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

Forecast Period	2027-2031
Market Size (2025)	USD 543.65 Million
CAGR (2026-2031)	8.82%
Fastest Growing Segment	Refractor
Largest Market	Asia Pacific
Market Size (2031)	USD 902.76 Million

Market Overview

The Global Industrial Concentrated Photovoltaic Market will grow from USD 543.65 Million in 2025 to USD 902.76 Million by 2031 at a 8.82% CAGR. Industrial Concentrated Photovoltaic systems employ optical elements such as lenses or curved mirrors to focus sunlight onto high-performance multijunction solar cells for electricity generation. The market is primarily supported by the superior conversion efficiency of the technology compared to standard silicon panels and its ability to maximize energy output in regions with high direct normal irradiance. These factors allow industrial operators to achieve significant power generation capacities while minimizing the land footprint required for installation.

However, a significant challenge impeding market expansion is the substantial capital investment necessitated by the complex dual-axis tracking systems required to maintain precise optical alignment with the sun. According to the Fraunhofer Institute for Solar Energy Systems, in 2024, the research cell efficiency record for the multijunction technology used in these concentrated applications stood at 47.6 percent. While this statistic highlights the exceptional technical potential of the product, the associated costs often render the technology less competitive against rapidly cheapening conventional photovoltaic solutions.

Key Market Drivers

Advancements in High-Efficiency Multi-Junction Solar Cell Technology are propelling the Global Industrial Concentrated Photovoltaic Market by overcoming the theoretical efficiency limits of conventional single-junction silicon panels. By layering multiple semiconductor materials to capture a broader spectrum of sunlight, these sophisticated cells enable industrial operators to maximize power output per square meter, a critical advantage for space-constrained facilities. This technological trajectory is evidenced by continuous breakthroughs in cell performance; according to the China Renewable Energy Society PV Committee (CPVS), August 2024, in their recent efficiency list, Longi achieved a certified efficiency record of 34.6% for a silicon-perovskite tandem solar cell. Such gains in conversion rates directly translate to higher energy yields for concentrated photovoltaic systems, making them increasingly viable for energy-intensive industrial applications where land availability is at a premium.

Simultaneously, the Expansion of Utility-Scale Projects in Arid and High-Temperature Climates is accelerating market adoption, supported by tenders that value the superior thermal stability and dispatchability of concentrated technologies. Governments in high-irradiance regions are actively structuring incentives to favor these high-yield solutions over standard photovoltaics, which can suffer performance degradation in extreme heat. For instance, according to pv magazine, April 2024, in the 'India unveils 50% allocation for CSP' report, India designated 50% of its renewable energy tender for the first quarter of the year specifically to concentrated solar technologies. This strategic shift highlights a growing recognition of the technology's role in grid stability, even as the broader solar sector expands rapidly, with NREL noting in October 2024 that the United States alone produced 4.2 gigawatts of standard PV modules in the first half of the year.

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Key Market Challenges

The substantial capital investment required for complex dual-axis tracking systems stands as a formidable barrier hampering the expansion of the Global Industrial Concentrated Photovoltaic Market. Unlike static solar arrays, industrial concentrated photovoltaic installations rely on heavy, precision-engineered mechanical trackers to maintain perfect optical alignment with the sun throughout the day. This requirement for sophisticated hardware significantly inflates the Balance of System costs, increasing the upfront financial risk for operators. Consequently, the high initial expenditure often outweighs the benefits of reduced land usage, making it difficult for projects to secure financing in a cost-sensitive energy sector.

This economic disadvantage is further exacerbated when the technology is benchmarked against the rapidly declining costs of conventional silicon-based alternatives. The efficiency gains of concentrated systems struggle to justify the premium price point established by the tracking infrastructure when standard utility-scale options are available at record-low prices. According to the International Renewable Energy Agency, in 2024, the global weighted average levelized cost of electricity for utility-scale solar photovoltaics stood at 0.043 U.S. dollars per kilowatt-hour. This aggressive price competitiveness of standard solar technologies forces concentrated photovoltaic systems into a niche market position, severely restricting their adoption to scenarios where spatial constraints are the sole priority over fiscal efficiency.

Key Market Trends

The Integration of CPV with Green Hydrogen Electrolysis Units is accelerating as industrial operators seek to decarbonize energy-intensive processes through direct solar-to-fuel pathways. By leveraging the high thermal and electrical flux of concentrated systems, this application significantly enhances the efficiency of electrolytic water splitting compared to conventional photovoltaic methods, offering a streamlined solution for hard-to-abate sectors. The commercial viability of this trend was highlighted when Sparc Hydrogen achieved sustained hydrogen generation using concentrated solar radiation; according to pv magazine Australia, December 2025, in the 'Sparc hits production milestone at hydrogen pilot plant in Australia' report, the company's new pilot facility is positioned to serve a burgeoning global green hydrogen market forecast to be worth 2.11 trillion Australian dollars per year by 2050.

Simultaneously, the Emergence of Micro-CPV Architectures for Industrial Rooftop Integration is reshaping the market by overcoming the spatial and structural limitations of traditional dual-axis trackers. Manufacturers are increasingly utilizing miniaturized optics and planar light-guide technologies to create compact, low-profile modules that can be installed on standard industrial roofs or integrated into agrivoltaic systems without requiring heavy mechanical infrastructure. This technological evolution is exemplified by recent deployments; according to pv magazine, September 2025, in the 'Agrivoltaics for arboriculture' article, Swiss developer Insolight inaugurated a 250-kilowatt micro-CPV installation in Conthey, which is engineered to generate 300 megawatt-hours of electricity annually while maximizing land-use efficiency.

Segmental Insights

The Refractor segment is currently the fastest growing category within the Global Industrial Concentrated Photovoltaic Market, primarily driven by the widespread adoption of Fresnel lens technology. This optical solution is increasingly favored over reflective alternatives because it allows for high light concentration ratios while maintaining a lightweight and durable structure. The shift toward refractive optics is largely attributed to their ability to significantly reduce balance-of-system costs and installation complexity for industrial operators. Furthermore, these lenses enhance the overall energy conversion efficiency of multi-junction solar cells, making them the preferred technical choice for maximizing power output in large-scale utility projects.

Regional Insights

Asia Pacific maintains a leading position in the global industrial concentrated photovoltaic market due to rapid industrial expansion and increasing energy demand across the region. The market dominance is largely driven by supportive government frameworks in key economies like China and India, which prioritize renewable energy integration for heavy industries. Regulatory bodies such as China's National Energy Administration actively promote the deployment of efficient solar power systems to achieve sustainability goals. Additionally, the region benefits from an extensive manufacturing ecosystem, which ensures supply chain stability and supports the widespread adoption of concentrated photovoltaic solutions in the industrial sector.

Recent Developments

• In May 2025, Insolight and Energie 360° announced a partnership to construct a significant agrivoltaic project in Leuggern, Switzerland. The facility was designed to cover 12,000 square meters of cherry orchards with approximately 1,300 bifacial solar modules featuring Insolight’s optical micro-concentration technology. The system utilizes a dynamic light-transmission mechanism to protect crops from adverse weather conditions such as hail and frost while generating renewable electricity. Construction was scheduled to commence in the summer of 2025, with the project serving as a commercial demonstration of dual-use land applications for the industrial concentrated photovoltaic market.
• In July 2024, Soltec and the Fraunhofer Institute for Solar Energy Systems partnered to develop a new tracker prototype specifically for concentrated photovoltaics. The collaboration focused on adapting Soltec’s two-axis tracking technology to meet the high-precision requirements of Fraunhofer’s micro-CPV modules, which operate under a concentration of nearly 1,000 suns. The project aimed to validate a system capable of accommodating the 36% conversion efficiency of the micro-CPV cells while ensuring structural robustness and cost-competitiveness. A prototype installation was scheduled for deployment in Spain to test the tracking accuracy and energy yield of this next-generation industrial CPV solution.
• In April 2024, Cisco and Morgan Solar announced a collaboration to implement a pilot project integrating solar energy into commercial office spaces. The initiative utilized Morgan Solar’s Energy Blinds, which employ optical concentration technology within window shades to capture sunlight and generate electricity. This system was integrated with Power-over-Ethernet infrastructure to efficiently distribute energy for lighting and collaboration tools. The project, launched at an innovation center in Toronto, aimed to demonstrate how building-integrated concentrated photovoltaics could contribute to sustainability goals and net-zero energy targets in the commercial real estate market.
• In March 2024, Novolecs Solutions électriques innovantes acquired the manufacturing facility and intellectual property of Saint-Augustin Canada Electric Inc. (STACE) in Quebec. The acquisition included the specialized concentrated photovoltaic (CPV) business unit, which designed and manufactured high-performance solar modules for international markets. This strategic move secured the continuation of the factory's operations and the retention of expertise in advanced electrical and solar technologies. The new management confirmed its commitment to maintaining the service agreements and production activities previously established by STACE in the renewable energy 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 Concentration	By Region
Low and High	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Industrial Concentrated Photovoltaic Market, By Concentration:

• Low and High

• Industrial 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