Telecom Tower Power System Market expected at a CAGR of 12.2% during 2015–2025
On assessing various factors that are driving the market growth, FMI analyst said, “LTE (Long-Term Evolution) and 4G network technologies offer higher speeds, faster connection times and less round-trip latency. Consequently, the demand for LTE is expected to increase during the forecast period. The demand for LTE is expected to propel the development of improved telecom infrastructure that would, in turn, increase the demand for telecom tower power systems”. The analyst added that, by providing continuous power supply to the telecom towers, customer can receive desired uninterrupted telecom services. Telecom tower companies and telecom service providers use multiple power supply sources to provide continuous power to the telecom towers. Telecom companies use a combination of diesel generators, batteries and renewable energy sources to maintain an uninterrupted power supply. The shift in customer preferences towards uninterrupted and high speed telecom services is expected to propel the growth of the global telecom tower power system market over the forecast period. As the network technologies are changing, the telecom tower and telecom service providers need to upgrade the infrastructure as well. Also, in order to ease the impact on profit margins (by reducing the Operational Expenditures (OPEX) and Capital Expenditures (CAPEX) associated with telecom infrastructure and services), telecom companies across the globe are opting for consolidation.
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The global telecom tower power system market is segmented on the basis of product type into unreliable grid and off-grid. Among these, demand for unreliable grid is significant, and the segment is estimated to account for 67% revenue share of the global telecom tower power system market by the end of 2015. As per FMI estimates, this segment is projected to expand at a CAGR of 12.6% during the forecast period.
On the basis of power source, the global unreliable grid telecom tower power system market is segmented into diesel generator, diesel generator + battery and renewable energy. The diesel generator + battery segment is estimated to account for 45.5% share of the global unreliable grid telecom tower power system market by the end of 2015. According to FMI estimates, the diesel generator + battery segment of the global unreliable grid telecom tower power system market would expand at a CAGR of 8.6% between 2015 and 2025, to reach up to US$ 1,279.6 Million by 2025. The renewable energy segment is estimated to account for 38.6% share of the global unreliable grid telecom tower power system market by the end of 2015, and is forecast to expand at a CAGR of 16.4% through 2025. Currently, telecom towers with unreliable grid are largely powered with diesel generator + battery, and this trend is expected to change during the forecast period, as the renewable energy segment is expected to surpass the diesel generator + battery segment by the end of 2016.
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Growing demand for renewable power supply systems, competition to deliver uninterrupted telecom services, rising number of Internet users and change in customer preferences are expected to fuel demand for telecom tower power system, globally, during the forecast period. In addition, economic revival in regions such as Eastern Europe, Western Europe and North America and economic growth in regions such as APEJ and Latin America are factors that are expected to propel growth of the global telecom tower power system market over the forecast period.
The global telecom tower power system market is segmented on the basis of regions into North America, Eastern Europe, Middle East & Africa, Asia Pacific Excluding Japan (APEJ), Western Europe, Latin America and Japan. The APEJ market is estimated to account for 42.8% revenue share of the global telecom tower power system market by the end of 2015, and is expected to continue to dominate the global market over the forecast period. The APEJ market is projected to expand at a CAGR of 14.4% over the forecast period
Key players across the supply chain of the global telecom tower power system market include telecom tower & telecom service provider companies and telecom tower power system providers. The telecom tower & telecom service provider companies that we have analysed in the report include American Tower Corporation, Bharti Infratel Ltd., GTL Infrastructure Ltd., Reliance Infratel Limited, SBA Communications Corporation and Indus Tower Ltd. The telecom tower power system providers analysed in the report include Eaton Towers Limited, Emerson Network Power, Inc. and GE Energy Infrastructure. To adhere to the stringent government regulations, key players are continuously investing in renewable power sources for powering their telecom towers.
In the future, telecom tower power system companies should continue investing in the APEJ and the Middle East & Africa market. Telecom tower and telecom service providers should focus on investing in the renewable energy sources to reduce their carbon footprint.
Future Market Insights (FMI) is a leading market intelligence and consulting firm. We deliver syndicated research reports, custom research reports and consulting services, which are personalized in nature. FMI delivers a complete packaged solution, which combines current market intelligence, statistical anecdotes, technology inputs, valuable growth insights, an aerial view of the competitive framework, and future market trends.
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