Concentrated Solar Power Market By Technology (Parabolic Trough, Power Tower, Dish Stirling, Linear Fresnel); By Capacity (Below 50 MW, 50–100 MW, Above 100 MW); By End Use (Utilities, Industrial, Commercial & Others); By Geography, Segment Revenue Estimation, Forecast, 2024–2030.

1. Introduction and Strategic Context

The Global Concentrated Solar Power (Csp) Market will witness a robust CAGR of 11.4% , valued at $6.1 billion in 2024 , and is expected to appreciate and reach $11.6 billion by 2030 , confirms Strategic Market Research.

Concentrated solar power (CSP) is a utility-scale renewable energy technology that uses mirrors or lenses to concentrate sunlight and convert it into thermal energy, which is then used to drive turbines for electricity generation. Unlike photovoltaic (PV) solar systems, CSP allows for thermal energy storage , enabling power generation even when sunlight is unavailable—a critical differentiator in today’s push toward round-the-clock renewable energy supply.

CSP plays a strategic role in the global transition to clean energy by supporting grid stability , reducing dependence on fossil fuels, and facilitating decarbonization of the energy sector. In regions with high solar insolation such as North Africa, the Middle East, southwestern U.S., Australia, and parts of Southern Europe, CSP is increasingly being integrated into national energy plans. It also aligns with long-term sustainability frameworks like the European Green Deal and COP28 climate targets .

The market is propelled by a mix of macro-level forces:

• Technological advances in molten salt storage, heliostat design, and hybrid systems that integrate CSP with photovoltaics or gas turbines.

• Favorable policy incentives , including production tax credits (PTC), feed-in tariffs ( FiTs ), and green bonds for CSP development.

• Energy security concerns , particularly in regions relying on imported fuels, creating demand for indigenous, dispatchable renewables.

• Rising industrial decarbonization targets , as sectors like cement, mining, and heavy manufacturing adopt CSP for process heat.

Key stakeholders driving this market include:

• OEMs and technology providers , responsible for heliostats, receivers, and storage systems.

• Energy utilities and IPPs (Independent Power Producers) , deploying large-scale CSP farms.

• Governments and multilateral funding bodies , supporting infrastructure and financing.

• Investors and venture capitalists , attracted by long-term yield and ESG compliance.

• Construction and EPC contractors , executing complex CSP installations in challenging terrains.

As CSP technology evolves beyond its early-stage limitations, its value proposition is being reshaped around flexibility, hybridization, and sustainability—placing it at the intersection of energy innovation and climate resilience.

 

Concentrated Solar Power (CSP) has quietly re-entered the conversation as a 24/7 clean-power and long-duration storage asset. Global CSP capacity has climbed from about 6.3 GW in 2022 to 6.7 GW in 2023, driven largely by the 400 MW Noor Energy 1 expansion in the UAE, and further to roughly 7.2 GW in 2024 after another 350 MW was added, 250 MW of which was in China.

 

On the revenue side, CSP remains a relatively small but fast-growing slice of the renewables mix. Global CSP revenues in 2024 are in the low-single-digit billions of dollars and are on track to roughly double by 2030, with particularly rapid growth in Asia-Pacific. Within that trajectory, the U.S. market is expected to grow from about USD 1.9 billion in 2024 to around USD 4.4 billion by 2030 at ~15% CAGR, Europe from roughly USD 1.5 billion to about USD 3.0 billion at ~12% CAGR, and APAC from about USD 2.4 billion to nearly USD 6.9 billion at ~19% CAGR.

 

Cost competitiveness has improved materially: global average CSP LCOE fell ~77% between 2010 and 2024 to around USD 0.092/kWh, narrowing the gap versus other renewables and strongly reinforcing the case for CSP-plus-TES in markets seeking firm, zero-carbon capacity.

 

From an engineering and grid-operations standpoint, the key shift since 2023 is that CSP is now being positioned less as “another renewable” and more as long-duration thermal storage. Hybrid CSP-PV-TES complexes such as Noor Energy 1 (700 MW CSP + 250 MW PV with 5.9 GWh of storage, ~12-15 hours) and Dubai’s fourth-phase CSP park are being used explicitly as night-time or peaker replacements.

 

In parallel, China has emerged as the central growth engine, with 8+ GW of CSP projects in various stages of development and commissioning by late-2024 / mid-2025, exceeding the total global installed base, and positioning APAC as the fastest-growing region.

 

Concentrated Solar Power Market Size & Growth Insights

• Global capacity growth 2022–2024. Installed CSP capacity increased from 6.3 GW in 2022 to 6.7 GW in 2023, then to 7.2 GW in 2024, implying ~7% CAGR in capacity despite limited activity outside China and a handful of flagship projects.

• Regional revenue outlook (2024–2030).

  • United States: Revenue expansion from ~USD 1.87 billion in 2024 to ~USD 4.4 billion by 2030, underpinned by IRA-linked tax credits, DOE LDES and Gen3 CSP demonstration programs, and early industrial-heat use cases.

  • Europe: Revenue expected to grow from ~USD 1.53 billion (2024) to ~USD 3.0 billion by 2030, powered by Spain’s planned CSP doubling to 4.8 GW by 2025 and 7.3 GW by 2030, Italy’s 873 MW CSP target by 2030, and repowering of existing Spanish assets.

  • APAC: With China’s CSP pipeline exceeding 8 GW and India, Australia and MENA-linked projects feeding into Asia’s industrial hubs, CSP revenues in the region are poised to nearly triple over 2024–2030, from ~USD 2.4 billion to almost USD 6.9 billion.

• Technology mix evolution. Global operational CSP in 2023 was still dominated by parabolic trough (~76% of capacity), with tower systems at ~21%, linear Fresnel at ~2% and beam-down concepts at ~1%; yet nearly all new multi-hundred-MW projects since 2022 have favoured tower and hybrid trough-plus-tower complexes with large TES.

• Storage-hour distribution. New plants commissioned or under construction since 2023 cluster in the 10–16 hour storage band:

  • Noor Energy 1: 5.9 GWh thermal storage (~12–15 h).

  • Redstone (South Africa): 100 MW tower with 12 hours TES, designed to supply firm evening peak power to ~200,000 households.

  • CSP3 Bilancia (Italy): 4 MW Fresnel with 16 hours of molten-salt storage, a template for high-duration European peaking and hydrogen-linked projects.

These characteristics together position CSP less as a capacity-additions story and more as a value-per-MW story, where each incremental GW carries disproportionately high system value by providing 10–16 hour firm capacity rather than daytime energy only.

 

Updated Key Market Drivers

1. Grid-flexibility and long-duration storage mandates.

   • REN21’s latest status reports stress that global renewables capacity is increasing rapidly but that storage and flexible capacity lag behind, a key bottleneck to integrating >50% variable renewables in power systems.

   • In the U.S., the Long-Duration Energy Storage Demonstration Initiative and California’s USD 270+ million LDES program explicitly call out non-lithium technologies, opening a path for CSP-TES as an eligible long-duration asset class.

2. Policy tailwinds: IRA, EU Green Deal Industrial Plan, APAC national plans.

   • The U.S. Investment Tax Credit under Section 48/48E now provides up to 30% base ITC for qualifying zero-emissions generation and energy storage, with stackable adders (domestic content, energy communities) that can push the total incentive toward 40–50% of capex for some projects.

   • The EU Green Deal Industrial Plan explicitly prioritises net-zero industrial supply chains and long-duration storage; CSP-TES is increasingly discussed in the context of high-temperature process heat and hydrogen production.

   • China’s 14th Five-Year Plan and subsequent CSP-specific policies have underwritten 40+ CSP projects and an >8 GW pipeline, making CSP a central component of multi-energy bases in Qinghai, Gansu, Inner Mongolia and Xinjiang.

3. Industrial heat and hydrogen decarbonisation.

   • EU policy briefs and hydrogen strategies highlight renewable hydrogen and high-temperature heat as critical to decarbonising steel, cement, ceramics and refining.

   • CSP’s ability to deliver 600–800°C heat integrated with TES makes it a strong candidate for green hydrogen electrolysis (high-temperature SOEC), refinery steam and process heat substitution, especially in sun-rich industrial hubs.

4. CSP as “thermal battery” for PV-dominated systems.

   • Global PV capacity surpassed 1.6 TW in 2023, with ~400–450 GW added in that year alone.

   • As PV and wind move toward half of global power generation by 2030, the IEA stresses the need for 1,500 GW of storage capacity, creating a structural pull for long-duration solutions where CSP-TES fits well.

 

Emerging Market Challenges & Restraints

• Cost parity vs PV + batteries. Even with a global LCOE of about USD 0.092/kWh in 2024, CSP still appears more expensive than utility-scale PV (~USD 0.043/kWh) and onshore wind (~USD 0.034/kWh) when viewed on energy cost alone.  Executive buyers therefore must benchmark CSP on system value (firm capacity, inertia, high-temperature heat) rather than on pure energy cost.

• Geographic and land-use constraints. REN21 notes very limited new CSP construction in Europe in 2024, reflecting land-use competition, environmental reviews and community concerns, even as Spain and Italy hold ambitious CSP targets.

• Supply-chain depth outside China & MENA. China’s acceleration means mirrors, heliostats, receivers and molten-salt components are increasingly sourced from Chinese supply chains; Western utilities face dependency concerns and limited local manufacturing unless specific industrial-policy support is established.

• Water use and environmental permitting. Large trough plants like Morocco’s Noor I originally used wet-cooling, with water consumption significantly above that of some fossil plants on a per-kWh basis, prompting a shift toward dry-cooling and hybrid systems in new projects.

• Grid interconnection queues and market design. CSP-TES plants often require multi-GW grid reinforcements and sophisticated dispatch arrangements. Without explicit capacity payment, ancillary services or LDES remuneration, projects struggle to monetise their full system value. REN21’s latest reports underline that storage policies and remuneration schemes lag behind capacity targets in many markets.

 

Trends & Innovations

1. Next-gen supercritical CO2 Brayton cycles.

   • DOE’s Gen3 Particle Pilot Plant (G3P3) at Sandia, supported by ~USD 25 million in federal funding, aims to demonstrate >700°C operating temperatures and high-efficiency sCO2 cycles, with a target cost of heat (with TES) of USD 0.02/kWh-thermal.

2. Advanced TES: sands and solid particles.

   • NREL is piloting sand-based thermal storage designed for up to 100-hour duration, now at a 10-hour demonstration scale, with DOE’s Office of Clean Energy Demonstrations providing USD 4 million. Round-trip efficiency is estimated at 50–52%, but with very low storage media cost, making it suitable for ultra-long-duration applications.

3. High-capacity molten-salt “thermal batteries.”

   • Noor Energy 1’s 5.9 GWh thermal battery is now the largest single TES system in the world, signalling a shift toward CSP plants designed explicitly as long-duration storage assets.

4. Thermochemical storage and industrial coupling.

   • Pilot projects and academic work on thermochemical storage (metal oxides, ammonia cracking, etc.) are increasingly being framed around industrial integration: continuous process heat, hydrogen production, and district heating rather than power alone.

5. Digital twins and AI-optimised heliostat fields.

   • Commercial operators and R&D labs are using digital twin models and AI-driven control to refine heliostat aiming strategies, minimise soiling/losses and boost annual yield. REN21 and NREL highlight that generation from existing Spanish CSP plants has steadily increased as operators learn to optimise operation and maintenance via data analytics.

 

Competitive Landscape

The competitive field since 2023 has shifted from “stand-alone CSP developers” to integrated consortia:

• EPC & integrated IPPs operate mega-projects like Noor Energy 1 and Redstone, combining PV, CSP and TES in bundled long-duration IPP models selling firm power blocks rather than commodity energy.

• TES specialists (molten salts, solid particles, sands) are emerging as distinct partners, supplying storage systems that could be coupled not only with CSP but also with nuclear, geothermal, and excess renewables.

• Industrial-heat developers are shaping a new CSP customer set: refineries, chemical plants, mining operations in Australia, MENA and South Africa, often supported by country-level industrial decarbonisation schemes.

For board-level stakeholders, the emerging pattern is “CSP as a platform”: IPPs + TES vendors + industrial offtakers + sovereign/LDES funds co-developing multi-service assets (power + heat + hydrogen).

 

United States Concentrated Solar Power Market Overview

• Policy & funding.

  • 30%+ ITC for clean generation and energy storage, with adders for domestic content and energy communities, materially improves economics for CSP-TES in the Southwest.

  • DOE’s Gen3 CSP program and LDES Demonstration Initiative signal long-term federal backing for high-temperature CSP and long-duration storage.

• Grid & deployment.

  • As Western grid interconnections move toward higher PV penetration, CSP-TES is increasingly evaluated as an alternative to gas peakers + batteries, given its capability for >10 hours dispatchable output and synchronous generation.

 

Europe Concentrated Solar Power Market Overview

• Spain: Still the largest single CSP market (~2.3 GW, mostly trough), with policy targeting 4.8 GW by 2025 and 7.3 GW by 2030, primarily to support grid balancing, industrial steam and future hydrogen projects.

• Italy: CSP capacity remains below 10 MW today, but the CSP3 Bilancia 4 MW Fresnel plant with 16 hours storage is a pivotal demonstration for future 873 MW CSP by 2030 under the NECP, particularly for hybrid PV-CSP-hydrogen hubs in southern Italy.

• Other EU markets (Greece, Portugal) are testing CSP primarily in hybrid configurations and repowering contexts rather than greenfield stand-alone plants, constrained by land and permitting.

 

APAC Concentrated Solar Power Market Overview

• China:

  • Installed CSP capacity ~1.14 GW by mid-2025, with >8 GW pipeline and 40 projects under construction or commissioning.

  • Provincial policies in Qinghai, Gansu, Inner Mongolia, Xinjiang offer feed-in tariffs around CNY 0.55/kWh and grid-priority for CSP projects integrated into giga-scale renewable bases.

• India:

  • National analysis indicates global CSP capacity grew from ~1 GW in early 2010s to ~6.2 GW in 2023, reinforcing India’s interest in CSP-with-storage for industrial process heat and round-the-clock renewable power.

  • Policy dialogues (MNRE, CEA, think-tanks) emphasise CSP-TES for peaking support and industrial clusters, especially where land and DNI justify thermal solar.

• Australia & MENA:

  • CSP-TES is being integrated with mining operations and remote grids in Australia and with mega-projects like Noor Ouarzazate (Morocco) and the Dubai MBR Solar Park, including 700 MW CSP + 250 MW PV and 15-hour storage.

 

Segmental Insights

By Technology Type

• Parabolic Trough: Still ~76% of global capacity but largely in legacy plants; most new large-scale capacity favours hybrid trough + tower configurations.

• Solar Tower + Heliostats: Growing in share, driven by higher operating temperatures (>550–700°C) and better integration with advanced TES and sCO2 cycles (e.g., Redstone, Noor III, Sandia G3P3).

• Linear Fresnel: Still niche but showcased by CSP3 Bilancia (4 MW, 16 h storage) as a lower-cost, high-duration option for industrial heat and small hybrid projects.

• Dish/Stirling / Beam-down: Remain demonstration-scale, more relevant for industrial heat and R&D than grid-scale power at present.

• Hybrid CSP-PV-TES: Flagship projects like Noor Energy 1 (700 MW CSP + 250 MW PV) demonstrate the bankability of fully hybrid architectures, optimising capex and dispatch.

By Storage

• Molten-salt TES (2–18 h): Standard for utility CSP, with plants like Noor Ouarzazate and Noor Energy 1 offering 7–15 h storage windows.

• Solid-particle TES: Emerging via G3P3 at Sandia, targeting >700°C and very low storage cost per kWh-thermal.

• Ultra-long-duration solid media (sand). NREL’s 100-hour sand-based TES is a potential game-changer for multi-day grid balancing and seasonal storage.

• Hybrid batteries + thermal storage: Still early, but conceptually attractive for fast-response plus long-duration stacks, especially in isolated grids.

By Application

• Utility-scale power: Still the dominant application, with CSP-TES acting as night-time baseload or peaker replacement in MENA, South Africa, Spain and China.

• Industrial steam & process heat: At least 70% of announced solar heat projects for 2023–26 use trough, Fresnel or dish collectors, underscoring CSP’s rising share in industrial steam decarbonisation.

• Desalination & water. CSP-TES is being evaluated for co-located power + heat for desalination in high-DNI, water-stressed regions.

• Green hydrogen. CSP-driven high-temperature heat is a natural partner for renewable hydrogen production, especially for SOEC and process-integrated electrolysis in Europe and MENA.

By End User

• Utilities & grid operators: focus on firm capacity, resource adequacy, and LDES.

• IPPs / hybrid developers: monetise CSP as part of broader renewable clusters, often backed by sovereign wealth funds or multilateral banks.

• Industrial operators (refining, chemicals, mining, cement): use CSP primarily for process heat and steam, sometimes coupled with on-site hydrogen production.

• Government energy agencies: use CSP projects as flagship demonstrations for national decarbonisation strategies.

 

Investment & Future Outlook

• Investment flows. REN21’s 2024/2025 updates imply modest absolute but high-impact CSP investment, with hundreds of millions of dollars channelled into a few mega-projects (Noor Energy 1, Redstone, MBR 4th phase) and tens of millions into R&D pilots such as G3P3 and sand-based TES.

• Sovereign and multilateral finance. Sovereign wealth funds in UAE, Saudi Arabia, Morocco and development banks (World Bank, AfDB, EIB) remain central, structuring long-dated PPAs and concessional loans for CSP-TES.

• Corporate PPAs & industrial offtake.

  • Redstone and similar projects demonstrate industrial and municipal offtakes for firm evening power.

  • For industrial CSP heat, offtakers are emerging in mining, food & beverage, and light manufacturing, particularly in high-DNI regions.

• 2024–2030 direction. Given the moderate capacity pipeline but strong policy alignment on long-duration storage, CSP is likely to grow as a specialist 24/7 asset class, with double-digit revenue growth concentrated in U.S., APAC (China + India + Australia), Spain, Italy and selected MENA markets, while still representing a small share of total renewables capacity.

 

Evolving Landscape

Three shifts since 2023 stand out:

1. From “solar plant” to “storage infrastructure.” CSP-TES plants are now often contracted and discussed as thermal batteries, providing capacity, ramping and inertia services alongside energy.

2. From power-only to heat + power + hydrogen. Policy frameworks in the EU and APAC increasingly integrate industrial heat and hydrogen with renewable deployment, positioning CSP as a multi-vector energy hub technology.

3. From monolithic to hybrid architectures. Flagship systems now combine PV, CSP and TES, leveraging PV’s ultra-low daytime LCOE and CSP’s high-value dispatchable profile (e.g., Noor Energy 1, MBR 4th phase).

 

R&D & Technology Pipeline

• High-temperature receivers and sCO2 cycles.

  • Gen3 CSP targets >700°C receivers and high-efficiency sCO2 Brayton cycles, with construction underway at Sandia’s National Solar Thermal Test Facility.

• Corrosion-resistant molten salts and new chemistries.

  • R&D focuses on chloride-based and ternary molten salts to raise operating temperatures and reduce freeze risk, supported by work at NREL, Sandia and European labs.

• Particle-based TES and sand media.

  • Particle receivers and sand TES are advancing from lab to pilot demonstrations with multi-day storage objectives, suited for high-DNI, land-rich locations and grid-scale LDES.

• Digitalisation and O&M optimisation.

  • Empirical data from Spain’s CSP fleet shows steady increases in annual generation as operators refine control strategies and reduce downtime using digital tools.

 

Regulatory Landscape

• United States:

  • The IRA-enhanced Section 48 ITC now provides 30% base credits for energy property, including co-located energy storage, with stackable bonuses; final regulations in 2024–2025 clarified eligibility for storage technologies and co-located assets, improving bankability for CSP-TES projects.

  • DOE’s LDES and OCED programs are explicitly designed to de-risk non-battery storage, favouring CSP-TES demonstration and replication.

• Europe:

  • The Green Deal Industrial Plan and renewable hydrogen / REDIII revisions emphasise high-temperature renewable heat, giving CSP a potential regulatory pull as projects link to hydrogen and industrial decarbonisation.

  • National energy and climate plans (NECPs) in Spain and Italy embed specific CSP capacity targets (e.g., Spain 7.3 GW, Italy 873 MW by 2030).

• APAC & MENA:

  • China’s provincial policies for CSP (e.g., feed-in tariffs around CNY 0.55/kWh and no obligation to participate in power markets for designated demonstration projects) create predictable revenue streams and catalyse supply-chain localisation.

  • MENA countries continue using sovereign-backed tenders and long-term PPAs for hybrid PV-CSP-TES complexes, as demonstrated by Dubai’s MBR Solar Park and Morocco’s Noor complex.

 

Pipeline & Competitive Landscape

• New EPC & developers:

  • Multiple Chinese EPCs and IPPs have entered CSP through 14th Five-Year Plan demonstration projects, increasing competition and driving down tower and heliostat costs in APAC.

  • In Europe, smaller engineering firms are specialising in Fresnel and industrial-heat CSP (e.g., CSP3 Bilancia), aligned with more distributed industrial demand.

• New TES-focused startups:

  • Startups around sand-based and particle TES and around repurposing oil & gas assets for thermal storage are emerging, often financed through IRA-enabled tax equity and LPO programmes.

• Hybrid CSP-PV developers:

  • Integrated developers in the Gulf and North Africa are now standardising hybrid CSP-PV-TES blocks, positioning these consortia as preferred partners for global utilities seeking 24/7 renewable solutions.

 

Market Outlook: Global, U.S., Europe & APAC

• Global: CSP capacity growth remains modest in GW, but high in value: each incremental project is likely to be a large-scale, high-storage plant with multi-hour TES, supporting system reliability and industrial-heat decarbonisation.

• United States: Expect selective but high-impact projects in the Southwest and industrial corridors, leveraging 30%+ ITC, LDES funding and Gen3 technology. Revenue could more than double by 2030, with CSP seen as a strategic complement to massive PV and wind build-out.

• Europe: CSP will remain niche but strategic, concentrated in Spain, Italy, Greece and Portugal, anchored in 7–15 h storage and industrial / hydrogen use cases. NECP targets imply a resurgence in the late-2020s, contingent on permitting and market-design reforms that reward long-duration storage.

• APAC: APAC is the volume growth engine, led by China’s 8+ GW pipeline and emerging interest in India and Australia. CSP will increasingly be integrated into multi-energy bases and industrial parks, providing both power and process heat.

Storage-hour trends will skew toward 10–17 hours as systems are optimised for evening and overnight peaks and for process-heat operation beyond solar hours.

 

Strategic Landscape: M&A, Partnerships & Collaborations

• EPC–utility alliances in MENA and South Africa underpin mega-projects like Redstone and MBR’s 4th phase, aligning IPPs, EPCs and utilities around long-tenor PPAs.

• Hybrid PV-CSP collaborations are increasingly standard, as PV developers seek to bolt on CSP-TES for firming and new revenue streams from capacity and ancillary services.

• TES technology partnerships link CSP developers with molten-salt, particle and sand TES providers, as well as with industrial hydrogen and thermal-storage pilots funded under LDES or hydrogen IPCEI frameworks.

• International R&D consortia (NREL, Sandia, European labs, Chinese institutes) are coordinating on receiver materials, TES, and sCO2 cycles, effectively setting the technology roadmap for Gen3/Gen4 CSP.

 

Strategic Recommendations for Industry Leadership

1. Prioritise hybrid CSP-PV-TES clusters.

   • Design CSP primarily as long-duration storage + high-temperature heat, co-located with GW-scale PV and wind; optimise plant design for 10–16 h TES and capacity payments, not just energy sales.

2. Invest in Gen3 R&D and supply chains.

   • Support and adopt >700°C receivers, sCO2 turbines, and next-gen molten salts/particles, building internal competencies and partnerships with Sandia, NREL, and European labs.

3. Align with long-duration storage and hydrogen policies.

   • In the U.S., actively leverage ITC/LDES programmes; in the EU, align projects with hydrogen and industrial decarbonisation frameworks; in China/APAC, position CSP as a core element of multi-energy bases.

4. Target industrial-heat hubs (600–800°C).

   • Focus CSP deployment on steel, cement, cer­amics, refining and mining clusters in high-DNI regions, structuring long-term offtake contracts for heat, power and hydrogen, rather than wholesale electricity alone.

5. Build sovereign-fund and development-finance partnerships.

   • Use sovereign funds and MDBs to de-risk first-of-a-kind or large hybrid CSP-PV-TES assets, especially in APAC, MENA and Africa, replicating Noor and MBR financing structures.

 

Key Takeaways (Board-Level)

1. Value, not volume: CSP will remain small in GW but large in system value, providing 10–16 hours of flexible, dispatchable clean power and heat.

2. Regional focus: Growth is concentrated in China, Spain, Italy, MENA, South Africa and select U.S./Australian sites, with APAC as the primary volume engine and the U.S./EU as technology and policy leaders.

3. Technology inflection: Gen3 CSP (high-temperature receivers, sCO2 cycles, advanced TES) and sand/particle storage are moving from R&D into demonstration, with clear cost and performance targets.

4. Policy tailwinds: IRA, EU Green Deal Industrial Plan, NECP CSP targets, and China’s 14th Five-Year policies collectively underpin CSP’s role as a long-duration storage and industrial-heat solution.

5. Strategic positioning: Utilities, IPPs and industrials that move early to structure hybrid CSP-PV-TES + industrial heat / hydrogen hubs will be best placed to capture high-margin, policy-aligned decarbonisation opportunities through 2030 and beyond.

 

From 2023 to 2025, CSP has evolved from a niche, high-cost solar technology into a strategic long-duration storage and high-temperature heat platform, with improving economics (LCOE ~USD 0.092/kWh), deepening TES capabilities (10–16 h typical, 100-hour pilots in development), and a regionally concentrated but robust project pipeline—particularly in China, MENA, Spain, Italy, South Africa and select U.S. and Australian markets.

 

For C-suite decision-makers, the key is to treat CSP not as a competitor to PV, but as a complementary asset that delivers firm capacity, grid services, industrial heat, and hydrogen-compatible temperatures, all underpinned by increasingly favourable policy frameworks for long-duration storage and industrial decarbonisation.

 

2. Market Segmentation and Forecast Scope

The global concentrated solar power market is segmented across four key dimensions: By Technology , By Capacity , By End Use , and By Region . This segmentation structure enables detailed forecasting and strategic insight into both emerging and established sub-markets from 2024 to 2030.

By Technology

CSP systems vary based on the optical and thermal configurations used to concentrate and convert solar energy. The primary technologies include:

• Parabolic Trough : The most widely adopted design, this technology uses curved mirrors to focus sunlight onto a receiver tube. It is known for its commercial maturity and proven scalability .
• Power Tower (Central Receiver) : Employing a field of heliostats to direct sunlight to a central receiver, this technology achieves higher thermal efficiency and supports larger-scale thermal storage , making it the fastest-growing segment .
• Dish Stirling Systems : Compact systems with high-efficiency conversion, typically suited for off-grid or modular deployment .
• Linear Fresnel Reflector : A cost-effective alternative using flat mirrors; however, it trails in efficiency compared to troughs and towers.

In 2024, the parabolic trough segment holds an estimated 52.6% share of global revenue, while power tower systems are expected to grow at a CAGR of over 13.2% during the forecast period.

By Capacity

CSP plants are scaled based on generation capacity, which directly impacts investment profiles, operational complexity, and land use.

• Less than 50 MW : Typically found in demonstration projects or remote installations.
• 50–100 MW : Suited for regional utilities or hybridized industrial operations.
• Above 100 MW : Utility-scale mega projects, often integrated with molten salt thermal storage for dispatchability .

Systems above 100 MW dominate new deployments in regions like North Africa and the Middle East, where expansive land and solar resources are abundant.

By End Use

CSP has applications beyond grid power generation, with increasing adoption across industrial and hybridized energy sectors:

• Utilities : Core customer segment, deploying CSP for bulk power and renewable energy integration.
• Industrial (Process Heat) : Emerging use case in cement, mining, and chemical industries for high-temperature process heat.
• Commercial & Others : Includes research institutions and military deployments in off-grid locations.

While utilities represent the dominant end user in 2024, industrial applications are expected to expand rapidly, particularly in energy-intensive regions with decarbonization mandates.

By Region

Geographic segmentation reveals CSP’s alignment with solar-rich, infrastructure-ready markets. Coverage includes:

• North America : U.S., Mexico
• Europe : Spain, Italy, France, Greece
• Asia Pacific : China, India, Australia
• LAMEA : UAE, Saudi Arabia, South Africa, Morocco, Chile

Europe maintains early mover advantage due to Spain’s mature CSP infrastructure, but Asia Pacific and MENA regions are forecasted to register the highest growth rates through 2030, driven by greenfield projects and national energy diversification.

3. Market Trends and Innovation Landscape

The concentrated solar power (CSP) market is undergoing a pivotal transformation shaped by breakthroughs in storage technologies, materials engineering, and hybrid systems integration. These trends are not only reducing the levelized cost of energy (LCOE) but also repositioning CSP as a cornerstone of 24/7 renewable power delivery .

Thermal Storage Breakthroughs

The most defining trend in CSP innovation is the advancement of molten salt thermal storage , which enables heat retention for up to 15 hours. This allows CSP plants to dispatch power long after sunset, a unique advantage over solar PV. Research into next-gen storage media such as liquid air, ceramic particles, and phase-change materials (PCMs) is also gaining traction, aiming to improve thermal conductivity and reduce cost.

“Storage-enhanced CSP is now being viewed as a flexible, baseload-ready alternative to natural gas peakers in arid regions,” notes a renewable energy systems engineer at a leading EU infrastructure firm.

Hybridization with PV and Hydrogen

A major trend is the emergence of hybrid CSP-PV systems , where photovoltaic panels handle daytime load and CSP provides dispatchable energy. This hybrid model optimizes grid reliability and reduces curtailment losses . Additionally, pilot projects are demonstrating CSP’s capability in green hydrogen production through high-temperature electrolysis—an area expected to scale significantly by 2030.

AI-Powered Operations and Digital Twin Adoption

Leading CSP developers are deploying AI algorithms for heliostat field optimization , predictive maintenance, and thermal flow control. The use of digital twins —virtual replicas of plant systems—is becoming standard in new projects to simulate performance, predict failures, and streamline commissioning.

“AI-driven predictive control is improving CSP plant efficiency by as much as 9–11%, while also reducing downtime risk,” says an operations manager at a North African power utility.

Material Science and Reflector Innovation

Next-generation heliostat coatings with anti-soiling and hydrophobic properties are extending mirror lifecycles and reducing cleaning requirements in desert environments. Innovations in receiver tube alloys and absorber coatings are also enhancing thermal capture while withstanding extreme temperatures (>550°C), improving overall plant thermal-to-electric conversion efficiency.

Strategic Partnerships and Global R&D Networks

The CSP market has witnessed increased public-private R&D consortia and bilateral collaborations, especially between Europe and MENA countries. Notable examples include:

• EU Horizon 2020 programs funding CSP-thermal storage integrations.
• Sino-MENA partnerships in tower-based CSP projects.
• Australian CSP+Hydrogen testbeds pushing into dual-output systems.

Furthermore, EPC companies and IPPs are collaborating with AI startups and storage tech firms to deliver turnkey CSP solutions tailored to site-specific conditions.

4. Competitive Intelligence and Benchmarking

The global concentrated solar power market features a blend of long-standing engineering conglomerates and emerging clean-tech firms. These players compete across dimensions such as project scale, thermal efficiency, storage integration, and regional expertise . Strategic differentiation is increasingly tied to digitalization, hybridization, and cost-reduction innovations.

Key Players and Strategic Profiles

Abengoa S.A. A pioneer in CSP deployment, Abengoa has built over 2 GW of installed CSP capacity worldwide, with a strong focus on parabolic trough and tower technologies . Although it has undergone recent financial restructuring, the company remains influential due to its EPC capabilities and operational experience in arid climates .

ACWA Power A leading utility-scale developer based in Saudi Arabia, ACWA Power commands significant influence in the MENA region , particularly through landmark projects like Noor Energy 1 (950 MW, UAE) . Its core strategy involves low-cost financing , strategic public partnerships, and storage-centric CSP systems optimized for peak-load delivery.

BrightSource Energy Headquartered in the U.S., BrightSource focuses on tower-based CSP systems using advanced heliostat fields. Known for its Ivanpah Solar Electric Generating System in California, the firm emphasizes high-efficiency receivers and real-time heliostat control algorithms .

TSK Flagsol Engineering GmbH A joint venture between German and Spanish firms, TSK Flagsol specializes in parabolic trough and hybridized systems . With a strong project base in North Africa and Latin America, the firm leverages European engineering standards to deliver bankable CSP assets .

SENER Grupo de Ingeniería SENER combines CSP plant development with proprietary technology. The company’s Gemasolar project in Spain was one of the world’s first grid-scale CSP plants with molten salt storage , positioning SENER as a technological innovator in the segment.

Shanghai Electric Group This Chinese industrial giant has rapidly emerged as a dominant force in CSP , particularly through its work on the Delingha and Dubai projects . The firm focuses on turnkey EPC delivery backed by domestic manufacturing scale, allowing for cost-competitive deployment across Asia and MENA .

Aalborg CSP A Denmark-based player with a strong focus on industrial-scale solar heat and multi-technology integration , Aalborg CSP designs modular systems for desalination, heating, and power generation. Its strength lies in tailored thermal systems and R&D into next-gen salt chemistries .

Strategic Differentiators

“The competitive race is now about who can deliver CSP at sub-$0.05/kWh while offering firm capacity and grid resilience,” notes an energy policy advisor with the International Renewable Energy Agency (IRENA).

5. Regional Landscape and Adoption Outlook

Regional dynamics play a decisive role in shaping the growth trajectory of the concentrated solar power (CSP) market , as deployment hinges on solar irradiance, land availability, policy frameworks, and grid readiness . While global interest in CSP is increasing, development remains highly concentrated in solar-rich, policy-enabled geographies .

North America

The U.S. was an early leader in CSP, driven by favorable solar resources in the Southwest (California, Nevada, Arizona) and generous federal tax credits . The region hosts flagship plants like Ivanpah ( BrightSource ) and Solana ( Abengoa ) , both integrating thermal storage. However, growth has plateaued due to competition from PV and natural gas.

Nonetheless, the Inflation Reduction Act (IRA) of 2022 has revived interest by extending investment tax credits (ITC) for thermal storage-enabled systems , making CSP viable again, particularly in hybrid projects. “We expect a new generation of hybrid CSP+PV+storage assets in western states by 2027,” notes a senior official at the U.S. Department of Energy.

Europe

Spain remains the undisputed European leader, with over 2 GW of installed CSP capacity and a mature ecosystem of EPCs, technology providers, and operators. The country is also exploring repowering of aging plants with next-gen receivers and updated thermal storage. Greece and Italy are emerging as secondary hubs, supported by EU Green Deal grants and carbon-neutral targets.

Spain’s strategic integration of CSP with district heating and agro-industrial energy supply presents a replicable model for other Mediterranean countries.

Asia Pacific

Asia Pacific is the fastest-growing CSP market, led by China , India , and Australia .

• China is scaling rapidly under its CSP Demonstration Program , with dozens of projects in the pipeline across Qinghai, Gansu, and Inner Mongolia. Shanghai Electric’s large-scale deployments are driving down cost per megawatt.
• India is testing CSP in hybrid solar thermal parks in Rajasthan and Gujarat, especially to address peak evening demand and integrate with industrial operations.
• Australia is investing in CSP for off-grid mining operations and piloting solar-thermal hydrogen generation , showing a clear orientation toward industrial decarbonization .

LAMEA (Latin America, Middle East, and Africa)

This region exhibits the highest potential for large-scale CSP due to abundant direct normal irradiance (DNI), available land, and long-duration storage needs .

• Morocco has become a global CSP icon with its Noor Ouarzazate complex , which combines multiple technologies and multi-hour storage.
• South Africa supports CSP through its Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) and is evaluating CSP to address grid instability.
• In the Middle East , the UAE and Saudi Arabia are deploying multi-hundred-megawatt hybrid plants as part of broader energy diversification efforts.

“CSP with storage offers exactly what desert nations need: firm, renewable power that can run at night—making it a pillar of post-oil energy strategies,” emphasizes an energy analyst at the Middle East Solar Industry Association.

White Space & Underserved Regions

While CSP thrives in solar-abundant geographies, many emerging economies in Central Asia, parts of Latin America, and North Africa remain underserved due to limited financing, grid infrastructure gaps, and policy inertia . These markets present long-term investment opportunities as global climate finance becomes more accessible.

6. End-User Dynamics and Use Case

The concentrated solar power (CSP) market serves a diverse set of end users, each with distinct operational needs, return-on-investment expectations, and energy consumption profiles. CSP’s unique ability to provide dispatchable renewable electricity and high-temperature process heat makes it particularly valuable to utilities and heavy industries navigating carbon reduction mandates.

Key End-User Segments

1. Utilities and Independent Power Producers (IPPs)

By far the largest and most mature end-user segment, utilities and IPPs are investing in CSP for grid-scale power generation in solar-rich regions. The value proposition lies in peak shaving, grid balancing, and baseload supplementation , especially in remote or unstable grid environments.

For utilities operating in desert climates, CSP with 10–15 hours of thermal storage enables night-time dispatch, making it a reliable fossil fuel alternative.

2. Industrial Users (Process Heat and Hybrid Systems)

Industries that require high-temperature thermal energy —such as cement manufacturing, mining, chemicals, and food processing —are beginning to integrate CSP to decarbonize their heat-based operations. With CSP capable of delivering heat above 400°C, it serves as a sustainable substitute for natural gas and coal boilers.

This segment is expected to witness the fastest growth through 2030, especially in developing countries where industries account for a large share of total energy consumption.

3. Commercial, Research, and Off-Grid Installations

This includes smaller-scale, modular CSP deployments in academic institutions, military facilities , or off-grid research stations . These use cases typically prioritize energy independence and decarbonization in isolated settings.

Modular dish Stirling systems, for instance, are ideal for island nations and scientific installations operating without access to grid infrastructure.

Representative Use Case: Industrial CSP Deployment in South Korea

A leading steel manufacturer in South Korea integrated a 30 MW CSP tower system with molten salt storage into its secondary steel processing unit. The plant previously relied on liquefied natural gas (LNG) for thermal energy during the casting and rolling stages, which contributed heavily to operational emissions.

With CSP integration:

• Thermal energy is now sourced during daylight hours and stored for nighttime processes.
• CO2 emissions were reduced by over 42,000 tons annually .
• Peak electricity demand was reduced by 17% , allowing the company to offset tariff risks.
• The project received national carbon credit incentives , and the company projected full ROI in under 7.5 years .

This deployment demonstrates CSP's practical role in industrial decarbonization and energy cost containment in high-value manufacturing sectors.

7. Recent Developments + Opportunities & Restraints

Recent Developments (Last 2 Years)

• ACWA Power Completed Phase 4 of the Mohammed bin Rashid Al Maktoum Solar Park (UAE ) This 950 MW hybrid solar project includes 700 MW of CSP capacity with 15 hours of molten salt storage , making it the largest CSP plant globally. It positions the UAE as a leader in dispatchable renewable energy.
• China’s Jinta ZhongGuang Solar Power Station Connected to the Grid (2023) A 100 MW power tower CSP plant was commissioned in Gansu, China, with 11 hours of thermal storage and an expected annual generation of 390 GWh .
• Australia’s Vast Solar Secured Funding for Hybrid CSP-Hydrogen Plant Backed by the Australian Renewable Energy Agency (ARENA), Vast Solar is building a 30 MW CSP tower facility with plans for green hydrogen co-production in Port Augusta.
• BrightSource Energy Partnered with Israeli Defense Ministry on Off-Grid CSP Deployment A custom CSP system was installed to power off-grid, secure installations in desert terrain, combining real-time heliostat tracking with modular dish systems.

Opportunities

• Emerging Industrial Applications for High-Temperature Heat As industries decarbonize, CSP is emerging as the only scalable, zero-emission source of process heat above 400°C —particularly in cement, mining, and metallurgy .
• Green Hydrogen Integration High-temperature CSP can enable thermochemical water splitting and solid oxide electrolysis , helping nations meet green hydrogen mandates under the REPowerEU and Hydrogen Shot initiatives.
• Government Funding and Climate Finance Global climate funds, green bonds, and export credits are increasingly targeting CSP in emerging economies , particularly in Africa and South Asia, unlocking multi-GW potential.

Restraints

• High Capital Costs and Financing Complexity CSP projects require substantial upfront investment, often exceeding $4 million per MW , making them reliant on public-private partnerships and sovereign guarantees .
• Skilled Labor and O&M Limitations CSP systems are mechanically and thermally complex , requiring specialized operations teams , which limits adoption in countries with weak technical education infrastructure.

 

Report Coverage Table

Report Attribute	Details
Forecast Period	2024 – 2030
Market Size Value in 2024	USD 6.1 Billion
Revenue Forecast in 2030	USD 11.6 Billion
Overall Growth Rate	CAGR of 11.4% (2024 – 2030)
Base Year for Estimation	2024
Historical Data	2019 – 2023
Unit	USD Million, CAGR (2024 – 2030)
Segmentation	By Technology, By Capacity, By End Use, By Region
By Technology	Parabolic Trough, Power Tower (Central Receiver), Dish Stirling Systems, Linear Fresnel Reflector
By Capacity	Less than 50 MW, 50–100 MW, Above 100 MW
By End Use	Utilities, Industrial (Process Heat), Commercial & Others
By Region	North America, Europe, Asia Pacific, LAMEA
Country Scope	U.S., Mexico, Spain, Italy, France, Greece, China, India, Australia, UAE, Saudi Arabia, South Africa, Morocco, Chile
Market Drivers	- Advances in storage & heliostat tech - Policy incentives (PTC, FiTs, Green Bonds) - Energy security & fossil fuel substitution - Industrial decarbonization targets
Customization Option	Available upon request