The concentrated solar power (CSP) market is expected to reach USD 45.65 billion by 2034, growing at a CAGR of 18.24%. The market is driven by increasing investments in renewable energy infrastructure, government policies, and research funding. CSP systems use solar thermal technology to generate electricity by focusing sunlight onto a receiver, which produces heat to drive turbines. Unlike solar PV, CSP can store thermal energy, enabling electricity production even after the sun sets.
The integration of AI in CSP systems enhances performance, reliability, and efficiency. AI algorithms can analyze meteorological data for accurate weather and solar generation forecasting, optimize thermal storage usage, and develop predictive maintenance strategies. Additionally, AI contributes to improved grid integration, reducing energy wastage and lowering energy costs.
The market presents opportunities in hybrid renewable energy integration, industrial heat applications, and water desalination. The development of large-scale CSP projects in emerging economies and the rising interest in green hydrogen production using CSP technology are also emerging market segments.
However, the CSP market faces challenges such as high installation and maintenance costs, weather dependency, and competition from rapidly declining solar PV and wind energy costs. Addressing these challenges will require continued policy support and technological innovations.
Regionally, the United States led in CSP technology innovation, with major projects in states like California and Nevada. Spain remains a key market in Europe, while the Middle East and North Africa (MENA) region is expected to see the highest CSP growth due to abundant sunlight and increasing investments in renewable energy.
Segmentally, the utility sector dominated the global CSP market, with enhanced oil recovery (EOR) expected to grow significantly. The power tower technology is estimated to be the most opportunistic segment during the forecast period, with large-scale adoption in countries with available land.