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Concentrated Solar Power (CSP) Market Growth at 14.8% CAGR Fuels 16.25 GW Capacity by 2031


Mordor Intelligence has published a new report on the Concentrated Solar Power (CSP) Market, offering a comprehensive analysis of trends, growth drivers, and future projections.

Introduction to the Concentrated Solar Power (CSP) Market

The Concentrated Solar Power (CSP) market size, in terms of installed capacity, is expected to grow from 8.15 GW in 2026 to 16.25 GW by 2031, registering a strong growth trajectory over the forecast period.

Policy support in countries such as China, Saudi Arabia, and the United Arab Emirates, coupled with declining levelized costs of energy (LCOE), is strengthening the Concentrated Solar Power (CSP) Market Growth. As grids face increasing stress from variable renewable generation, CSP is emerging as a reliable, dispatchable power source that ensures continuous electricity supply while supporting industrial process heat and emerging applications like green hydrogen production.

Trends & Developments in the Concentrated Solar Power (CSP) Market

Rising Demand for Long-Duration Dispatchable Power

Grid operators globally are increasingly seeking solutions that provide reliable power beyond the limitations of four-hour lithium-ion battery storage. CSP plants equipped with molten-salt storage can deliver 15 hours or more of energy output at lower marginal costs, making them suitable for high-variability renewable grids. This capability directly influences the Concentrated Solar Power (CSP) Market Trends, as utilities prioritize technologies that combine dispatchability with efficiency.

Policy-Driven Expansion in MENA and China

Governments in China and the Middle East have designed auction frameworks to encourage CSP deployment. China’s 14th Five-Year Plan targets 15 GW of CSP capacity by 2030, emphasizing projects with storage durations exceeding ten hours. These policy incentives reduce financing risks, shorten project permitting timelines, and accelerate market growth, creating a favorable environment for the Concentrated Solar Power (CSP) Market Forecast.

Industrial Process-Heat and Green Hydrogen Integration

CSP technology is increasingly being coupled with industrial process-heat applications and hydrogen production. These integrations allow plants to provide high-temperature heat for industrial operations without relying on fossil fuels, opening new revenue streams beyond electricity sales. For instance, large-scale hydrogen facilities paired with CSP towers enhance electrolyzer efficiency, increasing project returns and solidifying the Concentrated Solar Power (CSP) Industry as a versatile energy solution.

For a more tailored understanding, view the localized Japanese edition alongside the global market breakdown – https://www.mordorintelligence.com/ja/industry-reports/concentrated-solar-power-csp-market-market?utm_source=emailwire   

Market Division Segmentation of the Concentrated Solar Power (CSP) Market

By Technology

  • Parabolic Trough
  • Linear Fresnel
  • Power Tower
  • Dish/Stirling

By Heat Transfer Fluid

  • Molten Salt
  • Synthetic Oil
  • Direct Steam/Water
  • Other Fluids (CO₂, Nanofluids)

By Capacity Range

  • Below 50 MW
  • 50 to 150 MW
  • Above 150 MW

By Geography

North America

Europe

Asia-Pacific

South America

Middle East and Africa

Explore Our Full Library of Energy & Power Research Reports – https://www.mordorintelligence.com/market-analysis/energy-power?utm_source=emailwire 

Competitive Landscape Overview in the Concentrated Solar Power (CSP) Market

  • ACWA Power – Known for Middle East megaprojects backed by sovereign guarantees.
  • BrightSource Energy Inc. – Specializes in direct-steam power towers with enhanced land-use efficiency.
  • Abengoa Solar / Atlantica – Experienced in tower receiver design and system optimization.
  • Shouhang High-Tech – Vertical integration reduces Chinese project costs and enables export-ready solutions.
  • SENER – Focuses on optical efficiency improvements in tower and trough systems.

Conclusion

The Concentrated Solar Power (CSP) Market is set to grow significantly in the coming years, driven by the demand for long-duration, dispatchable energy, supportive regional policies, and lower costs for CSP with molten-salt storage. Beyond electricity generation, CSP is increasingly being used for industrial process heat and green hydrogen production, making it a versatile solution for energy-intensive sectors.

Although high upfront costs and limited financing remain challenges, government-backed auctions and concessional debt in emerging markets are accelerating development. Understanding market trends, segmentation, and key players is crucial for investors, developers, and policymakers to leverage the full potential of the Concentrated Solar Power (CSP) Market Size, Growth, and Share.

Get the latest industry insights on Concentrated Solar Power (CSP) Market growth: https://www.mordorintelligence.com/industry-reports/concentrated-solar-power-csp-market-market?utm_source=emailwire 

Industry Related Reports

Canada Distributed Solar Power Generation Market

The Canada Distributed Solar Power Generation Market is projected to grow at a CAGR of over 12.01% during the forecast period, driven by increasing government incentives for renewable energy adoption, rising awareness of clean energy, and technological advancements in distributed solar systems.

https://www.mordorintelligence.com/industry-reports/canada-distributed-solar-power-generation-market-industry?utm_source=emailwire

GCC Solar Photovoltaic Market

The GCC Solar Photovoltaic Market is expected to register a CAGR exceeding 12.5%, fueled by significant solar energy investments, favorable government policies, and the region’s abundant solar irradiance, which is accelerating the adoption of photovoltaic solutions.

https://www.mordorintelligence.com/industry-reports/gcc-solar-photovoltaic-market?utm_source=emailwire

Polymer Solar Cells Market

The Polymer Solar Cells Market, estimated at USD 1.63 billion in 2025, is projected to reach USD 4.29 billion by 2030 with a CAGR of 21.4%, supported by growing demand for lightweight, flexible, and cost-effective solar technologies in consumer electronics and building-integrated photovoltaics.

https://www.mordorintelligence.com/industry-reports/polymer-solar-cells-market?utm_source=emailwire

About Mordor Intelligence:
With a team of over 550 domain experts and on-ground specialists spanning 150+ countries, Mordor Intelligence possesses a unique understanding of the global business landscape. This expertise translates into comprehensive syndicated and custom research reports covering a wide spectrum of industries, including aerospace & defense, agriculture, animal nutrition and wellness, automation, automotive, chemicals & materials, consumer goods & services, electronics, energy & power, financial services, food & beverages, healthcare, hospitality & tourism, information & communications technology, investment opportunities, and logistics.

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https://www.mordorintelligence.com/contact-us

 



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