Telecom towers refer to mounted signal transmission systems that are used by telecommunication companies for broadcasting wireless signals. They play a pivotal role in enabling cellular connectivity and ensuring reliable communication. With the growing adoption of advanced technologies such as 5G, satellite connectivity, and internet of things, the demand for telecom towers has increased tremendously in recent years.
The global Telecom Towers Market is estimated to be valued at US$ 55.07 Bn in 2023 and is expected to exhibit a CAGR of 13% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The key driver that is fueling the growth of Telecom Towers Market is the rising deployment of 5G networks globally. 5G technology requires dense network of small cells and towers for seamless connectivity which is significantly driving the demand for telecom towers. Furthermore, 5G allows connections to an extremely high number of devices simultaneously with greater bandwidth and low latency. This has led mobile network operators to intensely invest in upgrading their infrastructure with 5G-compatible telecom towers and small cells. Rapid expansion of 5G is expected to propel the telecom towers industry during the forecast period.
Strength: Tower companies own critical infrastructure assets which are a key component for telecom operators’ networks. Towers have very high barriers to entry.
Weakness: Tower companies have high fixed costs for operations and maintenance of towers. Dependent on rental payments from telecom operators.
Opportunity: Rising adoption of 5G networks across regions will drive demand for deployment of new towers. Telecom operators exploring new revenue streams such as renting tower space to non-traditional clients like utilities.
Threats: Strict regulations around tower radiation emissions. Rise of alternative wireless infrastructures like small cells pose competition over the long term.
The global telecom towers market is expected to witness high growth over the forecast period driven by the expansion of 5G networks globally. Global Telecom Towers Market Size is estimated to be valued at US$ 55.07 Bn in 2023 and is expected to exhibit a CAGR of 13% over the forecast period 2023 to 2030.
The Asia Pacific region currently dominates the market and is expected to continue its dominance during the forecast period aided by strong investments from countries like China and India to enhance telecom infrastructure.
Key players operating in the telecom towers market are American Tower Corporation, SBA Communications, Crown Castle International, GTL Infra, Cellnex. The increasing mobile data traffic is encouraging telecom operators to upgrade their networks to 5G which requires more towers and small cells for coverage and capacity. This provides opportunities for tower companies to support enhanced connectivity.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it