China Telecom Towers Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Volume (2024) | 2.22 Million units |
| Market Volume (2029) | 2.33 Million units |
| CAGR (2024 - 2029) | 0.94 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
China Telecom Towers Market Analysis
The China Telecom Towers Market size in terms of installed base is expected to grow from 2.22 Million units in 2024 to 2.33 Million units by 2029, at a CAGR of 0.94% during the forecast period (2024-2029).
- China has been at the forefront of the development of the 5G industry in the region. China is accelerating the rollout of 5G owing to its top-down strategy and capacity to bridge the public-private gap through state-owned businesses. An atmosphere for 5G is being created that has never been seen before, owing to the government's investment and clear road map.
- In certain VATS categories, the government has relaxed limitations on foreign ownership of FITEs (foreign-invested telecom enterprises) since 2014. Under the Closer Economic Partnership Arrangement, these regulations were first implemented in Hong Kong's and Macau's free trade zones and for qualified service providers. Similar easing recently spread across the country.
- Notably, under these latest laws, foreign investors can increase their shareholding in a FITE above the 50% threshold. Even 100% foreign ownership is allowed in some circumstances. This advances the country's 5G development, which fuels the telecom tower industry.
- China has a huge national telecommunications network. A strong increase in the telecom subscriber base has imposed network expansion covering a wider area, thereby creating a need for significant investment in telecom infrastructure. Considering its huge national network, China’s investment in telecom infrastructure over the last few years has extended to a heavy involvement in the market.
- Chinese President Xi Jinping presented his ideas for a digital economy, emphasizing the need for a 5G connection and national data control. The State Council released a new vision for developing the digital economy in the same month, aiming to play a significant standard-setting role for the nation in 6G mobile technology.
- The increasing emphasis on improving internet connectivity to rural areas is one of the major factors driving the deployment and improvisation of the telecom infrastructure in these areas, thereby aiding the market's growth.
- However, telecom towers require an uninterrupted power supply to ensure 24x7 network availability, fulfilled mainly by electricity, batteries, and diesel generators. The environmental impact of telecom towers has always been a significant concern. Radiation from mobile towers has been an important issue, and it is recognized as an unseen and subtle pollutant affecting life forms in multiple ways. Moreover, using non-renewable sources to run power systems, such as diesel, significantly pollutes the environment.
China Telecom Towers Market Trends
5G Deployments are a Major Catalyst for Growth in the Cell Tower Leasing Environment
- China commands a significant share of the studied market, consistently leading in tech advancements such as 5G, interconnected devices, and smartphone penetration. The GSMA forecasts that by 2025, China is expected to reach 1,458 million smartphone connections, outpacing many industrialized nations.
- Due to China's leadership in tech adoptions like 5G and smartphone usage, the country is expected to secure a substantial share of the industry.
- Driven by concerted efforts from the Chinese government, telecom operators, and suppliers, there's a notable uptick in investments and collaborations, all aimed at accelerating 5G implementation. Mobile network operators (MNOs) are poised to make substantial infrastructure investments to expand 5G capabilities, with rooftop infrastructure being pivotal.
- Rooftops and building facades offer prime real estate for MNOs aiming to densify their networks and broaden their coverage. In urban settings, antennas positioned on rooftops can transmit 5G signals directly to customers, leveraging a clearer line of sight. This positioning ensures reliable 5G reception for individuals and devices on the ground, even near the edges of adjacent buildings.
- As MNOs enhance their 5G capabilities, rooftops emerge as crucial assets. For instance, as reported by cww.net.cn, the surge in 5G adoption is evident: by May 2024, China Mobile boasted 503 million 5G users, while China Telecom recorded 334 million. This marks a significant uptick from the previous year, positioning 5G as the dominant network technology in the near future.
- In 2023, according to the Ministry of Industry and Information Technology (MIIT), China had established 3.38 million 5G base stations nationwide. The nation also launched over 10,000 5G-driven industrial internet projects and initiated 5G pilot applications in pivotal sectors like cultural tourism, healthcare, and education. These efforts were aimed at rejuvenating and amplifying consumption. Additionally, 5G mobile phone users in China surged to 805 million by the end of 2023, highlighted by MIIT's vice minister, Xin Guobin.
The Renewables Segment is Expected to Witness Growth
- Amid rising liquid fuel and operational costs, telecom tower companies in China are increasingly turning to renewable energy sources. By adopting green technologies, these companies stand to reduce their operational expenses significantly.
- Telecom towers are leveraging hybrid energy systems that integrate renewable technologies, including solar photovoltaic panels, wind turbines, fuel cells, and microturbines. This shift curtails fossil fuel consumption and plays a pivotal role in reducing carbon emissions.
- Due to the telecommunications sector's growing demand for sustainable energy solutions, the renewable energy segment is poised for rapid growth in the Chinese telecom tower market during the forecast period. Telecommunications, as a vital support service, underpins the swift development and modernization of numerous economic sectors.
- To combat electricity supply shortages, telecom providers have traditionally relied on diesel generators. However, while diesel power addresses immediate needs, it also incurs fluctuating operational costs and contributes to greenhouse gas emissions. The shift toward renewable energy promises to curtail diesel consumption and offers the potential to reduce or even eliminate the operational hours of diesel generators, further propelling revenue growth in this segment.
- The combination of renewable energy in telecom networks is the right path forward. However, completing sustainability goals requires a high level of collaboration among operators, infrastructure vendors, and suppliers and adopting new business models. Innovations in the energy market and collaboration between the government and the private sector are essential to accelerate the transition to clean energy.
- The move toward net zero will also depend significantly on technological advancements and the integration of sustainability into business practices. Hence, to curb these emissions, the telcos have been gradually shifting toward adopting renewable energy, which generates substantial cost savings, thereby enabling the profitable expansion of mobile networks to rural and low-population-density areas.
China Telecom Towers Industry Overview
The Chinese telecom tower market is highly consolidated and consists of a few players, such as China Tower Corporation Limited, China Mobile, China Unicom, and China Telecom. These major players in the Chinese telecom tower market are expanding their customer base through strategic collaborations and acquisitions of telecom tower startups. This has led to a moderately high market concentration, with a few dominant players benefiting from significant market share and profitability.
- March 2024: China Telecom is expected to invest CNY 1.9 billion (USD 0.27 billion) in China's quantum firms. QuantumCTek, a spin-off from the University of Science and Technology of China (USTC), allotted 24 million shares to China Telecom Quantum Group at CNY 78.94 per share (USD 11.02 per share).
- February 2024: At the Mobile World Congress 2024 in Barcelona, Spain, ZTE Corporation, in collaboration with China Telecom, unveiled its 5G-Advanced solution, Cluster DRS (Dynamic Radio Sharing). This cutting-edge solution facilitates dynamic radio sharing among base station clusters, promoting the growth of the low-altitude economy. The solution harnesses drone flight trajectories and service needs by extending the well-established "Cluster" resource management concept into the spatial realm. Consequently, the 5G commercial network adeptly forms a base station cluster, employing adaptable spatial beam-sharing methods, guaranteeing drones a seamless 4K video transmission experience.
China Telecom Towers Market Leaders
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China Tower Corporation Limited
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China Mobile
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China Unicom
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China telecom
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ZTT Group
*Disclaimer: Major Players sorted in no particular order
China Telecom Towers Market News
- April 2024: China Mobile, in collaboration with Ericsson, unveiled the world's inaugural commercial 5G-Advanced network before the standard's anticipated completion later this year. As per an announcement from Ericsson on Wednesday, China Mobile rolled out its 5G-A network in 100 cities across China, with plans to broaden its reach to over 300 cities by the end of 2024. Furthering its commitment, China Mobile plans to introduce more than 20 devices compatible with 5G-A technology later this year, setting a target of onboarding at least 20 million users for these devices in 2024.
- March 2024: Chinese telecommunication company Huawei and Malaysian Edotco teamed up to launch the first-ever fiberglass tower solutions for mobile network operators in Bangladesh. The telecom vendors announced that they had partnered to introduce an advanced eco-friendly telecommunications tower made of fiber-reinforced plastic (FRP). This innovative FRP solution is expected to lower tower weight by 44% and increase construction efficiency by 75%, which is ideal for rooftop sites in the density areas of the country.
China Telecom Towers Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Improving Connectivity to Rural Areas
5.1.2 5G Deployments are a Major Catalyst for Growth in the Cell Tower Leasing Environment
5.1.3 Improving and Catering to Increasing Data Needs
5.2 Market Restraints
5.2.1 Environmental Concerns about Power Supply Systems to Towers
5.2.2 Tower Sharing Between Telecom Companies
6. TECHNOLOGY SNAPSHOT
6.1 Technology Snapshot
7. MARKET SEGMENTATION
7.1 Ownership
7.1.1 Operator-owned
7.1.2 Private-owned
7.1.3 MNO Captive
7.2 Installation
7.2.1 Rooftop
7.2.2 Ground-based
7.3 Fuel Type
7.3.1 Renewable
7.3.2 Non-renewable
8. COMPETITIVE LANDSCAPE
8.1 Company Profiles*
8.1.1 China Tower Corporation Limited
8.1.2 China Mobile
8.1.3 China Unicom
8.1.4 China telecom
8.1.5 ZTT Group
8.1.6 FiberHome Telecommunication Technologies Co. Ltd
8.1.7 BYD Compny Limited
8.1.8 Datang Telecom Technology Co. Ltd
8.1.9 ZTE Corporation
8.1.10 Huawei Technologies Co. Ltd
9. INVESTMENT ANALYSIS
10. FUTURE MARKET OUTLOOK
China Telecom Towers Industry Segmentation
Telecommunication towers come in various structures, such as monopoles, tripoles, lattice towers, guyed towers, self-supporting towers, poles, masts, and similar configurations. These towers house one or more telecommunication antennas, facilitating radio communications. They can be situated on the ground or atop a building, often including storage for equipment and electronic components. While these towers don't need constant staffing, they do require periodic maintenance. Driven by the rollout of 5G infrastructure, the expansion of telecom towers is expected to increase during the forecast period.
The Chinese telecom towers market is segmented by ownership (operator-owned, private-owned, and MNO captive), installation (rooftop and ground-based), and fuel type (renewable and non-renewable). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| Ownership | |
| Operator-owned | |
| Private-owned | |
| MNO Captive |
| Installation | |
| Rooftop | |
| Ground-based |
| Fuel Type | |
| Renewable | |
| Non-renewable |
China Telecom Towers Market Research FAQs
How big is the China Telecom Towers Market?
The China Telecom Towers Market size is expected to reach 2.22 million units in 2024 and grow at a CAGR of 0.94% to reach 2.33 million units by 2029.
What is the current China Telecom Towers Market size?
In 2024, the China Telecom Towers Market size is expected to reach 2.22 million units.
Who are the key players in China Telecom Towers Market?
China Tower Corporation Limited, China Mobile, China Unicom, China telecom and ZTT Group are the major companies operating in the China Telecom Towers Market.
What years does this China Telecom Towers Market cover, and what was the market size in 2023?
In 2023, the China Telecom Towers Market size was estimated at 2.20 million units. The report covers the China Telecom Towers Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the China Telecom Towers Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
China Telecom Towers Industry Report
Statistics for the 2024 China Telecom Towers market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. China Telecom Towers analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
China Telecom Towers Market Report Snapshots
