Telecom Tower Market

Telecom Tower Market Size (2022 - 2027)

The Global Telecom Tower Market is predicted to reach a valuation of more than USD 4.7 billion by 2027, from USD 2.55 billion in 2021, with a CAGR of 13.59%.

Technological advances and innovations have played a key role in the evolution of the modern telecommunications sector and the trend is predicted to continue in the coming years. Today, players in today's telecom tower market are primarily focused on innovations, the integration of new technologies and the development of sustainable solutions to improve the efficiency and performance of their telecom towers. In addition, several players are highly 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 in order to gain a firm foothold in today's telecom tower market landscape.

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 multi-channel 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 calling, where many devices are connected to a single network and can transmit and receive at the same time. In addition, it offers better data transfer rates and better connectivity. The telecommunication tower are large steel structures with a transceiver unit on top to cover the maximum area possible.

Market Trends:

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. From "0G" mobile telecommunications service (MTS) to the current long-term evolving 4G (LTE), mobile telecommunications has become a necessity for everyone. Second generation (2G) mobile telecommunications have given the mobile telecommunications industry a huge boost by surprising consumers with an Internet browsing offering on mobile phones, as well as clear voice calling functions. Now most countries have 4G connectivity, a very dense network system that offers real-time voice calls and an improved data transfer rate. Furthermore, few countries like Japan and the United States implement 4.5G and develop 5G network communications.

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, the escalating competition among service providers for better network coverage are some of the current drivers of the telecom tower market. Furthermore, the height limits allowed in any area limit the service provider to install multiple towers in small areas. Furthermore, the increase in the number of telecom service providers, Internet service providers, Wi-Fi and broadband providers is predicted to drive the telecommunication tower market during the foreseen period. At present, 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 the carbon footprint, the adoption of renewable energy technologies (RET) is predicted to grow at a rapid pace during the evaluation period.

Market Restraints:

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

Market Opportunities:

Recent trends have shown strong prospects for strengthening the telecom tower network, where multiple new technologies are likely to develop. Ongoing research on “Internet of Things (IoT)”, real-time security monitoring and accessibility, remote health services, etc. 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 is driving investment in green towers. This development should have a positive impact on the overall expansion of the market.

Market Challenges:

Government regulations and telecommunications authorities are predicted to restrict the telecom tower market. Additionally, high installation cost, high operating costs, and restricted space are other factors that can slow the expansion of the telecom tower market.

TELECOM TOWER MARKET REPORT COVERAGE:

Market Segmentation

Telecom Tower Market - By Type:

• On-Grid
• Off-Grid

The on-grid sector is predicted to a highly attractive over the next couple of years. 

Telecom Tower Market - By Power Source:

• Diesel
• Solar
• Battery
• Wind
• Others

The diesel-battery segment accounts for the biggest share of the industry on the basis of value.

Telecom Tower Market - By Component:

• Rectifiers

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

The batteries segment holds the biggest industry share with a valuation of USD 557 million in the year 2021.

Telecom Tower Market - By Region:

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

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 prospects promising for the overall expansion of the worldwide telecom tower market. The telecommunications boom in countries such as India and China has played a central role in the development of 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 the number of smartphone users, coupled with high internet penetration in India and China due to falling data prices, is 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 critical 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. The Asia-Pacific region accounted for the largest share of the worldwide telecom tower power systems market and was valued at $ 855.67 million. The region is predicted to maintain its dominant position throughout the evaluation period. Advances in telecommunications infrastructure in countries such as India and China are reflected favorably in the telecom tower power systems market in the APAC region. In addition, there has been a substantial increase in the user base of the 3G / 4G network. 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, which also supports market expansion.

Impact of COVID-19 on Telecom Tower Market:

As the new COVID-19 infection spreads around the world at a rapid pace, governments must impose strict blockades and restrict movement across national and international borders. As a result, the use of data in various parts of the world has grown exponentially, as a result of which governments around the world have exempted the telecommunications sector from blocking. Furthermore, governments around the world have viewed telecommunications as an essential service amid the ongoing pandemic as operations in the telecommunications industry are unlikely to be affected.

Market Key Players:

The telecom towers are generally installed either by telecom service provider or third-party infrastructure providers. Some examples of telecom service providers are 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. Whereas some examples of third party tower erection and service providers includes – 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., and Vertical Bridge, LLC.

Recent Developments:

• Ericsson launches a telecom tower for the Indian market. Swedish telecommunications equipment company Ericsson on Thursday unveiled Tower Tube, its latest concept for a radio base station site, for the Indian telecommunications market in Hyderabad.