Concentrated Solar Power Market is Estimated to Witness High Growth Owing to Rising Demand for Sustainable Energy Alternatives
Concentrated solar power (CSP) is a renewable power generation system that utilizes mirrors or lenses to concentrate a large area of sunlight, or solar thermal energy, onto a small area. It uses this energy to heat a fluid to high temperatures which is then used to drive a steam turbine or engine connected to an electrical power generator. With several solar thermal power projects under development and commercial operation globally, CSP technologies offer promising solutions to meeting rising energy demand through a sustainable means.
The global concentrated solar power market is estimated to be valued at US$ 5.86 billion in 2023 and is expected to exhibit a CAGR of 5.1% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Rising demand for sustainable energy alternatives is a key driver boosting the concentrated solar power market growth. Nations worldwide are focusing on developing their renewable energy capacities to reduce dependence on fossil fuels for meeting power requirements and lower carbon footprint. Solar energy is abundant and renewable making CSP systems highly attractive. Additionally, support through favorable government policies and initiatives such as tax credits, renewable portfolio standards and investments in research & development are encouraging greater adoption of CSP technologies. However, high initial capital investments remain a challenge for widespread commercialization of CSP plants. Ongoing technological advancements to enhance efficiencies and lower production costs could help address this issue.
SWOT Analysis
Strength: Concentrated solar power is a renewable and clean energy source with minimal environmental impact.It has zero operational carbon emissions and requires no fossil fuels. Solar power plants can provide large-scale electricity to meet growing energy demand.
Weakness: Concentrated solar power plants require significant initial investments and have high installation costs. Their generation depends upon the availability of direct sunlight which varies throughout the day and season. Storage technology is still being developed to store solar energy for usage when sunlight is unavailable.
Opportunity: Increasing focus on developing renewable and clean sources of energy provides growth opportunities for concentrated solar power market. Rising energy consumption worldwide along with supportive government policies and incentives can boost the adoption of CSP systems. Technological advances are improving the efficiency and reducing the costs of CSP plants.
Threats: Intermittency of solar resources poses challenges and reliability issues for electricity grids. Fluctuating crude oil prices affect the commercial viability of CSP compared to conventional power sources. Increased uptake of small-scale rooftop solar panels can reduce the demand for large utility-scale CSP plants.
Key Takeaways
Global Concentrated Solar Power Market Size is expected to witness high growth over the forecast period of 2023 to 2030. The global concentrated solar power market is estimated to be valued at US$ 5.86 billion in 2023 and is expected to exhibit a CAGR of 5.1% over the forecast period 2023-2030.
North America currently dominates the CSP market with the United States being the largest contributor. Favorable government policies and declining costs of CSP systems are fueling installations in the region. The Asia Pacific region is expected to be the fastest growing market for concentrated solar power during the forecast period. Rapid industrialization and economic development in countries like China and India are leading to a significant increase in energy demands. Supportive government initiatives to adopt renewable energy in these nations provide opportunities for CSP players.
Key players related content comprises: Key players operating in the concentrated solar power market are Airbus Group, Alcoa Corporation, Arconic Corporation, Lockheed Martin Corporation, and Triumph Group, Inc. These companies are extensively investing in research & development to enhance the capabilities and reduce the costs of CSP technologies. They are also executing strategic projects globally to strengthen their positions in the high potential concentrated solar power industry.
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Explore More Related Article On This Topic: https://www.ukwebwire.com/concentrated-solar-power-market-size/
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