The concentrated solar power market is estimated to be valued at USD 5.8 billion in 2025 and is projected to reach USD 13.0 billion by 2035, registering a compound annual growth rate (CAGR) of 8.3% over the forecast period.
Year-on-year growth is driven by increasing deployment of large-scale solar thermal plants, government incentives for renewable energy adoption, and rising energy demand in regions with high solar irradiance. Policy frameworks and feed-in tariffs in countries such as Spain, Morocco, and the UAE are accelerating CSP projects, while technological improvements in molten salt storage and hybridization with fossil or PV systems enhance operational efficiency. Investors are increasingly attracted to CSP for its capacity to provide dispatchable, renewable electricity and reduce grid dependency. Moreover, project financing and international collaborations are lowering capital costs, enabling more countries to adopt concentrated solar power solutions.
Industrial, utility, and commercial sectors are also exploring CSP integration for process heat and steam generation, creating new market avenues. Yearly growth reflects both new capacity additions and gradual replacement of outdated plants, while geographic diversification mitigates regional market fluctuations. The cumulative impact of regulatory support, innovation in thermal storage, and global decarbonization targets contributes to robust expansion throughout the next few years.
The concentrated solar power (CSP) market is strongly influenced by five interrelated parent markets, each contributing uniquely to overall demand and adoption. The utility-scale power generation market holds the largest share at 40%, as large solar thermal plants are deployed to generate dispatchable electricity for national grids, supporting energy security and renewable targets. The industrial process heat market contributes 25%, with manufacturing, chemical, and food processing facilities leveraging CSP systems to produce high-temperature steam and thermal energy, reducing fossil fuel dependence and operational costs.
The commercial and institutional energy market accounts for 15%, driven by universities, hospitals, and corporate campuses implementing CSP to lower energy bills and meet sustainability mandates. The hybrid renewable energy systems market holds a 10% share, integrating CSP with photovoltaics or fossil-based plants to enhance grid stability and provide round-the-clock power. Finally, the regional development and infrastructure segment represents 10%, encompassing government-backed projects, public-private partnerships, and international financing programs that enable CSP deployment in emerging markets.
Collectively, utility-scale, industrial, and commercial segments account for 80% of overall demand, highlighting that large-scale energy production, high-temperature industrial applications, and commercial integration remain the primary growth drivers, while hybrid systems and infrastructure initiatives provide incremental opportunities for global expansion.
| Metric | Value |
|---|---|
| Concentrated Solar Power Market Estimated Value in (2025 E) | USD 5.8 billion |
| Concentrated Solar Power Market Forecast Value in (2035 F) | USD 13.0 billion |
| Forecast CAGR (2025 to 2035) | 8.3% |
The concentrated solar power (CSP) market is expanding steadily, supported by the global transition toward renewable energy and the increasing need for dispatchable clean power. Industry publications and energy project reports have emphasized CSP’s advantage in integrating thermal energy storage, enabling electricity generation even during non-sunlight hours.
Government-backed renewable energy policies, competitive project tenders, and technology-specific incentives have encouraged large-scale CSP installations, particularly in regions with high direct normal irradiance (DNI).
Advances in heat transfer fluids, solar receiver efficiency, and hybrid CSP-PV projects have improved operational performance and reduced levelized costs. Infrastructure investments in grid integration and cross-border energy trade are also expanding CSP’s role in energy diversification strategies. Over the forecast period, demand growth is expected to be driven by parabolic trough systems for proven reliability, ≤ 50MW plants for cost-effective deployment in emerging markets, and CSP projects with storage for improved energy supply stability.
The concentrated solar power market is segmented by technology, capacity, storage, and geographic regions. By technology, concentrated solar power market is divided into parabolic trough, linear FR, and power tower. In terms of capacity, concentrated solar power market is classified into ≤ 50MW, >50 MW to ≤100 MW, and >100 MW. Based on storage, concentrated solar power market is segmented into with storage and without storage. Regionally, the concentrated solar power industry is classified into North America, Latin America, Western Europe, Eastern Europe, Balkan & Baltic Countries, Russia & Belarus, Central Asia, East Asia, South Asia & Pacific, and the Middle East & Africa.
The parabolic trough segment is projected to hold 52.8% of the concentrated solar power market revenue in 2025, maintaining its position as the leading technology type. This dominance has been reinforced by the technology’s proven track record, operational simplicity, and ability to achieve high thermal efficiency in large-scale projects. Industry reports have noted that parabolic trough systems benefit from standardized design and established supply chains, which reduce construction timelines and overall project risk. The use of synthetic oils or molten salts as heat transfer fluids allows efficient thermal storage integration, further enhancing output reliability. Additionally, widespread deployment in both developed and emerging solar markets has provided significant operational data, supporting investor confidence. The balance between performance, scalability, and cost efficiency is expected to keep parabolic trough systems as the preferred CSP technology in the near term.
The ≤ 50MW capacity segment is projected to account for 41.6% of the concentrated solar power market revenue in 2025, reflecting strong adoption in regions seeking decentralized renewable energy solutions. This capacity range has been favored for its relatively lower capital requirements and quicker installation timelines compared to utility-scale CSP plants. Energy policy frameworks in several countries have supported smaller CSP projects to improve rural electrification, reduce transmission losses, and integrate into local grids. Project developers have leveraged ≤ 50MW plants to demonstrate CSP’s viability in diverse climates and to meet local energy demand without overburdening grid infrastructure. Moreover, smaller plants have provided opportunities for hybridization with other renewable sources, enhancing energy reliability. These advantages, along with favorable financing conditions for mid-scale projects, are expected to sustain the segment’s growth.
The with storage segment is projected to contribute 63.4% of the concentrated solar power market revenue in 2025, securing its position as the dominant storage category. This leadership has been driven by the critical role of thermal energy storage in enabling CSP plants to deliver electricity during peak demand periods and at night. Market developments have shown growing preference for molten salt storage systems, which provide cost-effective and long-duration energy retention. Energy planners and utilities have favored CSP with storage to address grid stability challenges and reduce reliance on fossil-fuel-based peaker plants. Furthermore, storage-equipped CSP projects have gained competitive advantage in renewable energy tenders by offering firm capacity and dispatchability. With increasing emphasis on renewable baseload power and integration of high shares of intermittent generation, the with storage segment is expected to remain central to CSP’s market growth.
CSP growth is primarily driven by utility-scale projects, industrial applications, hybrid systems, and supportive government policies. These factors collectively enable reliable, high-temperature, and dispatchable solar energy globally.
The concentrated solar power (CSP) market is witnessing growth due to increasing investments in utility-scale projects. Governments and private players are focusing on large solar thermal plants to meet growing electricity demand, particularly in regions with high solar irradiance. CSP offers advantages over conventional PV systems through energy storage capabilities, enabling consistent power supply even during cloudy periods or at night. Utilities are adopting molten salt or other thermal storage solutions to ensure grid stability and dispatchable power. Incentives, tax credits, and long-term power purchase agreements (PPAs) are further driving adoption. Countries like Morocco, UAE, and Chile are demonstrating successful large-scale CSP deployments, encouraging new entrants and international collaborations.
CSP systems are increasingly deployed in industrial and commercial applications for process heat and steam generation. Manufacturing, chemical processing, food and beverage, and textile industries utilize CSP to achieve high-temperature thermal energy, replacing conventional fuels like natural gas or coal. This shift reduces operational costs and carbon footprints while ensuring continuous heat supply. Large industrial parks and commercial campuses are integrating CSP with existing energy infrastructure for hybrid energy solutions. Rising energy prices and volatile fuel costs are motivating organizations to adopt CSP for predictable and long-term energy supply. Partnerships with EPC contractors and system integrators help design customized CSP solutions for specific industrial requirements, further promoting market growth globally.
Hybrid energy systems combining CSP with photovoltaics or conventional thermal plants are gaining traction. These solutions improve grid reliability, provide peak load support, and allow round-the-clock renewable energy integration. Utilities are exploring CSP-PV hybrids to maximize land use efficiency and minimize intermittency. Energy storage integration, such as molten salt or phase change materials, enhances dispatchable capacity, supporting smart grid applications and energy management. Regional and national power authorities are encouraging hybrid systems through favorable tariffs and pilot projects. This convergence of CSP with other energy technologies expands applications beyond electricity generation to include combined heat and power systems, industrial co-generation, and district heating, making it an attractive proposition for energy planners and investors.
Policy frameworks, financial incentives, and international collaborations are critical drivers of CSP adoption. Governments provide tax breaks, subsidies, and feed-in tariffs to reduce upfront capital costs. Public-private partnerships and international financing programs are supporting projects in emerging markets like the Middle East, North Africa, and Latin America. Regulatory mandates for renewable energy quotas encourage utilities and industries to integrate CSP. Research grants and pilot projects promote process optimization and local manufacturing capabilities, reducing dependence on imported components. Energy security policies and decarbonization goals are further motivating national adoption. Strategic planning and project development support ensure that CSP is deployed efficiently, creating stable revenue streams and long-term market confidence.
| Country | CAGR |
|---|---|
| China | 11.2% |
| India | 10.4% |
| Germany | 9.5% |
| France | 8.7% |
| UK | 7.9% |
| USA | 7.1% |
| Brazil | 6.2% |
The global concentrated solar power (CSP) market is projected to grow at a CAGR of 8.3% from 2025 to 2035, with China leading at 11.2% and India at 10.4%. Growth is driven by large-scale solar thermal projects, energy storage integration, and government-backed renewable energy targets. France, the UK, and the USA focus on hybrid CSP-PV systems, industrial heat applications, and dispatchable solar solutions for grid stability. Emerging markets, particularly in Asia, are adopting CSP to meet rising electricity demand and reduce carbon emissions, while developed economies emphasize efficiency optimization, advanced storage technologies, and high-temperature industrial applications. International collaborations, favorable policies, and financing mechanisms further accelerate project deployment. The analysis spans over 40+ countries, with the leading markets shown below.
The concentrated solar power (CSP) market in China is projected to grow at a CAGR of 11.2% from 2025 to 2035, driven by large-scale solar thermal projects, government renewable energy targets, and integration with energy storage systems. China leads the world in CSP capacity, with multiple utility-scale projects in provinces such as Gansu, Qinghai, and Inner Mongolia. Investments in molten salt storage, central receiver technology, and parabolic trough systems enable continuous power supply and grid stability. Domestic manufacturers and international technology partners collaborate to enhance plant efficiency, reduce LCOE, and scale deployment. Policy support, competitive auctions, and financing mechanisms accelerate adoption across industrial and urban electricity demand centers.
The CSP market in India is anticipated to expand at a CAGR of 10.4% between 2025 and 2035, fueled by national solar energy targets, renewable energy auctions, and growing demand for dispatchable solar electricity. Rajasthan, Gujarat, and Maharashtra are key states for parabolic trough and solar tower projects, often paired with molten salt storage for round-the-clock energy supply. Public-private partnerships enable technology transfer, cost reduction, and operational efficiency improvements. Industrial and municipal electricity consumers are increasingly adopting CSP for hybrid power generation, while domestic EPC contractors focus on modular deployment, O&M efficiency, and long-term plant reliability. Integration with smart grid solutions ensures effective energy management.
The CSP market in France is projected to grow at a CAGR of 8.7% from 2025 to 2035, supported by government incentives for renewable energy and industrial process heat applications. Concentrated solar plants are increasingly used for grid-connected electricity and high-temperature thermal applications in manufacturing. France is focusing on hybrid systems that combine CSP with photovoltaic (PV) generation and storage to maximize energy output. Domestic developers partner with European technology providers for advanced heliostat fields, central receivers, and molten salt storage solutions. Regulatory frameworks encourage energy efficiency, low-carbon industrial heat, and public-private collaboration, promoting both utility-scale and research pilot projects.
The CSP market in the UK is expected to grow at a CAGR of 7.9% from 2025 to 2035, focusing on integration with renewable energy grids and industrial energy needs. Pilot and utility-scale projects combine parabolic trough, Fresnel, and central tower technologies with thermal energy storage to balance intermittent solar generation. The UK government provides financial incentives and research grants, accelerating innovation in high-efficiency heat transfer and storage solutions. Partnerships between UK-based EPC contractors and international technology firms improve plant reliability, design, and operational efficiency. CSP deployment supports decarbonization goals in energy-intensive industries, while smart grid integration ensures optimized energy dispatch and reduced curtailment.
The CSP market in the USA is projected to expand at a CAGR of 7.1% between 2025 and 2035, driven by large-scale solar thermal projects in the Southwest, particularly in California, Nevada, and Arizona. Integration of molten salt storage enables dispatchable electricity, supporting grid reliability and renewable energy mandates. Federal and state incentives, including tax credits and renewable energy certificates, facilitate project financing. USA developers are focusing on scaling central receiver and parabolic trough plants while incorporating hybrid PV-CSP systems. Partnerships with international technology providers and R&D institutions enable efficiency improvements, cost reduction, and adoption of next-generation storage and heat transfer solutions for industrial and utility-scale applications.
Competition in the concentrated solar power (CSP) market is defined by plant efficiency, thermal energy storage integration, and grid dispatchability. ACCIONA and ACWA Power lead with large-scale parabolic trough and solar tower projects, emphasizing molten salt storage, low LCOE, and utility-scale reliability. Abengoa S.A., Atlantica Sustainable Infrastructure plc, and Enel Green Power compete through hybrid CSP-PV systems, modular deployment, and high-capacity thermal storage solutions designed for continuous electricity generation. Chiyoda Corporation, Dornier Suntrace GmbH, and GE Renewable Energy differentiate through turnkey engineering, procurement, and construction (EPC) services, advanced heliostat fields, and optimized central receiver technologies. Regional and mid-tier players provide specialized CSP solutions for industrial process heat, research pilot plants, and modular solar thermal projects.
Strategies emphasize collaboration with EPC contractors, technology transfer, and integration with existing grid infrastructure. Advanced heat transfer fluids, high-efficiency heliostat designs, and automated control systems are marketed to improve plant performance and energy dispatchability. Lifecycle service agreements, O&M contracts, and retrofit solutions enable continuous adoption, cost reduction, and reliability improvements across markets. Product brochures are technical and detailed. CSP offerings include parabolic troughs, solar towers, Fresnel collectors, and hybrid PV-CSP systems, with specifications for thermal storage capacity, heat transfer fluid type, receiver efficiency, and plant output. Layout designs, heliostat field dimensions, and molten salt storage parameters are highlighted. Integration guidelines for grid connectivity, thermal storage management, and hybridization with other renewable sources are provided. Performance metrics, maintenance intervals, and operational temperature ranges are included. Regulatory compliance, environmental standards, and project financing options are detailed to reflect a market focused on sustainable, dispatchable solar electricity generation and operational excellence.
| Item | Value |
|---|---|
| Quantitative Units | USD 5.8 billion |
| Technology | Parabolic Trough, Linear FR, and Power Tower |
| Capacity | ≤ 50MW, >50 MW to ≤100 MW, and >100 MW |
| Storage | With Storage and Without Storage |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, Middle East & Africa |
| Country Covered | United States, Canada, Germany, France, United Kingdom, China, Japan, India, Brazil, South Africa |
| Key Companies Profiled | ACCIONA, ACWA Power, Abengoa S.A., Atlantica Sustainable Infrastructure plc, Dornier Suntrace GmbH, Engie, Enel Green Power S.p.A., GE Renewable Energy, Grupo Sener, and TSK |
| Additional Attributes | Dollar sales, share, CAGR, regional adoption trends, plant types (parabolic trough, solar tower, Fresnel), thermal storage integration, grid connectivity, O&M demand, EPC partnerships, and competitive landscape. |
The global concentrated solar power market is estimated to be valued at USD 5.8 billion in 2025.
The market size for the concentrated solar power market is projected to reach USD 13.0 billion by 2035.
The concentrated solar power market is expected to grow at a 8.3% CAGR between 2025 and 2035.
The key product types in concentrated solar power market are parabolic trough, linear fr and power tower.
In terms of capacity, ≤ 50mw segment to command 41.6% share in the concentrated solar power market in 2025.
Explore Similar Insights
Concentrated Solar Power Market
Thank you!
You will receive an email from our Business Development Manager. Please be sure to check your SPAM/JUNK folder too.
Chat With
MaRIA
