Concentrated Photovoltaic Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Concentrated Photovoltaic Market is projected to expand from USD 1.22 Billion in 2025 to USD 2.17 Billion by 2031, registering a compound annual growth rate of 10.07%. Concentrated Photovoltaic (CPV) technology employs optical elements, such as curved mirrors or Fresnel lenses, to direct sunlight onto compact, high-efficiency multi-junction solar cells. The market is primarily propelled by the system's capacity to deliver superior energy conversion ratios in areas with high Direct Normal Irradiance, as well as its smaller land footprint compared to standard flat-plate arrays. These operational benefits make the technology particularly suitable for utility-scale projects in arid environments, where maximizing power generation per unit of area is a key operational priority.

However, widespread adoption faces significant hurdles due to the steep reduction in costs for standard crystalline silicon photovoltaics, which has diminished the economic appeal of high-concentration systems. This price gap limits the technology to niche applications, even though it retains distinct technical benefits in specific settings. According to the IEA-PVPS, commercial concentrated photovoltaic modules demonstrated conversion efficiencies surpassing 35% in 2024, maintaining a substantial performance advantage over traditional silicon-based counterparts.

Market Drivers

The primary catalyst for the Concentrated Photovoltaic (CPV) market is the exceptional power conversion efficiency of multi-junction solar cells, which allows the technology to outperform conventional alternatives in utilizing direct sunlight. By using advanced III-V semiconductor materials layered to capture a wider spectrum of irradiance, CPV systems optimize energy yield per square meter, a critical advantage for industrial operations in high-insolation regions. This performance gap was emphasized in June 2025 when Fraunhofer ISE introduced a demonstrator micro-CPV module that achieved 36% efficiency under standard test conditions, indicating 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 the technology remains economically attractive for specialized high-yield applications.

Concurrently, market momentum is accelerating due to the increased adoption of high-efficiency systems for utility-scale power generation, bolstered by substantial private investment in hybrid solutions integrating storage. As grid operators increasingly value dispatchable renewable energy, CPV technologies that combine thermal capture with electricity generation are attracting significant capital for international expansion. For instance, RayGen Resources secured AUD 127 million in Series D funding in April 2025 to scale its solar-hydro manufacturing and project deployment capabilities. Furthermore, the technology's minimal ground impact is driving adoption in dual-use agricultural sectors; Insolight reported a 200 MW project pipeline in April 2025 targeting agrivoltaic applications, demonstrating the growing commercial viability of land-neutral energy systems.

Market Challenges

The principal obstacle restricting the growth of the Global Concentrated Photovoltaic Market is the precipitous decline in costs associated with standard crystalline silicon photovoltaics. As the manufacturing scale for conventional silicon modules has expanded, production costs have plummeted, establishing a low price benchmark that high-concentration systems find difficult to match. This economic disparity fundamentally weakens the competitiveness of CPV technology, as the higher capital expenditure required for optical components and dual-axis trackers is often not justified by 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.

The dominance of conventional technology effectively limits the commercial scalability of concentrated systems, with the severity of this imbalance reflected in recent production figures showing near-total saturation of the sector by silicon-based solutions. According to the VDMA's International Technology Roadmap for Photovoltaic (ITRPV), crystalline silicon technology accounted for approximately 98% of global photovoltaic production in 2024. 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.

Market Trends

The Global Concentrated Photovoltaic Market is experiencing a decisive shift in technical performance benchmarks, driven by the advancement of multi-junction solar cell efficiency. While earlier iterations of the technology held a moderate lead over silicon, recent research and development 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.

Simultaneously, 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.

Key Players Profiled in the Concentrated Photovoltaic Market

• 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.

Report Scope

In this report, the Global Concentrated Photovoltaic Market has been segmented into the following categories:

Concentrated Photovoltaic Market, by Product:

• Reflector
• Refractor

Concentrated Photovoltaic Market, by Concentration:

• Low
• High

Concentrated Photovoltaic Market, by Application:

• Utility
• Commercial

Concentrated Photovoltaic Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Concentrated Photovoltaic Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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