Malaysia Telecom Tower Infrastructure Market Valuation Poised to Reach Beyond USD 101.65 Million By 2029 | Astute Analytica

The future of Malaysia's Telecom Infrastructure Tower Market looks promising, driven by rapid 5G expansion, significant government initiatives, and increasing investments. With projected growth to 44,710 towers by 2025 and extensive fiber optic network development, the market is poised for robust advancements in connectivity and technological innovation.

New Delhi, June 18, 2024 (GLOBE NEWSWIRE) -- According to the latest Astute Analytica research, the Malaysia telecom tower infrastructure market is projected to hit the market valuation of US$ 101.65 million by 2029 from US$ 46.61 million in 2023 at a CAGR of 14.04% during the forecast period 2024–2029.

The Malaysian telecom tower market is poised for significant expansion, driven by surging demand for mobile data and the rapid deployment of 5G networks. As of Q3 2023, Malaysia boasted approximately 43,612 telecom towers, with projections indicating this number will rise to around 44,710 by 2025. This growth trajectory is heavily supported by the Jendela program, which has been instrumental in enhancing investment in telecom infrastructure and expanding full-fiber networks to underserved areas. By the end of 2025, Jendela aims to achieve 98% population coverage, ensuring Malaysians have access to high-speed internet services, regardless of their location.

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Key players in this burgeoning telecom tower infrastructure market include Edotco, the infrastructure arm of Axiata Group, and EdgePoint Systems, the second-largest independent tower company. Edotco manages over 20,000 tower sites in Malaysia, significantly outpacing its nearest competitor, which operates around 6,000 sites. Globally, Edotco oversees more than 58,000 towers across nine countries, including Cambodia and Bangladesh. EdgePoint, while managing 1,500 towers locally, extends its reach with over 14,000 towers across ASEAN nations such as Indonesia, the Philippines, and Vietnam. This competitive landscape is fragmented, with major telcos like Maxis, DiGi, Celcom, U Mobile, and TM owning significant infrastructure alongside thirteen state-backed telecommunication companies.

Investment in telecommunications infrastructure, including submarine cables, fiber networks, data centers, and mobile towers, remains highly attractive. This is anticipated to drive further investment into Malaysia, particularly in initiatives aimed at enhancing nationwide broadband connectivity. The market is ripe for consolidation, with smaller ISPs likely to merge to achieve scale and support larger operators such as Telekom Malaysia, Maxis, Axiata, and Digi. This consolidation will streamline operations and foster a more robust competitive environment.

Looking ahead, the Malaysian telecom tower infrastructure market is set to flourish as technological advancements and government initiatives continue to unfold. Currently, 61% of the country has 5G coverage, a figure expected to rise substantially. Additionally, the nation’s fiber optic network is projected to cover over 8 million homes by 2023. With more than 97% of Malaysians already having access to 4G and two-thirds enjoying speeds above 100Mbps, the country is well-positioned to meet the escalating demand for faster and more reliable internet connections, driving sustained growth in the telecom sector.

Key Findings in Malaysia Telecom Tower Infrastructure Market

Market Forecast (2029)US$ 101.65 million
By InstallationGround-Based (64.80%)
By Tower TypeMobile Cell Tower (35.11%)
By FuelNon-renewable (57.71%)
By OwnershipOperator-owned telecom towers (45.86%)
By Technology4G (71.21%)
By ApplicationMobile Communication (74.36%)
Top Trends
  • Expansion of 5G Networks
  • Increasing Investments in Telecom Infrastructure
  • Growth in Fiber Optic Network Coverage
Top Drivers
  • Rising Demand for Mobile Data
  • Government Initiatives like the Jendela Program
  • Adoption of Advanced Technologies in Telecommunications
Top Challenges
  • High Capital Expenditure Requirements
  • Fragmented Market with Intense Competition
  • Regulatory and Public Safety Concerns Regarding 5G Deployment

Ground-Based Infrastructure Leads Malaysia's Telecom Boom, Captured More than 64.80% Market Share

The demand for ground-based telecom towers in Malaysia telecom tower infrastructure market surpasses that for rooftop installations due to several compelling factors. Firstly, ground-based towers offer superior coverage and capacity, essential for meeting the increasing demand for mobile data and the expansion of 5G networks. As of Q3 2023, Malaysia had approximately 43,612 telecom towers, with projections indicating this number will rise to around 44,710 by 2025. Ground-based towers are particularly effective in rural and suburban areas where building heights are insufficient for rooftop installations, ensuring broader and more reliable network coverage. This is crucial for achieving the Jendela program's goal of 98% population coverage by 2025.

The structural and logistical advantages of ground-based towers make them more suitable for large-scale deployments across Malaysia telecom tower infrastructure market. Ground-based towers can support heavier and more extensive equipment, which is necessary for advanced 5G technology. The cost of constructing a new ground-based tower in Malaysia is estimated at around RM300,000 (US$69K), which, while significant, is justified by the enhanced performance and coverage capabilities these towers provide. Additionally, ground-based towers are less constrained by building regulations and can be strategically placed to optimize network performance, contributing to the current 61% 5G coverage and the goal of covering over 8 million homes with fiber optic networks by 2023.

The competitive landscape and investment dynamics favor ground-based towers. Major players in the telecom tower infrastructure market of Malaysia like Edotco and EdgePoint Systems manage extensive networks of ground-based towers, with Edotco overseeing over 20,000 sites domestically. The fragmented market, with significant contributions from state-backed companies and private towercos, underscores the strategic importance of ground-based infrastructure. With more than 97% of Malaysians already having access to 4G and two-thirds enjoying speeds above 100Mbps, the robust and scalable nature of ground-based towers is essential for sustaining and enhancing network quality and capacity in the face of growing demand.

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Monopole Towers to Take a Leap with Highest CAGR of 15.33%

The demand for monopole towers in Malaysia's telecom tower infrastructure market is rising at a remarkable CAGR of 15.33%, driven by the rapid expansion of 4G and 5G networks necessitates the deployment of efficient and space-saving infrastructure. Monopole towers, known for their smaller footprint and ease of installation, are ideal for urban and suburban areas where space is at a premium. This is particularly relevant in Malaysia, where urbanization is accelerating, and the need for robust telecom infrastructure is critical to support the growing number of connected devices and high-speed internet requirements.

Additionally, the increasing penetration of smartphones and the surge in data consumption for activities such as video streaming, online gaming, and IoT applications are putting immense pressure on existing telecom networks. Monopole towers offer a cost-effective solution to enhance network capacity and coverage, thereby meeting the rising consumer demand for uninterrupted and high-speed connectivity. The Malaysian government's initiatives to promote digital transformation and smart city projects further bolster the demand for advanced telecom infrastructure, including monopole towers. Moreover, the competitive landscape of the telecom sector in Malaysia is pushing operators to continuously upgrade their infrastructure to maintain service quality and customer satisfaction. Investments in monopole towers are seen as a strategic move to achieve these goals efficiently.

The Malaysia telecom tower infrastructure market dynamics are also influenced by the entry of new players and the expansion plans of existing ones, which drive the need for scalable and flexible tower solutions. As a result, the monopole tower segment is experiencing significant growth, reflecting the broader trends in the telecom industry towards modernization and capacity enhancement.

Malaysia has strong network of operator-owned telecom towers, Contribute Over 45.86% Revenue Share

Malaysia's robust network of operator-owned telecom towers can be attributed to several strategic and economic factors. Wherein, the nation's rapid digitalization and the increasing demand for mobile connectivity have necessitated extensive infrastructure development. As of 2023, Malaysia boasts a mobile penetration rate of 140%, with over 48 million mobile subscriptions in a country of 33 million people. This high demand has driven telecom operators to invest heavily in their own towers to ensure network reliability and coverage. Moreover, the average internet speed in Malaysia is 101.48 Mbps, reflecting the operators' commitment to maintaining high-quality service standards.

Owning telecom towers allows operators in the telecom tower infrastructure market to exercise greater control over their networks, leading to enhanced service quality and customer satisfaction. This vertical integration strategy reduces dependency on third-party providers, enabling quicker deployment of new technologies like 5G. By 2024, Malaysia aims to achieve 80% 5G coverage in populated areas, necessitating significant investment in infrastructure. Additionally, operator-owned towers often translate to lower long-term operational costs. For instance, sharing towers with competitors can lead to logistical complications and increased expenses, whereas ownership streamlines operations and maintenance.

The financial incentives provided by the Malaysian government have played a crucial role in encouraging operators to own and expand their tower networks. Initiatives like the National Fiberisation and Connectivity Plan (NFCP) aim to enhance digital infrastructure, offering subsidies and tax incentives to telecom companies. This has resulted in a 25% increase in the number of telecom towers from 2018 to 2023, with the total number now exceeding 22,000. Consequently, operators are better positioned to meet the growing demands of both urban and rural areas, ensuring widespread connectivity and supporting Malaysia's vision of becoming a digital economy leader in Southeast Asia.

Top 5 Players Hold More than 60% Revenue Share of Malaysia Telecom Tower Infrastructure Market: Edotco Leads the Charge

The telecom tower infrastructure market in Malaysia is fiercely competitive, with the top five players dominating over 60% of the total revenue share. At the forefront of this market is Edotco, commanding a significant 38.62% share. Edotco's dominance is attributed to its vast network of towers, strategic partnerships, and innovative solutions that cater to the rapidly growing demand for enhanced connectivity. Their strong market presence is bolstered by continuous investment in cutting-edge technology and infrastructure, ensuring they remain the go-to provider for telecom operators seeking reliable and scalable solutions.

Following Edotco, the remaining market leaders are engaged in a relentless pursuit of growth and market share. These players leverage their unique strengths, such as extensive regional coverage, strategic alliances, and diversified service offerings, to carve out their niches in the competitive landscape. Their focus on expanding tower portfolios, upgrading existing infrastructure, and adopting new technologies like 5G is essential to maintaining their positions in the market. The competitive dynamics among these top players drive innovation and service improvements, benefiting the overall telecom ecosystem in Malaysia.

The competitive landscape is further intensified by the entry of new players and the ongoing consolidation within the industry. Smaller and emerging companies are continuously exploring opportunities to disrupt the status quo by offering niche services, competitive pricing, and agile operations. Meanwhile, established players are not resting on their laurels; they are actively seeking mergers, acquisitions, and strategic partnerships to fortify their market positions. This dynamic interplay ensures that the telecom tower infrastructure market in Malaysia remains vibrant, with all players striving to deliver superior value to their clients and stakeholders.

Malaysia Telecom Tower Infrastructure Market Key Players

  • Common Tower Technologies SDN
  • Edge Point Towers SDN BHD
  • EDOTCO Group Sdn Bhd
  • ITMAX System Berhad
  • OCK Group Berhad
  • OPCOM Holdings Berhad
  • PDC Telecommunications Services Sdn Bhd
  • Silver Ridge Holdings Bhd
  • Tele structure Industries Sdn Bhd
  • Telekom Malaysia
  • Telesites S.A.B de C.V.
  • Teleflow Corp. Sdn Bhd
  • YTL Corp. Berhad
  • Other Prominent Players

Key Segmentation:

By Tower Type

  • Guyed Towers
  • Monopole Towers
  • Lattice Towers
  • Stealth Towers

By Installation

  • Rooftop
  • Ground Based

By Fuel Type

  • Renewable
  • Non-Renewable

By Ownership

  • Operator Owned
  • Joint Venture
  • Independent Tower Companies

By Technology

  • 2G
  • 3G
  • 4G
  • 5G

By Application

  • Mobile Communications
  • Broadband and Internet
  • Others

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