Telecom towers are infrastructure structures designed to hold telecommunication devices that transmit or receive radio frequency (RF) signals, microwave communications, and wireless signaling for commercial purposes. Telecom towers allow cellular networks and mobile devices to communicate effectively and provide reliable connectivity over wide coverage areas. Factors like rising mobile phone usage, evolution of 5G networks, and increasing data consumption are driving operators to enhance network connectivity and coverage, thereby fueling demand for telecom towers.
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:
One of the major trends witnessed in the telecom towers market is the increase in tower sharing across regions. Tower sharing refers to infrastructure sharing wherein telecom towers owned by one operator are utilized by other operators as well. This allows telecom operators to save on capital investments while expanding their network coverage. Tower sharing not only brings down operational costs but also helps optimize resources and increase supply efficiency. According to industry estimates, tower sharing can bring down capex and opex costs by 20-30% for operators. Such initiatives are promoting sustainable and responsible network expansion in the industry.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is low due to high capital requirements and the presence of major players having an established brand name and client base.
Bargaining power of buyers: The bargaining power of buyers is moderate as the demand for telecom towers is growing each year with expanding network coverage and 5G roll outs.
Bargaining power of suppliers: The bargaining power of suppliers is low as raw materials required are standardized and available from multiple sources.
Threat of new substitutes: There are no close substitutes for telecom towers. The threat is low.
Competitive rivalry: Intense competition exists among the major players operating in the market.
Key Takeaways
The global telecom towers market is expected to witness high growth over the forecast period. 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.
Regional analysis – Asia Pacific region is expected to dominate the market during the forecast period owing to widespread expansion of telecom infrastructure and rollout of 5G networks across major countries like India and China.
Key players operating in the telecom towers market are American Tower Corporation, Cellnex Telecom, SBA Communications Corporation, Crown Castle International Corp., Indus Towers Ltd., GTL Infrastructure Ltd.
Key players – American Tower Corporation is one of the leading players focused on building shared telecom infrastructure. Cellnex Telecom is a leading operator of wireless telecommunications and broadcast digital infrastructures in Europe. SBA Communications Corporation is a leading independent owner and operator of wireless communications infrastructure across South America, North America, and the Caribbean.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it