Market Trends of Spain Telecom Towers Industry
5G Deployments Are a Major Catalyst for Growth in the Cell-tower Leasing Environment
- In the Spanish telecom towers market, the rapid rollout of 5G technology is driving growth in the cell tower leasing space. Unlike its predecessor, 4G, the deployment of 5G demands a denser network of cell sites. The higher frequency bands of 5G, covering shorter distances and facing greater obstruction susceptibility, create a pressing need. As a result, there is a need to bolster infrastructure, prompting the construction of new towers and upgrades to the existing ones.
- In response to growing demands, mobile network operators (MNOs) are increasingly leasing from independent tower companies, departing from the conventional approach of constructing and overseeing their own sites. Leasing allows MNOs to rapidly grow their 5G networks without incurring hefty upfront expenses. Concurrently, tower companies benefit from heightened occupancy rates and extended contract lengths, significantly driving market growth opportunities.
- As 5G technology expands, mobile network operators (MNOs) are equipping their sites with 5G-compatible equipment, increasing the demand for leased tower space. In Spain, telecom towers are increasingly leaning on leasing strategies to ensure extensive 5G coverage, especially in urban and suburban locales, underscoring the importance of both established and newly built towers. According to AIMC (Spain), in 2023, around 58.5% of respondents reported having a 5G connection on their mobile phones.
- In July 2024, Nokia and Telefónica signed a three-year deal aimed at advancing the private 5G network market in Spain. The collaboration seeks to boost productivity, ensure worker safety, and promote sustainability in vital industries, including ports, manufacturing, and logistics. Nokia agreed to deploy 100 units of its advanced solutions, which encompass the Digital Automation Cloud (DAC), Modular Private Wireless (MPW), MX Industrial Edge (MXIE), and various industrial devices.
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Rooftop Installations Are Expected to Witness Significant Growth Opportunities
- The market is experiencing significant growth, fueled by the rising demand for rooftop installations. Rooftop installations have emerged as a compelling solution, addressing challenges such as land constraints and community pushback against new ground-based towers. These setups allow mobile network operators (MNOs) to boost network coverage and capacity, sidestepping the protracted approval processes for erecting new towers.
- Strategically positioned in urban locales, rooftop sites enable MNOs to meet the surging demand for high-speed data and enhance connectivity, especially in densely populated areas. As Spain accelerates its 5G rollout, the urgency for a more concentrated network of these sites becomes paramount to guarantee superior coverage and performance.
- According to a survey conducted by INE (Spain) in 2023, in the three months leading up to the study, 99.3% of residents in the Melilla region accessed the Internet, marking the highest rate in the nation. In Madrid and the Balearic Islands, 97.4% and 97.2% of the population were internet users, respectively.
- Communities and local governments find rooftop installations to be less intrusive, leading to greater acceptance. Mobile network operators (MNOs) benefit from these installations by leveraging pre-existing structures, resulting in reduced capital expenditure and a quicker activation timeline. The rising demand for rooftop installations is driving the market in Spain.
- According to Eurostat, in 2023, the total share of households with internet access in Spain was around 96.45%, whereas it was around 96.08% in 2022. This rise in the total share of households with internet access in Spain is expected to lead to significant growth opportunities throughout the forecast period.
