The global telecom tower market accounted for US$ 40.0 Bn in 2017 and is expected to grow at a CAGR of 18.0% during the forecast period 2018 - 2025, to account to US$ 146.5 Bn by 2025.
Factors such as the advancement in technology in today's world and the existing network infrastructures prove to be incapable of handling the predicted surge in the number of connected devices as well as the data explosion over the network. As a result, a huge demand for a more robust and reliable communication network infrastructure capable of handling huge influx of data over the network is on the rise. Social media has become an integral part of individual's lifestyle in recent times and thus the use of internet has also rapidly increased. The bolstering demand of Internet of Things (IoT) connectivity, security, mobile data traffic, and expansion of mobile apps lead to the integration of cloud architecture with the mobile networks to enhance the flexible delivery of services with high speed is boosting the demand for telecomm tower market globally. Thus, the telecom tower market is anticipated to witness significant surge in demand during the forecast period. The South America telecom tower market region is expected to witness a CAGR growth rate of 10.6% in the coming years.
Exhibit: Telecom Tower Market by Region
Growing volume of cellular devices coupled with increase in internet data generation daily to drive the number of telecom towers globally
For the regional estimates related to telecom tower market, highest number of subscribers are observed in China and India owing to the large populations of both countries. Also, highest subscriber penetration is estimated to be in the European region where the subscriber density is very high. Large populations and also scope for increasing the subscriber density in the developing countries of India and China have been driving the deployments of telecom towers. Rising subscriber density in a particular area requires the deployment of telecom towers to serve the subscriber base. As the density increases, the existing tower infrastructures prove to be incapable of handling the data traffic created by an ever increasing subscriber base and therefore demand for additional deployments or up gradations on the existing towers with better equipment to enhance the traffic handling capacity. Furthermore, in the coming years, growth is estimated to be focused on connecting rural areas, low income populations, and also delivering connectivity to the underserved communities. These areas were largely underserved before, however, with the initiatives taken by the Government and obligatory regulations on the operators to provide services in such areas, the market for telecom tower deployments is further anticipated to grow. Subsequently, driving the growth for telecom tower market in the coming years. As a result, the telecom tower market is projected to provide numerous lucrative profitable business opportunities for the market players in the forecast period.
Surge in demand for high-speed internet access across major emerging cities and urban areas
Sensing, the potential significance of telecomm tower in business, Governments of various developing economies across the globe have realized the potentials of Telecom Tower and the impact this technology can have on the GDP of the country. Also, it is anticipated that due to digitalization of businesses, huge jobs would be created that would in turn have a positive impact on the economy of a particular country. TeleBrasil, which is the Brazilian Telecommunications Association has signed an agreement with China, the US, European Union, Japan and South Korea to develop Telecom Tower technology in the country. Also, the Brazilian Government has established a partnership with Ericsson for building an innovation center focused on Telecom Tower and IoT. The Mexican Government is striving to increase the connectivity coverage across the country with its project named Red Compartida. This project involves building a Telecom Tower ready network using the LTE technology for rollout in Mexico. Further, countries like Argentina, Chile, and Columbia have also taken initiatives for investment in the Telecom Tower technology through partnerships with giant telecommunication players such as Nokia and Huawei Telecommunications. Moving on to the Middle East and African countries, the Saudi Arabian government is strategically focusing on the development of Telecom Tower technology in various countries present in this region. Thus, the telecom tower market is expected to provide numerous profitable opportunities for the market players in the coming years.
In telecom tower market by deployment type, factors such as cost savings, revenue flows, and lower total cost of ownership (TCO) values have made the shared infrastructure business model highly attractive for the telecom tower companies. A market where competition impacts from smaller profit margins, the availability of a shared infrastructure model creates profit differences for the MNO and the towerco. With a growing mobile subscriber base and increasing number of MNOs coupled with emerging technologies such as Machine-to-Machine communication, Wi-Fi hotspots, and Network Function Virtualization (NFV), co-existence of many operators on a single infrastructure allows for co-development of the entire telecom industry. As a result, the shared infrastructure deployment market for the deployment type segment is anticipated to grow at a CAGR of 22.4% during the forecast period from 2018 to 2025. Thus, the shared infrastructure deployment for telecom tower market is projected to provide numerous lucrative business opportunities for the market players in the forecast period.
The Indian telecom tower market is highly matured and sophisticated owing to large numbers of independent towercos, mobile network operators (MNO) captive sites and joint venture towercos. In the present market scenario, India houses 459,926 telecom tower, out of which, Indus Tower holds the largest percentage of 27% followed by state-owned MNO, BSNL with 65,000 towers. Other prominent towercos operating in the country include American Tower, Reliance Infratel, Bharti Infratel, Reliance Jio (RJio), Reliance (RCom), Vodafone India, and Bharti Airtel among others. Mergers and acquisitions among various MNOs in the country is building a strong telecom tower market in India. For instance, Vodafone India and Idea Cellular have divested their tower portfolios to American Tower which added a tower count of 20,000. Similarly, Reliance Communication (RCom) is expected to divest its 43,000 towers to Reliance Jio (RJio). The merged combination of state owned MNO, BSNL and independent towerco Indus Tower is foreseen to run a tower count of 1,63,000 towers across the country in the near future. Another state owned MNO, MTNL is expected to divest its 10,000 towers with an aim to reduce its debts. The Indian telecom tower market is expected to grow with an attractive CAGR growth rate of 30.1% from 2019 to 2025.
Thereby, the telecom tower market in India is anticipated to witness significant growth and subsequently provide substantial profitable business opportunities for the telecom tower market players in the country during coming years.
Exhibit: Telecom Tower Market by Greenfield Tower