Global Telecom Tower Market Size, Share, Trends, COVID-19 Impact & Growth Forecast Report – Segmented By Type (On-Grid and Off-Grid), Power Source (Diesel Diesel-Solar, Diesel-Battery, Diesel-Wind and Others), Component (Rectifiers, Batteries, Controllers, Inverters, Power Distribution Unit, Generator and Others), and Region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa) - Industry Analysis (2024 to 2029)

Updated On: January, 2024
ID: 11063
Pages: 180

Global Telecom Tower Market Size (2024 to 2029)

The Global Telecom Tower Market is predicted to reach USD 3.74 billion in 2024 and USD 7.07 billion by 2029, growing at a CAGR of 13.59% during the forecast period.

Current Scenario of the Global Telecom Tower Market

Telecom towers are the backbone of any mobile telecommunications system. The telecom tower is a structure that houses a transceiver to maintain connection with thousands of mobile phones and the Mobile Telephone Switching Office (MTSO). The telecommunication tower provides a wide multichannel frequency range to thousands of mobile phones in the network area. The main advantage of multichannel frequency is that it can offer dozens of mobile phones on a single network, such as conference calls, where many devices are connected to a single network and can transmit and receive simultaneously. In addition, it offers better data transfer rates and better connectivity. The telecommunication towers are large steel structures with a transceiver unit on top to cover the maximum area possible.

Technological advances and innovations have played a vital role in the evolution of the modern telecommunications sector, and the trend is predicted to continue in the coming years. Today, players in the telecom tower market are primarily focused on innovations, the integration of new technologies like and the development of sustainable solutions to improve the efficiency and performance of their telecom towers. In addition, several players are joining the zero diesel and zero damage trend, thanks to which the telecom tower market is heading towards a sustainable and green future. In addition, market players are also predicted to improve customer satisfaction and enhance employee engagement to gain a firm foothold in today's telecom tower market landscape.

MARKET DRIVERS

The market for telecom towers depends primarily on the density of mobile subscribers and the number of telecommunications service providers in any region.

The growing reach of mobile phones in almost all remote areas and the escalating competition among service providers for better network coverage are some of the current drivers of the telecom tower market. Furthermore, the increase in the number of telecom, Internet, Wi-Fi, and broadband providers is predicted to drive the telecommunication tower market during the forecast period. Various players in the telecom tower market are primarily focused on minimizing energy costs and energy consumption due to growing environmental concerns. In its quest to minimize diesel consumption and reduce carbon footprint, adopting renewable energy technologies (RET) will increase in the coming years by raising the growth opportunities for the telecom tower market. 

The mobile telecommunications industry has experienced a significant expansion rate over the past decade and is predicted to expand steadily among different generations of network communications.

Mobile telecommunications has become necessary for everyone, from "0G" mobile telecommunications service (MTS) to the current long-term evolving 5G.  The fourth-generation (4G) mobile telecommunications have significantly boosted the mobile telecommunications industry by surprising consumers with an Internet browsing offering on mobile phones and clear voice calling functions. Most countries now have 5G connectivity, a dense network system offering real-time voice calls, and an improved data transfer rate. Furthermore, few countries like Japan and the United States implement 5G network communications, gaining traction among the population due to its rapid data speed and high internet connectivity, offering market growth opportunities during the forecast period. 

Recent trends have shown strong prospects for strengthening the telecom tower network, where multiple new technologies are likely to develop. Ongoing research on "The Internet of Things (IoT)," real-time security monitoring and accessibility, remote health services, and others are escalating the demand for advanced telecom towers, leading to market revenue growth. They are emerging technologies that are predicted to increase the load on the telecom tower in the coming years. Telecom service providers and vendors invest in green towers due to benefits like reduced OPEX and low carbon emissions. The escalating emphasis on renewable energy sources to reduce carbon emissions drives investment in green towers. This development should positively impact the overall expansion of the market.

MARKET RESTRAINTS

The harmful effects of high-frequency radio waves or microwaves emitted from the towers on humans and the environment are predicted to limit the market for telecommunication towers.

For Instance, the National Center for Biotechnology Information reports that increased usage of mobile phones increases the risk of brain tumors. Government regulations and telecommunications authorities are predicted to restrict the telecom tower market due to strict regulations and standards that challenge market players. The government of India restricts the establishment of telecom towers inside the premises of schools and clinics as electromagnetic radiation might affect youngsters and patients more. These scenarios are estimated to be challenging for market players regarding market expansion.   Additionally, high installation costs, high operating costs, and restricted space are estimated to slow the expansion of the telecom tower market. Furthermore, the height limits allowed in any area limit the service provider from installing multiple towers in small areas, which hampers the market expansion. 

Impact of COVID-19 on the Global Telecom Tower Market

The pandemic positively impacted the telecom towers industry as the COVID-19 infection spreads rapidly; governments must impose strict regulations and restrict movement across national and international borders. As a result, the use of data in various parts of the world has grown exponentially, and governments worldwide have exempted the telecommunications sector from blocking it. Furthermore, governments worldwide have viewed telecommunications as an essential service amid the ongoing pandemic, as operations in the telecommunications industry are unlikely to be affected.

REPORT COVERAGE

REPORT METRIC

DETAILS

Market Size Available

2023 to 2029

Base Year

2023

Forecast Period

2024 to 2029

CAGR

13.59%

Segments Covered

By Type, Power Source, Component, and Region

 

Various Analyses Covered

Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities

Regions Covered

North America, Europe, APAC, Latin America, Middle East & Africa

 

  

Market Leaders Profiled

China Mobile Ltd., Verizon Communications Inc., AT&T Inc., Vodafone Group Plc, Bharti Telecom Ltd., China Unicom Ltd., Telenor Group, MTN Group and Telstra Corp. Ltd.Indus Towers Ltd., 3Z Telecom, GTL Infrastructure Limited, Tower Systems, Inc., American Tower Corporation, Reliance Infratel Limited, LeBLANC Communications (M) Sdn.Bhd.,  ATC IP LLC., Vertical Bridge, LLC., and Others.

 

SEGMENTAL ANALYSIS

Global Telecom Tower Market Analysis By Type

The on-grid segment held the largest share in the global telecom towers market revenue due to its wide adaptability worldwide. On-grid towers commonly use energy solutions like electric generators and battery storage as these require continuous electricity during the day. In these telecommunication towers, the electricity is available for 16 to 24 hours.  The off-grid segment is estimated to grow the fastest in the coming years due to rising demand for green towers. These towers have stable mobile networks even in areas with continuous power cuts. 

Global Telecom Tower Market Analysis By Power Source

The diesel and battery segments dominated the global market revenue. To ensure complete power availability to the tower, a combination of batteries and diesel generators is used for the grid supply, which is driving the segment growth. The solar segment is estimated to grow the fastest during the forecast period, as market players are focusing on developing green towers, which generate electricity using solar panels that absorb heat energy and convert it into electrical energy. 

Global Telecom Tower Market Analysis By Component

The batteries segment dominates the global telecom towers market due to the increased adoption of continuous electricity supply to the grids. Batteries and diesel generators are used in combination to supply electricity to the towers.   

REGIONAL ANALYSIS 

The telecom tower market is predicted to experience impressive worldwide expansion during the foreseen period. The presence of major telecommunications companies in developed regions, including North America and Europe, along with the market size of the Asia-Pacific region, are some of the main factors offering promising prospects for the overall expansion of the worldwide telecom tower market.

The Asia-Pacific region accounted for the largest share of the worldwide telecom tower power systems market. The telecommunications boom in countries such as India and China has played a central role in developing the telecom tower market in the Asia-Pacific region, and based on current observations, the trend is predicted to continue during the foreseen period. The exponential increase in smartphone users and high internet penetration in Asian countries due to falling data prices are predicted to boost the telecom tower market in the Asia Pacific region. In addition, growing government support and favorable policies are also predicted to play a crucial role in the evolution of the telecom tower market during the evaluation period. In India, the government has granted telecom towers the status of "infrastructure," a step that classifies telecom towers on a par with power generation, hospitals, ports, etc. As a result, investments in the telecom tower market are predicted to increase at a constant rate. In addition, there has been a substantial increase in the user base of the 4G and 5G networks. The growing penetration of the Internet in the region requires the installation of more telecom towers. Local policymakers are launching initiatives to improve connectivity in rural and remote areas, supporting market expansion.

The European region held the second position in the global telecom towers market owing to the rise in urbanization, which enhanced the penetration of the Internet of Things, the growing adoption of smartphones, laptops, and technological devices, and robust infrastructure development. The presence of advanced technologies and the high requirement of telecom services in developed countries like the UK, France, and Italy fuel regional market growth.  The North American region is estimated to have a moderate growth rate in the coming years due to the rising participation of market players. 

KEY PARTICIPANTS IN THE GLOBAL TELECOM TOWER MARKET

The major companies operating in the global telecom tower market include China Mobile Ltd., Verizon Communications Inc., AT&T Inc., Vodafone Group Plc, Bharti Telecom Ltd., China Unicom Ltd., Telenor Group, MTN Group, and Telstra Corp. Ltd. In contrast, some examples of third-party tower erection and service providers include – Indus Towers Ltd., 3Z Telecom, GTL Infrastructure Limited, Tower Systems, Inc., American Tower Corporation, Reliance Infratel Limited, LeBLANC Communications (M) Sdn.Bhd., ATC IP LLC., Vertical Bridge, LLC, and others.

RECENT HAPPENINGS IN THE GLOBAL TELECOM TOWER MARKET

  • In April 2023, The Indian Government launched 254' 4G mobile towers' in LAC villages in Arunachal Pradesh. These 254 towers will provide 4G coverage in 336 villages, including several unconnected areas. Most of these villages are located in the villages bordering China to counter foreign telecom penetration. Through this launch, over 77,000 people are expected to benefit. 
  • In April 2023, Saudi Telecom Company (STC) 's subsidiary, Tawal, reached an agreement to acquire United Group's tower infrastructure for Euro 1.22 billion. The acquisition will include the United Group's infrastructure unit in Bulgaria, Slovenia, and Croatia, which provides around 4,800 towers. 
  • In February 2023, according to Business Standard, telecom provider Bharti Airtel increased its direct stake in Indus Towers by acquiring 23.01% of the shares held by the wholly-owned subsidiary Nettle Infrastructure. Bharti Airtel owns 47.95 percent of Indus Towers: the telecom operator earlier owned a 24.94% stake and 23.01% through its subsidiary Nettle Infrastructure. 
  • In January 2023, Egypt Telecom, in collaboration with Huawei Technologies, built its first green tower powered by solar energy utilizing a Fibre-Reinforced Polymer tower (FRP) with wireless access. 
  • In December 2022, according to Com, the Ministry of Railways made its telecom services available to private businesses, permitting them to construct towers on Railways-owned land. 
  • Ericsson launches a telecom tower for the Indian market. Swedish telecommunications equipment company Ericsson unveiled Tower Tube on Thursday, its latest concept for a radio base station site for the Indian telecommunications market in Hyderabad.

DETAILED SEGMENTATION OF THE GLOBAL TELECOM TOWER MARKET INCLUDED IN THIS REPORT

This research report on the global telecom tower market has been segmented and sub-segmented based on the type, power source, component, and region.

By Type

  • On-Grid
  • Off-Grid

By Power Source

  • Diesel
  • Solar
  • Battery
  • Wind
  • Others

By Component

  • Rectifiers
  • Batteries
  • Controllers
  • Inverters
  • Power Distribution Unit
  • Generator
  • Others

By Region

  • North America 
  • Europe 
  • Asia Pacific
  • Latin America 
  • Middle East & Africa 

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Frequently Asked Questions

How are regulatory frameworks impacting the Telecom Tower market on a global scale?

Regulatory frameworks play a crucial role in the Telecom Tower market. Governments worldwide are formulating policies to streamline tower deployment, ensuring environmental compliance and addressing public concerns, which directly impacts market dynamics.

What role do emerging economies play in the growth of the global Telecom Tower market?

Emerging economies are pivotal in the growth of the Telecom Tower market, as they witness rapid urbanization and increasing mobile penetration. Governments in these regions are investing in telecom infrastructure to bridge the digital divide and spur economic development.

What are the environmental sustainability initiatives within the Telecom Tower market globally?

The Telecom Tower industry is increasingly focusing on environmental sustainability. Green energy solutions, such as solar-powered towers, are being deployed globally to reduce the carbon footprint and align with sustainable development goals.

How does the global Telecom Tower market address security concerns related to cyber threats?

The Telecom Tower market is actively investing in cybersecurity measures to address potential threats. Enhanced security protocols and collaboration with cybersecurity experts are key strategies to safeguard the communication infrastructure.

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