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

Forecast Period	2027-2031
Market Size (2025)	USD 1.22 Billion
CAGR (2026-2031)	10.07%
Fastest Growing Segment	High
Largest Market	Asia Pacific
Market Size (2031)	USD 2.17 Billion

Market Overview

The Global Concentrated Photovoltaic Market will grow from USD 1.22 Billion in 2025 to USD 2.17 Billion by 2031 at a 10.07% CAGR. Concentrated Photovoltaic (CPV) technology utilizes optical components, such as Fresnel lenses or curved mirrors, to focus sunlight onto compact, high-efficiency multi-junction solar cells. The market is primarily driven by the system's ability to achieve exceptional energy conversion ratios in geographic zones with high Direct Normal Irradiance, alongside a reduced land requirement relative to conventional flat-plate arrays. These operational benefits render the technology particularly viable for utility-scale projects in arid regions where maximizing power output per unit of area is a critical operational requirement.

However, widespread expansion is significantly challenged by the precipitous cost decline of standard crystalline silicon photovoltaics, which has eroded the economic competitiveness of high-concentration systems. This price disparity restricts the technology to niche applications, despite its continued technical advantages in specific environments. According to the IEA-PVPS, in 2024, commercial concentrated photovoltaic modules achieved conversion efficiencies exceeding 35%, maintaining a significant performance lead over traditional silicon-based alternatives.

Key Market Drivers

The superior power conversion efficiency of multi-junction solar cells serves as the foremost catalyst for the Concentrated Photovoltaic (CPV) market, enabling the technology to outperform conventional alternatives in direct sunlight utilization. By leveraging advanced III-V semiconductor materials layered to capture a broader spectrum of irradiance, CPV systems maximize energy yield per square meter, a critical advantage for industrial operations in high-insolation belts. This performance gap was highlighted when Fraunhofer ISE, in June 2025, unveiled a demonstrator micro-CPV module that achieved a conversion efficiency of 36% under standard concentrator test conditions, signaling a resurgence in competitive technical benchmarks. Such continuous improvements in cell architecture are essential for offsetting the higher upfront balance-of-system costs associated with tracking hardware, ensuring that the technology remains economically attractive for specialized high-yield applications.

Simultaneously, the rising adoption of high-efficiency systems for utility-scale power generation is accelerating market momentum, supported by significant private investment in hybrid storage-integrated solutions. As grid operators prioritize dispatchable renewable energy, CPV technologies that couple thermal capture with electricity generation are securing larger capital commitments for international expansion. According to RayGen Resources, in April 2025, the company successfully closed a Series D funding round of AUD 127 million to scale its solar-hydro manufacturing and project deployment capabilities. Furthermore, the technology's minimal ground impact is driving uptake in dual-use agricultural sectors; according to Insolight, in April 2025, the company reported a project pipeline of 200 MW specifically targeting agrivoltaic applications, demonstrating the growing commercial viability of land-neutral energy systems.

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Key Market Challenges

The precipitous cost decline of standard crystalline silicon photovoltaics constitutes the primary challenge restricting the expansion of the Global Concentrated Photovoltaic Market. As the manufacturing scale of conventional silicon modules has expanded, their production costs have plummeted, establishing a low price benchmark that high-concentration systems struggle to match. This economic disparity fundamentally undermines the competitiveness of CPV technology, as the higher capital expenditure required for optical components and dual-axis trackers is often not offset by the efficiency gains in regions with moderate solar irradiance. Consequently, investors and utility developers largely favor the financial certainty and lower Levelized Cost of Energy (LCOE) offered by established silicon arrays, confining concentrated photovoltaics to a minor role in the broader energy mix.

This market dominance by conventional technology effectively limits the commercial scalability of concentrated systems. The severity of this competitive imbalance is evident in recent production figures which highlight the near-total saturation of the sector by silicon-based solutions. According to the VDMA's International Technology Roadmap for Photovoltaic (ITRPV), in 2024, crystalline silicon technology accounted for approximately 98% of global photovoltaic production. This overwhelming market share leaves negligible room for alternative technologies to compete, thereby stalling the necessary supply chain investments required for concentrated photovoltaics to achieve meaningful growth.

Key Market Trends

The Global Concentrated Photovoltaic Market is witnessing a decisive shift in technical performance benchmarks, spearheaded by the Advancement of Multi-Junction Solar Cell Efficiency. While early iterations of the technology maintained a moderate lead over silicon, recent R&D breakthroughs are establishing a formidable efficiency gap that secures the technology's long-term viability. This trend is characterized by the validation of record-breaking module architectures that leverage four-junction designs to exceed theoretical limits previously thought unreachable for commercial units. According to the National Renewable Energy Laboratory (NREL), in its 'Champion Photovoltaic Module Efficiency Chart' updated in June 2025, a four-junction concentrator module achieved a confirmed efficiency of 38.9%, a milestone that reinforces the superior energy density of CPV systems for space-constrained industrial applications.

Concurrently, the Application of CPV Technology in Agrivoltaic Projects is evolving from experimental crop trials to specialized integration with permanent high-value agriculture. Unlike conventional arrays that may obstruct machinery or require complex mounting, modern CPV systems are being specifically engineered for arboriculture, where their high-profile tracking systems allow for unrestricted access to orchards while dynamically managing light transmission to protect sensitive fruit from climate extremes. This sector-specific application is gaining commercial traction; according to pv magazine, in September 2025, Swiss developer Insolight inaugurated a 250 kW agrivoltaic installation specifically designed for apple, pear, and apricot orchards, demonstrating the technology's capacity to optimize agricultural yield alongside renewable energy generation.

Segmental Insights

The High Concentration Photovoltaic (HCPV) segment is currently positioned as the fastest-growing category in the global market, driven by its superior energy conversion capabilities. This segment utilizes multi-junction solar cells to achieve efficiency rates that significantly exceed those of conventional technologies, a performance advantage supported by research from the National Renewable Energy Laboratory (NREL). Such high efficiency allows utility-scale projects to maximize power output while minimizing land usage, making HCPV particularly economically viable in regions with high direct normal irradiance. Consequently, energy developers are increasingly adopting this technology to optimize the levelized cost of electricity in large-scale solar infrastructure.

Regional Insights

Asia Pacific dominates the Global Concentrated Photovoltaic Market, primarily driven by the region's robust manufacturing infrastructure and favorable government initiatives. China leads this expansion, supported by regulatory bodies like the National Energy Administration, which incentivize the adoption of high-efficiency renewable technologies. The region benefits significantly from optimal climatic conditions, specifically high direct solar irradiance in Western China and Australia, which is essential for the performance of these systems. Furthermore, a well-established local supply chain enables competitive production costs, facilitating the widespread deployment of concentrated photovoltaic projects across the utility and industrial sectors.

Recent Developments

• In October 2024, 5N Plus Inc. announced that its subsidiary, AZUR SPACE Solar Power GmbH, had successfully completed a significant production capacity expansion ahead of schedule. The company increased its manufacturing capacity for high-performance solar cells by 35%, surpassing the initial target of 30%. This expansion was driven by unprecedented demand for its advanced semiconductor materials and multi-junction solar cells, which serve both the space and terrestrial concentrated photovoltaic markets. The company also confirmed plans to further increase capacity by another 30% by the end of 2025 to meet the growing needs of its strategic global partners.
• In September 2024, Eaton and Insolight entered into a strategic collaboration to combine intelligent power management systems with advanced agrivoltaic solutions. The partnership focused on optimizing solar energy generation in agriculture by coupling Insolight’s translucent micro-concentrator photovoltaic modules with Eaton’s battery energy storage and electric vehicle charging infrastructure. Insolight revealed plans to deploy over 100 projects across Europe by 2026, targeting a collective renewable energy capacity of more than 300 MWp. This initiative aimed to support farmers by protecting crops with dynamic shading while simultaneously generating sustainable electricity for on-site use or export to the local grid.
• In July 2024, the Fraunhofer Institute for Solar Energy Systems and Soltec announced a partnership to develop a prototype two-axis tracker specifically designed for micro-concentrator photovoltaic (micro-CPV) applications. The collaboration aimed to integrate Soltec’s advanced tracking hardware with Fraunhofer ISE’s latest micro-CPV module technology, which operates at a concentration of nearly 1,000 suns and achieves 36% conversion efficiency. This joint development addressed the stringent precision requirements needed for high-concentration systems to maximize electricity generation. The organizations planned to install the first prototype in Spain by the end of the year to demonstrate the technology's potential for regions with high direct solar irradiance.
• In April 2024, Morgan Solar and Cisco unveiled a collaborative pilot project designed to power commercial office spaces using innovative building-integrated solar technologies. The initiative involved the deployment of Morgan Solar’s Energy Blinds, which utilize light-guide optical concentration technology to capture sunlight and generate electricity while simultaneously functioning as functional window shades. Installed at an innovation center in Toronto, the system was integrated with Power-over-Ethernet switches to distribute the generated energy efficiently to meeting rooms. This development demonstrated a practical application of concentrated photovoltaics in urban environments, offering a dual-purpose solution that contributes to sustainability goals in the commercial real estate sector.

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 Product	By Concentration	By Application	By Region
Reflector and Refractor	Low and High	Utility and Commercial	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Concentrated Photovoltaic Market, By Product:

• Reflector and Refractor

• Concentrated Photovoltaic Market, By Concentration:

• Low and High

• Concentrated Photovoltaic Market, By Application:

• Utility and 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