Concentrated Solar Power Market Size to Surpass USD 14.74 Billion by 2032 | Coherent Market Insights – openPR.com

Concentrated Solar Power Market Report with Emphasis on Sustainable Development Goals (SDGs)

Market Overview and Size

The Concentrated Solar Power (CSP) industry is a critical component in the global transition towards renewable energy, directly supporting the United Nations Sustainable Development Goal 7 (Affordable and Clean Energy) and Goal 13 (Climate Action). The global CSP market is projected to grow from USD 7.19 billion in 2025 to USD 14.74 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 10%. This growth is driven by technological advancements in heat storage and supportive government policies aimed at reducing carbon emissions and promoting sustainable energy solutions.

Regional Market Dynamics

1. North America: Leading CSP adoption aligned with SDG 9 (Industry, Innovation, and Infrastructure) and SDG 12 (Responsible Consumption and Production) through corporate sustainability initiatives.
2. Latin America: Emerging investments in solar thermal plants in Chile and Brazil promote regional economic growth and energy access, supporting SDG 8 (Decent Work and Economic Growth) and SDG 7.
3. Europe: Market growth driven by EU renewable energy targets and incentives, advancing SDG 7 and SDG 13.
4. Asia Pacific: Rapid expansion via large-scale projects in China and India, leveraging solar potential to address energy poverty and climate goals (SDG 1 – No Poverty, SDG 7, SDG 13).
5. Middle East: High solar irradiance and government-backed frameworks foster renewable energy adoption, contributing to SDG 7 and SDG 13.
6. Africa: Electrification projects reduce fossil fuel dependency, advancing SDG 7 and SDG 1.

Market Segmentation

• Technology Type: Parabolic Trough, Solar Tower, Linear Fresnel. Solar Tower technology is favored for enhanced efficiency and thermal storage, supporting continuous power supply and SDG 7.
• Application: Power Generation and Industrial Process Heat. Industrial use in the Middle East reduces reliance on conventional energy, aligning with SDG 9 and SDG 12.
• End-User: Utility, Commercial & Industrial sectors. Utility-scale CSP plants provide dispatchable power, enhancing grid stability and supporting SDG 7.

Growth Drivers

• Declining CSP production costs by 15% since 2024 due to technological innovations such as molten salt thermal storage, advancing SDG 9.
• Increased global investments exceeding USD 1.3 billion annually in CSP infrastructure, promoting sustainable industrialization (SDG 9) and climate action (SDG 13).
• Rising electrification needs in emerging economies, contributing to SDG 7 and SDG 1.
• Enhanced grid stability through thermal storage, supporting resilient infrastructure (SDG 9) and sustainable energy access (SDG 7).

Market Trends

• Hybrid CSP systems integrating photovoltaic (PV) and thermal technologies, improving performance by up to 20%, advancing innovation (SDG 9).
• Adoption of digitalization and AI-based predictive maintenance increasing operational uptime by 10-15%, supporting efficient resource use (SDG 12).
• Implementation of dry cooling technologies to reduce water consumption, particularly important for water-scarce regions, contributing to SDG 6 (Clean Water and Sanitation).
• Development of large-scale CSP plants (>200 MW) in Asia Pacific, expanding renewable energy capacity (SDG 7).

Actionable Insights

• Projected increase in global CSP production capacity from 6 GW in 2025 to 14 GW by 2032, supporting SDG 7.
• Reduction in average CSP plant installation costs by 8% year-over-year in 2024 due to supply chain optimizations, enhancing affordability (SDG 7).
• Growth in export of CSP components from Europe to Asia Pacific, facilitating technology transfer and regional development (SDG 9).
• Utility companies report a 15% reduction in peak load grid costs using CSP with thermal storage, improving energy efficiency (SDG 7, SDG 12).
• Increase in patent filings for CSP innovations by 20% between 2023-2025, indicating robust research and development activity (SDG 9).

Key Market Players and Strategic Initiatives

• Siemens AG: Strategic partnership on modular CSP solutions reducing deployment time by 25%, promoting innovation and infrastructure development (SDG 9).
• General Electric: AI-driven asset management increasing operational efficiency by 12%, supporting sustainable industrial practices (SDG 9, SDG 12).
• Abengoa: Multi-project contracts in the Middle East expanding market reach and renewable energy adoption (SDG 7, SDG 13).
• Other notable players include Acciona S.A., Atlantica Yield plc., Suntrace GmbH, BrightSource Energy Inc., SolarReserve LLC., ACWA Power, and Frenell GmbH.

Frequently Asked Questions (FAQs)

1. Who are the dominant players in the Concentrated Solar Power market?
   Leading companies include Siemens AG, General Electric, Abengoa, Acciona S.A., Atlantica Yield plc., Suntrace GmbH, BrightSource Energy Inc., SolarReserve LLC., ACWA Power, and Frenell GmbH.
2. What is the projected market size?
   The market is expected to grow from USD 7.19 billion in 2025 to USD 14.74 billion by 2032, with a CAGR of 10%.
3. Which end-user segment offers the largest growth opportunity?
   Utility-scale power generation dominates, while industrial process heat applications are expanding, especially in emerging economies.
4. What are the key market development trends?
   Trends include hybrid CSP-PV integration, digitalization, energy storage advancements, and water-efficient cooling technologies.
5. What challenges exist in the competitive landscape?
   Challenges include high upfront capital costs and regulatory complexities, countered by innovation and strategic collaborations.

Contact Information

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About Coherent Market Insights

Coherent Market Insights specializes in data analytics, market research, and consumer behavior analysis across 26+ industries in over 32 countries. The company supports sustainable business growth by providing cutting-edge syndicated tools and custom research services, contributing to informed decision-making aligned with global sustainability objectives.

1. Sustainable Development Goals (SDGs) Addressed or Connected

1. SDG 7: Affordable and Clean Energy
   • The article focuses on the Concentrated Solar Power (CSP) market, a renewable energy technology that supports clean energy generation and access.
2. SDG 9: Industry, Innovation, and Infrastructure
   • Technological advancements such as molten salt thermal storage, hybrid CSP-PV systems, and AI-based predictive maintenance highlight innovation and infrastructure development.
3. SDG 13: Climate Action
   • The CSP market contributes to reducing carbon footprints and supports global energy policies aimed at climate change mitigation.
4. SDG 6: Clean Water and Sanitation
   • Adoption of dry cooling technologies to reduce water consumption in water-scarce regions like the Middle East and Africa connects to water sustainability.
5. SDG 8: Decent Work and Economic Growth
   • Market growth, investments, and expanding electrification needs in emerging economies contribute to economic growth and employment.

2. Specific Targets Under Identified SDGs

1. SDG 7: Affordable and Clean Energy
   • Target 7.2: Increase substantially the share of renewable energy in the global energy mix.
   • Target 7.3: Double the global rate of improvement in energy efficiency.
2. SDG 9: Industry, Innovation, and Infrastructure
   • Target 9.4: Upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies.
   • Target 9.5: Enhance scientific research, upgrade technological capabilities of industrial sectors.
3. SDG 13: Climate Action
   • Target 13.2: Integrate climate change measures into national policies, strategies, and planning.
4. SDG 6: Clean Water and Sanitation
   • Target 6.4: Substantially increase water-use efficiency across all sectors.
5. SDG 8: Decent Work and Economic Growth
   • Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading and innovation.

3. Indicators Mentioned or Implied to Measure Progress

1. SDG 7 Indicators
   • Proportion of energy from renewable sources in total final energy consumption (implied by CSP market growth and capacity increase from 6 GW in 2025 to 14 GW by 2032).
   • Energy intensity measured in terms of primary energy and GDP (implied by improvements in plant efficiency and cost reductions).
2. SDG 9 Indicators
   • Research and development expenditure as a proportion of GDP (implied by increased patent filings up 20% between 2023-2025).
   • Proportion of medium and high-tech industry value added in total value added (implied by adoption of advanced CSP technologies and AI-based maintenance).
3. SDG 13 Indicators
   • Greenhouse gas emissions per unit of GDP (implied by reduction in carbon footprint through CSP adoption).
4. SDG 6 Indicators
   • Water use efficiency (implied by adoption of dry cooling technologies reducing water consumption in CSP plants).
5. SDG 8 Indicators
   • Annual growth rate of real GDP per employed person (implied by market growth and investments).
   • Employment in renewable energy sectors (implied by expanding CSP industry and market players).

4. Table: SDGs, Targets and Indicators

Source: openpr.com