Market Trends of United States Telecom Towers Industry
This section covers the major market trends shaping the US Telecom Towers Market according to our research experts:
Adoption of 5G to Drive the Market
- Due to the high demand for 5G telecom in the nation, the US market is one of the most competitive for big suppliers. Many businesses are striving for development. Various significant suppliers in the country are involved in rollouts, coalitions, collaborations, mergers, and acquisitions.
- The purchase of InSite Wireless Group LLC for around USD 3.5 billion was finalized, according to an announcement made by American Tower Corporation in December 2020. American Tower anticipates that in 2021, the assets it bought from InSite would have property revenues of around USD 150 million and gross margins of about 115 million dollars.
- The pandemic brought to light the capabilities of digital connection and technology in assisting people, organizations, governments, and societies. It raised prominence and political awareness of the benefits of digitization.
- Between 2022 and 2025, mobile operators will need to invest more than USD 600 billion in capex, with 5G networks accounting for almost 85% of that total.
- High-income nations continue to have a sizable digital inclusion gap. Operators in these markets are attempting to resolve this. For instance, Verizon is developing its project to offer cellular broadband to underprivileged neighborhoods in the US.
- SBA Communications is a well-known tower supplier in the US with over 10,000 towers nationwide with a concentration on wireless communications. The business also disclosed a long-term master leasing arrangement with DISH, which would give DISH access to SBA's extensive network of wireless communications stations.
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Operator Owned Towers Hold Significant Share in the Market
- According to GSMA statistics, 90 percent of telecom towers in India were formerly held by operators but have now changed ownership to third parties, representing an estimated 10 to 15 percent of all buildings in the globe. Over a more extended period, penetration in the U.S. has increased to between 50 and 60 percent.
- However, American Tower, Crown Castle, and SBA Communications, three publicly listed corporations, own the majority of the cellular towers in the United States. These are, in fact, the top three American cellular tower firms.
- American Towers Corporation, one of the key players in the telecom industry, owns and operates the wireless and broadcast infrastructure in the United States and has more than 43,000 towers in the country and over 221,000 sites worldwide.
- Furthermore, there are around 154,000 towers in the United States overall, and a 2.3x tenancy ratio corresponds to 354,000 occupants. Notably, a significant fraction of all tenants in the United States is located at American Tower, Crown Castle, and SBA Communications. With a 2.6x occupancy ratio and 40,600 towers in the United States, American Tower Company has 106,000 renters.
- According to American Trade Corporation's 2021 annual report, there were 451 owned Distributed Antenna System (DAS) sites and 27,276 owned towers, and 15,363 operating towers in the United States.
