The power market for cell towers will expand at a Compound Annual Growth Rate of just over 12 percent by 2025, according to Future Market Insights. The company makes the prediction in “Telecom Tower Power System Market: Global Industry Analysis and Opportunity Assessment 2015 – 2025”.
LTE and 4G network technologies are driving this growth, offering higher speeds, faster connection times and less round-trip latency, according to an FMI analyst. “The demand for LTE is expected to propel the development of improved telecom infrastructure that would, in turn, increase the demand for telecom tower power systems”.
Telecoms use a combination of diesel generators, batteries and renewable energy sources to maintain an uninterrupted power supply although studies show customers’ preferences are changing towards uninterrupted and high speed telecom services.
As the network technologies are changing, tower and service providers need to upgrade their infrastructure. In order to ease the impact on profit margins (by reducing the Operational Expenditures (OPEX) and Capital Expenditures (CAPEX) associated with telecom infrastructure and services), telecom companies globally are opting for consolidation, according to FMI.
The global unreliable grid telecom tower power system market is segmented into diesel generator, diesel generator + battery and renewable energy. The diesel generator + battery segment was estimated to account for 45.5 percent of the global market by 2015.
According to FMI estimates, the diesel generator + battery segment of the global unreliable grid telecom tower power system market would expand at a CAGR of 8.6 percent between 2015 and 2025, to reach up to US$ 1,279.6 million by 2025. Currently, telecom towers with unreliable grid are largely powered with diesel generator + battery, and FMI predicts the renewable energy segment to surpass the diesel generator + battery segment by the end of 2016.
November 21, 2016
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