TELECOM TOWERS MARKET ANALYSIS

Global Telecom Towers Market was valued at US$ 50.40 Billion in 2022, exhibiting a compound annual growth rate (CAGR) of 10.4% from 2023 to 2030. A group of steel structures known as telecommunication towers is used to house broadcasting and telecommunications antennas. Telecom towers connect all forms of wireless communication, including mobile networking, television antennae, and radio transmission. One of the most significant developments in the telecom industry is tower-sharing, which offers advantages like cost savings and faster data rollout.

In any case, harmful radio waves causing harm to the human brain are supposed to restrict development of the Global Telecom Towers Market over the estimate period. For example, a National Center for Biotechnology Information report says that using phones too much increases the risk of brain tumors. In addition, over the forecast period, the Global Telecom Towers Market is anticipated to experience growth restrained by stringent regulations regarding the installation of telecom towers. The public authority of India doesn't permit the establishment of telecom towers inside the premises of schools and clinics as youngsters and patients might be more powerless to electromagnetic radiation. Additionally, it is forbidden to install base station antennas in narrow lanes in order to lessen the risk of an earthquake or other wind-related disaster.

Global Telecom Towers Market - Regional Analysis

Figure 1. Global Telecom Towers Market Share (%), By Deployment Type, 2022

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• Asia-Pacific will occupy a dominant position in the global telecommunications tower market in 2022 and is anticipated to maintain this dominance during the forecast period. The region's strong position can be attributed to several factors. First, the Asia-Pacific region has a large and rapidly growing population, resulting in increased demand for telecommunications services and infrastructure. This drives the need for more towers to accommodate expanding network coverage and capacity requirements. Additionally, several countries in the Asia-Pacific region are experiencing significant advances in mobile technology and Internet penetration.
• The European telecom towers market has emerged as an important player, securing the number two position in the global market. The European telecommunications industry is characterized by strong infrastructure development, technological advancements and growing demand for seamless connectivity. The region's well-established regulatory framework, government supportive policies, and solid investments in telecommunications infrastructure contribute to the region's preeminent position in the global market
• The North America (NAM) region plays an important role in the global telecommunications tower market. In 2022, the company is expected to capture a large market share. NAM has an advanced communications infrastructure and strong demand for reliable and efficient communications services. Demand for NAM telecommunication towers is expected to remain resilient, driven by smartphone penetration, 5G network deployment, and growing demand for data-intensive applications. 

Global Telecom Towers Market- Segmentation

Figure 2. Global Telecom Towers Market Value (US$ Mn), By Region, 2022

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• Among deployment type, the Shared Infrastructure Deployment segment is expected to be the fastest-growing segment over the forecast period. This segment was valued at approximately US$ 34.52 Billion in 2022 and is expected to generate US$ 72.20 Bn by 2030. The concept of leasing a tower has enabled telecom network providers to invest heavily in developing and installing shared infrastructure across rural regions. Moreover, tower-sharing is one of the major growth drivers for the telecom industry, as it provides benefits like reduced capex and increased connectivity, owing to which the deployment segment is expected to grow during the forecasted period.

The Global Telecom Towers Market is valued at US$ 50.40 Billion in 2022 and expected to reach US$ 110.11 Billion by 2030, exhibiting a CAGR of 10.4% between 2023 and 2030.

Global Telecom Towers Market - Key Competitors

Key industry participants in the Global Telecom Towers Market include American Tower Corporation, AT&T Inc., Bharti Infratel Limited, China Tower Corporation, Crown Castle International Corporation, GTL Infrastructure Ltd, Helios Tower Africa, SBA Communications Corporation, T-Mobile Tower, and Viom Networks

Global Telecom Towers Market - Recent Developments

1. On August 31, 2022, American Tower Corporation and Verizon Communications Inc. announced that they have signed a new overarching lease agreement, facilitating Verizon’s ongoing 5G network deployment across American Tower’s extensive U.S. portfolio of communications sites. American Tower Corporation is an American real estate investment trust and a sole proprietor of remote and broadcast communication framework in a few nations overall and is settled in Boston, Massachusetts. In 2022, it is ranked 375th on the Fortune 500. Verizon Communications was formed on June 30, 2000 and is one of the world’s leading providers of technology and communications services. Verizon Communications is headquartered in New York City and with a presence around the world, generating revenues of $133.6 billion in 2021. The company offers voice, data and video services and solutions on its award-winning networks and platforms, delivering on customers’ demand for mobility, reliable network connectivity, security and control. The agreement between American Tower Corporation and Verizon Communications Inc. is a simplified contract that will drive mutual growth and value over a multi-year period through the collaborated efforts of both the companies.
2. On December 26, 2022, according to a report by com, the Ministry of Railways made its telecom services available to private businesses, permitting them to construct towers on Railways-owned land. The Union Cabinet lowered the criteria for railroad land license fees (LLF) in an effort to attract private investment months earlier. This step has been taken in order to promote the widespread use of 5G technology across the country and contribute towards the ‘Digital India’ initiative.
3. On February 03, 2023, according to a Business Standard, telecom provider Bharti Airtel increased its direct stake in Indus Towers by acquiring 23.01 percent of the shares held by its wholly-owned subsidiary Nettle Infrastructure. Bharti Airtel currently owns 47.95 percent of Indus Towers. The telecom operator earlier owned a 24.94% stake and 23.01% through its subsidiary Nettle Infrastructure. The increased stake in Nettle allows the company to have a higher involvement and power in the decision-making ability within the company.
4. On July 22, 2022, during a conference call with investors, Crown Castle's CEO Jay Brown stated that the company expects to double the rate of small cell deployments by 2023 in comparison to the 5,000 nodes it expects to deploy by the end of 2022 in order to meet the growing demand from its customers. This is due to the fact that 5G networks require small cells on a large scale. T-Mobile US and Crown Castle International signed a new 12-year agreement earlier this year to help T-Mobile expand its nationwide 5G network and gain access to Crown Castle's towers and locations for small cells. T-Mobile US will further expand the 5G network's reach to serve customers across the U.S. in accordance with the terms of the agreement, which includes 35,000 small cells.

Global Telecom Towers Market – Drivers

Exponentially Proliferating Mobile Subscribers and Internet User-Base across the Globe       

The advent of technological evolution, such as the evolution of 2G to 3G and 3G to 4G, and LTE services are fueling the growth of more mobile subscribers. Moreover, the introduction of 5G services is leading to increasing internet users and the requirement for high data links. This in turn is creating the demand for telecom towers across rural, urban, and highways. For instance, according to GSM Association’s 2030 global estimates, 55% of the users are connected to the internet across the globe in 2022 which will increase to 5.0 Billion connections by 2030. This means there shall be a surge in the active users of communication devices over the forecast time. The need for telecom towers is a certainty in the near future due to the expected demand surge over the future period of time.

Necessity to Enable and Provide Seamless Communication Facility Across Rural, Urban, and Highways

The rural population of India is remarkably opting for voice telecom services. The demand for digital skill education programs in rural schools connects schools to broadband to promote a better learning environment and strengthen e-government services across each part of the country. This is increasing demand for new telecom towers in rural and remote areas. According to the Department of Telecommunications, 647.21 Million subscribers of telephones were from the Urban Areas whereas 519.63 Million subscribers of telephones were from the Rural Areas. There is a huge scope in both urban and rural areas for companies offering Telecom Services in order to bridge the communication gaps faced across these regions.

Global Telecom Towers Market – Restraints

Environmental Concerns Due To Telecom Towers’ Power Supply Systems

To provide uninterrupted telecom services, telecom towers need to function 24*7. However, owing to unreliable grid electricity in urban areas and no electricity in a few remote and rural areas, the need for an alternative power supply for the tower’s functioning is increasing. Furthermore, tower providers are compelled to rely on a backup source of power in the form of diesel generators as the sole primary source in off-grid areas with no electricity supply. As per TRAI estimates, telecom towers consume over 2 billion liters of diesel per year, which costs up to 40% to 50% of the total operational cost of the tower. Moreover, prolonged usage of diesel power supply at least for a year, adds more than 5 million tons of CO2 emissions into the atmosphere, CO2 emissions are the leading cause of global warming. This is expected to negatively impact the telecom tower growth and thus, restrain the global Global Telecom Towers Market growth.

High Cost of Installation

The installation and maintenance of telecom towers in the market are very expensive. Such significant expense is becoming one of the significant limitations of development in the telecom tower market. The cost of installing telecom towers has increased as a result of the imposition of authorization fees. The maintenance as well as repair charges for Telecom Towers is also a huge expense that is borne by the company and the Govt. In addition, the monthly lease costs associated with the installation of the telecom towers range from hundreds to thousands of dollars.

Global Telecom Towers Market– Opportunity

Infrastructure Requirements and Network Upgrades

Internet and mobile subscribers are switching from voice services to data services, wherein end-users are opting for on-demand content such as subscription-based streaming services, PayTV, online movie portals, and cloud data services. This has resulted in huge data increments, and as per CMI estimates, 175 Zettabytes of data are expected to be created by 2025. Proliferating data and high-speed data links have led to issues of network congestion. Heavy data traffic and network congestion issues are expected to become even more critical in the near future. In order to mitigate such issues, telecom companies are required to provide more innovative solutions and deploy new towers across the global market place.

Provide Innovative Solutions

Conventional telecom tower networks (macro sites) face issues in communicating telecom signals inside a building which often leads to a loss of network. Similar issues are also faced similar in areas with a high density of offices. This is mainly due to limited bandwidth which is available for a large number of high consumption users. As per government norms such as the Government of India, all new buildings should be capable of providing building emergency services, wherein each corner of the building should have adequate signal coverage. Therefore, to facilitate the required environment with the capability of full network coverage, telecom operators need to modify the existing passive infrastructure. This would create demand for more towers in the near future.

Global Telecom Towers Market- Impact of Coronavirus (Covid-19) Pandemic

With the flare-up of Coronavirus, the telecom business has seen a huge expansion popular for internet providers because of a significant piece of the populace remaining at home and in remote working circumstances. The expansion in individuals telecommuting has prompted an expansion popular for downloading, online video surveys, and correspondence through video conferencing, which are all prompting expanded network traffic and information use. The guidelines that were published on March 24, 2020, by the Ministry of Home Affairs (MHA), stated that "telecommunications, internet services, broadcasting and cable services, IT and IT-enabled services (ITeS) only (for essential services)" are the essential services and are exempt from the lockdown, the government also acknowledged the significance of having a robust telecommunications network during this lockdown. The MHA notification from April 15, 2020 (which extended the lockdown until May 3, 2020) and the MHA notification from May 1, 2020 (which extended the lockdown for an additional two weeks) also included this exemption.

*Definition: Companies that make global communication possible via the phone, the internet, airwaves, or cables make up the telecommunications industry. These businesses build the infrastructure that makes it possible to send data in the form of text, voice, audio, or video to any location in the world. The telecommunication area comprises organizations that send information as messages, voice, sound, or video across the globe. The three fundamental subsectors of telecommunications are wireless communication, telecom services, and telecom equipment.