in Chile. It was built for EIG Global Energy Partner and has the capacity of 110 MW. The plant is located near the Chilean town of Mara Elena in the Atacama Desert, which has some of the world's highest amounts of solar radiation.
Author Credits: Payel Roy, Dhruv Bhatia
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