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The global concentrated solar power (CSP) market size was USD 2249.2 million in the year 2022. As per our research, the market is expected to reach USD 3832.8 million by 2028, exhibiting a CAGR of 9.3% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market's growth and demand returning to pre- pandemic levels once the pandemic is over.
Concentrated Solar Power (CSP) is a technology that uses mirrors or lenses to focus sunlight onto a small area to generate heat, which is then used to produce electricity. CSP is a form of solar thermal power generation that uses the sun's energy to heat a fluid, typically water, to create steam that drives a turbine to produce electricity. The basic components of a CSP system include solar collectors, a heat transfer system, and a power block. The solar collectors capture the sun's energy and focus it onto a small area, heating up a fluid that flows through them. The heat transfer system then carries the hot fluid to a power block where the thermal energy is converted into electricity. There are several types of CSP technologies, including parabolic trough, linear Fresnel reflector, power tower, and dish/engine systems. Parabolic trough and linear Fresnel reflector systems use long, curved mirrors to focus sunlight onto a pipe filled with a fluid that is heated to produce steam. The steam is then used to power a turbine that generates electricity. Power tower systems use a central tower surrounded by an array of mirrors or heliostats that reflect sunlight onto a receiver at the top of the tower. The receiver contains a fluid that is heated to produce steam, which is then used to generate electricity. Dish/engine systems use a parabolic dish to concentrate sunlight onto a receiver that contains a fluid. The heated fluid is then used to power a heat engine that drives a generator to produce electricity.
The growth of the market can be attributed to the increasing demand for clean energy sources, rising government initiatives for renewable energy development, and technological advancements in CSP systems.
COVID-19 Impact: Pandemic Has Resulted in A Decrease in Demand for Electricity Impeded the Market Growth
The Concentrated Solar Power (CSP) market has been significantly impacted by the COVID-19 pandemic. The pandemic has resulted in a decrease in demand for electricity, which has led to a decline in the demand for new CSP projects. Additionally, supply chain disruptions, travel restrictions, and labor shortages have impacted the construction of existing CSP projects, leading to delays and cost overruns. However, the long-term growth prospects for the market remain positive, as governments around the world continue to prioritize renewable energy development as a key strategy for economic recovery and carbon emissions reduction.
"Increasing Adoption of Thermal Storage Systems to Boost the Market Development"
The concentrated solar power (CSP) market is experiencing several trends that are driving its growth. One of the key trends is the increasing adoption of thermal storage systems in CSP plants, which allows them to generate electricity even when the sun is not shining. This technology can help address the intermittency issue of solar power and provide a more reliable source of electricity. Additionally, advancements in CSP technology are reducing the cost of CSP systems and making them more competitive with other renewable energy sources such as wind and solar photovoltaics.
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- By Type Analysis
According to type, the market can be segmented into Trench Concentrating Solar Power Systems, Tower-type Solar Power Tower Systems, Dish Concentrating Solar Power Systems, Other. Trench Concentrating Solar Power Systems being the leading segment of the market by type analysis.
- By Application Analysis
Based on application, the market can be divided into Generate Electricity, Industrial Heating, Other Generate Electricity being the leading segment of the market by application analysis.
"Increasing Demand for Clean Energy Sources to Drive the Market Growth"
The increasing demand for clean energy sources is driven by several factors. One of the major factors is the growing concern about climate change and the need to reduce carbon emissions. Governments, businesses, and individuals are increasingly recognizing the need to transition to cleaner energy sources to mitigate the effects of climate change. Additionally, the increasing demand for energy due to population growth and economic development is driving the need for new sources of energy that are sustainable and do not deplete natural resources. CSP is a promising solution as it utilizes the energy from the sun to generate electricity without producing greenhouse gas emissions. Moreover, the declining cost of CSP technology is also contributing to the increasing demand for CSP. Over the past decade, the cost of CSP systems has decreased significantly due to advancements in technology and increased economies of scale. This has made CSP more competitive with other renewable energy sources such as wind and solar photovoltaics, particularly in regions with high solar radiation.
"Government Initiatives for Renewable Energy Development to Drive the Market Development"
Government initiatives for renewable energy development are critical in driving the growth of the Concentrated Solar Power (CSP) market. Governments around the world are implementing policies and incentives to promote the adoption of renewable energy sources, including CSP. For example, many countries have set renewable energy targets to reduce their dependence on fossil fuels and meet their climate goals. The European Union has set a target of 32% of renewable energy by 2030, while China aims to generate 20% of its electricity from renewable energy sources by 2025.
"High Capital Cost to Impede the Market Growth"
The high capital cost of CSP systems is one of the main challenges facing the Concentrated Solar Power (CSP) market. The capital cost of CSP systems is higher than that of other renewable energy sources such as wind and solar photovoltaics. This is due to the complex and specialized components required for CSP systems, such as mirrors, receivers, and turbines. However, the cost of CSP systems has been decreasing in recent years, and with technological advancements and increased economies of scale, the cost is expected to continue to decline in the future.
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"The Adoption of Clean Energy Sources and Reducing Carbon Emissions to Bolster the Market Development"
The North American region has been at the forefront of the adoption of clean energy sources and reducing carbon emissions. The region has set ambitious renewable energy targets to reduce greenhouse gas emissions and promote a sustainable future. The increasing adoption of renewable energy sources, including CSP, is driven by the government's initiatives and policies. For instance, the United States has implemented various policies such as the Clean Power Plan and the Investment Tax Credit (ITC), which provides tax credits for the installation of CSP systems. The CSP market in North America is dominated by the United States, followed by Mexico and Canada. In the United States, the CSP market has witnessed significant growth in recent years, driven by large-scale CSP projects in states such as California, Arizona, and Nevada.
The Asia Pacific region is expected to witness significant concentrated solar power (CSP) market growth in the Concentrated Solar Power (CSP) market. The region is home to some of the fastest-growing economies such as China, India, and Japan, which are increasing their focus on renewable energy sources. The region's growing population, rapid urbanization, and increasing energy demand are driving the demand for clean energy sources, including CSP. The Chinese government has set ambitious renewable energy targets and is investing heavily in CSP projects. China is expected to be the largest concentrated solar power (CSP) market share in the region.
Key Industry Players
"Key Players Focus on Partnerships to Gain a Competitive Advantage "
Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolios.
List of Market Players Profiled Players
- BrightSource Energy (U.S.)
- Solar Millennium AG (Germany)
- Abengoa (Spain)
- Orano (France)
- Siemens (Germany)
- Acciona Energy (Spain)
- ESolar (U.S.)
- SolarReserve (U.S.)
- Schott (Germany)
- Wilson Solarpower (China)
- Cool Earth (U.K.)
- Novatec (Switzerland)
- Lointek (Spain)
- NextEra Energy Resources (U.S.)
- Shams Power (U.A.E.)
- ZED Solar (U.S.)
- Absolicon (Sweden)
- Rioglass Solar (Spain)
This research profiles a report with extensive studies that take into description the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, and restraints. This analysis is subject to alteration if the key players and probable analysis of market dynamics change.
|Market Size Value In||US$ 2249.2 Million in 2022|
|Market Size Value By||US$ 3832.8 Million by 2028|
|Growth Rate||CAGR of 9.3% from 2022 to 2028|
|Historical Data Available||Yes|
|Segments Covered||Type and Application|
Frequently Asked Questions
What value is the global concentrated solar power (CSP) market expected to touch by 2028?
The global concentrated solar power (CSP) market is expected to touch USD 3832.8 million by 2028.
What CAGR is the concentrated solar power (CSP) market expected to exhibit during 2022-2028?
The concentrated solar power (CSP) market is expected to exhibit a CAGR of 9.3 % over 2022-2028.
Which are the driving factors of the concentrated solar power (CSP) market?
Increasing demand for clean energy sources and government initiatives for renewable energy development are the driving factors of the concentrated solar power (CSP) market.
Which are the top companies operating in the concentrated solar power (CSP) market?
BrightSource Energy, Solar Millennium AG, Abengoa, Orano and Siemens are the top companies operating in the concentrated solar power (CSP) market.