The Telecom Towers Market is estimated to be valued at Us$ 50.40 Billion in 2022 and is expected to exhibit a CAGR of 10.4% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.
The telecom towers market comprises companies that offer connectivity infrastructure for telecommunication networks. Telecom towers are structures, such as masts or poles, that support antennas for various telecom services like mobile phones, television and radio broadcasting. They facilitate the transmission and reception of wireless signals between devices and networks. Telecom towers form the backbone of wireless networks and enable seamless connectivity to mobile subscribers.
Surging mobile data consumption: Global monthly mobile data traffic has grown exponentially over the past five years and this upward trend is expected to continue with the proliferation of bandwidth-intensive applications and IoT devices. According to a report by Ericsson Mobility, global mobile data traffic increased by around 70% year-on-year in 2021 to reach around 80 exabytes per month. This surge in data usage has necessitated network enhancements and driving demand for additional telecom towers and small cells for increased coverage and capacity.
Uptake of 5G technology: 5G networks offer lower latency and multi-Gbps peak data speeds compared to existing 4G networks. However, 5G signals have shorter range and weaker penetration through obstacles compared to 4G. This means telecom operators need to deploy many more telecom towers and small cells to support 5G networks for seamless connectivity. According to GSA, as of January 2022, 83 telecom operators have launched 5G services commercially across 50 countries/territories.
The global telecom towers market is segmented into towered and towerless. The towered segment dominates the market and accounts for over 80% share owing to widescale infrastructure availability across many developing nations. The towered infrastructure allows telecom operators to provide better coverage and enhance network capacity with relatively lower upfront costs.
Political: Favorable government policies around the world support infrastructure development. Many countries provide incentives for setting up telecom towers in rural areas to increase connectivity.
Economic: Continuous economic growth has increased demand for reliable connectivity. Rising disposable income drives the subscriber base leading to higher investments in network upgradation.
Social: Increasing mobile penetration and data consumption through social media and OTT platforms encourages adoption of advanced technologies. Work from home amid COVID-19 has further boosted mobile internet usage.
Technological: Advent of technologies like 5G, IoT and smart city initiatives will require dense network deployment. Advances in small cell and distributed antenna systems can help complement macro networks.
The global Telecom Towers Market is expected to witness high growth, exhibiting CAGR of 10.4% over the forecast period, due to increasing mobile subscriptions and need for network capacity augmentation.The US market accounts for the largest share currently due to early 5G deployments and availability of extensive tower infrastructure. China and India are emerging as high potential markets with continuous network investments by telecom operators to cater to the burgeoning subscriber base in rural regions.
The Asia Pacific region is expected to be the fastest growing market for telecom towers. Countries like China and India have a huge untapped potential in rural areas providing opportunities for new telecom tower addition. China alone has over 600 million unconnected people concentrated in remote areas.
Key players operating in the telecom towers market are American Tower Corporation, AT&T Inc., Bharti Infratel Limited, China Tower Corporation, Crown Castle International Corporation, GTL Infrastructure Ltd, Helios Tower Africa, SBA Communications Corporation, T-Mobile Tower, and Viom Networks. American Tower Corporation and Crown Castle International Corporation are gaining market share through mergers and acquisitions in high growth markets.
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it