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Concentrated Solar Power Market

The market for Concentrated Solar Power was estimated at $9.3 billion in 2025; it is anticipated to increase to $21.6 billion by 2030, with projections indicating growth to around $50.5 billion by 2035.

Report ID:DS2406014
Author:Chandra Mohan - Sr. Industry Consultant
Published Date:
Datatree
Energy & Power
Renewable Energy
Concentrated Solar Power
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Report Summary
Market Data
Methodology
Table of Contents

Global Concentrated Solar Power Market Outlook

Revenue, 2025

$9.3B

Forecast, 2035

$50.5B

CAGR, 2026 - 2035

18.5%

The Concentrated Solar Power (CSP) industry revenue is expected to be around $9.3 billion in 2026 and expected to showcase growth with 18.5% CAGR between 2026 and 2035. Building on this outlook, the Concentrated Solar Power market is consolidating its role as a strategic pillar in the global clean energy transition, supported by rising decarbonization targets, tightening emissions regulations, and the growing need for firm, dispatchable renewable power in carbon-constrained grids. Utility SPG and hybrid power plants together account for about 85.9% of end-use demand, highlighting the dominance of utility-scale solar power assets that deliver grid stability and peak-load support. Investors and policymakers increasingly favor CSP plants for their ability to store solar thermal energy and provide reliable power during evening and night-time hours, complementing variable photovoltaic and wind generation. This combination of policy momentum, technological maturity, and energy security priorities is reinforcing the ongoing relevance and competitiveness of Concentrated Solar Power across both developed and emerging markets.

Concentrated Solar Power uses mirrors and optical systems to concentrate sunlight and generate high-temperature solar thermal energy, which is converted to electricity via steam turbines or other power cycles, with integrated thermal energy storage enabling multi-hour operation independent of real-time solar irradiance. Parabolic trough technology currently leads CSP adoption, accounting for approximately $5.75 billion in industry revenue in 2025, while solar power towers, linear Fresnel systems, and other configurations are gaining traction for higher efficiency and lower long-term operating costs. Major applications span grid-connected Utility SPG projects, hybrid power plants that combine CSP with gas, coal, or photovoltaic assets, and industrial process heat and desalination projects that require stable, high-grade heat. Recent market trends include increased hybridization with battery systems, advanced digital control for performance optimization, and a stronger emphasis on renewable energy integration, collectively positioning CSP as a key provider of flexible, low-carbon, dispatch-ready generation within modern power systems.

Concentrated Solar Power market outlook with forecast trends, drivers, opportunities, supply chain, and competition 2025-2035
Concentrated Solar Power Market Outlook

Market Key Insights

  • The Concentrated Solar Power market is projected to grow from $9.3 billion in 2025 to $50.5 billion in 2035. This represents a CAGR of 18.5%, reflecting rising demand across Electricity Generation, Desalination, and Process Heat.

  • General Electric, Abengoa Solar, and ACWA Power are among the leading players in this market, shaping its competitive landscape.

  • U.S. and Spain are the top markets within the Concentrated Solar Power market and are expected to observe the growth CAGR of 17.8% to 25.9% between 2025 and 2030.

  • Emerging markets including Indonesia, South Africa and Brazil are expected to observe highest growth with CAGR ranging between 13.9% to 19.2%.

  • Transition like Shift towards Renewable Energy is expected to add $3 billion to the Concentrated Solar Power market growth by 2030.

  • The Concentrated Solar Power market is set to add $41.3 billion between 2025 and 2035, with manufacturer targeting IPH & Hybrid Power Plants Application projected to gain a larger market share.

  • With

    accelerated renewable energy policies, and

    Technological Advancements and Higher Efficiency, Concentrated Solar Power market to expand 446% between 2025 and 2035.

concentrated solar power market size with pie charts of major and emerging country share, CAGR, trends for 2025 and 2032
Concentrated Solar Power - Country Share Analysis

Opportunities in the Concentrated Solar Power

Indian utilities and grid operators face rising evening peaks and curtailment of mid‑day solar, pushing interest in hybrid CSP‑PV plants that combine photovoltaics with CSP’s dispatchable thermal storage. Power‑tower CSP, projected to grow from $0.76 billion in 2025 to about $1.77 billion by 2030, implying roughly 18.5% CAGR, will also benefit because higher operating temperatures enable longer‑duration molten‑salt storage, supporting firm capacity tenders and ancillary‑services contracts in Rajasthan, Gujarat, Maharashtra and opening partnership prospects for international developers.

Growth Opportunities in Middle East & North Africa and Asia Pacific

In the Middle East & North Africa, Concentrated Solar Power is primarily aligned with Utility SPG, where large CSP plants paired with advanced thermal energy storage deliver dispatchable power that supports grid stability in high-demand markets. Top opportunities include scaling utility-scale solar towers integrated with hybrid solar plants for cogeneration and desalination, while selectively expanding IPH solutions for refineries and petrochemical complexes requiring high-temperature industrial process heat. Competitive dynamics are driven by state-backed utilities, regional EPC champions, and cost-competitive Asian technology providers, creating space for differentiation via high-efficiency solar thermal power receivers, long-duration storage systems, and performance-guaranteed O&M models. Key drivers include the renewable energy transition agendas, fuel diversification strategies, and carbon reduction targets that favour bankable, utility-grade CSP configurations over smaller niche applications.
In Asia Pacific, Concentrated Solar Power adoption is led by Utility SPG in China, India, and Australia, with Hybrid Power Plants and IPH emerging as high-potential end-uses for coal-to-clean transitions and industrial clusters seeking reliable industrial process heat. The strongest opportunities lie in cost-optimized CSP plants co-located with existing thermal assets, CSP-based peak shaving for utility-scale solar portfolios, and modular solar thermal power units tailored to energy-intensive manufacturing zones. Competition is intensifying as domestic turbine and mirror manufacturers, local EPC firms, and regional IPPs leverage scale advantages, pushing international players to focus on differentiated thermal energy storage designs, superior project integration capabilities, and lifecycle performance guarantees. Core regional drivers include tightening emissions regulations, energy security priorities, rapid load growth, and government-backed renewable energy transition programs that favour CSP solutions capable of firm capacity and predictable dispatch profiles.

Market Dynamics and Supply Chain

01

Driver: Rising Electricity Demand and Government Incentives Accelerate Deployment of Concentrated Solar Power

The growth of concentrated solar power is also driven by two interconnected factors. First, rising global electricity demand, particularly in emerging economies, is also pushing utilities to seek scalable renewable energy sources. CSP plants, with technologies like parabolic troughs and solar towers, provide high-capacity electricity generation while offering thermal energy storage for continuous power supply. Second, government incentives and renewable energy policies are also strongly promoting CSP adoption. Tax credits, feed-in tariffs, and renewable portfolio standards encourage investment in large-scale CSP projects. Countries such as the UAE, Spain, and Morocco are also leading with supportive frameworks, enabling accelerated deployment. Together, growing electricity needs and policy support foster CSP market expansion, drive technology development, and attract private sector investment into large utility-scale solar thermal projects, reinforcing the long-term relevance of CSP in clean energy portfolios.
A key driver for CSP growth is also the advancement of thermal energy storage systems. Innovations using molten salts or phase change materials allow CSP plants to store heat for several hours, enabling electricity generation even when sunlight is also unavailable. This improves plant capacity factor, reduces intermittency, and enhances grid stability. Industrial and utility operators value these developments because they ensure consistent, dispatchable power, making CSP more competitive with conventional energy sources. Ongoing research in storage materials and system design continues to boost efficiency, lower costs, and expand CSP applications, particularly for regions with high solar irradiance seeking reliable and sustainable energy solutions.
02

Restraint: High Initial Capital Costs and Long Payback Periods Hinder CSP Project Financing

Concentrated solar power projects require substantial upfront investment in infrastructure such as solar fields, heat transfer systems and thermal storage, making financing more challenging compared to photovoltaic alternatives. Many utilities and developers delay or downscale CSP plans due to long construction timelines and extended payback periods. For example, some planned CSP plants in North Africa and the Middle East have faced investment withdrawals over cost concerns. These high capital costs constrain market revenue growth, shift demand toward lower‑cost solar photovoltaics, and limit CSP deployment in price‑sensitive regions despite its long‑term operational benefits.
03

Opportunity: Industrial process heat and desalination in Middle East petrochemicals and Off‑grid mining microgrids in Chilean and Australian deserts

Rapid decarbonization targets in Saudi Arabia, UAE, and Oman are creating unmet demand for high‑temperature steam in refineries, petrochemicals, and desalination plants where PV and wind cannot deliver continuous thermal output. Parabolic trough CSP, the largest technology at about $5.75 billion in 2025 and growing near 16.4% CAGR, is well suited to integrate with existing boilers, while faster‑growing linear Fresnel, expected to reach $6.64 billion by 2030 at roughly 24.1% CAGR, offers cheaper, compact collectors for brownfield retrofits and low‑cost industrial heat‑and‑water clusters.
Large copper, iron‑ore, and lithium mines in Chile’s Atacama and remote Western Australia rely on diesel and gas, creating a niche for CSP‑based microgrids with long‑duration storage. Compact Stirling‑dish and modular linear Fresnel systems, though currently the smallest CSP segments at roughly $0.48 and $2.26 billion in 2025 yet growing 13.45% and 24.1% CAGR, can be containerized, relocated with the life cycle, and paired with batteries, positioning these technologies for above‑average adoption in off‑grid mining corridors across Latin America, Africa, and Oceania.
04

Challenge: Geographical and Water Resource Limitations Restrict CSP Viability in Key Regions

CSP performance is highly dependent on high solar irradiance and ample water supply for cooling and thermal processes, limiting its adoption in less suitable geographies. Regions with diffuse sunlight or water scarcity may find CSP economically unviable or face added costs for dry cooling technologies. For instance, arid areas that would otherwise benefit from solar power must invest in advanced cooling, increasing operational expenses and lowering project attractiveness. These geographical and resource constraints reduce demand in certain markets, impacting overall CSP market dynamics and prompting developers to consider hybrid or alternative renewable solutions.

Supply Chain Landscape

1

Solar Thermal Components

Aalborg CSPGeneral ElectricAbengoa Solar
2

CSP Technology EPC

ACWA PowerAbengoa SolarBrightSource Energy
3

Thermal Energy Storage

BrightSource EnergyACWA PowerAalborg CSP
4

Power Offtakers

Concentrated Solar Power PlantsUtility-Scale Renewable EnergyIndustrial Process Heat
Concentrated Solar Power - Supply Chain

Use Cases of Concentrated Solar Power in Electricity Generation & Desalination

Electricity Generation : Concentrated solar power is widely used for large-scale electricity generation, particularly in utility-scale solar farms. Parabolic troughs and solar tower systems are the most common CSP technologies deployed in this application, converting sunlight into high-temperature heat, which drives steam turbines to produce electricity. This method allows energy storage using molten salts, enabling power generation even during cloudy periods or at night. CSP-based electricity generation offers high efficiency, grid stability, and scalability. Utilities and energy providers favor CSP for integrating renewable energy into the grid while reducing carbon emissions and meeting growing electricity demand sustainably.
Desalination : CSP is increasingly applied in desalination plants to provide clean water in arid regions. Solar power towers and linear Fresnel systems generate high-temperature heat used to drive thermal desalination processes such as multi-effect distillation and multi-stage flash. These systems convert solar energy directly into heat, reducing dependency on fossil fuels and lowering operational costs. Coastal communities, water utilities, and industrial facilities benefit from CSP-driven desalination because it ensures sustainable water supply while minimizing environmental impact. CSP desalination supports energy-water nexus solutions, particularly in water-scarce countries seeking renewable, low-carbon alternatives.
Process Heat : Industrial process heat applications leverage concentrated solar power to provide high-temperature thermal energy for manufacturing, chemical processing, and food industries. Parabolic trough and linear Fresnel CSP systems are most commonly used to deliver temperatures ranging from 150°C to over 400°C, depending on the industry requirement. Using solar thermal energy reduces fossil fuel consumption, operational costs, and greenhouse gas emissions. Industrial end users value CSP for reliable, renewable heat generation, particularly in sectors like pulp and paper, food processing, and chemical production, where continuous thermal energy is critical for maintaining production efficiency and sustainability goals.

Recent Developments

Recent developments in concentrated solar power highlight growing adoption of molten salt storage and advanced parabolic trough systems, improving efficiency and dispatchable energy output. Utility-scale CSP projects in regions with high solar irradiance are expanding, driven by renewable energy policies and carbon reduction targets. A key market trend is hybridization with photovoltaic systems and thermal storage, enhancing grid reliability and reducing intermittency. These innovations support industrial process heat, electricity generation, and sustainable energy initiatives, reinforcing CSP’s role in long-term clean energy portfolios.

September 2024 : ACWA Power successfully brought the 100 MW Redstone Solar Thermal Power project online in South Africa’s Northern Cape region, connecting the CSP tower with molten salt storage to the grid. This milestone marks a major operational expansion for ACWA Power’s CSP portfolio, demonstrating execution of long‑duration dispatchable solar generation in Africa. The plant’s commissioning enhances the company’s renewable energy footprint and supports stable electricity supply in a region with growing demand for clean power.
January 2022 : Abengoa successfully completed the construction of three 200 MW parabolic trough plants as part of Phase IV of the Mohammed bin Rashid Al Maktoum Solar Park near Dubai. The company, working under the Phase IV EPC contractor Shanghai Electric Group, managed the technology, design, engineering, and overall construction of the parabolic trough facilities, ensuring the successful delivery of this large-scale concentrated solar power project.

Impact of Industry Transitions on the Concentrated Solar Power Market

As a core segment of the Renewable Energy industry, the Concentrated Solar Power market develops in line with broader industry shifts. Over recent years, transitions such as Shift towards Renewable Energy and Technological Advancements in CSP have redefined priorities across the Renewable Energy sector, influencing how the Concentrated Solar Power market evolves in terms of demand, applications and competitive dynamics. These transitions highlight the structural changes shaping long-term growth opportunities.
01

Shift towards Renewable Energy

The accelerating shift towards renewable energy is transforming the growth trajectory of the CSP market, with this transition alone projected to add $3 billion to CSP revenues by 2030. Supported by government incentives, decarbonization policies, and escalating fossil fuel price volatility, CSP is gaining prominence as a utility-scale solar and solar thermal power solution that combines dispatchable generation with integrated energy storage to support grid stability. Ongoing technology innovation is reducing the levelized cost of energy, enhancing efficiency, and improving competitiveness against conventional power generation. As low-carbon power generation targets tighten, these structural drivers are expected to reinforce long-term demand for CSP, positioning the CSP market as a strategic asset within national energy transition and energy security agendas.
02

Technological Advancements in CSP

Technological advancements have transformed the concentrated solar power industry by significantly improving efficiency and cost-effectiveness. The development of molten salt thermal storage systems allows CSP plants to store heat for several hours, enabling electricity generation even after sunset and increasing grid reliability. Innovations in parabolic trough and solar tower designs enhance sunlight capture and energy conversion, boosting overall plant performance. These improvements benefit utilities and industrial sectors by providing more stable and dispatchable renewable energy. For example, chemical and manufacturing plants in Morocco and Spain leverage CSP with thermal storage to meet continuous process heat needs while reducing reliance on fossil fuels, lowering operational costs, and supporting sustainability goals.