Concentrated Photovoltaic Market Size, Share & Trends Analysis grow at a CAGR of 16.4% from 2024 to 2030
The global concentrated photovoltaic market size was valued at USD 2.45 billion in 2023 and is anticipated to grow at a CAGR of 16.4% from 2024 to 2030. The increasing demand for efficient and sustainable energy solutions drives this growth. Advancements in concentrated photovoltaic (CPV) technology, such as improved cell designs and dual-axis tracking systems, enhance energy yields and reliability, making CPV more attractive for various applications.
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Growing environmental awareness and the need to reduce carbon emissions are also propelling the market, as CPV technology is seen as a viable solution for clean energy production. Furthermore, the versatility and scalability of CPV systems, suitable for utility-scale power plants and residential and commercial installations, contribute to their increased adoption.
Government regulations and policies promote renewable energy sources, incentivizing the deployment of CPV systems. For example, the European Union’s Renewable Energy Directive requires member states to increase their use of renewable energy sources, driving the development of CPV technology. In the U.S., initiatives such as the Investment Tax Credit (ITC) have spurred investment in solar technologies, including CPV systems, by allowing investors to deduct a significant percentage of their investment costs.
Moreover, countries such as India have set ambitious solar energy targets under the National Solar Mission, which encourages the adoption of advanced solar technologies through financial incentives and subsidies. These regulatory frameworks enhance market stability and attract investment, fostering innovation and competition within the CPV sector globally.
Type Insights
The high-concentrated photovoltaic (HCPV) segment accounted for 93.5% of the market revenue in 2023, attributed to its advanced technology and exceptional efficiency. Their high efficiency makes them ideal for regions with high direct normal irradiance (DNI), such as deserts and sun-rich areas. Moreover, the capability of HCPV systems to minimize the amount of semiconductor material required for solar cells further amplifies their cost-effectiveness, rendering them a compelling choice for large-scale solar power projects.
The Low Concentrated Photovoltaic (LCPV) segment is expected to grow at a CAGR of 19.7% from 2024 to 2030. The lower concentration level of LCPV systems simplifies their design and installation, expanding their suitability for a wide range of applications, including residential and commercial installations. The expected growth in the LCPV segment is attributed to the rising demand for cost-effective and efficient solar energy solutions, particularly in regions with moderate sunlight conditions.
