June 18, 2024

Telecom Towers Market Growth is powered by expansive 5G infrastructure rollouts

Telecom towers facilitate uninterrupted connectivity and enable telecommunication companies to build and expand wireless networks. The increasing deployment of the 5G network requires a larger number of compact base stations with multi-band support, thereby propelling the demand for telecom towers. Telecom operators are investing aggressively in 5G infrastructure rollout, which is expected to drive the need for telecom towers that support a denser network of small cells and massive MIMO antennas.

The Global Telecom Towers Market is estimated to be valued at US$ 63.45 Bn in 2024 and is expected to exhibit a CAGR of 13% over the forecast period between 2024 to 2030.

Key Takeaways

Key players operating in the Telecom Towers market are Smith & Nephew plc; Merz, Inc.; Lumenis; Enaltus LLC; Sonoma Pharmaceuticals, Inc.; Mölnlycke Health Care; Cynosure, Inc.; CCA Industries, Inc.; Scarheal, Inc., NewMedical Technology, Inc.; and Suneva Medical, Inc.

The growing mobile subscriber base around the world is fueling the demand for seamless connectivity and high-speed internet. As telecommunication technologies continue to advance, telecom infrastructure requires continual upgrades, driving the need for telecom tower installation and modernization.

Several telecom operators are focusing on expanding their tower portfolios globally through acquisitions and mergers to leverage infrastructure sharing and reduce capital expenditure. Emerging economies with rapidly growing tele-density and expanding mobile broadband penetration present significant opportunities for tower rental and services businesses.

Market drivers

One of the key drivers propelling the Telecom Towers Market Size is the large-scale rollouts of 5G networks worldwide over the next few years. 5G technology requires towers to support ultra-dense networks with smaller cells and massive MIMO antennas. This translates into an exponentially larger number of telecom towers for 5G. Additionally, upgrades to existing 3G and 4G infrastructure will require adding multi-band radio equipment and rearranging antennas, necessitating new telecom towers installation. Further investments into rural connectivity projects, especially in developing countries will boost telecom tower demand.

Impact of geopolitical situation on Telecom Towers Market growth

The ongoing geopolitical tensions between countries are impacting the growth of the telecom towers market. The restrictions on equipment imports from certain nations due to security concerns are disrupting telecom infrastructure development plans of many countries. This is hampering the demand growth for new telecom towers. Similarly, the territorial disputes between countries are delaying tower installation projects near border areas. Moreover, the economic sanctions imposed on certain nations by global superpowers are restricting the inflow of investments for telecom modernization projects in those markets. This decline in investments is restricting the addition of new towers. However, the ongoing efforts by governments of several countries to boost domestic telecom manufacturing through production-linked incentives are expected to aid self-reliance and minimize dependence on equipment imports from restricted nations going ahead. This will help mitigate geopolitical uncertainties and support telecom towers market expansion.

Geographical regions with highest value concentration in Telecom Towers Market

The Asia Pacific region accounts for the highest value concentration in the global telecom towers market. Countries like China and India have a massive telecom network with lakhs of towers already installed. Being the most populous region, the telecom subscriber base is continuously rising in Asia Pacific which is driving new tower addition. Furthermore, the ongoing rural connectivity projects by governments will spur tower installation in remote areas. North America also has a significant market share due to the mature cellular network in countries like the US. Large number of towers were set up over the last few decades to achieve nationwide coverage which is supporting ongoing maintenance and upgrading business.

Fastest growing region in Telecom Towers Market

Sub-Saharan Africa is anticipated to be the fastest growing region for the telecom towers market during the forecast period. The region has lower tower penetration currently compared to developed markets. Hence, governments are taking initiatives to enhance telecom and internet connectivity in rural areas which will propel new tower construction. Additionally, many African nations have a very young demographic profile which is leading to rising mobile subscriber additions. This is encouraging telecom operators as well as tower companies to increase infrastructure spending and tower additions to accommodate growing network capacity requirements. Furthermore, foreign investments are being witnessed in the African telecom sector which will augment the regional market expansion.

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