Latin America Telecom Tower Market Size

Latin America Telecom Tower Market Analysis

The Market size is estimated at USD 28.48 billion in 2024, and is expected to reach USD 32.76 billion by 2029, growing at a CAGR of 2.84% during the forecast period (2024-2029).

Latin America's telecom tower sector is dynamic, propelled by rising mobile penetration, the rollout of 4G and 5G networks, and surging demands for high-speed internet. These towers serve as vital infrastructure, underpinning the region's communication networks for mobile and wireless services.

• As of March 2023, 5G services had been commercially launched in eight Latin American countries, with several others poised to join the trend. While 5G coverage predominantly centers on major urban hubs, a noticeable uptick has been observed in deployment rates across the region. Projections from Ericsson suggest that by the close of 2026, 5G subscriptions could command a substantial 43% share of the mobile market in Latin America. The deployment and expansion of 4G and 5G networks across Latin America are major drivers of telecom tower demand. These advanced networks require a denser infrastructure of towers to ensure widespread coverage and capacity. Therefore, with the increase in 4G/5G penetration, the sales of telecom towers will also increase in the region.
• The growing mobile penetration in the region is also one of the major reasons for the growth of telecom towers in Latin America. According to The Mobile Economy Latin America 2024 report by GSMA, there will be 485 million mobile users in Latin America in the future, accounting for 72% of the population.
• Telecom towers play a crucial role in providing the necessary infrastructure to deliver high-speed internet, prompting investments in tower deployment and modernization. According to the Latin America Digital Transformation Report 2023 by Atlántico, a venture capitalist firm, Latin America had significantly improved its Internet connectivity. Over the last decade, the region narrowed the gap with high-income nations and outpaced China.
• There is a growing demand for high-speed internet services driven by remote work, online education, streaming services, and other digital activities. Digital entertainment is another key in the development of 5G. Video streaming services have seen a significant increase in demand in Latin America. In March 2024, Advanced Television, an online media company, reported that Latin America is projected to reach 165 million subscription video-on-demand (SVOD) subscribers by the close of 2029. Brazil is set to dominate, representing over 35% of the regional total. Notably, the region boasted 110 million SVOD subscribers in 2023.
• Governments across Latin America are implementing policies and initiatives to improve telecommunications infrastructure, tower construction, and regulations to streamline the permitting process. For instance, the infrastructure-sharing policy requires operators to share their infrastructure with competitors in order to quickly expand the network coverage, reduce costs, and improve efficiency.