Global Concentrated Solar Power Market Size Likely to Grow at a CAGR of 14.5% By 2035
Ayush KadamSr. Research AnalystPublished Source Custom Market InsightsKey highlights
- What sets CSP apart from other renewables is thermal storage, which lets a plant deliver power on demand rather than only while the sun is up.
- By Product Type Parabolic trough systems held the largest share of installed capacity in 2025.
- Europe and the Middle East & Africa lead key segments of the CSP market.
Overview
The global concentrated solar power market size was estimated at USD 7.90 billion in 2025 and will grow with a CAGR of 14.5% from 2026 to 2035, reaching USD 30.60 billion by 2035.
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Concentrated Solar Power Market Revenue and Trends
Concentrated solar power uses mirrors or lenses to focus sunlight onto a receiver, producing high-temperature heat that can generate electricity, drive industrial processes, or be stored for later use. The main technologies are parabolic trough, solar power tower, linear Fresnel, and dish Stirling.
What sets CSP apart from other renewables is thermal storage, which lets a plant deliver power on demand rather than only while the sun is up. Growth is being driven by demand for clean but dispatchable electricity, continued investment in renewable infrastructure, supportive government policy, the rise of hybrid solar projects, and steady progress in storage media and high-temperature materials.
What are the Factors That Have a Significant Contribution to the Growth of the concentrated solar power market?
Grids that have added large amounts of solar PV and wind now need generation they can call on, and that is where CSP fits. Decarbonisation targets, energy security concerns, and the value placed on long-duration thermal storage have all lifted demand. Industry reporting points to consistent use in utility-scale generation and in industrial heat applications where supply has to be continuous or available at peak.
As countries move further into their renewable transitions, utilities and developers are looking for CSP configurations that work alongside existing grid assets rather than competing with them.
The technology has improved on several fronts at once. Higher-efficiency receivers, more advanced molten salt storage, better mirror and tracking designs, and hybrid CSP-PV layouts have all raised capacity factors and brought costs down.
Other factors are helping too: growing policy attention to storage and grid stability, easier access to CSP technology in emerging markets with strong solar resources, and a combination of government incentives and private investment flowing into renewable projects across developed and developing economies.
Opportunities Impact Analysis
Impact Factor | Estimated CAGR Impact | Regional Relevance | Market Impact |
Growing need for dispatchable renewable power and storage | +3.8% | Global, MENA | Strengthens CSP value proposition versus intermittent renewables |
Hybrid CSP-PV project development | +3.2% | Middle East, Asia Pacific | Improves project economics and capacity factors |
Industrial process heat and green hydrogen applications | +2.7% | Europe, Global | Expands beyond electricity into high-value heat markets |
Advancements in thermal energy storage | +2.5% | Global | Enables longer duration and higher value generation |
Challenges Impact Analysis
Impact Factor | Estimated CAGR Impact | Regional Relevance | Market Impact |
High capital costs compared to solar PV | -2.8% | Global | Limits competitiveness in pure electricity markets |
Long project development and financing timelines | -2.3% | Emerging Markets | Slows deployment and increases risk |
Competition from low-cost solar PV plus battery storage | -2.5% | Global | Pressures CSP market share in many regions |
Water requirements and land use constraints | -1.9% | Arid high-irradiance regions | Creates environmental and operational challenges |
Segment Insight
By Product Type
Parabolic trough systems held the largest share of installed capacity in 2025. The technology has a long commercial operating history, a mature supply chain, and a risk profile lenders understand, which matters as much as technical performance when a project is being financed.
Operators choosing troughs are generally after reliable solar thermal generation with storage attached, and continued improvement in collector efficiency and storage integration has kept plant economics viable. Developers and utilities still treat troughs as the safe option for delivering dispatchable renewable power.
By Distribution Channel
Most business is done through direct project development and EPC contracts covering plant design, technology supply, construction, and long-term operations support. CSP plants are complex enough that this route is effectively the only practical one, since it packages technical expertise with financing coordination and delivery accountability.
Utilities, independent power producers, and industrial clients running large installations generally prefer a single contracting structure for a project that will take three or four years to build.
| Feature of the Report | Details |
| Market Size in 2026 | USD 9.05 billion |
| Projected Market Size in 2035 | USD 30.60 billion |
| Market Size in 2025 | USD 7.90 billion |
| CAGR Growth Rate | 14.5% CAGR |
| Base Year | 2025 |
| Forecast Period | 2026-2035 |
| Key Segment | By Technology, Capacity, Storage Type, End Use and Region |
| Report Coverage | Revenue Estimation and Forecast, Company Profile, Competitive Landscape, Growth Factors and Recent Trends |
| Regional Scope | North America, Europe, Asia Pacific, Middle East & Africa, and South & Central America |
| Buying Options | Request tailored purchasing options to fulfil your requirements for research. |
Regional Insights
Europe and the Middle East & Africa lead key segments of the CSP market. Policy support has been consistent, southern regions have the direct irradiance the technology requires, and established projects in Spain, Morocco, and the UAE have given the sector an operating track record. Familiar regulatory frameworks, practical experience running thermal storage plants, and continued investment in renewable capacity keep demand in these regions comparatively stable.
The Middle East, North Africa, and parts of Asia Pacific are growing fastest. Solar resources are abundant, renewable targets are ambitious, electricity demand keeps rising, and interest in hybrid and storage-enabled projects has broadened the range of viable configurations. Countries with high direct normal irradiance are seeing the most uptake, helped by government tenders, international financing, and technology partnerships. Energy diversification and the search for long-duration storage continue to push the market forward across these high-resource regions.
Recent Developments
- In May 2026: Construction resumed at SUPCON Solar's 350 MW triple-tower Gen-3 demonstration project at Delingha, Qinghai Province, with foundation work completed on the first of three receiver towers. The design pioneers low-position molten-salt storage tanks intended to avoid the leak failures seen at earlier plants. (Source: SolarPACES — https://www.solarpaces.org/with-spring-construction-resumes-at-supcons-350mw-triple-tower-csp-in-qinghai/)
- Across 2025 and 2026: China connected nine further CSP plants during 2025, taking its operating total to 27, while SolarPACES has mapped 43 additional Chinese CSP projects in development, most pairing tower or Fresnel collectors with long-duration molten-salt storage. (Source: SolarPACES — https://www.solarpaces.org/china-connects-9-more-csp-projects-in-2025-for-27-total/)
- In 2025: ACWA Power's 100 MW Redstone tower plant in South Africa's Northern Cape, the first tower CSP project in sub-Saharan Africa, completed commissioning and reached full generating capacity. Built with POWERCHINA subsidiary SEPCOIII and 12 hours of molten-salt storage, it supplies round-the-clock power to close to 200,000 households. (Source: SolarPACES — https://www.solarpaces.org/completed-redstone-tower-csp-project-in-south-africa-is-online/)
List of the prominent players in the Concentrated Solar Power Market:
- ACWA Power
- Abengoa S.A.
- BrightSource Energy Inc.
- SolarReserve
- Acciona S.A.
- SUPCON Solar
- Shanghai Electric Group Co. Ltd.
- Nextera Energy Resources
- Others
The Concentrated Solar Power Market is segmented as follows:
By Technology
- Parabolic Trough
- Solar Power Tower
- Linear Fresnel
- Dish/Engine
By Capacity
- Below 100 MW
- 100 MW & Above
By Storage Type
- With Thermal Energy Storage
- Without Thermal Energy Storage
By End Use
- Utility
- Industrial
- Others
Regional Coverage:
North America
- U.S.
- Canada
- Mexico
- Rest of North America
Europe
- Germany
- France
- U.K.
- Russia
- Italy
- Spain
- Netherlands
- Rest of Europe
Asia Pacific
- China
- Japan
- India
- New Zealand
- Australia
- South Korea
- Taiwan
- Rest of Asia Pacific
The Middle East & Africa
- Saudi Arabia
- UAE
- Egypt
- Kuwait
- South Africa
- Rest of the Middle East & Africa
Latin America
- Brazil
- Argentina
- Rest of Latin America
Ayush Kadam
Sr. Research AnalystAyush Kadam is a Senior Market Research Analyst at Custom Market Insights, with over seven years of experience in syndicated and custom market research. He specializes in market sizing, competitive intelligence, industry trends, forecasting, and strategic insights, helping client
View profile and reportsAbout Custom Market Insights
Custom Market Insights is a market research and advisory company. It publishes syndicated reports across 18+ industries and delivers custom research, feasibility studies and market entry strategy for companies, investors and consultancies.
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