The global Concentrated Solar Power Market is estimated to be valued at US$ 5.86 Bn in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Concentrated solar power (CSP), also known as concentrated solar thermal, is a power generation system that concentrates sunlight using mirrors to drive heat engines or turbines and generate electricity. It harnesses the sun's energy using mirrors and tracking systems that concentrate a large area of sunlight onto a small area. CSP utilizes solar thermal energy technologies such as parabolic troughs, solar tower, dish Stirling, and linear Fresnel reflectors to generate high-temperature heat and power turbines to produce electricity. CSP plants require little land to implement and have the ability to store thermal energy as heat which allows energy generation when sunlight is not available such as during night or overcast conditions. The modular design allows concentrating solar power systems to be installed in phases of increasing size as demand grows.
Market key trends:
Growing adoption of renewable energy all over the world is a major factor driving growth of the concentrated solar power market. According to International Renewable Energy Agency, renewable energy needs to increase its share fivefold by 2050 to limit global warming to below 2°C and avoid the worst impacts of climate change. Concentrated solar power is considered as one of the most promising renewable energy technology and reduces carbon emissions. Rising investments in renewable energy projects is fueling the market growth. Key players are increasingly investing in large-scale CSP projects around the world which is boosting the market. In addition, evolving government policies supporting renewable energy adoption is another major factor propelling the concentrated solar power market growth over the forecast period.
Porter’s Analysis
Threat of new entrants: The concentrated solar power market requires high initial investments to set up power plants which acts as a barrier for new players. However, supportive government policies and subsidies provide opportunities for new entrants to enter the market.
Bargaining power of buyers: The concentrated solar power industry has large utilities as primary buyers. The increasing demand for renewable sources of energy gives buyers higher bargaining power.
Bargaining power of suppliers: Key components for concentrated solar power plants such as photovoltaic cells, solar trackers, and heat transfer fluids are supplied by a few specialized global players giving them strong bargaining power.
Threat of new substitutes: Alternatives such as photovoltaic solar power and wind power pose a threat. However, concentrated solar power plants offer dispatchable and bulk power generation at utility-scale creating less threat of substitution.
Competitive rivalry: The presence of numerous global players has intensified the competition in the concentrated solar power market. Companies differentiate themselves through technological innovations and expansion into new regions.
Key Takeaways
Global Concentrated Solar Power Market Size is expected to witness high growth, exhibiting CAGR of 10% over the forecast period, due to increasing investments in renewable energy sources worldwide.
Regional analysis: Europe dominates the concentrated solar power market owing to supportive policies and initiatives by governments of major countries like Spain and Portugal. The Asia Pacific region is expected to grow at the fastest pace during the forecast period led by emerging economies like China and India focusing on clean energy generation.
Key players operating in the concentrated solar power market incorporate Siemens AG, Genarl Electric, Abengoa, Acciona S.A., Atlantica Yield plc., Suntrace GmbH, BrightSource Energy, Inc., SolarReserve, LLC., ACWA Power, Frenell GmbH. Key players are investing in R&D to reduce costs and enhance efficiency of concentrated solar power technologies. Partnerships and collaborations between players and utilities are on the rise to attain economies of scale in building large power plants.
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