Concentrated Solar Power Market is Estimated to Witness High Growth Owing to Opportunity for Lower Carbon Footprint

 

Concentrated Solar Power Market

Concentrated Solar Power (CSP) refers to the technology used to generate solar power by using mirrors or lenses to concentrate a large area of sunlight, or solar thermal energy, onto a small area. It works by collecting solar radiation and converting it to usable energy through thermal or photovoltaic technology. CSP plants use concentrating solar technologies such as parabolic troughs, linear Fresnel reflectors or dish Stirling systems and solar power towers to generate solar thermal energy at high temperatures that can then be used to drive conventional steam turbine-based electricity generation, similar to how fossil fuel or biomass plants generate power. 

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 Opportunity:

The opportunity for lower carbon footprint presents a key growth driver for the concentrated solar power market. CSP plants generate electricity directly from sunlight and allow the utilization of thermal energy storage systems to dispatch power even when the sun is not shining. This helps produce electricity in a more carbon-neutral method as compared to traditional fossil fuel power plants. With mounting concerns regarding climate change and need to transition to renewable sources of energy, concentrated solar power is advantageous due to its potential to provide reliable electricity generation around the clock through thermal energy storage while reducing carbon emissions considerably. The opportunity to provide clean energy solutions at scale and become a viable replacement for coal and natural gas power plants will continue boosting adoption of CSP technology worldwide over the coming years.

Porter's Analysis

Threat of new entrants: The concentrated solar power market requires huge capital investments for research and development, which acts as a barrier for new players. However, supportive government policies could attract new players.

Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of alternative renewable sources. However, concentrated solar power is price competitive and provides long term energy solutions.

Bargaining power of suppliers: Major component suppliers have significant bargaining power due to their technical know-how and economies of scale in manufacturing mirrors, liquid salts, and heat exchangers for CSP plants.

Threat of new substitutes: Alternatives like photovoltaics and wind power pose a threat, but concentrated solar power has an advantage of energy storage capabilities making it a reliable base load power source.

Competitive rivalry: The market is moderately competitive with presence of global players focusing on innovation to compete.

SWOT Analysis

Strengths: Abundant solar resource availability, long term energy supply, integrated storage solutions, reduced carbon footprint.

Weaknesses: High investment and installation costs, dependency on solar irradiation, requirement of large land area.

Opportunities: Supportive government policies and regulations, growing focus on renewable targets, increasing mini-grid applications.

Threats: Fluctuating raw material prices, technological advancements in substitute solar technologies, regulatory uncertainties.

Key Takeaways

The Global Concentrated Solar Power Market Size  is expected to witness high growth over the forecast period owing to supportive renewable energy policies and declining costs of CSP technologies.

Regional analysis indicates that the market in Asia Pacific region is expected to grow at the fastest rate led by China, India and Middle East countries. These regions receive high direct normal irradiation throughout the year making CSP technologies economically viable. Countries like China, India, Saudi Arabia and UAE are promoting CSP adoption as part of their renewable energy and decarbonization goals.

Key players operating in the Concentrated Solar Power market are Airbus Group, Alcoa Corporation, Arconic Corporation, Boeing, Bombardier Inc., Collins Aerospace, Elbit Systems Ltd., Teijin, Lockheed Martin Corporation, and Triumph Group, Inc. Major players are focusing on technology advancements including hybridizing CSP plants with thermal energy storage and photovoltaics to make them cost competitive with coal and gas fired power plants.

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