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.
Telecom towers are key infrastructure required by telecommunication companies to build a network and provide telecom services to users. Telecom towers host antennas and equipment that help transmit and receive signals between the mobile devices and the telecom operators' networks. With increasing digitization and growth in smartphone penetration, demand for high speed data services is surging which is driving deployment of more telecom towers.
Market key trends:
Shared infrastructure and tower proliferation are expected to be major market trends. As telecom operators look to expand networks in a cost efficient manner, shared or common infrastructure is gaining traction. Under infrastructure sharing arrangements, multiple operators utilize the same physical infrastructure like towers, reducing deployment costs for individual operators. This is expected to drive increased tower construction activity over the forecast period.
Threat of new entrants: The threat of new entrants in the telecom towers market is moderate as the telecom tower infrastructure requires high capital investment. However, new players can enter this market by sharing existing towers to reduce costs.
Bargaining power of buyers: The bargaining power of buyers like telecom operators is moderate due to the availability of alternate tower infrastructure providers in the market. However, switching costs associated with changing tower providers impacts the bargaining power.
Bargaining power of suppliers: The bargaining power of suppliers like tower component manufacturers is low as there are many suppliers in this fragmented market. This reduces suppliers’ control over prices.
Threat of new substitutes: The threat of substitutes is low as there are limited alternatives for telecom towers. However, small cell and DAS technologies can be potential substitutes for coverage in high density areas.
Competitive rivalry: Intense due to the presence of global and regional players.
Strength: Global presence and wide portfolio of American Tower Corporation and Crown Castle International Corporation.
Weakness: Heavy dependence on few tenants and fluctuations in tenancy ratios impact revenues. High capital intensity of the business.
Opportunity: 5G rollout and fiberization of towers present new business opportunities. Emerging markets in Asia and Africa offer high growth.
Threats: Stringent government regulations around tower installation and profit caps. Financial burden due to tower sharing mandates.
The global Telecom Towers Market is expected to witness high growth, exhibiting CAGR of 10.4% over the forecast period, due to increasing mobile data consumption globally. The US telecom towers market dominated in 2022 and is expected to grow at a moderate CAGR during the forecast period due to high tower penetration. Meanwhile, the Asia Pacific region is expected to offer highest growth opportunities, expanding at a CAGR of over 12% from 2023-2030 on back of China and India contributing over 60% of total towers in the region. The telecom market in developing APAC countries like Indonesia, Malaysia and Vietnam also offers scope for new tower developments and upgrades.
The Asia Pacific region dominates the global telecom towers market, accounting for over 40% share in 2022. China and India have the highest concentration of towers globally. However, other developing Asian markets like Indonesia, Vietnam and Malaysia are witnessing rapid towers additions to support increasing mobile data traffic. North America holds the second largest share and is expected to grow at a CAGR of around 8% during the forecast period led by upgrades from 4G to 5G networks in the US. Emerging markets in Africa and Middle East offer new opportunities led by ongoing tower infrastructure developments.
Key players operating in the telecom towers market are American Tower Corporation, AT&T Inc., Bharti