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Electricity & Telecommunications Infrastructure Construction in Germany - Market Research Report (2014-2029)

Ashkan Salim Ashkan Salim Frankfurt, Germany Last Updated: July 2024 WZ F42.22DE

Revenue

€8.1bn

2024

€8.1bn

Past 5-Year Growth

Profit

€XXX.Xm

Employees

35,292

Businesses

1,953

Wages

€X.Xbn

Electricity & Telecommunications Infrastructure Construction in Germany industry analysis

With an average growth rate of 16.4% per year, the underground cable network construction industry recorded dynamic revenue growth between 2019 and 2024, thanks to high demand from telecommunications providers and electricity suppliers. In addition to technological developments in the telecommunications sector, extensive government subsidies in particular have triggered a sharp increase in demand. In the current year, industry turnover is expected to grow by 6.2% to €8.1 billion.In view of the considerable pent-up demand in the area of broadband expansion, the German government passed the Act to Facilitate the Expansion of Digital High-Speed Networks (DigiNetzG) back in 2016. In addition, the industry was able to benefit from the initiated energy transition and the strong expansion of renewable energies in conjunction with the funding provided by the Federal Requirements Plan Act (BBPlG), which applies in particular to transnational and cross-border extra-high-voltage lines. In the course of the expansion of renewable energies, underground cable network construction is increasingly becoming the focus of energy policy. The laying of new power lines is essential for the integration of renewable energies in order to transport the electricity generated from the production regions, such as the offshore wind farms in the North Sea, to the consumption centres in central and southern Germany.The industry is expected to continue to grow in the coming years. By 2029, turnover in cable network civil engineering is expected to increase to 10.7 billion euros, an average of 5.7% per year. In addition to technological developments such as the 5G mobile communications standard and the increased expansion of the fibre optic network, the ongoing implementation of the energy transition is likely to contribute significantly to industry growth. In the coming years, industry players will continue to face a shortage of skilled labour, which will affect the implementation of construction projects and is therefore likely to have a negative impact on the industry.

Trends and Insights

  • The expansion of broadband is leading to an improvement in the order situation. In particular, industry players play a central role in the expansion of the fibre optic network infrastructure, as they are responsible for laying the cables required for the telecommunications networks.
  • In the communications cable construction segment, a significant increase in sales is expected in future. The reason for this is the extensive government subsidies as part of the broadband expansion programme.
  • The largest number of sector companies can be found in the centre region. A particularly large number of important clients from the telecommunications and energy supply sectors are based there.
  • The industry is highly fragmented and characterised by small, regionally active companies. The larger companies operating nationwide are generally also active in other areas of road and track construction in addition to cable network civil engineering.

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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has grown at a CAGR of 16.4 % over the past five years, to reach an estimated €8.1bn in 2024.

Trends and Insights

The ongoing broadband expansion in Germany is having a positive impact on the order situation for industry players

  • Due to the drastic increase in the level of digitalisation, which is accompanied by strong growth in data volumes, there has long been an urgent need for investment in the expansion of existing broadband networks in Germany.
  • Additional trends and insights available with purchase
Electricity & Telecommunications Infrastructure Construction in Germany
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

Many power cables need to be laid as part of the energy transition

  • In the coming years, energy suppliers in Germany are likely to face extensive changes as part of the energy transition. Among other things, the reform of the EU emissions trading system stipulates that greenhouse gas emissions must be reduced by at least 55% by 2030 compared to 1990 levels.

Biggest companies in the Electricity & Telecommunications Infrastructure Construction in Germany

Company
Market Share (%)
2024
Revenue (€m)
2024
Leonhard Weiss GmbH & Co. KG
243.0
EQOS Energie Deutschland GmbH
158.0
LTB Leitungsbau GmbH
125.0

To view the market share and analysis for all 7 top companies in this industry, view purchase options.

Products & Services Segmentation

Electricity & Telecommunications Infrastructure Construction in Germany
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Power line construction, Communication line construction and Repair and maintenance work. Power line construction is the largest segment of the Electricity & Telecommunications Infrastructure Construction in Germany.

Trends and Insights

The power line construction segment has become increasingly important in the course of the energy transition

  • By far the strongest segment in the industry in terms of sales is power line construction, which primarily comprises the construction of lines for the distribution of electricity.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Companies in this sector are involved in the construction of lines for the distribution of electricity, communication line networks and associated structures. It also includes line construction on the ground and the laying of overhead lines. The installation of machinery and equipment is not included in this sector.

What's included in this industry?

Power line constructionCommunication line constructionRepair and maintenance work

Companies

Leonhard Weiss GmbH & Co. KGEQOS Energie Deutschland GmbHLTB Leitungsbau GmbH

Purchase this report to view all 7 major companies in this industry.

Related Terms

5G STANDARDE-MOBILITYSMARTGRID

Industry Code

WZ 2008

WZ 42.22 - Electricity & Telecommunications Infrastructure Construction in Germany

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

The expansion of broadband is leading to an improvement in the order situation. In particular, industry players play a central role in the expansion of the fibre optic networ...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

In the communications cable construction segment, a significant increase in sales is expected in future. The reason for this is the extensive government subsidies as part of ...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

The largest number of sector companies can be found in the centre region. A particularly large number of important clients from the telecommunications and energy supply secto...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

Detailed analysis

  • Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

The industry is highly fragmented and characterised by small, regionally active companies. The larger companies operating nationwide are generally also active in other areas ...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

There are no major players in the industry. Most industry players are small, regionally active companies.

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024
  • Overview of Leonhard Weiss GmbH & Co. KG's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of EQOS Energie Deutschland GmbH's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of LTB Leitungsbau GmbH's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of revenue, market share and profit margin trend for 4 additional companies

Detailed analysis

  • Description and key data for Leonhard Weiss GmbH & Co. KG, and factors influencing its performance in the industry
  • Description and key data for EQOS Energie Deutschland GmbH, and factors influencing its performance in the industry
  • Description and key data for LTB Leitungsbau GmbH, and factors influencing its performance in the industry
  • Description, key data and performance trends for 4 additional companies

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

Industry companies are benefiting from the advancing digitalisation of society. An increase in the level of digitalisation is accompanied by an increase in demand for communi...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2014-2029) 
  • Assistance historical data and forecast (2014-2029) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

State subsidies for broadband expansion are boosting profits. The expansion of subsidies is accompanied by an increase in demand for industry-specific construction services, ...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Electricity & Telecommunications Infrastructure Construction industry in Germany in 2024?

The market size of the Electricity & Telecommunications Infrastructure Construction industry in Germany is €8.1bn in 2024.

How many businesses are there in the Electricity & Telecommunications Infrastructure Construction in Germany industry in 2024?

There are 1,953 businesses in the Electricity & Telecommunications Infrastructure Construction industry in Germany, which has grown at a CAGR of 10.3 % between 2019 and 2024.

Has the Electricity & Telecommunications Infrastructure Construction industry in Germany grown or declined over the past 5 years?

The market size of the Electricity & Telecommunications Infrastructure Construction industry in Germany has been growing at a CAGR of 16.4 % between 2019 and 2024.

What is the forecast growth of the Electricity & Telecommunications Infrastructure Construction industry in Germany over the next 5 years?

Over the next five years, the Electricity & Telecommunications Infrastructure Construction industry in Germany is expected to grow.

What are the biggest companies in the Electricity & Telecommunications Infrastructure Construction market in Germany?

The biggest companies operating in the Electricity & Telecommunications Infrastructure Construction market in Germany are Leonhard Weiss GmbH & Co. KG, EQOS Energie Deutschland GmbH and LTB Leitungsbau GmbH

What does the Electricity & Telecommunications Infrastructure Construction in Germany include?

Power line construction and Communication line construction are part of the Electricity & Telecommunications Infrastructure Construction industry.

Which companies have the highest market share in the Electricity & Telecommunications Infrastructure Construction in Germany?

The company holding the most market share in Germany is Leonhard Weiss GmbH & Co. KG.

How competitive is the Electricity & Telecommunications Infrastructure Construction industry in Germany?

The level of competition is moderate and steady in the Electricity & Telecommunications Infrastructure Construction industry in Germany.

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Competitors

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Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in Germany include:

  • German Federal Statistics Office (Destatis)
  • European Statistics Office (Eurostat)
  • United Nations Comtrade

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

Learn more about our methodology and data sourcing on the Help Center.