Report Overview

Concentrating solar power (CSP) plants utilize mirrors for concentrating the sun's energy, which is then used to power conventional steam turbines or engines for generating electricity. CSPs are massive installations that are best suited for high-end utility-scale projects.

Global Concentrating Solar Power Market- Industry Trends & Forecast Report 2027

The global concentrating solar power (CSP) market was worth USD 3.25 billion in 2020. It is further projected to reach USD 8.40 billion by 2027 at a CAGR of 14.6% during 2021-2027 (forecast period). Solar power is generally used because it is a cost-effective source of energy that helps reduce power bills while also reducing CO2 emissions that harm our environment. The major factors driving the global concentrating solar power market forward are the environmental concerns and the expanding efforts to cut down carbon emissions to a great extent.

Favorable government policies to promote the adoption of renewable technologies, along with the rising popularity and success rates of concentrating solar power systems are further contributing to the growth of the global concentrating solar power market. Additionally, countries such as China, Italy, Spain, and the United States are increasing their investments in CSPs, driving up demand for renewable energy generators.

Source: Blueweave Consulting

Global Concentrating Solar Power Market- Overview

Concentrating solar power (CSP) plants utilize mirrors for concentrating the sun's energy, which is then used to power conventional steam turbines or engines for generating electricity. CSPs are massive installations that are best suited for high-end utility-scale projects. Thermal storage systems, power tower systems, linear concentrator systems, and dish/engine systems are examples of concentrated solar power systems. Concentrating solar power has several advantages, including reduced investment costs, greater efficiency, and enhanced hybrid operational capability.

Global Concentrating Solar Power Market Forecast and Trends

Growth Drivers

Rising Prevalence for Renewable Sources of Energy will Drive the Market Forward

Because of growing environmental and carbon-emission concerns, the renewable energy industry has gained significant traction in recent years. As a result, concentrating solar power installations have increased exponentially over the last decade. It is also expected that every country will increase its budget and attempt to shift toward renewable energy sources, thereby propelling the demand for concentrating solar power, globally. Countries are looking for ways to reduce carbon emissions while also being able to produce energy in large amounts. CSPs are the best choice for doing this since they generate electricity at high efficiencies while having lower operating costs.

Consistent Government Support Driving the Growth of the Market

Government efforts in the promotion of renewable energy sources are commendable and seem to be generating favorable demand for the concentrating solar powers. The governments of various countries are financing solar power installation projects and giving concessions to private companies operating in this sector. This type of technology is much more effective than traditional ones in terms of adoption. For example, solar power towers are extremely effective in supplying power to factories and other commercial establishments. Its popularity will propel the industry forward as more and more businesses embrace such technologies, resulting in the market growth in the coming years.

Restraints

High Capital Involvement May Hamper the Market Growth for Solar Powers

Solar power systems are very expensive. It also needs to cover the costs of installation. Due to this, they are only limited to utilities or are dependent on government funding. If different sectors do not open up to the use of solar energy, the market will be in a very difficult position to expand.

Additionally, solar power systems are also facing stiff competition from solar photovoltaic systems, which are more popular in residential and commercial settings. This is because CSPs not only necessitate a large capital investment but also necessitate more space than solar photovoltaic systems. Unless and until this issue is addressed, concentrating solar power will have limited market growth.

Impact of Covid-19 on Global Concentrating Solar Power Market

The outbreak of COVID-19 HAS had a very negative impact on the overall renewable energy industry. As the lockdown was imposed, the production unit was closed and the supply chains were completely halted. This created a shortage of raw materials in the market, which impeded the overall demand for the concentrating solar powers. The manpower requirement for the installation of solar power systems is very high. Due to safety concerns and the need to prevent virus transmission, human resources at the premises had to be limited, resulting in the installations being postponed. Furthermore, many leading and global projects of thermal energy system installations have been halted for an unspecified period because imports are no longer possible due to supply chain disruptions.

Global Concentrating Solar Power Market - By Technology

Based on technology, the global concentrating solar power market is segmented into the parabolic trough, power tower, and linear Fresnel. The parabolic trough—one of the first technologies to be used in the concentrating solar energy industry leads the market. This is the most common type of thermal panel, which is shaped like a parabola. The size and shape of the parabolic trough, as well as its ease of installation, are the primary reasons for its high market demand. However, the power tower has witnessed a substantial growth rate over the past few years. Therefore, its demand is expected to rise in the forecast period.

Global Concentrating Solar Power Market - By Application

Based on application, the market is categorized into residential, non-residential, and utilities. The utility segment has the largest market share due to factors such as growing power demand and energy supply for managing various technologies. Utilities are businesses or industries that provide basic necessities such as electricity, water, and gas, etc. In Western countries, they are primarily in the hands of private corporations, whereas in Asian countries, they are under the control of the government's public sector. Furthermore, since the installation of CSPs is very expensive, they are not very popular in the residential or non-residential landscape.

Global Concentrating Solar Power Market - Regional Insights

Geographically, the global concentrating solar power market is segmented into North America, Europe, the Asia-Pacific, Latin America, and the Middle East and Africa. Among all these regions, Europe holds the largest market share. Several factors favor the concentrating solar power market in Europe, such as the presence of leading manufacturing companies in this region. Several solar power projects that have been established in Europe have been extremely successful, which fuels further development in this region. Because of these factors, the global concentrating solar power market in Europe is growing substantially. However, the Asia-Pacific region is emerging as a potential market for CSPs, with such projects receiving adequate funding, particularly in India and China.

Competitive Landscape

The leading players of global concentrating solar power market are Rioglass, BrightSource Energy, Abors Green GmbH, Trivelli Energia, Parvolen CSP Technologies, Siemens, Sener, Torresol Energy, Abengoa Solar, Solar Reserve, Acciona, Enel Spa, ACWA Power, INITEC Energia, Aalborg CSP, Cobra Energia, TSK Flagsol Engineering GmbH, eSolar, GE Renewable Energy, and other prominent players.

To gain a competitive edge, market players have been continually providing technologically advanced and efficient products that are also affordable and simple to install. Moreover, market giants such as Siemens, Abengoa Solar, and others have a large market share and dominate in western regions such as Europe and North America. Furthermore, private corporations are also taking interest in renewable sources and are investing a good amount in concentrating solar power. Through private investments, the market is expected to expand in the upcoming years.

Recent Development

l  In April 2021, the 110-MW Cerro Dominador concentrating solar power (CSP) plant in Chile was successfully synchronized with the Chilean SEN grid system. This synchronization will enable the solar thermal plant to inject electricity into the grid over the next few months. This plant is owned by the Washington-based private equity firm EIG Global Energy Partners, and it was built by renowned companies Abengoa and Acciona.

l  In March 2021, Stanwell Energy, a Queensland government-owned electricity-generating corporation invested a hefty amount for the development of a 50-megawatt hybrid Concentrating Solar Power project in Mount Isa.

Scope of the Report

By Technology

Ø  Parabolic Trough

Ø  Power Tower

Ø  Linear Fresnel

By Application

Ø  Residential

Ø  Non-residential

Ø  Utility

By Region

Ø  North America

Ø  Europe

Ø  Asia-Pacific (APAC)

Ø  Latin America (LATAM)

Ø  Middle-East & Africa (MEA) 

FAQs:

1. What is the current size of the global concentrating solar power market?

Answer: The global concentrating solar power market reached 3.25 billion in 2020.

2. What are the major factors driving the growth of the global concentrating solar power market?

Answer: The rising popularity of renewable energy sources, as well as government support for the development of renewable energy infrastructure, are major factors driving the growth of the global concentrating solar power market.

3. Who are the key players in the global concentrating solar power market?

Answer: The key players in the global concentrating solar power market are: Rioglass, BrightSource Energy, Abors Green GmbH, Trivelli Energia, Parvolen CSP Technologies, Siemens, Sener, Torresol Energy, Abengoa Solar, Solar Reserve, Acciona, Enel Spa, ACWA Power, INITEC Energia, Aalborg CSP, Cobra Energia, TSK Flagsol Engineering GmbH, eSolar, GE Renewable Energy, and other prominent players.

4. Which application segment accounted for the largest share in the global concentrating solar power market?

Answer: The utility segment accounted for the largest share in the global concentrating solar power market.

5. Which region is at the highest growth rate in the global concentrating solar power market?

Answer: Europe has the largest share in the global concentrating solar power market.