Saudi Arabia Telecom Towers Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Volume (2024) | 40.17 Thousand units |
| Market Volume (2029) | 56.19 Thousand units |
| CAGR (2024 - 2029) | 6.94 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Saudi Arabia Telecom Towers Market Analysis
The Saudi Arabia Telecom Towers Market size in terms of installed base is expected to grow from 40.17 Thousand units in 2024 to 56.19 Thousand units by 2029, at a CAGR of 6.94% during the forecast period (2024-2029).
- Saudi Arabia's telecom towers market is expanding, fuelled by surging mobile connectivity demands linked to rising smartphone adoption and the 5G rollout as part of Vision 2030. Government initiatives, coupled with foreign investments and innovative infrastructure-sharing models, are further propelling this market growth. Moreover, urbanization and smart city projects are amplifying the demand for a robust telecom infrastructure, significantly enhancing growth opportunities in the market.
- Moreover, Saudi Arabia is witnessing a rising demand for mobile connectivity and internet access. With rising mobile penetration, a growing number of individuals are turning to mobile networks for their communication and data requirements. Meanwhile, Saudi Arabia's telecom tower market is witnessing notable changes. With backing from the government, 5G technology is poised to play a pivotal role in the country's digital advancement, and it's quickly gaining momentum.
- In August 2023, Red Sea Global (RSG), the developer behind the regenerative tourism projects The Red Sea and Amaala, partnered with Zain KSA, the premier telecom and digital services provider in the Kingdom. Together, they've launched the world's inaugural zero-carbon 5G network at the Six Senses Southern Dunes resort, nestled in The Red Sea. The Red Sea resort has unveiled its latest technological marvel a zero-carbon 5G network, tailored exclusively for its needs. With a commitment to both individuals and the environment, the 5G network aims to deliver connectivity speeds to guests in the region, all while being fuelled entirely by renewable energy.
- Furthermore, the rise of independent tower companies, coupled with telecom operators divesting their tower assets, has heightened competition in the market. Additionally, the development of the Internet of Things (IoT) and the push for smart city initiatives are driving the demand for bolstered telecom infrastructure. This surge necessitates the installation of more towers to meet the escalating connectivity demands across diverse sectors.
- In July 2024, Ericsson, the Swedish vendor, extended its research and development partnership with Saudi Arabia's King Abdullah University of Science & Technology for another two years. Building on the successes of their initial three-year partnership, Ericsson announced that the extension underscores both institutions' dedication to pushing the boundaries of telecommunications technologies. This includes a focus on 5G and 6G advancements, particularly in areas like on-chip reflective intelligent surfaces and free-space optical communications.
- However, Saudi Arabia's telecom tower market faces hurdles, primarily due to growing environmental concerns and challenges in securing site approvals. Moreover, the steep costs tied to tower construction and maintenance, particularly in rural locales, combined with intense competition among operators, constrain the market's growth potential.
Saudi Arabia Telecom Towers Market Trends
5G deployments are a major catalyst for growth in the cell-tower leasing environment
- Saudi Arabia's telecom tower market is witnessing robust expansion, driven by the swift adoption of 5G technology. Unlike its predecessor, 4G, the deployment of 5G requires a denser network of cell sites. Since 5G utilizes higher frequency bands, it covers shorter distances and faces greater obstruction challenges. This underscores the urgent need for bolstered infrastructure in Saudi Arabia. Consequently, this increased demand has spurred the construction of new towers and enhancements to the current infrastructure.
- To meet rising demands, mobile network operators (MNOs) are transitioning from the conventional approach of constructing their own sites to leasing from independent tower firms. This leasing approach allows MNOs to rapidly broaden their 5G networks without incurring hefty initial expenses. Concurrently, tower firms benefit from increased occupancy rates and extended contract lengths, presenting them with substantial market expansion prospects.
- As 5G technology expands, Mobile Network Operators (MNOs) are prioritizing the upgrade of their sites to be 5G-compatible. This shift has spurred a heightened demand for leased tower space. In Saudi Arabia, telecom towers are increasingly turning to leasing strategies to strengthen 5G coverage, especially in urban and suburban locales. This underscores the importance of both established and newly built towers.
- In March 2024, Zain Saudi Arabia and Nokia inked a Memorandum of Understanding, collaborating on the advancement of 5G technology and charting a definitive course for the establishment of next-generation ultra-broadband networks in Saudi Arabia. The two companies would leverage their expertise to create use cases, define requirements, and outline deployment scenarios for 5G technologies.
Ground-based to Witness Significant Growth Opportunities
- Saudi Arabia's telecom tower market is rising, driven by an increasing demand for ground-based telecom towers. Prioritizing rural connectivity, the push for broader coverage has resulted in a notable surge in ground-based installations. These installations have effectively catered to the needs of the nation's expansive and less-developed areas.
- Saudi Arabia's expansion of its 5G network is driving the rapid growth of ground-based telecom towers. A denser network of towers is crucial for delivering widespread high-speed connectivity. This expansion meets the rising demand for advanced digital services and bolsters initiatives like IoT and smart cities.
- Saudi Arabia is enhancing connectivity in its predominantly rural areas, leading to a surge in the establishment of ground-based telecom towers. These towers ensure extensive coverage in regions lacking urban features, such as high-rise buildings for rooftop insulation.
- Government initiatives to boost digital inclusion and upgrade telecommunication infrastructure have driven this growth. Furthermore, the rising demand for mobile and internet services propelled by the widespread adoption of smartphones and ongoing digital transformation highlights the urgent need for extensive network coverage. Considering this, ground-based towers stand out as the favoured option, capable of covering vast geographical areas and bolstering the nationwide commitment to dependable telecommunication services.
- Moreover, the growing influence of social media is fuelling the expansion of the telecom tower market. This growth is attributed to the rising need for widespread and reliable mobile internet access. With a rising population in Saudi Arabia actively using data-intensive social media platforms, telecom operators are under pressure to expand their networks and maintain consistent service quality. To address this heightened demand, telecom companies are constructing new towers, focusing on both underrepresented rural areas and bustling urban hubs.
- According to StatCounter, Facebook is the most popular platform in Saudi Arabia, with approximately 42.81% usage, trailed by Twitter and Instagram. A rise in such usage will drive the market growth opportunities significantly.
Saudi Arabia Telecom Towers Industry Overview
The telecom towers market in Saudi Arabia is characterized by moderate fragmentation, featuring several key players. Notable players, including Saudi Telecom, TAWAL, and Zain Saudi Arabia, are actively working to broaden their customer base through the adoption of diverse technologies.
- May 2024: Zain KSA, a telecom provider in the Kingdom of Saudi Arabia, has unveiled plans to invest around USD 426 million to enhance its infrastructure, aiming to bolster the nation's digital capabilities. The new network expansion aligns with a strategy that harnesses advanced technologies to drive sustainable digital transformation.
- March 2024: Dell Technologies and TAWAL signed a Memorandum of Understanding (MoU) to explore collaborative opportunities aimed at propelling the telecommunications sector in Saudi Arabia. The agreement emphasizes developing and implementing Open RAN technology while promoting innovation in 5G and future technologies. Its goal is to enhance network flexibility and scalability, ultimately transforming Saudi Arabia's telecommunications landscape.
Saudi Arabia Telecom Towers Market Leaders
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Saudi Telecom
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TAWAL
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Zain Saudi Arabia
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Golden Lattice Investment Company (LATIS)
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Mobily (Etihad Etisalat)
*Disclaimer: Major Players sorted in no particular order
Saudi Arabia Telecom Towers Market News
- April 2024: Saudi Telecom Company has finalized a merger of its towers business with its parent company, forming a more extensive regional operation poised to bolster its international expansion ambitions. The telecom operator revealed its decision to merge its TAWAL unit with Golden Lattice Investment Company (GLIC). GLIC, primarily owned by Saudi Arabia's Public Investment Fund (PIF), operates in the towers business and is also a major shareholder in STC.
- January 2024: RSG and Zain KSA have collaborated to design and install advanced telecom towers, enhancing visitors' communication experiences with unmatched speed and service efficiency. This partnership underscores their commitment to joint sustainability initiatives.
Saudi Arabia 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 Connecting/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 sites
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 Saudi Telecom
8.1.2 TAWAL
8.1.3 Zain Saudi Arabia
8.1.4 Golden Lattice Investment Company (LATIS)
8.1.5 Mobily (Etihad Etisalat)
8.1.6 Virgin Mobile Saudi Arabia
9. INVESTMENT ANALYSIS
10. FUTURE MARKET OUTLOOK
Saudi Arabia Telecom Towers Industry Segmentation
Telecom towers are pivotal in wireless transmission, serving as the backbone for antennas and communication equipment. By supporting mobile networks, these towers cover extensive areas, guaranteeing uninterrupted signal broadcasting and reception between mobile devices and the network. Telecom towers come in various sizes, including lattice towers, monopoles, and guyed towers, each customized to address specific network and location requirements.
The Saudi Arabia telecom towers market is segmented by ownership (operator-owned, private-owned, and MNO captive sites), by installation (rooftop and ground-based), and by fuel type (renewable and non-renewable). The market size and forecasts are provided in terms of value (USD) for all the above segments.
| Ownership | |
| Operator-owned | |
| Private-owned | |
| MNO Captive sites |
| Installation | |
| Rooftop | |
| Ground-based |
| Fuel Type | |
| Renewable | |
| Non-renewable |
Saudi Arabia Telecom Towers Market Research FAQs
How big is the Saudi Arabia Telecom Towers Market?
The Saudi Arabia Telecom Towers Market size is expected to reach 40.17 thousand units in 2024 and grow at a CAGR of 6.94% to reach 56.19 thousand units by 2029.
What is the current Saudi Arabia Telecom Towers Market size?
In 2024, the Saudi Arabia Telecom Towers Market size is expected to reach 40.17 thousand units.
Who are the key players in Saudi Arabia Telecom Towers Market?
Saudi Telecom, TAWAL, Zain Saudi Arabia, Golden Lattice Investment Company (LATIS) and Mobily (Etihad Etisalat) are the major companies operating in the Saudi Arabia Telecom Towers Market.
What years does this Saudi Arabia Telecom Towers Market cover, and what was the market size in 2023?
In 2023, the Saudi Arabia Telecom Towers Market size was estimated at 37.38 thousand units. The report covers the Saudi Arabia Telecom Towers Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Saudi Arabia Telecom Towers Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Saudi Arabia Telecom Towers Industry Report
Statistics for the 2024 Saudi Arabia Telecom Towers market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Saudi Arabia 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.
