UAE Telecom Towers Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Volume (2024) | 31.21 Thousand units |
| Market Volume (2029) | 42.67 Thousand units |
| CAGR (2024 - 2029) | 6.45 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
UAE Telecom Towers Market Analysis
The UAE Telecom Towers Market size in terms of installed base is expected to grow from 31.21 Thousand units in 2024 to 42.67 Thousand units by 2029, at a CAGR of 6.45% during the forecast period (2024-2029).
- In recent years, the UAE telecom tower market has transformed significantly. This change is largely due to government initiatives to enhance the country's internet infrastructure, boost broadband connections, and address rising data consumption. Furthermore, the rollout of 5G and innovations from leading telecom tower vendors in the United Arab Emirates have played pivotal roles.
- The telecom sector in the United Arab Emirates is under the control and supervision of the Telecommunications Regulatory Authority (TRA). It was established under the 2003 Telecom Law, which includes issuing licenses, enforcing regulations, promoting e-government initiatives, establishing access management policy, resolving disputes, and ensuring service quality and access equity.
- According to the World Bank, the entire population of the United Arab Emirates now has internet access. As more residents adopt smartphones and operators enhance service quality through upgraded technology and infrastructure, the number of internet users is set to rise. Moreover, the market is poised for growth, fueled by the expanding reach of 5G and the impending arrival of 6G.
- Notably, 5G networks in the United Arab Emirates boast some of the world's fastest median download speeds, complementing top-tier fixed broadband speeds. This achievement stems from recent investments prioritizing fiber optics over traditional copper networks. Additionally, in 2023, the United Arab Emirates rolled out 5G technology to bolster mobile broadband services, enhance IoT connectivity, and pave the way for innovative applications and services.
- Consequently, rising communication expenditures significantly contribute to the market's expansion. Over recent years, the market has thrived on surging smartphone adoption and heightened demand for telecom services, both from individuals and businesses. As the UAE accelerates its digital strategy across various sectors, emphasizing high-quality internet access for all, mobile internet service providers see a golden opportunity to broaden their offerings, spanning 2G to 5G services.
- Telecom towers, reliant on a constant power supply—primarily from electricity, batteries, and diesel generators—ensure round-the-clock network availability. Yet, these towers raise notable environmental concerns. Radiation emitted from mobile towers, often overlooked, is acknowledged as a subtle pollutant impacting various life forms. Furthermore, the reliance on non-renewable energy sources, particularly diesel, exacerbates environmental pollution.
UAE Telecom Towers Market Trends
5G Deployment to Address the Increasing Market Demand
- With the growing number of mobile internet users and IoT connections, the country's demand for improved and advanced telecom infrastructure is increasing. The evolution of cellular network technology has allowed users to experience faster data speeds and lower latency and has prompted the rapidly increasing use of services and data-heavy applications.
- Moreover, the significant rise in the volume of data carried by cellular networks has been primarily driven by consumer demand for video and business and consumer moves to cloud services. This factor is expected to drive the need for a more resilient and stable network, such as the 5G connection, which offers fast and high-capacity networks. As of June 2024, the United Arab Emirates (UAE) recorded an average median speed exceeding 323 Mbps, according to Speedtest.
- Compared to 4G LTE, 5G may bring lower latency, higher bandwidths, and increased connectivity to mobile broadband. The 5G connections may make more data travel faster over broader coverage areas. The 5G bandwidths are projected to be ten times higher than 4G LTE, contributing to faster data transmission, images, and videos. Hence, the growth in the deployment of 5G across the country is expected to accelerate the demand for telecom towers during the forecast period.
- Since early 2022, the adoption of 5G technology among mobile users has surged. By Q3 2023, the United Arab Emirates recorded a 5G penetration rate of 26.86%, as reported by GSMA Intelligence. For instance, as of December 2023, Statcounter reported that mobile phones accounted for approximately 75.3% of all webpages served to web browsers in the United Arab Emirates. Additionally, the number of users in the United Arab Emirates stood at 9.46 million.
- Moreover, in July 2024, in a significant move, the Abu Dhabi National Oil Company (ADNOC) teamed up with UAE operator group 'Etisalat by e&' to roll out the energy sector's most expansive private 5G network, stretching across 11,000 square kilometers. This state-of-the-art network is anticipated to encompass both ADNOC's onshore and offshore operations, facilitating IoT connectivity for sensors installed in more than 12,000 wells and pipelines. Such expansions drive the demand for the market studied during the forecast period.
- In the future, such developments, increased data traffic, increasing connected devices, and the rollout of 5G services globally may significantly boost the demand for telecom towers to cater to the growing data needs.
Rooftop to Witness Growth
- As cities in the United Arab Emirates become more densely populated, finding suitable land for traditional ground-based towers becomes increasingly challenging. According to World Bank data, the population density is 114 individuals per square kilometer in the United Arab Emirates. Furthermore, the three largest emirates - Abu Dhabi, Dubai, and Sharjah - collectively house almost 85% of the total population.
- Mobile network operators (MNOs) will need to make significant infrastructure investments for 5G to expand, and rooftop infrastructure will be essential to these investments. Building facades and rooftops are ideal real estate for MNOs wishing to densify their networks and expand their capacity or coverage. Antennas on the 5G network can deliver 5G signals straight to customers through a more significant line of sight on rooftops in an urban setting. In this approach, 5G reception can be reliably obtained by people and devices on the ground and close to the boundaries of surrounding buildings.
- As mobile network operators upsurge 5G capabilities, rooftops will play a key role. The growth of 5G will require massive infrastructural investment by mobile network operators (MNOs), and rooftop infrastructure is expected to play a pivotal role in this investment. For instance, in December 2023, du, a subsidiary of Emirates Integrated Telecommunication Company (EITC), successfully rolled out its Solar on Tower (SOT) solution, effectively tackling space constraints at mobile sites. This groundbreaking approach entails the installation of solar panels on monopole towers, facilitating the solarization of multiple sites across Dubai.
- However, with space constraints and rising land costs, rooftop towers have found higher attractiveness amongst telecom tower players and mobile network operators. The initial implementation of telecom towers are backbone components that enable the rolling out of these technologies incur high costs; therefore, the market players are adopting different strategies for cost-effective deployments of telecom towers.
UAE Telecom Towers Industry Overview
The UAE telecom tower market is consolidated, featuring key players like Etisalat (Emirates Telecommunication Group Company PJSC), AL Yah Satellite Communications Company PJSC (Yahsat), Emirates Integrated Telecommunications Company (du), OSN (Orbit Showtime Network), and Thuraya Telecommunications Company. These major players in the UAE 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.
• May 2024: STL, optical and digital solutions, has forged a strategic alliance with Du, a prominent telecom entity under Emirates Integrated Telecommunications Company (EITC) in the United Arab Emirates. This collaboration, centered on optical fiber cables, underscores du's dedication to expanding its fiber-rich mobile and FTTH networks throughout the United Arab Emirates, ensuring the outstanding customer experience that has always defined the company.
• February 2024: Cisco entered into a significant partnership with du, an Emirates Integrated Telecommunications Company (EITC) subsidiary. This collaboration marks the onset of a substantial cybersecurity transformation for du. The primary goal is to evolve du's Security Operations Center (SOC) into a cutting-edge Cyber Defense and Intelligence Center. By harnessing the power of artificial intelligence and automation, the initiative aims to bolster both security measures and operational efficiency.
UAE Telecom Towers Market Leaders
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Etisalat (Emirates Telecommunication Group Company PJSC)
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Emirates Integrated Telecommunications Company (du)
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OSN (Orbit Showtime Network)
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AL Yah Satellite Communications Company PJSC (Yahsat)
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Thuraya Telecommunications Company
*Disclaimer: Major Players sorted in no particular order
UAE Telecom Towers Market News
- June 2024: The UAE's Telecommunications and Digital Government Regulatory Authority (TDRA) pledged a voluntary contribution of CHF 1.9 million (USD 2.21 million) to the International Telecommunication Union (ITU). This contribution stems from a surplus in the budget allocated for WRC-23, held in Dubai, UAE, late last year in 2023. The ITU plans to utilize these funds to refresh global radiocommunication databases and enhance the software applications and tools offered by the ITU Radiocommunication Bureau (BR). These upgrades will aid countries globally in applying for radio frequency assignments, aligning with the newly revised Radio Regulations (2024 Version).
- May 2024: Sterlite Technologies (STL) partnered with du, a UAE telecom company and an Emirates Integrated Telecommunications Company (EITC) subsidiary. This announcement follows STL's recent five-year contract signing with Du Telecom for its optical fiber cables. Under this contract, STL will supply advanced optical cable designs featuring bend-resistant fiber, enhancing network performance, particularly in FTTH networks.
UAE 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
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 Etisalat (Emirates Telecommunication Group Company PJSC)
8.1.2 Emirates Integrated Telecommunications Company (du)
8.1.3 OSN (Orbit Showtime Network)
8.1.4 Al Yah Satellite Communications Company PJSC (YAHSAT)
8.1.5 Thuraya Telecommunications Company
8.1.6 Helios Towers
8.1.7 IHS Towers
8.1.8 NXN Group
8.1.9 Inteltec Emirates
8.1.10 Gulf Bridge International (GBI)
9. INVESTMENT ANALYSIS
10. FUTURE MARKET OUTLOOK
UAE 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 equipment and electronic components storage. While these towers don't need constant staffing, they require periodic maintenance. Driven by the rollout of 5G infrastructure, the expansion of telecom towers is poised to persist during the forecast period.
The UAE telecom towers market report is segmented by ownership (operator-owned, private-owned, and MNO captive), installation (rooftop and ground-based), and by 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 sites |
| Installation | |
| Rooftop | |
| Ground-based |
| Fuel Type | |
| Renewable | |
| Non-renewable |
UAE Telecom Towers Market Research FAQs
How big is the UAE Telecom Towers Market?
The UAE Telecom Towers Market size is expected to reach 31.21 thousand units in 2024 and grow at a CAGR of 6.45% to reach 42.67 thousand units by 2029.
What is the current UAE Telecom Towers Market size?
In 2024, the UAE Telecom Towers Market size is expected to reach 31.21 thousand units.
Who are the key players in UAE Telecom Towers Market?
Etisalat (Emirates Telecommunication Group Company PJSC), Emirates Integrated Telecommunications Company (du), OSN (Orbit Showtime Network), AL Yah Satellite Communications Company PJSC (Yahsat) and Thuraya Telecommunications Company are the major companies operating in the UAE Telecom Towers Market.
What years does this UAE Telecom Towers Market cover, and what was the market size in 2023?
In 2023, the UAE Telecom Towers Market size was estimated at 29.20 thousand units. The report covers the UAE Telecom Towers Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the UAE Telecom Towers Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
UAE Telecom Towers Industry Report
Statistics for the 2024 UAE Telecom Towers market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. UAE 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.
