The global telecom tower power system market is anticipated to reach a value of USD 4,518.9 million in 2024. The market is slated to register a CAGR of 6.7% through the assessment period 2024 to 2034. It is estimated to clock a revenue of USD 7,987.8 million by 2034. This growth will likely lead to an expansion of 1.9x in sales by the end of the forecast period.
Telecom tower power systems have become indispensable in ensuring the uninterrupted operation of wireless telecommunication networks. These systems have proven to be an essential solution for those areas with frequent power outages or unreliable grids.
A typical telecom tower power system comprises diesel generators, batteries, inverters, and power distribution equipment. Diesel generators are set to be highly preferred to generate electricity and provide backup power during power outages.
The demand for battery banks is also projected to rise as these help store the energy produced by generators and provide a seamless transition between grid and generator power during shortfalls. These systems are anticipated to support all types of telecom towers, including rooftop, monopole, and guided towers.
| Attributes | Description |
|---|---|
| Estimated Telecom Tower Power System Market Value (2024E) | USD 4,518.9 million |
| Projected Telecom Tower Power System Market Size (2034F) | USD 7,987.8 million |
| Value-based CAGR (2024 to 2034) | 6.7% |
The demand for telecom tower power systems has exponentially increased with the advent of 5G (fifth generation) technology across the globe over the past few years. 5G infrastructure requires more density in the network coverage as compared to 4G infrastructure.
It implies the installation of a greater number of telecom towers and consequently more power systems. The booming 5G network is a healthy indicator for operators to enhance their reach across urban and rural areas of several countries worldwide.
Integration of renewable energy sources with these power systems has become an emerging trend, with a penetration of around 15%. High penetration of solar and wind power has been observed across those countries where renewable energy sources are scaling up, such as China, the United States, Germany, Spain, Denmark, and Australia.
Emerging economies like China and India are projected to create new opportunities for the expansion of the telecom infrastructure, thereby boosting telecom tower power system demand. This is attributed to the ever-increasing population, high penetration of telecom technology, and scalable electronic production capabilities.
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The annual growth rates of the global telecom tower power market from 2024 to 2034 are illustrated in the table below. Starting with the base year 2023 and going up to the present year 2024, the report examines how the growth trajectory changes from the first half of the year, i.e. January through June (H1) to the second half consisting of July through December (H2). This gives stakeholders a comprehensive picture of the sector’s performance over time and insights into potential future developments.
The figures provided show the growth of the industry for each half-year between 2023 and 2024. The industry was projected to increase at a CAGR of 6% in the first half (H1) of 2023. However, in the second half (H2), there is a noticeable increase in the growth rate, which moves up to 6.5%.
| Particular | Value CAGR |
|---|---|
| H1 | 6% (2023 to 2033) |
| H2 | 6.5% (2023 to 2033) |
| H1 | 6.2% (2024 to 2034) |
| H2 | 6.8% (2024 to 2034) |
Moving into the subsequent period, from H1 2024 to H2 2024, the CAGR is projected to slightly increase to 6.2% in the first half and rise considerably to 6.8% in the second half. In the first half (H1), the sector saw an increase of 20 BPS while in the second half (H2), there was a slight surge of 30 BPS.
Growing Preference for Renewable Energy Sources like Solar Pushes Demand
Increasing awareness of sustainability and green energy is anticipated to push the telecom tower industry as companies switch to renewable energy sources to operate their power systems. Renewable energy sources, such as solar, offer a few benefits over conventional energy sources. These include reduced carbon emissions, low operational costs, and easy access to comparatively reliable energy sources.
Solar energy, with the most prominent share out of all the renewable energy sources, is set to be the highly preferred source among telecom operators. This is particularly significant in remote or off-grid locations.
The rapid energy shift from conventional to renewable energy sources improves energy security and operational efficiency apart from enhancing environmental sustainability. Continuous development of energy management systems supports this trend by making renewable energy a prominent and promising element in the telecom tower power system market.
Deployment of 5G Networks Creates High Need for Small and Micro Towers
The deployment of 5G networks requires a significantly denser network of telecom towers due to the higher frequency and shorter range of 5G signals compared to previous generations. This necessitates the installation of several small and micro towers to ensure uninterrupted coverage over a large span and capacity.
There is also an increased demand for robust and efficient power solutions to support these additional towers. Consistent power systems are essential to maintain continuous operation and optimal performance of 5G infrastructure.
Increased power consumption of 5G equipment is projected to propel the need for cutting-edge energy management, renewable energy integration, and efficient backup solutions. This is further anticipated to encourage innovation and investment in telecom tower power systems.
Complex Regulatory Environment for Telecom Operators Creates Hurdles
Availability of restricted installation space and a complex regulatory environment are a few significant challenges impacting the telecom tower power system market. Urban areas, where demand for telecom services is higher, often face severe space constraints.
Space constraints make it difficult to find suitable locations for new towers. This limitation requires innovative solutions, such as tower sharing, rooftop installations as well as compact, multi-functional designs to maximize the use of the available space.
The regulatory environment adds another layer of complexity. Telecom operators must navigate a myriad of regulations, including zoning laws, environmental impact assessments, and health and safety standards. These regulations vary widely from region to region and often involve lengthy approval processes, adding time and cost to tower deployment.
Compliance with local regulations is important to avoid fines and operational delays. However, it requires significant investments in legal and administrative resources.
The push for renewable energy integration introduces additional regulatory hurdles, such as obtaining permits for solar or wind installations and meeting renewable energy mandates. Navigating these challenges requires strategic planning, robust legal expertise, and adaptive infrastructure solutions to ensure seamless, compliant, and efficient deployment of telecom towers and their power systems.
Principal Consultant
The global market recorded a CAGR of 2.6% between 2019 and 2023. The growth of the industry was positive as it reached a value of USD 3,968.1 million in 2023 from USD 3,084.5 million in 2019.
The COVID-19 pandemic caused a slowdown in production and supply chain activities due to lockdowns and transportation restrictions worldwide. This crisis significantly impacted the global economy, including the telecom industry. The telecom tower power system market experienced a notable drop in demand in 2020.
The pandemic's effect was especially severe on the supply side. However, supply capabilities surged steadily from 2023 onward as lockdowns eased and transport regulations relaxed. Manufacturers are planning to ramp up production in the coming decade.
Looking ahead to the period from 2024 to 2034, the demand for telecom tower power systems is likely to rise. This growth is set to be driven by expanding network coverage, concerns about energy efficiency, the need for reliable network uptime, and increased data traffic. In addition, government initiatives, access to remote monitoring and management solutions, mobile network densification, and development plans for niche areas are projected to aid demand.
In April 2024, for instance, Videotron, Canada’s renowned wireless service provider, announced its plan to develop around 37 new mobile towers in the Laurentians and Abitibi-Temiscamingue in Quebec. The company has joined hands with Quebec’s government to enhance economic development and mobile coverage in the aforementioned areas.
Tier 1 companies include industry leaders with annual revenues exceeding USD 300 million. These companies are currently capturing a significant share of 55% to 60% globally. These frontrunners are characterized by high production capacity and a wide product portfolio.
They are distinguished by extensive expertise in manufacturing and a broad geographical reach, underpinned by a robust consumer base. These firms provide a wide range of products and utilize the latest technology to meet regulatory standards. Prominent companies within Tier 1 include Huawei Technologies Co., Ltd, GE Energy, Schneider Electric, Cummins Inc., ABB Ltd., Eaton Corporation Plc, ZTE Corporation, and STMicroelectronics NV among others.
Tier 2 companies encompass small-scale participants with revenues ranging from USD 100 to 250 million, holding a presence in specific regions and exerting significant influence across local economies. These firms are distinguished by their robust presence overseas and in-depth industry expertise. They possess strong technology capabilities and adhere strictly to regulatory requirements.
Tier 3 includes most of the small-scale companies operating at the local level and serving niche telecom tower power system vendors with low revenue. These companies are notably oriented toward fulfilling local demands. They are small-scale players and have limited geographical reach. Tier 3, within this context, is recognized as an unorganized segment, denoting a sector characterized by a lack of extensive structure and formalization when compared to organized competitors.
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The section below covers the analysis of the telecom tower power system industry for different countries. Demand analysis of key countries in several regions of the globe, including North America, Asia Pacific, Europe, and others, is provided. The United States is anticipated to remain at the forefront in North America, with a value share of 71.7% in 2034. In South Asia, India is projected to witness a CAGR of 8.2% through 2034.
The table further shows that countries from Asia Pacific are anticipated to exhibit promising double-digit growth over the forecast period. All the below-listed countries are collectively set to reflect a CAGR of around 6.2% through the forecast period.
| Countries | CAGR 2024 to 2034 |
|---|---|
| India | 8.2% |
| China | 6.8% |
| Germany | 6.3% |
| Japan | 6.2% |
| United States | 5.7% |
India is rapidly becoming a key consumer of telecom tower power systems, with significant developments underway. According to the report, the country is projected to remain at the forefront in South Asia.
Several local wireless network operators collaborated with the country’s government to install over 100,000 new 5G base stations in 2023. They aimed to install a total of 500,000 by the end of the year. Key telecom companies in India are set to invest more than USD 20 billion in 5G infrastructure in 2024, which includes deploying unique 5G core systems.
India's well-established telecommunication industry makes it highly attractive for telecom tower power system manufacturers. The country’s rapid economic growth and substantial investments in electronics and telecommunications are anticipated to drive expansion in the forecast period. These factors position India as a leading country in South Asia.
East Asia is set to become a key consumer of telecom tower power systems, with China leading the way. China is projected to account for over 59% of East Asia’s market share in 2034.
China planned to install about 600,000 new 5G base stations in 2023, reaching a total of 2.9 million by the end of that year. Renowned telecom companies in the country are anticipated to invest more than USD 30 billion in 5G infrastructure in 2024, which will likely include the deployment of 5G standalone core systems.
China’s rapid economic modernization and substantial investments in electronics and telecommunications are anticipated to drive growth through 2034. These factors position the country as a dominant force in East Asia.
The United States is projected to showcase a CAGR of around 5.7% in the estimated period. The country is estimated to benefit from being an early adopter of cutting-edge telecommunication technologies.
The United States has witnessed a high adoption rate of 4G-LTE networks and mobile devices in recent years. Increasing need to commercialize 5G networks in the country is further augmenting telecom operators to broaden their infrastructure, including power systems. The ongoing adoption of smart devices and digital electricity systems is another key factor bolstering demand in the country.
In June 2024, for instance, the Biden administration announced that it was investigating China Unicom, China Telecom, and China Mobile due to concerns regarding data thefts. With this, the United States government is planning to limit access to China-based telecom service providers, thereby investing in in-house telecom systems.
This section below examines the growth trajectories of the leading segments in the industry. In terms of product type, the outdoor telecom power system segment will likely dominate and generate a share of around 53.4% in 2024.
Based on power sources, the diesel generator + battery segment is projected to account for a share of 41.6% in 2024. The analysis would enable potential clients to make effective business decisions for investment purposes.
| Segment | Outdoor Telecom Power System (Product Type) |
|---|---|
| Value Share (2024) | 53.4% |
Based on product type, the outdoor telecom power system segment is projected to dominate, accounting for around 53.4% of the market share in 2024. Outdoor systems are projected to be available in different configurations.
Key players are focusing on designing such systems with novel features to protect the equipment from external threats in all climatic conditions. They are planning to launch energy-efficient and high-performance outdoor power systems to attract a large consumer base. The growing need for high-performance efficiency and cost-effective solutions to reduce the risk of power fluctuations and failures is further anticipated to boost the target segment.
| Segment | Diesel Generator + Battery (Power Source) |
|---|---|
| Value Share (2024) | 41.6% |
Diesel generators + batteries are estimated to hold the most significant revenue share of around 41.6% in 2024. This growth is owing to rising investments in telecom infrastructure projects across rural areas. Government bodies are undertaking new projects as these are important in connecting rural areas with other parts of the world with effective telecommunication networks.
The growing need for reliable, energy-efficient, and smooth operating power systems, such as diesel generators paired with batteries, is set to propel the segment. These systems are anticipated to be significant for ensuring continuous power supply to telecom towers, meeting the increasing demand for uninterrupted service.
The global telecom tower power system market is highly competitive with the presence of several leading players. These companies are striving to engage in partnerships and collaborations with local telecom providers to enhance their presence in emerging countries. They are also focusing on gaining funds from government bodies to improve or replace existing telecom towers. Such initiatives would not only help them provide smooth connections to consumers but also enhance power system capabilities.
A handful of companies are investing huge sums in research and development activities to come up with novel power systems with eco-friendly features. They are focusing on complying with strict government norms mandating the use of environmentally friendly raw materials to reduce emissions.
Industry Updates
In terms of product type, the industry is segregated into outdoor and indoor telecom power systems.
By power source, the industry is divided into diesel generator, diesel generator + battery, and renewable energy (solar, wind turbine, and biomass).
By capacity, the industry is segmented into up to 10 KVA, 10 to 100 KVA, and above 100 KVA.
Regions considered in the study are North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia, and the Middle East and Africa.
The industry was valued at USD 3,968.1 million in 2023.
The industry is set to reach USD 4,518.9 million in 2024.
The industry value is anticipated to rise at 6.7% CAGR through 2034.
The industry is anticipated to reach USD 7,987.8 million by 2034.
Huawei Technologies Co., Ltd, GE Energy, and Schneider Electric are the key manufacturers.
Telecom towers are connected to the grid and have backup power sources like renewable energy solutions, diesel generators, or batteries.
These provide protection against grid power fluctuations and interruptions across data centers.
The power needed for a telecom tower ranges between 1 kW and 8.5 kW.
DC power is used as it helps surge network reliability and lower power outage risks.
1. Executive Summary
2. Industry Introduction, including Taxonomy and Market Definition
3. Market Trends and Success Factors, including Macro-economic Factors, Market Dynamics, and Recent Industry Developments
4. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections
5. Pricing Analysis
6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034
6.1. Product Type
6.2. Power Source
7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Product Type
7.1. Outdoor Telecom Power System
7.2. Indoor Telecom Power System
8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Power Source
8.1. Diesel Generator
8.2. Diesel Generator + Battery
8.3. Renewable Energy
8.3.1. Solar
8.3.2. Wind Turbine
8.3.3. Biomass
9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region
9.1. North America
9.2. Latin America
9.3. Western Europe
9.4. South Asia
9.5. East Asia
9.6. Eastern Europe
9.7. Middle East & Africa
10. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
11. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
12. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
13. South Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
14. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
15. Eastern Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
16. Middle East & Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
17. Sales Forecast 2024 to 2034 by Product Type and Power Source for 30 Countries
18. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard
19. Company Profile
19.1. ABB Ltd
19.2. Schneider Electric
19.3. Indus Towers Ltd.
19.4. Delta Electronics Inc.
19.5. Vertiv
19.6. STMicroelectronics NV
19.7. Bharti Infratel Ltd.
19.8. Eaton Corporation PLC.
19.9. Huawei Technologies Co Ltd.
19.10. Texas Instruments Inc
Industrial Automation
August 2023
REP-GB-17893
200 pages
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Telecom Tower Power System Market
