Market Segmentation and Regional Analysis: Renewable Energy Sources are trending in the Global Telecom Tower Power System Market
Telecom tower power systems are the power systems especially configured to supply power 24/7 to telecom towers. Uninterrupted power supply plays an integral role in the proper functioning of telecom towers. Telecom tower power systems help telecom service provider provide seamless communication and data transfer services to their consumers. Power supply to telecom towers can be supplied through AC mains or as a combination of diesel generators and batteries. Nowadays, renewable energy sources such as solar and wind are also being used to supply power to telecom towers and are contributing significantly to the global telecom tower power system market.
Market Segmentation and Regional Analysis: Asia Pacific excluding Japan (APEJ) Region is expected to witness the Highest CAGR in the Global Telecom Tower Power System Market
In this report, FMI has segmented the global telecom tower power system market on the basis of product type and region. By product type, the telecom tower power system market has been further segmented into unreliable grids, off-grids, and reliable grids. The unreliable grids segment has been further sub-segmented into diesel, battery and renewable energy. The unreliable grid segment is expected to grow at a relatively higher CAGR in the global telecom tower power system during the forecast period. The increasing penetration of smartphones and data services in Asia Pacific Exc. Japan, Middle East and Africa regions is one of the prime factors surging the demand for telecom tower power systems. Furthermore, the unreliable grid segment is also expected to capture the largest market share in terms of value in the global telecom tower power system market and create an incremental opportunity of US$ 2,951.3 Mn between 2015 and 2025. In terms of the total number of units sold, the unreliable grid segment is expected grow at a CAGR of 4.6% in the global telecom tower power system market.
Supportive monetary conditions, improvement in consumer confidence and robust labour market conditions in APEJ and Latin America have strengthened the domestic demand, resulting in the growth of the telecom tower power system markets in these regions. Also, countries in Asia Pacific such India and China are witnessing high growth in the number of mobile subscribers and advanced wireless communication technologies (4G and advance LTE). This factor is expected to contribute immensely in the growth of the telecom tower power system market.
Repaid Growth in the Demand for Green Telecom Towers
The demand for green telecom tower power systems is growing rapidly in the global telecom tower power system market. Globally, green power systems are expected to replace traditional diesel generators and diesel generator + battery power supplies gradually in the telecom tower power system market. Governments across the world are taking up green initiatives with the aim of lowering their carbon footprint. In Asia Pacific, telecom tower companies are replacing diesel generators with hybrid energy solution. Solar photovoltaic systems, wind turbines and biomass are expected to replace the existing diesel generators and battery power sources in the global telecom tower power system market.
Telecom operators are also playing a significant part in the telecom tower power system market. Telecom operators are forming partnerships with semiconductor chip manufacturers in the global telecom tower power system market to increase the energy efficiency of radio frequency (RF) devices.
High operating cost and stringent carbon emission regulations are some of the factors inhibiting the growth of the global telecom tower power system market. Telecom tower operators that use diesel generators as a power source have to incur high operating costs since diesel prices increase annually by 1–2%. Higher operating costs result in lower profit margins for telecom tower companies and telecom service provider companies, which inhibits the telecom tower power system market growth on a global scale.
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Developed Nations such as the U.S. and the U.K. are emphasizing on the Adoption of Renewable Energy Sources to ensure Cost Efficient Power Supply for Telecom Towers
The global telecom tower power system market has been segmented into seven major regions, namely North America, Latin America, Eastern Europe, Western Europe, Asia Pacific Excluding Japan (APEJ), Japan and the Middle East & Africa (MEA). In terms of value, the Asia Pacific Exc. Japan telecom tower power system market is estimated to expand with a CAGR of 14.4% over the forecast period. This can be attributed to the transformation of existing telecom infrastructure to provide consumers with high speed internet services. In Eastern Europe, Russia is projected to maintain its dominance in terms of total revenue generation in the telecom tower power system market. In North America, the U.S. is expected to dominate the market during the forecast period. Demand for robust connectivity and continuous network innovation are some of the factors driving the North America telecom tower power system market.
Grid extension is generally expensive and hence, hybrid energy systems are emerging as an attractive option in providing electricity to telecom towers in remote areas. Vendors in the global telecom tower power system market are focusing on the optimal sizing of components in order to reduce the cost of hybrid power systems. Currently, hybrid systems consist of solar, wind, diesel generators and batteries are popular among telecom towers in the global telecom tower power system market for the supply of power.
Key market participants covered in the global telecom tower power system report include American Tower Corporation, Bharti Infratel Ltd., GTL Infrastructure Ltd., Indus Towers Ltd., Eaton Towers Limited, Reliance Infratel Limited, Emerson Network Power, Inc., SBA, Viom Networks Limited, Crown Castle International Corporation and GE Energy Infrastructure.
Recent Developments in Global Telecom Tower Power System Market
- In 2015, American Tower Corporation announced that it had acquired 165 towers and the leasing rights for approximately 11,324 wireless towers from Verizon Communications Inc.
- In 2015, Eaton Towers raised US$ 350 Million by issuing new equity resources from its shareholders to fund its expansion and acquisitions in Africa. At the same time, it also signed a purchase, leaseback and management deal with Mobinil in Egypt for its 2000 towers
- In 2015, Indus Towers entered into a collaboration with Digital Empowerment Foundation to start a Community Information Resource Center in India
- Since 2015, GE Power Conversion, a subsidiary of GE Group, with its inverter skid solutions, has been supporting the Hosoe mega solar project in Japan, offering complete equipment and 20-year lifecycle services to the solar market in the country
- In 2014, Reliance Jio Infocomm Ltd and Viom Networks signed a Master Services Agreement, under which Reliance Jio will use Viom Networks’ pan-India passive telecom infrastructure of over 42,000 telecom towers
The report also describes company-specific strategies, key differentiators, market structure and competitive share analysis related to prominent industry stakeholders.
- By Product Type
- Unreliable Grid
- Diesel Generator
- Diesel Generator and Battery
- Renewable Energy
- Diesel Generator
- Diesel Generator and Battery
- Renewable Energy
- Unreliable Grid
Key Regions covered:
- North America
- Latin America
- Rest of Latin America
- Western Europe
- BENELUX (Belgium, Netherlands, Luxembourg)
- NORDIC (Denmark, Finland, Iceland, Norway, Sweden)
- Rest of Europe
- Eastern Europe
- Rest of Eastern Europe
- APEJ (Asia Pacific excluding Japan)
- ASEAN Countries
- Australia & New Zealand
- Rest of APEJ
- GCC Countries
- South Africa
- Rest of Middle East & Africa