June 19, 2024

Concentrated Solar Power Market is expected to be Flourished by Increasing Demand for Renewable Energy Sources

There are several concentrating solar thermal technologies, such as parabolic troughs, compact linear Fresnel reflectors, stirling dishes, and solar power towers. Parabolic troughs and solar power towers are the most developed and commonly used CSP technologies. Parabolic trough technologies use trough-shaped parabolic reflectors and receiver tubes located at the focal point of the reflectors to heat a working fluid such as oil. While solar power towers use arrays of flat, sun-tracking mirrors called heliostats to focus sunlight onto receivers placed on tall towers. The concentrated heat is then used as a heat source for steam-driven electrical generators or turbines. CSP technologies provide an excellent way of storing solar energy as thermal heat for several hours using molten salt even when the sun is not shining.

The global Concentrated Solar Power Market is estimated to be valued at US$ 6.76 Mn in 2023 and is expected to exhibit a CAGR of 5.1% over the forecast period 2024 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

One of the key drivers boosting the global concentrated solar power market growth over the forecast period is the increasing demand for renewable energy sources. With growing concerns about climate change and air pollution from fossil fuel-based power generation, many countries are switching to cleaner renewable energy sources such as solar and wind power. Solar and wind energy play an important role in transitioning towards cleaner power sources. CSP systems provide an attractive renewable energy option as the heat generated can be used to produce steam and power turbines to generate clean electricity even after sunset using cost-effective thermal storage provided by molten salts. This makes CSP technology a reliable renewable energy alternative to fossil fuel power plants. Further, improving technologies, rising investments in CSP projects from private and public sector, and favorable government policies and incentives provided in many countries are also expected to propel the global concentrated solar power market during the forecast period.

Segment Analysis
The concentrated solar power market is primarily segmented into type and application. Based on type, parabolic trough systems dominate the market with around 52% share in 2021. Parabolic trough systems are cost-effective and suitable for generation of thermal energy at temperatures up to 400°C and hence widely adopted across utilities sector.

PEST Analysis
Political: Governments across key countries are introducing favorable policies and regulatory frameworks to promote renewable energy adoption. Subsidies and tax incentives are being provided for concentrated solar power projects.
Economic: Concentrated solar power can help reduce dependency on imported fuels for generating electricity and offer long term energy price stability. It reduces transmission and distribution costs for utilities.
Social: Population growth and rapid urbanization is increasing electricity demand globally. Concentrated solar power is considered environment friendly and contributes to meeting countries’ renewable energy targets.
Technological: Advanced technologies like linear Fresnel reflectors and solar towers are being developed to improve thermal efficiencies. Thermal storage technologies allow generation during night hours, enhancing capacity factors.

Key Takeaways
The Global Concentrated Solar Power Market Size  is expected to witness high growth at a CAGR of 5.1% during the forecast period of 2024 to 2030 to reach a market size of US$ 8.24 billion by 2030.

Regional analysis: The Middle East region is expected to continue dominating the concentrated solar power market during the forecast period as well. Countries like UAE and Saudi Arabia are developing large concentrated solar power projects to diversify their energy mix. Egypt has emerged as a major market with projects like Benban Solar Park operational.

Key players: Key players operating in the concentrated solar power market are Airbus Group, Alcoa Corporation, Arconic Corporation, Boeing, Bombardier Inc., Collins Aerospace, Elbit Systems Ltd.These companies are focusing on expanding project installation and execution capabilities globally through partnerships.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it