Global Concentrating Solar Power Market to Reach USD 45.65 Billion by 2034

Concentrating Solar Power (CSP) market is set for strong growth, with its value projected to rise from USD 8.55 billion in 2024 to USD 45.65 billion by 2034

VANCOUVER, BRITISH COLUMBIA, CANADA, August 28, 2025 /EINPresswire.com/ -- The global Concentrating Solar Power (CSP) market is set for strong growth, with its value projected to rise from USD 8.55 billion in 2024 to USD 45.65 billion by 2034. This reflects a robust compound annual growth rate (CAGR) of 18.24%, fueled by rising demand for renewable energy, supportive government incentives, and advances in solar technology.

CSP technology uses mirrors or lenses to concentrate sunlight and generate heat, which can then be used to produce electricity. Beyond power generation, CSP is also being used in enhanced oil recovery and water desalination, though electricity generation remains the main growth driver.

Regional Growth Outlook

The Middle East & Africa currently represent the largest regional market, thanks to abundant sunlight and government-led renewable energy initiatives. Countries such as Saudi Arabia and the UAE are investing heavily in CSP as part of their plans to reduce dependence on fossil fuels. Asia Pacific is the fastest-growing region, supported by infrastructure expansion and ongoing technological innovation.

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Market Drivers

Technological improvements and public support are playing a key role in the expansion of CSP. Advanced thermal storage solutions, such as molten salt technology, now allow CSP plants to store energy and deliver power even when the sun is not shining, helping to stabilize electricity supply. According to the U.S. National Renewable Energy Laboratory, these innovations have reduced the cost of CSP-generated electricity by about 50% in the past decade, making the technology more competitive with other renewable energy sources.

Top 10 Companies

Abengoa Solar

BrightSource Energy

ACWA Power

SolarReserve

Acciona Energy

Enel Green Power

Shouhang High-Tech Energy

Masdar

SENER

TSK Flagsol

Government incentives are also critical. Subsidies, tax credits, and funding programs are helping lower the financial barriers to CSP adoption. For example, the U.S. Department of Energy has committed more than USD 1 billion to CSP research and development, while the European Union’s Green Deal has placed renewable energy, including CSP, at the center of its long-term strategy. Globally, more than 70 countries have now set renewable energy targets that include CSP.

Key Market Trends

One of the most notable trends is the development of hybrid CSP and photovoltaic (PV) systems. These combined projects take advantage of the reliability of CSP storage with the flexibility and affordability of PV, offering a more consistent supply of clean energy. Another important trend is the industry’s push to reduce water consumption, a traditional challenge for CSP plants located in arid regions. Innovations in dry cooling systems and water-efficient designs are addressing this issue.

Major industry players such as Abengoa Solar, BrightSource Energy, and ACWA Power are leading this transition. They continue to invest heavily in research and partnerships to boost efficiency and reduce costs.

Market Challenges

Despite strong growth prospects, CSP faces challenges. High upfront investment costs remain a barrier, with the International Energy Agency estimating the average cost of CSP at around USD 5,000 per kilowatt, compared to about USD 1,000 per kilowatt for PV. Land and water requirements also limit CSP’s feasibility in certain regions. Additionally, the rapid growth of PV technology, which is projected to expand at an even faster pace than CSP, poses stiff competition.

Regulatory hurdles further complicate project development, especially in emerging markets where energy policy frameworks are still evolving. Lengthy approval processes and complex permitting can delay CSP projects and increase costs.

Concentrating Solar Power Market Segmentation
By Product Type

Parabolic Trough

Solar Tower

Linear Fresnel

Dish/Engine Systems

By Application

Electricity Generation

Enhanced Oil Recovery

Water Desalination

Others

By End User

Utilities

Industrial

Commercial

By Technology

Thermal Energy Storage

Hybrid Systems

By Distribution Channel

Direct Sales

Distributors

Outlook

Despite these restraints, CSP is gaining momentum as governments and businesses worldwide move toward cleaner energy solutions. Advances in storage technology, combined with large-scale investments and supportive policies, are expected to secure CSP’s role as a reliable renewable power source. According to the International Renewable Energy Agency, CSP with storage can achieve capacity factors of up to 75%, making it a strong alternative to conventional fossil fuel–based power generation.

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With global investments in renewable energy growing by more than 15% annually, CSP is set to benefit significantly in the coming decade. As technology improves and costs continue to fall, the CSP market is poised to become an increasingly important contributor to the world’s clean energy transition.

John W
Reports and Data
+1 2127101370
sales@reportsanddata.com

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