Telecom Tower Market

Global Telecom Tower Market Size (2024 to 2032)

The Global Telecom Tower Market is predicted to reach USD 3.74 billion in 2024 and USD 10.37 billion by 2032, growing at a CAGR of 13.59% during the forecast period.

Telecom towers are the backbone of any mobile telecommunications system. The telecom tower is a structure that houses a transceiver to maintain connection with thousands of mobile phones and the Mobile Telephone Switching Office (MTSO). The telecommunication tower provides a wide multichannel frequency range to thousands of mobile phones in the network area. The main advantage of multichannel frequency is that it can offer dozens of mobile phones on a single network, such as conference calls, where many devices are connected to a single network and can transmit and receive simultaneously. In addition, it offers better data transfer rates and better connectivity. The telecommunication towers are large steel structures with a transceiver unit on top to cover the maximum area possible.

Current Scenario of the Global Telecom Tower Market

Presently, there is a rising need for wireless infrastructure, particularly 5G and AI-powered technologies continue to redefine connectivity demands across industries. The global development of 5G networks is primarily transforming the telecom tower production business. The specific requirements, like a thicker or heavier network of smaller cells, are creating a substantial increase in demand for tower infrastructure. This necessity of 5G to provide low-latency and high-speed connection is making it essential to have extra cell towers and small cell applications.

• According to a report by Qualcomm, 5G Fixed Wireless Access (FWA) further lowers the digital divide worldwide, which would result in a 2.5 per cent rise in GDP per capita in 2032, with the biggest profits in developing and emerging nations and the surge of around 3.3 trillion dollars of global GDP in 2032.

Another trend in the market is infrastructure sharing. Telecom companies are progressively grouping tower infrastructure. This working together strategy allows several operators to decrease construction and maintenance expenditures. The trend reduces the ecological effect and also encourages fast network deployments. It is called the operator-owned tower business model and is becoming increasingly popular in Europe and Asia Pacific.

Technological advances and innovations have played a vital role in the evolution of the modern telecommunications sector, and the trend is predicted to continue in the coming years. Today, players in the telecom tower market are primarily focused on innovations, the integration of new technologies like, and the development of sustainable solutions to improve the efficiency and performance of their telecom towers. In addition, several players are joining the zero diesel and zero damage trend, thanks to which the telecom tower market is heading towards a sustainable and green future. Furthermore, market players are also predicted to improve customer satisfaction and enhance employee engagement to gain a firm foothold in today's telecom tower market landscape.

MARKET DRIVERS

The market for telecom towers depends primarily on the density of mobile subscribers and the number of telecommunications service providers in any region.

• According to a 2024 study by GSMA, 5.6 billion people subscribed by the end of 2023 to a mobile service, i.e., 69 per cent of the worldwide population. This depicts a rise of 1.6 billion people since 2015. The increase in penetration of mobile internet has been notably quicker. The mobile internet was used by about 58 per cent of the global population at the end of 2023, equal to 4.7 billion consumers. There was a surge of 2.1 billion since 2015.

The growing reach of mobile phones in almost all remote areas and the escalating competition among service providers for better network coverage are some of the current drivers of the telecom tower market. Furthermore, the increase in the number of telecom, Internet, Wi-Fi, and broadband providers is predicted to drive the telecommunication tower market during the forecast period. Various players in the telecom tower market are primarily focused on minimizing energy costs and energy consumption due to growing environmental concerns. In its quest to minimize diesel consumption and reduce carbon footprint, adopting renewable energy technologies (RET) will increase in the coming years by raising the growth opportunities for the telecom tower market.

The mobile telecommunications industry has experienced a significant expansion rate over the past decade and is predicted to expand steadily among different generations of network communications.

• As per research, in 173 nations and territories, 582 operators are investing in 5G fixed wireless access or 5G mobile or home broadband networks.

Mobile telecommunications has become necessary for everyone, from "0G" mobile telecommunications service (MTS) to the current long-term evolving 5G.  The fourth-generation (4G) mobile telecommunications have significantly boosted the mobile telecommunications industry by surprising consumers with an Internet browsing offering on mobile phones and clear voice calling functions. Most countries now have 5G connectivity, a dense network system offering real-time voice calls, and an improved data transfer rate. Furthermore, few countries like Japan and the United States implement 5G network communications, gaining traction among the population due to its rapid data speed and high internet connectivity, offering market growth opportunities during the forecast period.

Recent trends have shown strong prospects for strengthening the telecom tower network, where multiple new technologies are likely to develop. Ongoing research on "The Internet of Things (IoT)," real-time security monitoring and accessibility, remote health services, and others are escalating the demand for advanced telecom towers, leading to market revenue growth. They are emerging technologies that are predicted to increase the load on the telecom tower in the coming years. Telecom service providers and vendors invest in green towers due to benefits like reduced OPEX and low carbon emissions. The escalating emphasis on renewable energy sources to reduce carbon emissions drives investment in green towers. This development should positively impact the overall expansion of the market.

MARKET RESTRAINTS

The harmful effects of high-frequency radio waves or microwaves emitted from the towers on humans and the environment are predicted to limit the market for telecommunication towers.

For Instance, the National Center for Biotechnology Information reports that increased usage of mobile phones increases the risk of brain tumors. Government regulations and telecommunications authorities are predicted to restrict the telecom tower market due to strict regulations and standards that challenge market players. The government of India restricts the establishment of telecom towers inside the premises of schools and clinics as electromagnetic radiation might affect youngsters and patients more. These scenarios are estimated to be challenging for market players regarding market expansion.   Additionally, high installation costs, high operating costs, and restricted space are estimated to slow the expansion of the telecom tower market. Furthermore, the height limits allowed in any area limit the service provider from installing multiple towers in small areas, which hampers the market expansion.

MARKET OPPORTUNITIES 

The rise of 6G presents potential opportunities for expansion of the telecom tower market. With zero lag responsiveness and ultra-fast downloading speed, the 6th generation of mobile network technology will exceed current 5G networks by several hundred times in speed. From smart cities and immersive virtual realities to novel breakthroughs and groundbreaking developments, the market is slated to benefit immensely. In terms of data rate, the 6G technology is estimated to deliver up to an exceptional 1 TBPS against 100 to 1000 Mbps of downloading speed offered by 5G. Also, 6G is anticipated to decrease end-to-end latency from 10 milliseconds of 5G to 1 milliseconds. 6G showed an astonishing speed, which is capable of reaching 1000 km per hour compared to 500 km per hr provided by 5G.

• For instance, in April 2024, it was reported that the latest test of 6G achieved a speed of 100 Gbps, which is 500 fold quicker than a standard 5G cellphone. Japanese scientists have performed data exchange at 100 gigabits per second at a distance of 330 feet for the first time, and that too in high-pitched wavelength bands.

Artificial intelligence is expected to transform the telecom industry, ultimately thriving the market. Although the application of AI in this industry is gradually and steadily expanding, it is believed to revolutionize the market in multiple ways.

• Experian released a report stating that organizations deploying AI to detect telecom fraud have experienced success rates reaching up to 90 per cent in live fraud identification.

MARKET CHALLENGES

5G development and implementation is one of the key challenges for the telecom tower market. The current 5G subscriber count significantly lags behind the potential sign-up.

• As per the Trade Association of 5G America, the penetration of 5G subscriptions was around 36 per cent of North America’s population in Q1 of 2023.

Apart from opportunities, AI and machine learning also present challenges for market growth. Telecom organizations are required to address the risks brought forward by both, like incorporating them into older systems, even at times when the skills and expertise needed to execute tasks are in shortage.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Telecom Tower Market Analysis By Type

The on-grid segment held the largest share in the global telecom towers market revenue due to its wide adaptability worldwide. On-grid towers commonly use energy solutions like electric generators and battery storage as these require continuous electricity during the day. In these telecommunication towers, the electricity is available for 16 to 24 hours. 

The off-grid segment is estimated to grow the fastest in the coming years due to rising demand for green towers. These towers have stable mobile networks even in areas with continuous power cuts. For instance, in February 2024, O2 Telefonica Germany announced that it had constructed a radio tower off-grid tower that is self-sufficient and is equipped with 5G network technology. The company stated it is the industry’s first in Hesse, Germany.

• As per a report by GSMA, around 70 per cent of telecom in developing countries are off-grid or affected by undependable grid power supply and operate on diesel generators as their second or main power source.

Global Telecom Tower Market Analysis By Power Source

The diesel and battery segments dominated the global market revenue. To ensure complete power availability to the tower, a combination of batteries and diesel generators is used for the grid supply, which is driving the segment’s market share.

• According to the Alternate Energy Development Board (AEDB), the biggest user of diesel fuel in Pakistan is the Mobile tower industry, consuming about 1.2 billion liters every year.

The solar segment is estimated to grow the fastest during the forecast period, as market players are focusing on developing green towers, which generate electricity using solar panels that absorb heat energy and convert it into electrical energy.

Global Telecom Tower Market Analysis By Component

The batteries segment dominates the global telecom towers market due to the increased adoption of continuous electricity supply to the grids. Batteries and diesel generators are used in combination to supply electricity to the towers.  

• According to the India Energy Storage Alliance, the Indian Behind-The-Meter (BTM) is dominated by lead acid batteries, and the penetration of LiB is greatest in the telecom sector, i.e., as far as 60 per cent, as of 2024

REGIONAL ANALYSIS

The telecom tower market is predicted to experience impressive worldwide expansion during the foreseen period. The presence of major telecommunications companies in developed regions, including North America and Europe, along with the market size of the Asia-Pacific region, are some of the main factors offering promising prospects for the overall expansion of the worldwide telecom tower market.

The Asia-Pacific region accounted for the largest share of the worldwide telecom tower power systems market. The telecommunications boom in countries such as India and China has played a central role in developing the telecom tower market in the Asia-Pacific region, and based on current observations, the trend is predicted to continue during the foreseen period. The exponential increase in smartphone users and high internet penetration in Asian countries due to falling data prices are predicted to boost the telecom tower market in the Asia Pacific region. In addition, growing government support and favorable policies are also predicted to play a crucial role in the evolution of the telecom tower market during the evaluation period. In India, the government has granted telecom towers the status of "infrastructure," a step that classifies telecom towers on a par with power generation, hospitals, ports, etc. As a result, investments in the telecom tower market are predicted to increase at a constant rate. In addition, there has been a substantial increase in the user base of the 4G and 5G networks. The growing penetration of the Internet in the region requires the installation of more telecom towers. Local policymakers are launching initiatives to improve connectivity in rural and remote areas, supporting market expansion.

• According to a study published by Tele.net, in India, as of January 2024, there are 0.78 million telecom towers. Its count grew from 0.74 million in December 2022; on the other hand, base transceiver station implementations increased to 2.88 million and 2.42 at the same time.

The European region held the second position in the global telecom towers market owing to the rise in urbanization, which enhanced the penetration of the Internet of Things, the growing adoption of smartphones, laptops, and technological devices, and robust infrastructure development. The presence of advanced technologies and the high requirement of telecom services in developed countries like the UK, France, and Italy fuel regional market growth. 

• There are present, in 2024, approximately 500 thousand tower locations all across Europe, involving rooftops and other bigger frameworks or constructions utilised for wireless communication, but excluding DAS and small cells. Germany is leading with the maximum number of towers, followed by France and Italy.

The North American region is estimated to have a moderate growth rate in the coming years due to the rising participation of market players.

KEY PARTICIPANTS IN THE GLOBAL TELECOM TOWER MARKET

The major companies operating in the global telecom tower market include China Mobile Ltd., Verizon Communications Inc., AT&T Inc., Vodafone Group Plc, Bharti Telecom Ltd., China Unicom Ltd., Telenor Group, MTN Group, and Telstra Corp. Ltd. In contrast, some examples of third-party tower erection and service providers include – Indus Towers Ltd., 3Z Telecom, GTL Infrastructure Limited, Tower Systems, Inc., American Tower Corporation, Reliance Infratel Limited, LeBLANC Communications (M) Sdn.Bhd., ATC IP LLC., Vertical Bridge, LLC, and others.

RECENT HAPPENINGS IN THE GLOBAL TELECOM TOWER MARKET

• In September 2024, Verizon Communication announced a 3.3 billion deal with Vertical Bridge, an infrastructure company. It will give the right to lease, function, and oversee thousands of mobile phone towers for ten years, with the option to extend the period up to 50 years. This deal is anticipated to conclude by 2024 end and would help the efforts by Verison to bring down tower-associated expenses. Moreover, it stated that it is releasing additional funds for the United States wireless carrier to strengthen its network. The deal involves 6339 towers across the country’s 50 states and Washington D.C., comprising initial cash proceeds of 2.8 billion dollars.
• In April 2023, The Indian Government launched 254' 4G mobile towers' in LAC villages in Arunachal Pradesh. These 254 towers will provide 4G coverage in 336 villages, including several unconnected areas. Most of these villages are located in the villages bordering China to counter foreign telecom penetration. Through this launch, over 77,000 people are expected to benefit. 
• In April 2023, Saudi Telecom Company (STC) 's subsidiary, Tawal, reached an agreement to acquire United Group's tower infrastructure for Euro 1.22 billion. The acquisition will include the United Group's infrastructure unit in Bulgaria, Slovenia, and Croatia, which provides around 4,800 towers. 
• In February 2023, according to Business Standard, telecom provider Bharti Airtel increased its direct stake in Indus Towers by acquiring 23.01% of the shares held by the wholly-owned subsidiary Nettle Infrastructure. Bharti Airtel owns 47.95 percent of Indus Towers: the telecom operator earlier owned a 24.94% stake and 23.01% through its subsidiary Nettle Infrastructure. 

DETAILED SEGMENTATION OF THE GLOBAL TELECOM TOWER MARKET INCLUDED IN THIS REPORT

This research report on the global telecom tower market has been segmented and sub-segmented based on the type, power source, component, and region.

By Type

• On-Grid
• Off-Grid

By Power Source

• Diesel
• Solar
• Battery
• Wind
• Others

By Component

• Rectifiers
• Batteries
• Controllers
• Inverters
• Power Distribution Unit
• Generator
• Others

By Region

• North America 
• Europe 
• Asia Pacific
• Latin America 
• Middle East & Africa