Concentrator Photovoltaic (CPV) Market Size, Share, Growth, Trends, and Global Industry Analysis: By Technology (Low Concentration Photovoltaic, High Concentration Photovoltaic), Concentration Level (<= 500 Suns, > 500 Suns), By Component (Optical Components, Solar Cells, Trackers, Others), By Application (Utility-Scale Power Plants, Commercial Power Generation, Others), By End Use (Grid-Connected, Off-Grid) and Region Forecast 2021-2032

Concentrator Photovoltaic (CPV) Market size was valued at US$ 3,520.5 million in 2025 and is projected to reach US$ 8,029.2 million by 2032 at a CAGR of 12.5% form 2026-2032. Moreover, the U.S. Concentrator Photovoltaic (CPV)Market is projected to grow at 12.8% 2032.

Concentrated Photovoltaic (CPV) technology is a method of generating electricity from sunlight by using optical devices such as lenses or mirrors to focus sunlight onto small, high-efficiency solar cells. This approach distinguishes itself from conventional photovoltaic systems by significantly increasing the power output per unit area and enabling higher conversion efficiencies, often by employing multi-junction solar cells that can convert a broader range of the solar spectrum into electricity. CPV systems are particularly well-suited for locations with abundant direct sunlight, where their ability to maximize energy yield and optimize land use makes them a compelling solution for both utility-scale and distributed solar energy projects.

The market has shown robust growth. The market growth is fueled by increasing global demand for efficient and sustainable energy, continuous advancements in CPV technology, and supportive government policies, particularly in regions like China, India, and parts of Europe. While the high-concentration segment dominates due to its superior performance, ongoing technological innovation addresses performance and cost considerations, driving broader adoption across emerging and developed markets.

Facts & Figures

• As per the International Renewable Energy Agency (IRENA), the overall efficiency of CPV systems can reach above 40%, significantly surpassing traditional silicon-based PV panels, which typically operate at efficiencies between 15%-20%.
• Combining photovoltaic cells with thermoelectric and passive cooling systems leads to synergistic effects on energy harvesting and better utilization of the solar spectrum, promoting sustained higher performance.
• According to the U.S. Department of Energy's SunShot Initiative, the levelized cost of electricity (LCOE) from CPV systems has been decreasing steadily, with projections indicating parity with other renewable technologies by the late 2020s in high-insolation regions.

Key Developments

• In May 2025, Research into perovskite-based concentrator solar cells (P-CPVs) showed promising efficiency gains, reaching light-to-energy conversion efficiencies of 27.3%, surpassing many conventional single-junction cells. 
• In May 2025, Leading firms such as Solar Junction and Magpower focused on multi-junction solar cell technology enhancements, pushing the efficiency of CPV modules beyond 40%. Innovations include sophisticated thermal management solutions that effectively dissipate heat generated at high concentration levels, thereby maintaining cell performance and extending system lifespan.

Concentrator Photovoltaic (CPV) Market Segmentation

Based on the technology

• Low Concentration Photovoltaic (LCPV)
• High Concentration Photovoltaic (HCPV)

The high concentration photovoltaic (HCPV) is expected to lead the concentrator photovoltaic market due to its ability to achieve significantly higher energy conversion efficiency compared to low concentration systems. Analysts note that HCPV systems use advanced multi-junction solar cells and precise optical concentrators to deliver superior performance, particularly in regions with high direct normal irradiance. These systems are well suited for utility-scale power generation, where maximizing electricity output per unit area is critical. In addition, ongoing improvements in cell efficiency, tracking accuracy, and thermal management are enhancing HCPV system reliability and performance. Although HCPV involves higher initial investment and complex installation, its long-term efficiency advantages and suitability for large-scale solar projects continue to reinforce its leading position within the global concentrator photovoltaic market.

Based on the concentration level

• <= 500 Suns
• > 500 Suns

Based on concentration level, > 500 suns systems are anticipated to dominate the concentrator photovoltaic market, driven by their ability to deliver very high energy conversion efficiencies. Analysts highlight that systems operating above 500 suns utilize advanced optical concentrators and multi-junction solar cells to maximize power output from direct sunlight. This high concentration level makes them particularly attractive for utility-scale installations in regions with strong and consistent direct normal irradiance. By concentrating sunlight more intensely, these systems reduce the required cell area while increasing overall energy yield, improving land-use efficiency. Although higher concentration systems involve greater technical complexity and precise tracking requirements, ongoing advancements in optics, thermal management, and tracking technologies are mitigating these challenges. As a result, > 500 suns CPV systems continue to gain preference for large-scale, high-performance solar projects, reinforcing their leading position in the global CPV market.

Based on the component

• Optical Components (Lenses, Mirrors)
• Solar Cells
• Trackers
• Others

The solar cells are expected to dominate the concentrator photovoltaic market due to their critical role in determining overall system efficiency and power output. Analysts emphasize that CPV systems rely heavily on advanced multi-junction solar cells, which can achieve conversion efficiencies exceeding those of conventional photovoltaic cells. These high-performance cells are specifically designed to operate under intense concentrated sunlight, making them the most valuable and technology-driven component within CPV systems. Continuous research and development aimed at improving cell efficiency, durability, and thermal tolerance is further strengthening their importance. In addition, declining costs of high-efficiency multi-junction cells and increasing investments in performance optimization are accelerating adoption. While optical components and trackers are essential for system operation, the ability of solar cells to directly convert concentrated sunlight into electricity positions them as the leading component segment in the global concentrator photovoltaic market.

Based on the application

• Utility-Scale Power Plants
• Commercial Power Generation
• Others

The utility-scale power plants are expected to lead the concentrator photovoltaic market, driven by the need for high-efficiency and large-capacity solar power generation. Analysts note that CPV technology is particularly well suited for utility-scale installations in regions with high direct normal irradiance, where maximizing electricity output per unit area is critical. Large power plants can justify the higher initial investment of CPV systems due to long project lifecycles and strong power generation potential. In addition, utility-scale projects benefit from advanced dual-axis tracking systems that enhance CPV performance throughout the day. Growing government support for renewable energy expansion, grid decarbonization targets, and increasing investments in large solar projects further reinforce demand. Compared to commercial installations, utility-scale power plants offer better economies of scale and higher energy yield, positioning them as the dominant application segment in the global concentrator photovoltaic market.

Based on the end use

• Grid-Connected
• Off-Grid

The grid-connected systems are anticipated to dominate the concentrator photovoltaic market, driven by the growing demand for large-scale renewable power integration into national and regional grids. Analysts highlight that CPV installations are primarily developed as utility-scale projects designed to supply electricity directly to the grid, particularly in regions with high direct normal irradiance. Grid-connected systems benefit from stable power purchase agreements, supportive government policies, and investments aimed at reducing carbon emissions from conventional power generation. In addition, integration with existing grid infrastructure allows CPV projects to achieve higher capacity utilization and commercial viability. While off-grid applications remain relevant for remote or isolated locations, their adoption is comparatively limited due to higher system complexity and cost. As a result, grid-connected end use continues to lead the global concentrator photovoltaic market.