Commercial Concentrated Photovoltaic Market – Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented by Product (Reflector and Refractor), By Concentration (Low and High), By Region, Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 601.63 Million
CAGR (2026-2031)	10.65%
Fastest Growing Segment	Refractor
Largest Market	Asia Pacific
Market Size (2031)	USD 1104.18 Million

Market Overview

The Global Commercial Concentrated Photovoltaic Market will grow from USD 601.63 Million in 2025 to USD 1104.18 Million by 2031 at a 10.65% CAGR. Commercial Concentrated Photovoltaic systems utilize optical elements such as lenses or curved mirrors to focus sunlight onto high-efficiency multi-junction solar cells, primarily designed for utility-scale electricity generation in regions with high direct normal irradiance. The market is fundamentally supported by the superior energy conversion potential of this technology compared to conventional flat-plate panels, which allows for maximized power output in space-constrained commercial projects. According to the Fraunhofer Institute for Solar Energy Systems, in 2024, concentrator photovoltaic modules achieved record efficiencies of up to 38.9 percent, illustrating the substantial performance advantage that serves as a primary driver for adoption in specific industrial applications.

Despite these technical capabilities, the sector faces a significant impediment due to the rapid cost reduction and market dominance of traditional crystalline silicon photovoltaics. The complexity of the necessary tracking systems and the higher initial capital expenditure often render concentrated solutions less economically competitive than standard solar installations for general commercial use. This persistent price disparity limits the technology to a niche market segment and hinders widespread expansion against established and increasingly affordable flat-plate alternatives.

Key Market Drivers

Advancements in multi-junction solar cell technology are acting as a fundamental catalyst for the sector, enabling Concentrated Photovoltaic (CPV) systems to attain performance levels significantly beyond the reach of standard silicon infrastructure. By layering semiconductors with varying bandgaps, these complex cells capture a broader spectrum of solar radiation, thereby maximizing electricity generation in regions with high direct normal irradiance. This continuous optimization of cell architecture directly addresses the critical need for high-density power generation in space-limited commercial environments. According to PV Magazine USA, April 2024, in the 'NREL updates interactive chart of solar cell efficiency' article, the National Renewable Energy Laboratory (NREL) confirmed that multi-junction cells have achieved a record research conversion efficiency of 47.6 percent, demonstrating the theoretical potential that continues to drive technical viability.

Simultaneously, the increasing adoption of hybrid CPV and thermal systems is revitalizing market growth by resolving intermittency challenges and enhancing project economics through dispatchable energy storage. These hybrid configurations utilize the excess heat generated by the optical concentration process—often discarded in traditional setups—to drive thermal energy storage solutions, thus providing utility-scale operators with consistent power reliability. This dual-generation value proposition has triggered substantial financial backing for next-generation infrastructure. According to PV Magazine Australia, April 2024, in the 'RayGen lands new funding to speed up rollout of solar hydro tech' report, Australian technology firm RayGen secured AUD 51 million in Series D funding to expand its manufacturing capabilities for proprietary solar-and-storage power plants. Furthermore, highlighting the scalability of such specialized applications, according to Eaton, in 2024, partner Insolight confirmed a pipeline of 66 MWp of agrivoltaic projects currently under development.

Download Free Sample Report

Key Market Challenges

The high initial capital expenditure required for commercial concentrated photovoltaic systems represents a substantial barrier to market growth. This technology relies on heavy precision tracking mechanisms to focus direct sunlight, which significantly increases hardware and installation costs compared to static flat-plate collectors. Consequently, the levelized cost of electricity for concentrated projects often exceeds that of conventional solar farms, making it difficult for developers to secure financing or demonstrate a competitive return on investment in general commercial applications.

This economic disparity is further widened by the established supply chains and economies of scale that benefit traditional technologies. According to the Fraunhofer Institute for Solar Energy Systems, in 2024, crystalline silicon photovoltaics accounted for approximately 97 percent of total global solar module production. This overwhelming market dominance restricts concentrated photovoltaics to a marginal position, preventing the volume production necessary to drive down manufacturing costs. As a result, the technology struggles to expand beyond niche high-irradiance regions, remaining a secondary option for most utility-scale developments despite its efficiency advantages.

Key Market Trends

The adoption of Micro-Concentrated Photovoltaic (Micro-CPV) architectures is reshaping the sector by addressing the logistical limitations of traditional high-concentration systems. Unlike legacy setups requiring massive dual-axis trackers, Micro-CPV integrates miniaturized optical elements directly into standard module form factors, utilizing internal micro-tracking mechanisms to focus sunlight. This architectural innovation drastically reduces the weight and profile of the hardware, allowing for installation on conventional solar racking systems while maintaining superior energy yields. According to PV Magazine, June 2025, in the 'Fraunhofer ISE unveils micro-CPV module with cost-reducing design' report, researchers confirmed that their latest Micro-CPV demonstrator module achieved a conversion efficiency of 36.0 percent, offering a viable pathway to high-density power generation without the structural complexity of previous generations.

Simultaneously, the implementation of CPV solutions in dual-use agrivoltaic projects is expanding the market reach beyond utility-scale desert arrays. Concentrated systems are uniquely suited for this application because their optical lenses can be tuned to transmit specific light wavelengths required for photosynthesis while concentrating the remaining direct irradiance for electricity production. This dynamic light management optimizes land efficiency, protecting high-value crops from extreme weather while generating significant renewable energy. According to PV Magazine, September 2025, in the 'Agrivoltaics for arboriculture' article, Swiss developer Insolight inaugurated a commercial-scale 250 kilowatt agrivoltaic installation on orchard crops in Conthey, which is projected to generate 300 megawatt-hours of electricity annually while supporting agricultural yields.

Segmental Insights

The Refractor segment is currently emerging as the fastest-growing category within the Global Commercial Concentrated Photovoltaic Market, primarily driven by the widespread adoption of Fresnel lens technology. This surge is attributed to the superior optical efficiency of refractors, which allows for maximum light concentration onto multi-junction solar cells, significantly boosting energy yield. Unlike reflective counterparts, these systems offer greater tolerance for optical misalignment and tracking errors, ensuring stable performance. Furthermore, the lightweight and durable nature of Fresnel lenses reduces structural manufacturing costs, making them an economically viable choice for large-scale commercial projects seeking optimized power output.

Regional Insights

Asia Pacific leads the global commercial concentrated photovoltaic market due to extensive investments in utility-scale renewable energy infrastructure. The region benefits from high direct normal irradiance levels in countries like China and Japan, which are essential for the efficient operation of this technology. Support from regulatory bodies, including China’s National Energy Administration, facilitates market growth through mandates aimed at increasing clean energy capacity to satisfy rising industrial electricity demand. This alignment of favorable environmental conditions with strategic government initiatives establishes the region as the primary contributor to global market expansion.

Recent Developments

• In September 2024, the agrivoltaic specialist Insolight announced a partnership with the power management company Eaton to deploy integrated solar solutions for the agricultural sector. The collaboration involved coupling Insolight’s micro-concentrated photovoltaic (CPV) modules, which feature dynamic light transmission for crop protection, with Eaton’s energy storage and grid management systems. Insolight revealed its strategy to launch more than 100 projects across Europe by 2026, targeting a total capacity of 300 MWp. This alliance aimed to provide farmers with a dual-revenue model by optimizing crop growth while generating dispatchable renewable energy.
• In July 2024, Soltec formed a strategic collaboration with the Fraunhofer Institute for Solar Energy Systems to develop a next-generation concentrated photovoltaic (CPV) system. The partnership focused on integrating Soltec’s advanced two-axis solar trackers with Fraunhofer’s high-efficiency micro-CPV modules, which operate under a concentration of nearly 1,000 suns. The companies aimed to create a cost-effective solution optimized for regions with high direct solar irradiance. A prototype installation was scheduled for late 2024 in Spain to validate the system’s tracking precision and its ability to achieve superior energy yields compared to conventional photovoltaic technologies.
• In June 2024, Rocket Lab USA, Inc. finalized a preliminary agreement for direct funding from the U.S. Department of Commerce under the CHIPS and Science Act. The $23.9 million investment was designated for the expansion of SolAero Technologies' manufacturing facility in Albuquerque, New Mexico. This subsidiary specializes in high-efficiency multi-junction solar cells used in concentrated photovoltaic applications for space and defense. The project aimed to increase the production capacity of these compound semiconductors by approximately 50% to meet the rising demand from the commercial satellite and national security markets.
• In April 2024, RayGen Resources secured a significant capital investment to accelerate the commercialization of its proprietary concentrated photovoltaic (CPV) and thermal storage technology. The Series D funding round was led by SLB, with participation from Breakthrough Victoria and existing shareholders. RayGen’s system employs a field of mirrors to focus sunlight onto a tower-mounted receiver equipped with high-efficiency photovoltaic modules, generating both electricity and heat. The company announced that the funds would be utilized to expand its manufacturing facility in Melbourne and to support the deployment of its "solar hydro" projects globally.

Key Market Players

• Radical Sun Systems, Inc.
• SolAero Technologies Corp.
• Arzon Solar LLC.
• Cool Earth Solar
• Morgan Solar Inc.
• ARIMA Group
• Suncore Photovoltaic Technology Company Limited
• Sumitomo Electric Industries, Ltd.
• Saint-Augustin Canada Electric Inc.
• Sanan Optoelectronics Technology Co., Ltd

By Concentration	By Region
Low and High	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Commercial Concentrated Photovoltaic Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Commercial Concentrated Photovoltaic Market, By Concentration:

• Low and High

• Commercial Concentrated Photovoltaic Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE