Telecom Tower Power System Market Snapshot
The telecom tower power system market is expected to register year-on-year growth at 5.8% in 2021, with the overall valuation forecast to reach US$ 3.5 Bn. As per a Future Market Insights (FMI) analysis, sales of telecom tower power systems is expected to increase at 6.7% CAGR between 2021 and 2031.
According to the study, the overall telecom tower power system market worth is expected to reach US$ 6.7 Bn by 2031. While outdoor telecom tower power systems are expected to remain dominant, indoor telecom tower power system will witness a surge in demand, exhibiting growth at 7.1% CAGR in 2021.
Key Points Covered in Telecom Tower Power System Market Survey
- Market estimates and forecast 2016-2031
- Key drivers and restraints impacting market growth
- Segment-wise, Country-wise, and Region-wise Analysis
- Competition Mapping and Benchmarking
- Brand share and Market Share Analysis
- Key Product Innovations and Regulatory Climate
- COVID-19 Impact on Telecom Tower Power System Market and How to Navigate
- Recommendation on Key Winning Strategies
2016-2020 Telecom Tower Power System Market Outlook Compared to 2021-2031 Forecast
Revenue generated by the diesel generator + battery segment of the telecom tower power system market rose strongly in 2021. Demand grew by 5.6% between 2020 and 2021, enabling growth in the telecom tower power system market.
Growth registered can be attributed to the demand for energy efficient power systems across the globe. The demand for telecom tower power systems has increased consistently with the advent of 5G technology across the globe in recent years.
Key factors fueling telecom tower power systems demand include initiatives undertaken in introducing green telecom power systems. Leading power system manufacturing companies are focusing on expanding their production and distribution capacities in various countries. To improve their industrial research activities, some companies are collaborating directly with regional manufacturers.
The renewable energy is among the leading power sources, influencing demand for telecom tower power systems. China has emerged as a highly lucrative market for the production and export of telecom tower power systems. This can be attributed to increasing demand for electronic products, coupled with the adoption of advanced technologies and higher production capacities.
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Will the COVID-19 Crisis Hamper the Telecom Tower Power System Market?
Lockdown restrictions have negatively impacted the global telecom tower power system market. Limited production and transportation delays have created obstacles amid the pandemic. With the consecutive waves of the novel coronavirus tightening noose across the world, production and distribution efforts have been impacted.
Several industries such as automobile, electronics, and construction have been adversely impacted. Additionally, increasing demand for electric products has resulted in higher adoption rates for power systems for expanding telecom infrastructure across the globe.
Despite the difficult situation, economies are steadily recovering in 2021. Company activities have begun to recover as supply and distribution networks improve. Against this backdrop, the pandemic is unlikely to have a long-term effect on the telecom tower power system market.
How is the Telecom Tower Power System Market Set to Fare in China?
East Asia is predicted to remain one of the most attractive markets for telecom tower power systems during the forecast period, according to Future Market Insights. According to the study, China is expected to account for over 59% of the East Asia market through 2031.
China telecom operators have plans to build over 600,000 base stations in 2021. Leading telecom operators are planning to invest over US$ 20 billion on 5G infrastructure, which in 2021 will include 5G standalone core system deployments.
Furthermore, China remains one of the world's largest markets for the telecommunication industry, making it a lucrative market for telecom tower power system manufacturers. Aside from this, rapid modernisation of its economy, and investments into electronic and telecommunication industries will drive growth in the market.
Why is the Demand for Telecom Tower Power System Increasing in the U.S.?
Demand in the U.S. market is expected to rise at nearly 5% CAGR over the forecast period. The U.S. has emerged as a leading player in the power system market in terms of production and consumption with numerous power sources in telecom tower power systems.
The U.S. is recognized as a primary market for electronic and telecommunication industries and it is expected to continue exhibiting high demand for telecom tower power systems through the forecast period.
Moreover, technological advancements through the 21st century has led to increased production capacity, in addition to domestic and international demand. Research and development activities, the presence of several major players, and increasing production capacities are creating attractive opportunities for telecom tower power systems in the country.
What are the Factors Driving Sales in Japan?
Japan is a key manufacturer of electronic products in the global market. By 2031, it is expected to account for over 26% of telecom tower power system sales within East Asia.
In recent years, improved technology in the Japanese electronics industry to minimize maintenance, energy, and costs has led to the significant sales of telecom tower power systems in the country. Japan also has numerous small- and large-scale manufacturers, making the country a leading market for telecom tower power systems.
Industries such as telecommunication and electronics are reflecting strong growth in Japan. The introduction of fifth generation technology services has created opportunities for telecom infrastructure providers to expand the infrastructure facilities across the country, which will create a conducive environment for growth in the coming years.
How are Government Initiatives Boosting Telecom Tower Power System Sales in India?
In 2021, India will account for over 55% sales in South Asia and Pacific. Government initiatives undertaken to provide rural and urban telecommunication network across the country with quality and affordable communications has aided the development of India's telecommunication industry.
In addition, India is considered as one of the top countries in mobile phone users, with speedy increase in digitalization that has stirred the demand for telecom power system facilities.
Rising demand for mobiles aided by the increasing population, lifestyle changes, and emergence of new product variants are also driving interest, supporting long term growth prospects.
Indian producers are expecting to bolster their business through consolidation, collaborations, and acquisitions with production and research organizations.
Why is the Demand for Outdoor Telecom Power Systems Getting Stronger?
Based on telecom tower power system products, outdoor telecom power systems hold the lead, accounting for nearly 54% of the market in 2021. Outdoor telecom tower power systems are available in different configurations, and they are designed to protect equipment from external threats in varied climatic conditions with energy efficient solutions and high-performance, creating attractive growth prospects.
Outdoor telecom tower power systems are expected to remain the top choice, owing to requirements of performance efficiency and cost-effective solutions to reduce the risk of power fluctuations and failures.
Which Power Source Accounts for Higher Sales of Telecom Tower Power Systems?
Diesel generator + battery power sources are estimated to hold the largest revenue share of more than 41% in 2021 owing to rising investments in telecom infrastructure projects in rural areas, which is crucial in connecting rural areas with other parts of the world with effective telecommunication networks.
Rise in high-performance, energy efficient power systems will propel the demand for diesel generator + battery systems, and is expected to support the interest for telecom tower power systems during the forecast years, to meet uninterrupted power supply requirements.
Companies operating in the telecom tower power system market are aiming for strategic collaborations and partnerships with other manufacturers to expand their product manufacturing capacity to address the growing demand of an expanding consumer pool.
- For instance, in December 2020, Ballard Power Systems signed an agreement with Eltek Nordic (Delta Electronics Inc.) to develop fuel cell backup power systems for communication networks. The collaboration aims to provide reliable backup power solutions for telecom networks and other critical communication infrastructure, with a focus on Nordic countries, primarily Norway, Denmark and Iceland.
- In June 2021, Ryse Energy entered the Tower Automation Alliance, which aims to coordinate hybrid renewable energy projects for telecom tower infrastructure.
- Advent Technologies Holdings Inc. announced an acquisition agreement with the Fischer Group for its fuel cell systems segment for remote and off-grid power requirements.
Scope of Report
Historical Data Available for
USD Million for Value
Key Countries Covered
US, Canada, Germany, U.K., France, Italy, Spain, Russia, China, Japan, South Korea, India, ASEAN Countries, Australia, New Zealand, GCC Countries, Turkey, and South Africa
Key Segments Covered
Product Type, Power Source, and Region
Key Companies Profiled
Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives
Customization & Pricing
Available upon Request
Key Questions Answered in the Report
What is the current valuation of the telecom tower power system market?
The telecom tower power system market is expected to surpass a valuation of US$ 3.5 Bn by 2021.
At what rate did the telecom tower power system market expand in the last 5 years?
The telecom tower power system market exhibited steady growth at a CAGR of 2.6% in the last five years from 2016 to 2020.
What is the telecom tower power system market demand outlook?
The telecom tower power system market will register a gradual rise in demand after a period of decelerating sales amid COVID-19 in 2020. As per FMI, the market will register a CAGR of 6.7% between 2021 and 2031.
What are the key trends prevailing in the telecom tower power system market?
Leading telecom tower power system manufacturers are introducing hybrid power systems. Also, there is an increasing focus on cost and energy efficiency with new production technologies for the industry.
What are the key factors driving the sales of telecom tower power systems?
Increasing investments in telecom infrastructure projects, the introduction of fifth generation technology and growing manufacturing activities in emerging economies are important factors boosting telecom tower power system sales.
What is the North America telecom tower power system market outlook?
North America will remain the fourth-leading market for telecom tower power systems, accounting for nearly 16% of sales in 2021, globally.
What is the cumulative share of the top five companies in the telecom tower power system market?
The top five companies operating in the telecom tower power system market are Delta Electronics Inc., Cummins Inc., Huawei Technologies Co., Ltd, Eaton Corporation PLC, and ZTE Corporation. These companies will cover over 45% of the overall market in 2021.
At what rate will the telecom tower power system market grow in Europe?
Future Market Insights has forecast the Europe telecom tower power system market to exhibit a CAGR of 6.6% between 2021 and 2031.
Which are the top 5 countries exhibiting high demand for telecom tower power systems?
Russia, China, India, ASEAN countries, and South Korea are among the leading markets for telecom tower power system, exhibiting consistently high demand.
At what rate will the Japan telecom tower power system market grow?
As per Future Market Insights, the Japan telecom tower power system market is expected to rise at 6.7% CAGR between 2021 and 2031 accounting for 26.9% of the East Asia market.
Telecom Tower Power System Market by Category
By Product Type:
- Outdoor Telecom Power System
- Indoor Telecom Power System
By Power Source:
- Diesel Generator
- Diesel Generator + Battery
- Renewable Energy
- Wind Turbine
- North America
- Latin America
- East Asia
- South Asia & Pacific
- Middle East and Africa (MEA)