Concentrated Solar Power Market to Reach USD 13.0 Billion by 2035 Driven by Storage Innovation and Global Partnerships

The global Concentrated Solar Power (CSP) market is entering a pivotal decade of growth and innovation. Estimated at USD 5.8 billion in 2025, the market is forecasted to reach USD 13.0 billion by 2035, registering a CAGR of 8.3%. Behind these numbers lies a story of industrial expansion, collaborative innovation, and the growing role of dispatchable renewable energy in global decarbonization strategies. Both established leaders and new market entrants are racing to deliver advanced CSP technologies that promise efficiency, reliability, and long-term energy security.

Rising Demand and Market Drivers

CSP growth is being driven by the deployment of large-scale solar thermal plants and policy frameworks that promote renewable energy adoption. Countries such as Spain, Morocco, and the UAE are at the forefront, leveraging high solar irradiance and supportive feed-in tariffs. The rise of thermal energy storage, particularly molten salt systems, has elevated CSP's value as a dispatchable and predictable power source.

Beyond national grids, industrial and commercial users are also turning to CSP for process heat and steam generation, replacing fossil fuels in energy-intensive industries such as manufacturing, chemicals, and food processing. This diversification is opening new revenue streams and positioning CSP as a versatile clean energy solution.

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Technology and Segmental Insights

Among the technologies, the parabolic trough segment leads with a projected 52.8% market share in 2025. Its long-standing operational track record, efficient thermal performance, and scalability make it the technology of choice for investors.

In terms of capacity, ≤50 MW plants will remain vital, accounting for 41.6% of revenue in 2025. Their appeal lies in cost efficiency and adaptability for localized energy needs, especially in emerging markets where electrification is still expanding.

Storage-enabled projects are set to dominate, with the with-storage segment projected to reach 63.4% share in 2025. Storage technology ensures CSP delivers power even after sunset, making it a competitive alternative to fossil-based peaker plants.

Regional Market Dynamics

Geographically, the market is expanding across both developed and emerging economies.

China, with a projected CAGR of 11.2%, leads globally with its large-scale projects in Gansu, Qinghai, and Inner Mongolia. Backed by government incentives and technology partnerships, China is pushing the limits of molten salt storage and central tower designs.
India is not far behind, forecasted at a CAGR of 10.4%, with projects concentrated in Rajasthan, Gujarat, and Maharashtra. Public-private partnerships are fostering innovation, cost reduction, and hybrid integration.
In Europe, countries like France and the UK are focusing on hybrid CSP-PV systems and industrial process heat applications. Strong regulatory backing and research collaborations are fueling this momentum.
The United States is also a major player, with growth centered in the Southwest. Federal and state incentives are promoting large-scale CSP plants with storage integration, ensuring grid stability and renewable energy compliance.
Competitive Landscape

The CSP market is defined by intense competition and innovation. Established players like ACCIONA, ACWA Power, Abengoa S.A., Atlantica Sustainable Infrastructure, Engie, Enel Green Power, GE Renewable Energy, Grupo Sener, and TSK are leading the way. Their focus on large-scale parabolic troughs, solar towers, and hybrid PV-CSP systems positions them as global front-runners.

At the same time, mid-tier firms and new entrants are carving out niches in industrial heat applications, pilot-scale projects, and modular CSP solutions. Their contributions in advancing heat transfer fluids, heliostat efficiency, and hybrid integration are critical to the industry's overall innovation cycle. Partnerships between EPC contractors, research institutions, and international developers further strengthen the competitive ecosystem.

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Trends Shaping the Future

Several trends are expected to shape CSP's trajectory over the next decade:

Hybridization with photovoltaic systems and fossil-based plants to enhance grid reliability and maximize land use efficiency.

Thermal energy storage innovations, particularly long-duration molten salt systems, making CSP a cornerstone for renewable baseload power.

International financing programs and public-private partnerships that lower capital barriers, especially in developing regions.

Industrial integration, where CSP replaces fossil-based process heat and steam generation, enabling cost savings and carbon reduction.

These trends ensure that CSP will continue evolving, not just as a renewable technology, but as an enabler of global energy transition goals.

Outlook Toward 2035

The CSP industry stands at a crossroads of technology and policy. Its ability to provide reliable, dispatchable renewable electricity makes it a vital complement to intermittent sources like wind and photovoltaics. The period between 2025 and 2035 will be defined by geographic diversification, competitive cost structures, and stronger cross-border energy collaboration.

With global decarbonization targets accelerating, CSP offers governments, utilities, and industries a proven pathway to balance energy demand with sustainability commitments. Established leaders will continue scaling capacity, while new players bring agility and innovation to the table, creating a dynamic ecosystem that fosters long-term growth.

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