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| Concentrated Solar Power Market |
The global Concentrated Solar Power (CSP) Market is estimated to be valued at US$ 5.29 Bn in 2023 and is expected to
exhibit a CAGR of 10.8% over the
forecast period 2023-2030, as highlighted in a new report published by Coherent
Market Insights.
Market Overview:
Concentrated Solar Power (CSP) is a technology that harnesses solar energy and
converts it into thermal energy for electricity generation. It uses mirrors or
lenses to concentrate sunlight onto a small area, which then heats up a fluid
to generate steam and drive a turbine. CSP technology offers advantages such as
high energy efficiency, low environmental impact, and the ability to store
excess energy for use during cloudy periods or at night. The need for
sustainable energy sources, coupled with increasing government initiatives to
reduce carbon emissions, is driving the demand for CSP technology.
Market Key Trends:
One key trend in the Concentrated
Solar Power Market Growth is the increasing adoption of molten salt as
a heat transfer fluid. Molten salt has excellent thermal properties, allowing
it to store and release thermal energy efficiently. This technology enables CSP
plants to continue producing electricity even when the sun is not shining,
providing a more reliable and stable power supply. The use of molten salt also
helps to improve the overall efficiency of CSP systems and reduce their
environmental impact. As a result, many CSP projects are now incorporating
molten salt technology to enhance energy storage capabilities and ensure a
steady and uninterrupted power output.
Porter’s Analysis:
Threat of new entrants: The concentrated solar power market faces a low threat
of new entrants due to significant barriers to entry. The high capital
investment required to set up CSP plants, as well as the need for advanced
technology and expertise, acts as a deterrent for new players. Additionally,
established companies in the market already have strong brand recognition and
economies of scale, making it difficult for new entrants to compete
effectively.
Bargaining power of buyers: The bargaining power of buyers in the concentrated
solar power market is moderate. While buyers have the option to choose from a
few key players in the market, the unique technology and limited number of
suppliers limit their bargaining power. However, as the market continues to
grow and competition increases, buyers may gain more leverage in negotiating
favorable terms and prices.
Bargaining power of suppliers: The bargaining power of suppliers in the
concentrated solar power market is relatively high. There are a limited number
of suppliers of specialized equipment and components required for CSP plants.
Suppliers can leverage their expertise and scarcity of resources to negotiate
higher prices and favorable contract terms.
Threat of new substitutes: The threat of new substitutes in the concentrated
solar power market is low. CSP technology is considered one of the most
efficient for large-scale renewable energy generation, offering advantages such
as storage capacity and continuous power supply. Other renewable energy sources
like wind and hydroelectric power have their limitations and cannot provide the
same level of reliability and storage capabilities.
Competitive rivalry: The competitive rivalry in the concentrated solar power
market is moderate. There are several key players in the market, such as
Siemens AG, General Electric, and Abengoa, who compete for market share.
However, the market is still relatively concentrated, with a few dominant
players. Intense competition is expected as the market expands and new players
enter, driving innovation and pushing down prices.
Key Takeaways:
The global concentrated solar power market is expected to witness high growth,
with a projected CAGR of 10.8% over
the forecast period (2023-2030). This growth can be attributed to increasing
government support and initiatives to reduce greenhouse gas emissions and
promote renewable energy sources. For example, countries like China and India
are investing heavily in CSP projects to meet their growing energy demands
while reducing carbon emissions.
In terms of regional analysis, Asia Pacific is expected to be the
fastest-growing and dominating region in the concentrated solar power market.
Rising energy demand, decreasing solar panel costs, and supportive government
policies are driving the growth of CSP projects in countries like China, India,
and Australia. Furthermore, the abundance of sunlight in these regions makes
them ideal for large-scale CSP plants.
Key players operating in the concentrated solar power market include Siemens
AG, General Electric, Abengoa, Acciona S.A., Atlantica Yield plc., Suntrace
GmbH, BrightSource Energy, Inc., SolarReserve, LLC., ACWA Power, and Frenell
GmbH. These companies have a strong market presence and invest heavily in
research and development to enhance CSP technology and improve efficiency.
Collaboration between key players and strategic partnerships with governments
and utility companies are also common trends in the market.
In conclusion, the concentrated solar power market is poised for significant
growth due to increased government support, declining costs, and favorable
environmental regulations. The market is expected to witness intense
competition among key players, driving innovation and pushing down prices. The
Asia Pacific region is projected to be the fastest-growing market, driven by
large-scale CSP projects in countries like China and India.
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More: https://www.dailyprbulletin.com/concentrated-solar-power-market-trends-and-takeaways/