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The telecom tower market size is projected to increase by USD 15.34 billion at a CAGR of 6.98% between 2023 and 2028. Market growth analysis and forecasting are crucial components of any market report. In the GCC countries, the Gross Domestic Product influences market trends, particularly in telecommunications. Long Term Evolution (LTE), driven by companies like Cisco, propels market growth, despite restraints.
The evolution of 4G and 5G technologies revolutionizes cellular networks and mobile services. Mechanical structures like cell or mobile tower support wireless revolution, enhancing cellular coverage and internet connectivity for users. From voice calls to video signals, analog to digital RF technology enables seamless data transfer. Mobile devices play a pivotal role in extending network reach, facilitating voice calls, text messaging, and internet connectivity.
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The market share growth by the ground-based segment will be significant during the forecast period. Ground-based towers are usually more cost-effective to construct corresponding to taller structures like rooftop or monopole towers. The simplicity of their design and ease of building contribute to lower overall costs. Ground-based towers are fairly easy to construct and maintain. Ground-based towers are versatile and can be used in a variety of settings, including urban, suburban, and rural areas.
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The ground-based segment showed a gradual increase in the market share of USD 16.67 billion in 2018. Furthermore, ground-based towers can be deployed quickly, making them suitable for meeting immediate connectivity needs or responding to network demands promptly. Ground-based towers may have fewer zoning restrictions compared to taller or more visible structures, making them easier to permit and deploy in certain locations. Consequently, factors such as cost-effectiveness, less visual impact, and ease of construction and maintenance will drive the growth of the ground-based segment and the market during the forecast period.
Operator-led tower companies, usually known as tower or tower companies, are entities that own and manage telecommunication towers and related infrastructure. These companies lease tower space to multiple mobile network operators (MNOs). Operator-led tower companies can achieve economies of scale and cost savings by managing and maintaining a shared infrastructure that serves multiple MNOs, reducing the overall capital expenditure for each operator. Furthermore, the deployment of 5G networks requires denser infrastructure. Operator-led tower companies can play a vital role in facilitating the deployment of 5G infrastructure efficiently. Hence, such factors will drive the growth of the operator-led tower companies segment of the global market during the forecast period.
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APAC is estimated to contribute 43% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The growing number of mobile subscribers boosts the demand for network coverage and capacity, driving the growth of the regional market. In addition, the proliferation of smartphones and the growing demand for mobile data services contribute to the need for enhanced network infrastructure. Telecom towers play a vital role in meeting the requirements for increased data speeds and capacity. The deployment of 5G networks is an important driver for the market in APAC.
Furthermore, strategic collaborations between telecom operators and tower companies, as well as partnerships with technology companies, contribute to the efficient deployment and management of telecom towers in the APAC region. The advent of 5G technologies and the launch of services such as voice over long-term evolution (VoLTE) for adequate voice quality have been fueling the demand for better telecom infrastructure and network services in APAC. Hence, these factors will drive the growth of the regional market during the forecast period.
The global market, a critical infrastructure component, witnesses growth driven by 5G technology and IoT devices. Tower-sharing initiatives among telecoms enhance market competitiveness. Long Term Evolution (LTE) and LTE-Advanced (LTE-A) technologies, spearheaded by companies like Cisco, shape the competitive landscape.
In GCC countries, Gross Domestic Product influences market dynamics, forecasting robust growth. Telecom towers, pivotal in modern telecommunications networks, facilitate wireless communication services for mobile devices. Antennas atop tall structures support 4G and 5G connectivity, integral to mobile networks. Restraints include challenges in expanding Internet Protocol (IP) networks and addressing radio broadcast interferences. Market forecasting anticipates sustained growth in wireless communication services.
Rising demand for Fixed Wireless Access (FWA) is the key factor driving market growth. FWA is usually utilized as a solution to deliver high-speed broadband connectivity in areas where traditional wired infrastructure is challenging to deploy. Telecom towers play a vital role in extending wireless connectivity to these underserved or rural locations. FWA can be deployed relatively fast corresponding to laying fiber-optic cables. FWA is not limited to rural areas; it is increasingly utilized in urban and suburban environments to offer an alternative or supplementary broadband option.
In addition, FWA offers flexibility and scalability, making it suitable for various deployment scenarios. Telecom towers, specifically those with the capability to support multiple frequencies, play a pivotal role in ensuring the flexibility of FWA networks. Hence, the rising demand for FWA will boost the growth of the global market during the forecast period.
The adoption of hybrid power solutions is the primary trend shaping market growth. Hybrid power solutions deliver cost-saving options over the long term by lowering dependence on traditional diesel generators. The telecom industry is increasingly focused on environmental sustainability and reducing its carbon footprint. Hybrid power solutions, with their incorporation of renewable energy, align with these sustainability goals and support environmentally friendly practices.
Furthermore, hybrid power solutions provide a reliable and redundant power supply. The variety of renewable sources and energy storage provides constant power availability even in challenging conditions, enhancing the overall reliability of telecom networks. Hence, the adoption of hybrid power solutions will propel the growth of the global market during the forecast period.
An increase in carbon emissions is a challenge that affects market growth. Power consumption and carbon emission are among the main concerns faced by telecom tower operators, mainly in developed countries like the US. The rise in power consumption by telecom towers results in more elevated pricing of services and increases the OPEX of telecom service providers operating the telecom tower. In developing countries, like Russia, Pakistan, and Brazil, around 30% of carbon emissions from telecom towers can be attributed to the use of diesel (or other fossil fuel-powered) generators.
In addition, global IP traffic is growing at a notable pace; thus, some telecom service providers are compelled to build new telecom-towers to enhance their network service offerings. Furthermore, as diesel is easily available, the majority of the telecom-towers are operated on non-renewable sources of energy, such as diesel. This is increasing carbon emissions. The government regulations on curbing carbon emissions may impede market growth during the forecast period.
Market forecasts include the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and trends strategies.
Global Telecom Tower Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Our market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment and the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is witnessing significant growth driven by the advent of 5G technology and the increasing demand for IoT devices. As the Global Telecom Towers Market expands, tower-sharing agreements among TowerCos and telecom operators like Bharti Infratel and DISH become prevalent.
With the proliferation of 5G Connectivity and LTE-A technology, telecom towers serve as critical infrastructure components supporting mobile networks and wireless communication services. Tower densification and network connection are essential for ensuring seamless 5G penetration and reducing latency.
The market is characterized by tall structures equipped with antennas and equipment to facilitate radio broadcast and cellular services. Market trends and analysis indicate a surge in 5G subscriptions and mobile subscriptions, driving the demand for telecoms infrastructure.
Innovations in Internet Protocol (IP) network and wireless communication technologies drive the telecommunications sector forward, emphasizing tower industry growth and the need for modern telecommunications networks. As deregulation and privatization reshape the industry landscape, telecom towers remain integral to the evolution of cellular technology and networks.
The market research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018-2028
Market Scope |
|
Report Coverage |
Details |
Page number |
170 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.98% |
Market Growth 2024-2028 |
USD 15.34 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.25 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 43% |
Key countries |
US, China, Japan, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Al Yah Satellite Communications Co. PJSC, American Tower Corp., AT and T Inc., Bharat Sanchar Nigam Ltd., Cellnex Telecom SA, China Tower Corp. Ltd., GTL Infrastructure Ltd., Helios Towers plc, IHS Holding Ltd., Indus Tower Ltd., Phoenix Tower International, QMC Telecom International, Reliance Industries Ltd., SBA Communications Corp., T Mobile US Inc., TAWAL, Telefonaktiebolaget LM Ericsson, Telefonica SA, Tower One Wireless, WINITY TELECOM, and VEON Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data you are looking for, you can reach out to our analysts and get customized segments. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Deployment
7 Market Segmentation by Business Segment
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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