Telecom Towers is Estimated to Witness High Growth Owing to Increasing 5G Deployments

Author : naufan cmi | Published On : 18 Jan 2024

Telecom towers refers to physically supporting structures that are designed to hold antennas and telecommunication transmission equipment required for communication technologies. Telecom tower structures are primarily used to support wireless or mobile Telecommunication Services as they accommodate transmitting and receiving antennas for cell phone or mobile phone technologies. Telecom towers are vital infrastructure for telecommunications as they allow transmission of data, voice and video calls from one point to another over long distances.

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 Dynamics
Increasing 5G deployments remains a key driver for the telecom towers market over the forecast period. 5G provides higher data speeds, low latency and ability to connect large number of devices. This has led to growing investments by telecom companies and governments globally for setting up 5G infrastructure which includes installing more telecom towers to strengthen network coverage. For instance, according to a study by GSMA, 5G networks are expected to support 26 billion connections globally by 2025. Further, rising construction of telecom towers in rural areas and expansion of fiber optic cables across remote areas also provide growth opportunities for the market. However, high costs associated with building and maintaining telecom towers as well as obtaining land permissions remain a challenge for market players.

SWOT Analysis
Strength: The telecom towers market is expected to grow significantly owing to increasing investments in building telecom infrastructure. 5G deployment and growing number of mobile subscribers are increasing the demand for telecom towers. Tower companies are also leasing out additional space on towers to multiple telecom operators which is improving profitability.

Weakness: Huge investments are required for setting up telecom towers which poses significant financial challenges for new entrants. Obtaining right of way permissions from local authorities is a lengthy process affecting expansion plans of telecom tower companies. Dependence on a few large telecom operators makes the market vulnerable to changes in strategies of such operators.

Opportunity: Emerging markets offer huge untapped potential for growth as telecom and internet penetration is still at a nascent stage in many countries. Roll-out of 5G networks will accelerate the demand for additional telecom towers and densification of existing networks. Tower companies are exploring opportunities to provide tower infrastructure for other verticals such as utilities and transportation sector.

Threats: Stiff competition among major tower companies impacts rentals and profit margins. Shared infrastructure model followed by mobile operators poses the risk of telecom operators building independent towers. Stringent regulatory norms pertaining to installation of telecom infrastructure can delay projects.

Key Takeaways
The Global Telecom Towers Market Size is expected to witness high growth over the forecast period driven by increasing mobile subscriptions and data consumption worldwide. Rapid 5G deployments will be a key growth enabler accelerating the demand for telecom towers . Developing economies in Asia Pacific and Middle East & Africa regions are expected to be the fastest growing and most lucrative markets for telecom tower infrastructure.

Regional analysis: The Asia Pacific region dominates the global telecom towers market holding around 40% market share .China, India and Indonesia have a huge subscriber base and growing mobile internet usage. Huge rural populations in countries like India offers scope to deploy additional telecom towers.

Key players: Key players operating in the telecom towers market are Smith & Nephew plc, Merz, Inc., Lumenis, Enaltus LLC, Sonoma Pharmaceuticals, Inc., Mölnlycke Health Care, Cynosure, Inc., CCA Industries, Inc., Scarheal, Inc., NewMedical Technology, Inc., and Suneva Medical, Inc.

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https://www.marketwebjournal.com/telecom-towers-market-value-insights-and-forecast/