February 21, 2024

Telecom Towers Market Growth driven by Adoption of 5G Connectivity

The global Telecom Towers Market is estimated to be valued at US$ 50.40 Bn or 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.

Market Overview:

Telecom towers are essential infrastructure required for telecommunication network and connectivity. They are installed along with various telecommunication technologies such as 2G, 3G, 4G, and upcoming 5G to enable seamless communication and connectivity. Telecom towers help in providing wireless network coverage for a specific geographic area. They improve network availability and quality of connections for users by reducing call drops and optimizing data transfer speed. With rising penetration of smartphones and increasing adoption of high-speed internet services, the demand for telecom towers is increasing significantly across the globe.

Market key trends:

One of the major trends driving growth of the telecom towers market is rising adoption of 5G connectivity. 5G networks promise significantly higher speed and lower latency compared to existing 4G networks. However, deployment of 5G requires installation of several small cell sites or small telecom towers as 5G networks work on high-frequency spectrum that faces issues in covering longer distances. According to estimates, over 2 million 5G base stations are projected to be installed worldwide by 2023. This substantial deployment of 5G infrastructure will accelerate the demand for telecom towers over the forecast period. Furthermore, growing mobile subscriber base across emerging economies is also expected to boost market growth.

Porter’s Analysis

Threat of new entrants: The telecom towers industry requires high initial capital investment for setting up towers, which poses significant barriers for new players.

Bargaining power of buyers: Telecom operators have considerable bargaining power as buyers due to the oligopolistic nature of the market. However, independent tower companies also provide services to operators.

Bargaining power of suppliers: Tower construction material and equipment suppliers have moderate bargaining power due to the availability of substitute suppliers.

Threat of new substitutes: There exists a low threat of substitution as telecom towers are core infrastructure assets for wireless network operators.

Competitive rivalry: Fierce competition exists among existing telecom tower operators to cater to the increasing demand from mobile network operators.

Key Takeaways

The global Telecom Towers Market is expected to witness high growth, exhibiting CAGR of 10.4% over the forecast period 2023 to 2030, due to increasing mobile subscriptions and rollout of 5G networks worldwide. The market size was valued at US$ 50.40 Billion in 2022.

Regional analysis:

 

North America dominated the telecom towers market in 2022 and is expected to continue its dominance during the forecast period. However, Asia Pacific is expected to witness the fastest growth over the forecast period supported by the majority presence of developing countries like China and India in the region. These countries are witnessing substantial investment in telecom towers to expand rural connectivity.

Key players:

 

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 the leading players owing to their widespread presence across regions.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it