The global concentrated solar market grew at a compound annual rate of 16.4% from 2020 to 25

According to a report released by Markets and Markets, an international market research institute, the global concentrated solar energy market is expected to reach $7.
6 billion by 2025, with a compound annual growth rate of 16.
4%, compared to $3.
5 billion
in 2020.

Environmental concerns about carbon emissions and efforts to reduce air pollution, government support for the adoption of renewable technologies, and the integration of CSP systems with heat storage systems are the key factors
driving the concentrated solar energy market.

The ongoing COVID-19 pandemic has affected the global power industry
.
Due to the current situation, many countries are witnessing delays in construction activities, mainly due to supply chain disruptions, lockdown measures in all major economies, social distancing guidelines for workers, and the consequent financing challenges
.

Concentrating solar energy, on the other hand, is a highly capital-intensive technology
.
The levelized cost of energy (LCOE) for concentrated solar power plants is dominated by the initial investment cost, which accounts for about four-fifths
of the total cost.
The rest are the maintenance and operating costs of the plant and the cost of factory insurance
.
Therefore, this becomes the biggest challenge
for the concentrated solar market.

Technically, the solar tower segment is the largest contributor to the concentrated solar energy market during the forecast period
.
From 2020 to 2025, the solar tower segment leads the concentrated solar market
.
Due to higher temperatures, the solar tower segment has been boosted, which can improve steam cycle efficiency and reduce cooling water consumption in condensers
.
Higher temperatures use thermal energy storage to achieve dispatchable power generation
.
Thus, increasing adoption of solar towers due to cost reduction or allowing for larger storage volumes at the same price is expected to drive the development
of solar towers at the fastest pace during the forecast period.

In terms of application, the utilities sector is expected to grow
at the fastest rate during the forecast period.
The growth of the utilities market is driven
by the development of CSP projects in the Asia Pacific, Middle East and Africa region, mainly in China, Saudi Arabia, UAE, and Morocco.
In addition, demand for concentrated solar energy from the utility sector is driven
by the use of storage technologies to generate renewable electricity to meet the growing electricity needs of residents.

In terms of capacity, the 100 MW and above segment will dominate from 2020 to 2025
.
To meet the goal of renewable energy generation and achieve continuous operation, concentrated solar technology is increasingly required, thereby driving the 100 MW and above market development
throughout the forecast period.

Regionally, Asia Pacific is expected to be the fastest growing regional market
during the forecast period.
Asia Pacific is expected to dominate the concentrated solar market during the forecast period due to the
increasing installation of CSP installations.
From 2020 to 2025, China is expected to grow
at the highest CAGR.
This is mainly due to the increasing investment in CSP to stabilize the power grid, which has driven the country's development
.
In addition, the region is focusing on the continuous production of renewable electricity to support the demand
for growing economic activities.