Global Concentrated Solar Power Market Size, Share and Trends Analysis Report – Industry Overview and Forecast to 2033

What is the Global Concentrated Solar Power Market Size and Growth Rate?

• The global concentrated solar power market size was valued at USD 10.95 billion in 2025 and is expected to reach USD 28.90 billion by 2033, at a CAGR of 12.90% during the forecast period
• Rising policy support from government to enable adoption of renewable technologies is the vital factor escalating the market growth, also increasing effective integration of concentrated solar power systems with thermal storage systems, increasing growth in demand for renewable energy, increasing boost in the demand for solar energy from emerging economies, rising demand for clean energy, increasing favourable government initiatives and continuous decline in LCOE are the major factors among others driving the concentrated solar power market

What are the Major Takeaways of Concentrated Solar Power Market?

• Rising integration of concentrated solar power in hybrid power plants and increasing use of concentrated solar power in desalination and enhanced oil recovery processes will further create new opportunities for the concentrated solar power market
• However, increasing cost of generation compared to other renewable technologies, rising availability of other renewable alternatives and increasing capital expenditure are the major factors among others acting as a restraint, and will further challenge the growth of concentrated solar power market
• Asia-Pacific dominated the concentrated solar power market with the largest revenue share of 37.5% in 2025, driven by rapid industrialization, strong government support for renewable energy, and abundant solar irradiance in countries such as China, India, Japan, and Australia
• North America is projected to witness the fastest growth rate of 9.7% during 2026–2033, driven by growing deployment of concentrated solar power for utilities and industrial applications, alongside increasing investments in hybrid concentrated solar power -battery projects
• The Parabolic Trough segment dominated the market with the largest revenue share of 42.5% in 2025, owing to its proven track record, high efficiency, and widespread deployment in large-scale concentrated solar power projects globally

Report Scope and Concentrated Solar Power Market Segmentation 

What is the Key Trend in the Concentrated Solar Power Market?

Rising Adoption of Hybrid and Thermal Energy Storage-Integrated concentrated solar power Plants

• The concentrated solar power market is witnessing a major shift toward hybrid concentrated solar power plants integrated with thermal energy storage (TES), driven by the need for reliable, dispatchable renewable energy and grid stability. Developers are focusing on combining concentrated solar power with photovoltaic (PV) systems and storage solutions to ensure continuous power supply
  • For instance, Abengoa and Enel Spa have developed hybrid concentrated solar power plants with molten salt storage to provide round-the-clock electricity, catering to regions with high renewable energy demand
• Increasing focus on sustainability and decarbonization is driving the deployment of concentrated solar power with TES for industrial, commercial, and utility-scale applications, ensuring low-carbon and predictable energy generation
• Rising investments in utility-scale projects, particularly in solar-rich regions such as the Middle East, North Africa, and Asia-Pacific, are accelerating technological adoption and innovation
• The integration of smart controls, predictive maintenance, and AI-based performance optimization is reshaping concentrated solar power operations and enhancing energy efficiency
• As the global energy transition intensifies, hybrid concentrated solar power plants with thermal storage are expected to remain the dominant trend shaping long-term market growth

What are the Key Drivers of Concentrated Solar Power Market?

• Growing global demand for clean, renewable, and dispatchable energy is driving concentrated solar power adoption in both emerging and developed economies
  • For instance, ACWA POWER commissioned several large-scale concentrated solar power projects in Saudi Arabia and Morocco, capitalizing on high solar irradiance and supportive renewable policies
• Rising focus on reducing carbon emissions, government incentives, and renewable energy mandates are encouraging utilities and private investors to deploy concentrated solar power technologies
• Technological advancements in thermal energy storage, hybridization, and system efficiency are boosting the economic viability of concentrated solar power plants
• Increasing industrialization, urbanization, and energy demand in Asia-Pacific and Latin America are stimulating investments in large-scale concentrated solar power projects
• As the cost of concentrated solar power technologies declines and energy storage solutions mature, the market is expected to witness steady expansion, diversification, and higher adoption across global regions

Which Factor is Challenging the Growth of the Concentrated Solar Power Market?

• High upfront capital costs and long project development cycles remain a major challenge for concentrated solar power developers, affecting project financing and ROI
  • For instance, delays in permitting and financing for projects in emerging economies such as India and Egypt have impacted deployment timelines
• Competition from low-cost photovoltaic (PV) systems and battery storage alternatives increases pricing pressure and may limit concentrated solar power adoption in some markets
• Complex operations, maintenance requirements, and the need for skilled workforce pose operational challenges, particularly in remote or desert locations
• Policy uncertainty, fluctuating energy tariffs, and regulatory hurdles in regions such as Europe and North America may affect investor confidence
• To overcome these challenges, key players are focusing on hybrid plant configurations, cost optimization, advanced thermal storage solutions, and strategic partnerships to ensure sustainable growth and profitability in the concentrated solar power market

How is the Concentrated Solar Power Market Segmented?

The market is segmented on the basis of technology, components, end-user, and heat transfer fluid.

• By Technology

On the basis of technology, the concentrated solar power market is segmented into Parabolic Trough, Power Tower, Linear Fresnel, and Dish/Engine System. The Parabolic Trough segment dominated the market with the largest revenue share of 42.5% in 2025, owing to its proven track record, high efficiency, and widespread deployment in large-scale concentrated solar power projects globally. Parabolic trough systems offer flexibility in thermal storage integration and are preferred in regions with high solar irradiance.

The Power Tower segment is projected to register the fastest CAGR from 2026 to 2033, supported by its higher operating temperatures, better energy efficiency, and compatibility with advanced molten salt thermal storage. Governments and private developers are increasingly investing in power tower projects in the Middle East, North Africa, and Asia-Pacific, boosting its adoption. The rising focus on hybrid CSP-PV systems and long-duration energy storage further strengthens market growth across this segment.

• By Components

On the basis of components, the concentrated solar power market is segmented into Solar Field, Power Block, and Thermal Storage. The Solar Field segment dominated the market with the largest revenue share of 46.8% in 2025, driven by its role in capturing and concentrating solar energy efficiently. Growth is fueled by the demand for larger and optimized heliostat or parabolic mirror installations in utility-scale projects.

The Thermal Storage segment is expected to register the fastest CAGR from 2026 to 2033, as developers increasingly integrate molten salt or phase-change material storage solutions to ensure dispatchable power, grid stability, and energy reliability during non-sunlight hours. Expansion of hybrid concentrated solar power plants and rising investments in industrial applications further enhance the adoption of thermal storage systems globally.

• By End User

On the basis of end users, the concentrated solar power market is segmented into Utilities, Enhanced Oil Recovery (EOR), and Others. The Utilities segment dominated the market with the largest revenue share of 53.2% in 2025, as utility-scale solar projects form the backbone of concentrated solar power adoption for grid-connected electricity generation. Government incentives, renewable energy mandates, and long-term power purchase agreements (PPAs) are driving utilities’ adoption globally.

The EOR segment is projected to register the fastest CAGR from 2026 to 2033, supported by concentrated solar power integration for enhanced oil recovery processes in regions such as the Middle East and North America. CSP-based EOR reduces fossil fuel dependency for steam generation and ensures cleaner energy utilization, thereby creating strong growth potential for industrial applications.

• By Heat Transfer Fluid

On the basis of heat transfer fluid, the concentrated solar power market is segmented into Molten Salt, Water-Based, Oil-Based, and Other Heat Transfer Fluids. The Molten Salt segment dominated the market with the largest revenue share of 49.1% in 2025, owing to its high thermal capacity, suitability for long-duration thermal storage, and wide adoption in power tower and parabolic trough concentrated solar power plants.

The Oil-Based segment is expected to register the fastest CAGR from 2026 to 2033, driven by ongoing innovations to improve heat transfer efficiency, operational flexibility, and cost-effectiveness in smaller and medium-scale projects. In addition, rising investments in hybrid systems combining concentrated solar power with PV and battery storage are further supporting the demand for advanced heat transfer fluids in emerging markets.

Which Region Holds the Largest Share of the Concentrated Solar Power Market?

• Asia-Pacific dominated the concentrated solar power market with the largest revenue share of 37.5% in 2025, driven by rapid industrialization, strong government support for renewable energy, and abundant solar irradiance in countries such as China, India, Japan, and Australia. The region’s expanding investments in utility-scale concentrated solar power projects, favorable renewable energy policies, and increasing adoption of hybrid CSP-PV systems are key growth drivers
• Local and global companies are heavily investing in advanced concentrated solar power technologies, thermal storage solutions, and large-scale solar fields to meet rising electricity demand while ensuring grid stability
• Furthermore, government incentives, carbon reduction targets, and the integration of concentrated solar power in industrial and commercial applications are strengthening Asia-Pacific’s leadership in the global concentrated solar power landscape

China Concentrated Solar Power Market Insight

China is the largest contributor in Asia-Pacific, supported by its ambitious renewable energy targets and large-scale solar projects in provinces such as Inner Mongolia, Gansu, and Qinghai. Increasing adoption of parabolic trough and power tower systems, coupled with investments in molten salt thermal storage, is enhancing operational efficiency and dispatchable power generation. Government subsidies, industrial decarbonization initiatives, and growing utility-scale concentrated solar power installations continue to bolster China’s market dominance within the region.

India Concentrated Solar Power Market Insight

India is witnessing rapid growth in the concentrated solar power market due to government initiatives under the National Solar Mission, growing industrial energy demand, and rising focus on sustainable power generation. States such as Rajasthan and Gujarat are leading concentrated solar power installations, primarily using parabolic trough and linear Fresnel systems. Private players are increasingly adopting concentrated solar power with thermal storage for reliable electricity supply, supporting the expansion of hybrid renewable energy systems in commercial and industrial sectors.

North America Concentrated Solar Power Market Insight

North America is projected to witness the fastest growth rate of 9.7% during 2026–2033, driven by growing deployment of concentrated solar power for utilities and industrial applications, alongside increasing investments in hybrid CSP-battery projects. Favorable tax incentives, renewable portfolio standards, and rising interest in long-duration energy storage are accelerating adoption. Technological innovations in power tower systems, molten salt storage, and modular concentrated solar power solutions are enhancing the competitiveness of concentrated solar power against conventional energy sources.

U.S. Concentrated Solar Power Market Insight

The U.S. leads the North American concentrated solar power market, fueled by government-backed renewable energy programs, high solar irradiance regions such as California and Nevada, and utility-scale power generation projects. concentrated solar power integration in industrial and utility sectors, combined with thermal storage solutions for round-the-clock power, is driving market growth. Companies are investing in advanced parabolic trough and power tower technologies to increase efficiency and reduce levelized cost of electricity (LCOE).

Canada Concentrated Solar Power Market Insight

Canada contributes steadily to the regional concentrated solar power market, primarily for industrial and research applications. Investments in hybrid renewable energy projects, such as concentrated solar power integrated with PV and biomass systems, are supporting market adoption. Favorable provincial renewable energy policies, incentives for solar thermal technologies, and growing industrial energy demand further bolster Canada’s contribution.

Europe Concentrated Solar Power Market Insight

Europe is witnessing moderate growth, driven by concentrated solar power adoption in Spain, Italy, and Germany for utility-scale power generation and industrial applications. Policies promoting low-carbon electricity, thermal storage, and hybrid CSP-PV systems are supporting regional growth. Stringent EU regulations on energy efficiency and decarbonization of industries are encouraging concentrated solar power deployment alongside other renewables.

Germany Concentrated Solar Power Market Insight

Germany leads Europe’s concentrated solar power market in pilot and industrial-scale installations, focusing on power tower and parabolic trough systems. Adoption is supported by thermal storage integration for industrial and utility applications. Government policies promoting decarbonization and renewable energy, alongside research initiatives for advanced concentrated solar power technologies, are strengthening Germany’s market position.

U.K. Concentrated Solar Power Market Insight

The U.K. market is gradually expanding with investments in concentrated solar power research, hybrid renewable energy projects, and industrial applications. Emphasis on decarbonization, grid stability, and integration of concentrated solar power with energy storage systems is supporting adoption. Pilot projects and collaborations between government and private players are paving the way for broader deployment of concentrated solar power technologies across the country.

Which are the Top Companies in Concentrated Solar Power Market?

The concentrated solar power industry is primarily led by well-established companies, including:

• Abengoa (Spain)
• ACCIONA (Spain)
• GENERAL ELECTRIC (U.S.)
• TSK Flagsol (Germany)
• Enel Spa (Italy)
• Suntrace GmbH (Germany)
• BrightSource Energy, Inc. (U.S.)
• Atlantica Sustainable Infrastructure plc (U.K.)
• Shams Power (U.A.E.)
• SolarReserve LLC (U.S.)
• ACWA POWER (Saudi Arabia)
• Eastman Chemical Company or its subsidiaries (U.S.)
• Chiyoda Corporation (Japan)

What are the Recent Developments in Global Concentrated Solar Power Market?

• In February 2024, ACWA Power and Larsen and Toubro Limited (LandT) announced that they had selected Nextracker, a leading global provider of intelligent solar tracking equipment and software solutions, to supply the NX Horizon-XTR™ ground tracker for a 1.17 GW solar power plant in Al Kahfah, Saudi Arabia, part of the National Renewable Energy Program, highlighting the significance of advanced tracking technology in large-scale concentrated solar power installations
• In August 2023, in alignment with President Biden's visit to Wisconsin, Siemens announced it will begin production of photovoltaic (PV) inverters in Kenosha, Wisconsin, at a plant operated by long-term manufacturing partner Sanmina, aimed at meeting the rising demand for locally manufactured solar components and enabling customers to leverage solar tax and domestic content incentives, emphasizing the importance of domestic production for U.S. solar projects
• In July 2023, BrightSource Energy Inc., a global leader in concentrated solar thermal (CSP) technology, announced the spin-off of its Israeli, U.K., and South African subsidiaries to form a new entity, New BrightSource Energy LTD, led by Izik Kirshenbaum, marking a strategic restructuring to strengthen global concentrated solar power operations and enhance international collaboration
• In March 2020, Shouhang Hightech Energy Technology Co., Ltd (Shouhang) signed a Cooperation Agreement on Investment with the government of Gansu Province for the Jinta 100 MW Molten Salt Tower concentrated solar power Project, expected to be completed by the end of 2021, underlining continued investment in thermal solar technologies in China
• In January 2020, Hayward Tyler announced it had secured a contract from Shanghai Electric to supply a glandless pump package for a 950 MW hybrid solar project at Bin Rashid Al Maktoum Solar Park Phase IV, which includes 600 MW from a parabolic basin complex, 100 MW from a solar thermal tower, and 250 MW from PV panels, highlighting the integration of multiple concentrated solar power and PV technologies for large-scale energy generation

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