Saudi Arabia Telecom Towers Market Size

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.