Concentrating Solar Power Market

Market Definition

The market involves technologies that use mirrors or lenses to focus sunlight onto a small area to produce high-temperature heat. This energy drives steam turbines or engines connected to generators for electricity production. Common systems include parabolic troughs, power towers, and dish Stirling setups. These are used in large-scale solar thermal plants, mainly in regions with high direct solar radiation.

Applications span across power generation, industrial heating, and hybrid systems. The report provides a comprehensive analysis of key drivers, emerging trends, and the competitive landscape expected to influence the market over the forecast period.

Concentrating Solar Power Market Overview

The global concentrating solar power market size was valued at USD 7.09 billion in 2024 and is projected to grow from USD 8.66 billion in 2025 to USD 39.43 billion by 2032, exhibiting a CAGR of 24.17% during the forecast period.

Increasing investments in utility-scale renewable projects are accelerating the growth of the market by enabling large, cost-effective installations. Additionally, the development of hybrid renewable energy systems combining CSP with photovoltaics or biomass enhances energy reliability, further driving the market globally.

Major companies operating in the concentrating solar power industry are Abengoa Solar, S.A., BrightSource Energy, Inc., ACWA Power, SolarReserve, LLC, Aalborg CSP A/S, TSK Flagsol Engineering GmbH, Alsolen, Archimede Solar Energy S.r.l., Acciona Energía, Frenell GmbH, Soltigua S.r.l., Siemens, Solastor Pty Ltd, GlassPoint Solar, Inc., and Chiyoda Corporation.

The growth of the market is influenced by its ability to deliver dispatchable electricity. Unlike photovoltaic systems, CSP plants can store thermal energy and supply power during peak demand hours or after sunset. This flexibility aligns with grid stability goals and supports integration with intermittent renewable sources.

Governments and utilities are recognizing this advantage, increasing the demand for CSP installations in energy mix strategies, especially in regions with high direct solar irradiance.

• In March 2024, India's Solar Energy Corporation (SECI) announced plans to issue a 500 MW tender exclusively for CSP projects. This initiative aims to enhance the integration of dispatchable renewable energy into the national grid, leveraging CSP's thermal storage capabilities to provide power during peak demand periods.

Key Highlights

1. The concentrating solar power market size was valued at USD 7.09 billion in 2024.
2. The market is projected to grow at a CAGR of 24.17% from 2025 to 2032.
3. Asia Pacific held a market share of 54.09% in 2024, with a valuation of USD 3.83 billion.
4. The parabolic trough segment garnered USD 6.10 billion in revenue in 2024.
5. The 50–99 MW segment is expected to reach USD 20.74 billion by 2032.
6. The with storage segment secured the largest revenue share of 65.91% in 2024.
7. The enhanced oil recovery (EOR) segment is poised for a CAGR of 24.42% through the forecast period.
8. The market in North America is anticipated to grow at a CAGR of 24.40% during the forecast period.

Market Driver

Increasing Investments in Utility-scale Renewable Projects

The rising preference for utility-scale solar plants is creating strong demand for CSP solutions. Investors are targeting high-return projects with long operational lives, and CSP plants offer these attributes through thermal storage and low degradation rates.

The concentrating solar power market is further fueled by public-private partnerships, green bonds, and multilateral funding from climate-oriented institutions that view CSP as a long-term, sustainable energy infrastructure solution.

• In March 2024, the U.S. Department of Energy (DOE) announced the selection of 16 innovative projects under its Small Innovative Projects in Solar (SIPS) funding program, allocating USD 5.4 million for early-stage research in concentrating solar-thermal power. These projects aim to explore novel concepts in CSP plants with thermal energy storage, solar-thermal industrial process heat innovations, and solar-thermal fuel systems.

Market Challenge

High Initial Costs Limiting Market Expansion

A significant challenge limiting the growth of the concentrating solar power market is the high initial capital investment required for project development. The complex infrastructure and technology involved demand substantial funding, which can deter investors and slow down adoption.

To address this issue, key players are focusing on improving technology efficiency to reduce costs and project timelines. Strategic partnerships and collaborations are being formed to share financial risks. Additionally, developers are exploring innovative financing models, such as public-private partnerships and green bonds, to attract investment and make CSP projects more economically viable.

Market Trend

Development of Hybrid Renewable Energy Systems

Concentrating solar power plants are being combined with other renewable systems such as photovoltaics and biomass to create hybrid configurations that maximize energy yield. These setups balance intermittency and enhance energy security.

The concentrating solar power market is registering expansion through projects that integrate CSP with battery storage or existing power grids, enabling smooth transition during load changes and offering continuous power, especially in remote or off-grid applications.

• In February 2024, the Oya Hybrid Power Station in South Africa achieved financial close. This project integrates 155 MW of solar power, 86 MW of wind power, and a 92 MW/242 MWh battery energy storage system. Designed to deliver 128 MW of dispatchable power from 5 a.m. to 9:30 p.m. daily, it employs AI and ML for synchronized operations. Construction commenced in the second half of 2024, with commissioning anticipated in the second half of 2026.

Concentrating Solar Power Market Report Snapshot

Segmentation	Details
By Technology	Parabolic Trough, Solar Power Tower, Linear Fresnel, Dish Stirling
By Capacity Range	<50 MW, 50–99 MW, ≥100 MW
By Operation Type	With Storage, Stand-alone
By End User	Utilities, Enhanced Oil Recovery (EOR), Others
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation

• By Technology (Parabolic Trough, Solar Power Tower, Linear Fresnel, and Dish Stirling): The parabolic trough segment earned USD 6.10 billion in 2024, due to its proven technology, cost-effectiveness, and widespread commercial deployment offering reliable thermal energy generation.
• By Capacity Range (<50 MW, 50–99 MW, and ≥100 MW): The 50–99 MW segment held 45.00% share of the market in 2024, due to its optimal balance between scalability and cost-efficiency.
• By Operation Type (With Storage and Stand-alone): The with storage segment is projected to reach USD 24.64 billion by 2032, owing to its ability to store thermal energy and provide continuous, dispatchable electricity during non-sunny periods.
• By End User (Utilities, Enhanced Oil Recovery (EOR), and Others): The enhanced oil recovery (EOR) segment is poised for significant growth at a CAGR of 24.42% through the forecast period, due to its high demand for reliable, large-scale thermal energy to reduce fossil fuel use and lower operational costs in oil extraction processes.

Concentrating Solar Power Market Regional Analysis

Based on region, the market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

Asia Pacific concentrating solar power market share stood at around 54.09% in 2024, with a valuation of USD 3.83 billion. Several parts of Asia Pacific have large land areas with high direct normal irradiance, which is ideal for CSP systems. Regions such as western China and central Australia offer favorable solar conditions that support consistent thermal output, contributing significantly to the regional market expansion.

Moreover, several countries in the region such as China, India, Australia, and South Korea have introduced structured long-term renewable energy targets that include large-scale solar thermal deployment. These roadmaps prioritize domestic clean energy development to reduce fossil fuel imports, driving the demand for CSP solutions.

• In August 2024, the Australian government granted environmental approval for SunCable's Australia-Asia PowerLink project. This ambitious initiative involves constructing a massive solar farm in the Northern Territory, coupled with an 800 km transmission line to Darwin and a 4,300 km subsea cable to supply energy to Singapore. Once completed, the project is expected to generate enough electricity for 3 million homes.

The concentrating solar power industry in North America is poised for significant growth at a robust CAGR of 24.40% over the forecast period. North America's power grids are shifting toward renewables, creating a clear need for storage solutions that last beyond typical battery durations.

CSP systems with integrated thermal energy storage provide several hours of dispatchable electricity, helping to stabilize the grid during evening peaks. The market in North America is propelled by this requirement for long-duration, flexible energy that complements intermittent solar and wind sources.

• In July 2024, the U.S. Department of Energy (DOE) announced a USD 33 million investment in nine projects across seven states to advance concentrating solar-thermal (CST) systems. These projects aim to develop solar fuels and long-duration energy storage solutions, supporting the DOE's decarbonization goals and the advancement of clean hydrogen production.

Regulatory Frameworks

• In the U.S., the federal government promotes CSP through the Investment Tax Credit (ITC), allowing a 30% tax credit on qualified solar projects, including CSP plants. Environmental regulations, such as the National Environmental Policy Act (NEPA), require environmental impact assessments for large solar projects on federal lands. State-level renewable portfolio standards (RPS) in states like California and Nevada mandate utilities to include solar power, encouraging CSP development.
• Germany regulates CSP under the Renewable Energy Sources Act (EEG), which provides feed-in tariffs and market premiums for renewable electricity, although CSP plays a smaller role compared to photovoltaics. Large CSP plants require approval under the Federal Immission Control Act, ensuring compliance with emissions and noise standards. Germany’s Renewable Energy Directive sets binding targets that influence CSP investments.
• Japan’s CSP regulations fall under the Act on Special Measures Concerning the Procurement of Renewable Electric Energy by Electricity Utilities (Renewable Energy Act). This act provides feed-in tariffs and establishes procedures for grid connection and power purchase agreements. The Ministry of Economy, Trade and Industry (METI) oversees licensing and enforces environmental standards for CSP facilities.

Competitive Landscape

Major players in the concentrating solar power industry are adopting strategies such as large-scale project partnerships, technology demonstrations, and industrial integration.

Companies are increasingly working with major industrial users to deploy CSP systems that supply process heat, helping reduce emissions and energy costs. This shift is driving innovation in solar thermal design and storage capacity. R&D efforts are also focused on enhancing system efficiency, while strategic alliances with industrial firms are expanding CSP’s role in decarbonizing heavy manufacturing.

• In November 2024, Cox partnered with GlassPoint to construct the world's largest industrial solar thermal project in Ras Al Khair, Saudi Arabia. The GlassPoint Ma'aden Technology Showcase (GMTS) is the first phase of the Ma'aden I project, aiming to provide 1,500 MWth of thermal energy to Ma'aden's aluminum refinery. The project is expected to reduce carbon emissions by 600,000 tons annually. 

List of Key Companies in Concentrating Solar Power Market:

• Abengoa Solar, S.A.
• BrightSource Energy, Inc.
• ACWA Power
• SolarReserve, LLC
• Aalborg CSP A/S
• TSK Flagsol Engineering GmbH
• Alsolen
• Archimede Solar Energy S.r.l.
• Acciona Energía
• Frenell GmbH
• Soltigua S.r.l.
• Siemens
• Solastor Pty Ltd
• GlassPoint Solar, Inc.
• Chiyoda Corporation

Recent Developments (Expansion)

• In April 2025, ACCIONA Energía completed the Aldoga Solar Farm in Queensland, Australia, seven months ahead of schedule. The 480 MWp facility began its commissioning process by exporting its first 850 kW of electricity to the National Electricity Market (NEM). Stanwell, under a Power Purchase Agreement, will acquire 100% of the solar farm’s output to supply clean, reliable energy to its commercial and industrial customers.
• In November 2024, China Three Gorges Corporation announced the final commissioning phase of its dual-tower CSP plant in Qinghai Province. This innovative facility features twin towers and approximately 30,000 mirrors, with an anticipated annual output of 1.8 billion kWh and a reduction of 1.53 million tons of CO₂ emissions annually.