New Report “The Global Market for Telecoms Towers 2014 - 2020”, published by StatPlan Energy highlights global CAGR of 4.1% to 2020.
There are four million telecoms towers installed in the world, growing at a CAGR of 4.1% to 2020, according to StatPlan Energy.
In 2014 the market for tower construction is estimated to be at $20.3 billion globally. By 2020, the total installed base will have risen to five million towers.
StatPlan Energy said that the rate of growth and the structure of the industry, that continues to develop, varies significantly by region.
“Taking into account the industry structure and trends in tower sharing, we forecast double digit growth in Sub-Saharan Africa and Latin America, but the volume regional market will be Asia, with some evident hotspots,” the company stated.
The current “hotspot” for independent tower ownership is sub-Saharan Africa, where it has been estimated some $30 billion in infrastructure transactions are currently under review, according to the company.
“Towers constitute almost 50% of the total capital expenditure for an operator, so the cost of towers ties up large amounts of capital in costly infrastructure and is a significant drag on operating liquidity. As many MNOs face declining revenues they have sought to free up the capital tied into infrastructure and the tower construction was born. In turn the concept of asset sharing has become another key trend in the industry,” said Euan Blauvelt, principal author and director at StatPlan Energy.
StatPlan Energy concludes that companies seeking to grow rapidly must choose their battlegrounds carefully: “as a consequence of a lumpy market we envisage significant activity in terms of mergers and acquisitions in the sector in coming years so that companies are best placed for investment in infrastructure.”