Telecom Towers Are Enabling High Network Connectivity Owing To Growing Mobile Data Usage

Telecom towers market

Telecom towers are essential infrastructure requirements for establishing telecommunication networks that enable high-speed data transfer and wireless connectivity. Telecom tower providers lease out space and install transmission equipment for mobile network operators on these towers to facilitate 2G, 3G, 4G, and 5G connectivity. The growing reliance on smartphones and rising data consumption have increased the need for telecom towers for expanding network coverage.

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 3.5%  over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:
The growing usage of mobile data represents a major market opportunity for telecom tower growth over the forecast period. With increasing video streaming, social media usage, e-commerce on mobile phones the average wireless data usage per smartphone user is surging dramatically. This rising dependence on mobile data and need for high-speed network coverage is driving telecom operators to invest in network infrastructure expansion through partnerships with telecom tower companies. As mobile data consumption growth outpaces network capacity, telecom towers provide a feasible solution to meet this network capacity demand. Telecom tower providers can capitalize on this need of telecom operators for infrastructure to support heavy mobile data usage and expand networks.

Porter's Analysis

Threat of new entrants: The telecom towers industry requires high capital investments for setting up towers. Regulations around permissions for tower erection also acts as a barrier.

Bargaining power of buyers: Telecom operators hold strong bargaining power as towers are crucial for their network expansion. Operators can negotiate pricing with independent tower companies.

Bargaining power of suppliers: Specialized equipment vendors have some bargaining power. However, presence of multiple equipment providers keeps prices in check.

Threat of new substitutes: There are no close substitutes for telecom towers currently. Emerging 5G networks may utilize small cells in future as a potential alternative.

Competitive rivalry: The industry has few global and several regional players operating towers. Intense competition keeps tower lease rental pricing and terms competitive.

SWOT Analysis

Strengths: Dominant players have sizeable tower portfolio and long-term contracts with telecom operators.

Weaknesses: Heavy reliance on few telecom tenants increases vulnerability. Tower sharing leads to pricing pressures.

Opportunities: Growing mobile subscriber base and network investments in developing markets will boost demand.

Threats: Stiff regulations around tower installations can delay expansion plans. Rising energy costs impact operational expenses.

Key Takeaways

The Global Telecom Towers Market Growth is expected to witness high growth over the forecast period driven by increasing mobile data usage. 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 3.5%  over the forecast period 2023 to 2030.

The Asia Pacific region currently dominates the market owing to high mobile penetration in populous nations like China and India. Both countries are poised to significantly contribute to new telecom tower installation and upgradation to support emerging technologies. China Tower Corporation is the largest tower infrastructure provider globally. In India, prominent tower infrastructure owners are Bharti Infratel, Indus Towers and American Tower Corporation.

Key players operating in the telecom towers market are 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. The market is expected to witness partnerships and mergers for geographic expansion going forward.

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