Report

The Telecom Towers Market size is estimated at USD 28.48 billion in 2024, and is expected to reach USD 32.75 billion by 2029, growing at a CAGR of 2.84% during the forecast period (2024-2029).

Tower-sharing is one of the significant growth drivers for the telecom industry, as it presents benefits, such as cost reduction and faster data rollout. The telecom tower industry has obtained high prominence as an independent, mainly in India and the United States.

Key Highlights
-Implementing 5G technology has been a major driving factor for the telecom tower market. 5G networks require denser infrastructure, including more cell towers and small cells, to deliver enhanced coverage and higher data speeds. According to the GSMA Association, a non-profit organization representing the interests of mobile network operators worldwide, there were already 252 commercial 5G networks in 86 countries worldwide at the end of the previous year, serving more than 1 billion 5G connections. Further, more than 5 billion 5G connections are expected globally by the forecast period, producing over USD 1 trillion in Gross Domestic Product (GDP) growth. At the same time, 5G is expected to reach maturity in North America, Europe, China, and the GCC countries by the forecast period. It will continue to grow in many low-and middle-income countries (LMICs).
-With the decline in geographical opportunities, the expansion of diversification opportunities has been significantly propelled by the emergence of advanced communication infrastructure. 5G technology demands appropriate terrain; therefore, many towers are expected to focus on their primary building business soon. However, firms and organizations may be able to explore additional routes by acquiring or leasing vertical real estate, as these towers may continue to see a significant number of 5G antennas installed on them.
-In the previous year, Bharti Airtel, one of India's major telecom operators, planned to develop its 5G network technology stack in partnership with Qualcomm. The telco plans to utilize Qualcomm 5G Radio Access Network Technologies to roll out its commercial 5G network, enabling the establishment of virtual and open 5G networks across India.
-Moreover, the increasing investment in Long Term Evolution (LTE) - Advanced technology. This surge in demand for LTE-A network connectivity results from several factors, including wider availability of affordable smartphones, a growing need for high-speed internet access, expanding investments in smart city initiatives, and a rising demand for IoT devices. Consequently, network operators are proactively investing in the deployment of LTE-A infrastructure, leading to more LTE and LTE-A base stations. These stations are connected to telecom towers, enabling them to offer essential radio access network services to end-users. As a result of the escalating demand for LTE-A, the telecom tower market is experiencing substantial growth.
-According to Cisco, the number of devices connected to the Internet Protocol (IP) network in the forecast period is expected to be 29.3 billion networked devices. The share of Machine-To-Machine (M2M) connections may grow from 33% in recent years to 50% by the following year, with 14.7 billion M2M connections by the current year.
-The environmental impacts of telecom towers have consistently been a major concern. Radiation from mobile towers has been an important issue, recognized as an unseen and subtle pollutant affecting life forms in multiple ways.
-With the outbreak of the COVID-19 pandemic, the telecom industry witnessed a significant increase in demand for internet services due to remote working conditions and a significant chunk of the population staying at home. The increase in people working from home has increased the demand for communication through video conferencing, online video viewing, downloading, and increased network traffic and data usage.


Telecom Towers Market Trends

Operator-owned Tower is Expected to Register a Significant Growth


- In the operator-owned telecom tower segment of the market studied, multiple mobile network operators (MNOs) are responsible for towers' construction, functioning, and maintenance. These services are being increasingly outsourced to third-party companies in emerging economies.
- Between TowerCos nearing saturation of addressable markets and investible portfolios globally, combined with the growing tendency of MNOs to carve out and keep operator-led TowerCo, TowerCos are compelled to look beyond their core business of building, purchasing, and leasing vertical real estate to consider new assets and new services. Indeed, as per numerous TowerCo leaders, more than 50% of organic growth now originates from solutions beyond traditional macro towers and rooftops, encompassing lamp posts and building solutions.
- Operators own over two million telecom towers, while third parties have constructed the rest. Furthermore, the emergence of operator-owned companies like Bharti Infratel (India), which offer telecom towers to other mobile network operators as their clients, has expanded the opportunities within the operator-owned telecom tower segment.
- Tower ownership patterns vary from region to region. The operators in the Asia Pacific region prefer to value their towers as a key differentiator. In contrast, the United States tower market has witnessed a transformation in which most towers moved from mobile network operators (MNOs) to independent enterprises.
- Mobile operators in countries like India frequently use joint partnerships or captive tower companies to own their towers. Regarding shared ownership among several operators, the operator-owned tower business model proved more effective than the mobile provider owning their tower subsidiary.


North America is Expected to Hold Major Share


- The United States landscape is highly competitive, with numerous significant vendors vying for dominance. This intense competition is driven by the country's substantial demand for 5G telecommunications services, leading many companies to focus on expanding their operations to capitalize on this opportunity. The United States government has multiple major vendors engaging in partnerships, acquisitions, mergers, rollouts, and coalitions.
- SBA Communications, a prominent tower provider in the United States, possesses approximately 10,000 towers and specializes in wireless communications. Additionally, the company has recently announced a significant long-term master lease agreement with DISH-this strategic partnership grants DISH access to SBA's extensive portfolio of wireless communications sites nationwide.
- Moreover, the previous year, PG&E made a significant announcement concerning its agreement with SBA Communications Corporation to divest its license agreements with wireless providers. This strategic move allows SBA to retain its market presence and further grant access to the towers and structures to more wireless providers through sub-licensing.
- Mobile wireless services are Canada's most significant and fastest-growing telecommunications industry in recent years. The upward trajectory is anticipated to persist as it witnesses the implementation of advanced technologies like the fifth-generation 5G network and the integration of innovative applications like the Internet of Things(IoT).
- Bell Mobility, TCI, and RCCI (collectively, the national wireless carriers) exercise market power to offer retail mobile wireless services in all provinces of North America, such as Northwest Territories, Yukon, and Nunavut, except Saskatchewan, where SaskTel exercises individual market power.
- Furthermore, the Province of Ontario and the Eastern Ontario Regional Network announced a partnership with the Government of Canada the previous year. Further, the initiatives aim to provide dependable wireless connectivity to 99% of residents and businesses in Eastern Ontario, effectively closing the cellular gap and significantly enhancing the region's safety, productivity, and overall quality of life. This effort reflects Roger's ongoing commitment to expanding its services and has resulted in improved connectivity for underserved communities, including remote and rural areas.


Telecom Towers Industry Overview

The telecom tower market's intensity of competition is moderately high and consists of several major players. Only some significant players currently dominate the market in terms of market share. These major players in the telecom tower market are expanding their customer base internationally through strategic collaborations and acquisitions of telecom tower startups. This has led to a moderately high market concentration, with a few dominant players benefiting from significant market share and profitability.

In October 2022, the American Tower Corporation's (American Tower) African operations (ATC Africa) and Airtel Africa PLC (Airtel Africa) together announced a multi-year, multi-product agreement in support of Airtel Africa's network rollout for leveraging ATC Africa's vast portfolio of communication sites across its footprint in Kenya, Niger, Nigeria, and Uganda for product development capabilities. The companies plan to significantly increase connectivity on the continent, provide digital inclusion to marginalized populations, and achieve their shared greenhouse gas (GHG) emission reduction goals through collaborative efforts.

In January 2022, The announcement of a new 12-year collaboration between T-Mobile US, Inc. and Crown Castle International Corp. would allow T-Mobile more access to Crown Castle's towers and small cell sites as the company expands its national 5G network. With the help of the deal, the Un-carrier may serve customers across the United States by further extending and broadening the coverage of the company's 5G network and generating financial synergies after its merger. Additionally, the deal assists Crown Castle in developing long-term income development from small cells and towers.

In January 2022, American Tower Corporation announced that it had officially acquired CoreSite Realty Corporation by merging one of its wholly-owned subsidiaries with CoreSite. In facilitating growth and raising the value of current tower real estate through upcoming computing opportunities, this acquisition is anticipated to use CoreSite's networked data center capabilities and cloud on-ramps.

Additional Benefits:

- The market estimate (ME) sheet in Excel format
- 3 months of analyst support