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Wireless Telecommunications Carriers in Germany - Market Research Report (2014-2029)

Ashkan Salim Ashkan Salim Frankfurt, Germany Last Updated: July 2024 WZ J61.20DE

Revenue

€29.7bn

2024

€29.7bn

Past 5-Year Growth

Profit

€X.Xbn

Employees

27,442

Businesses

363

Wages

€X.Xbn

Wireless Telecommunications Carriers in Germany industry analysis

The wireless telecommunications industry is changing faster than most other sectors of the economy. Technological leaps such as the introduction and expansion of 4G and 5G standards, which enable ever higher data transfer rates, have driven the development of the industry in recent years. In addition, the disposable income of households has increased over the past five years, which has benefited providers of wireless telecoms services. The market is dominated by three major telecoms providers - Deutsche Telekom, Vodafone and Telefónica - who achieve high profit margins due to the excellent scalability of their services. Revenues in the sector have risen by an average of 6.9% per year over the past five years and are expected to increase by 1.3% to 29.7 billion euros in 2024.The homogeneity of mobile services and fierce competition are contributing to market saturation. A lot of capital is being invested in the development of new technologies, as existing ones are quickly becoming obsolete. In the meantime, companies are increasingly pursuing a differentiation strategy, for example by trying to gain competitive advantages through tariff structures or additional services. The triumph of mobile services is reflected above all in the number of mobile phone subscribers. This has risen sharply over the past five years and shows the growth potential that lies within the industry.In the period up to 2029, industry turnover is expected to grow by an average of 1.1% per year to 31.5 billion euros. The reason for this growth is the increasing demand for mobile data volumes and networks with higher transmission speeds. The industry is characterised by rapidly increasing data traffic, as improved transmission rates allow the use of data-intensive apps. This trend is expected to continue. The enormous investments made by telecommunications companies point to further spurts of innovation. In addition, the further expansion of the 5G network is also likely to have a positive impact on market participants' sales.

Trends and Insights

  • With increasing digitalisation, companies are integrating more and more networked technologies into their work processes. In recent years, machines, sensors and devices have been increasingly networked with each other. All of these networked devices require wireless communication in order to transfer data in real time and function efficiently.
  • Data transmission accounts for the largest share of industry revenue. In particular, the ongoing expansion of the 5G network is likely to provide further growth impetus in this segment.
  • The largest share of companies in the sector is in the centre region. The large population and the presence of numerous service companies offer telecommunications providers particularly high sales potential.
  • Deutsche Telekom, Telefónica and Vodafone dominate the industry. The market entry of new network operators is difficult due to the enormous costs involved.

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  • Market estimates from 2014-2029
  • Critical performance data and rankings
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has grown at a CAGR of 6.9 % over the past five years, to reach an estimated €29.7bn in 2024.

Trends and Insights

The competitive conditions are likely to change in view of United Internet's market entry

  • The mobile communications market is characterised by its high barriers to market entry. The industry is dominated by a few large groups that have endeavoured to expand their market share in the past. One of the most significant steps in this direction was the integration of the E-Plus network into the Telefónica network, which began in 2014 and further concentrated the market.
  • Additional trends and insights available with purchase
Wireless Telecommunications Carriers 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

The ongoing digitalisation of the economy is leading to an increasing demand for wireless telecommunications services

  • With increasing digitalisation, companies are integrating more and more networked technologies into their work processes. In recent years, machines, sensors and devices have been increasingly networked with each other. All of these networked devices require wireless communication in order to transfer data in real time and function efficiently.

Biggest companies in the Wireless Telecommunications Carriers in Germany

Company
Market Share (%)
2024
Revenue (€m)
2024
Deutsche Telekom AG
6,600.4
Telefónica Deutschland Holding AG
5,931.0
Vodafone GmbH
5,850.9

To view the market share and analysis for all 5 top companies in this industry, view purchase options.

Products & Services Segmentation

Wireless Telecommunications Carriers in Germany
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Data transmission (including SMS), Connection and language and Other services. Data transmission (including SMS) is the largest segment of the Wireless Telecommunications Carriers in Germany.

Trends and Insights

Revenue generated from data transmission is rising thanks to the increasing use of data-intensive applications

  • The transfer of data accounts for the largest share of the sector's turnover.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Companies in this sector provide access for the transmission of voice, data, text, sound and images via wireless telecommunications infrastructure. They also provide non-wired access to the Internet. Internet providers that offer mobile telecommunications services without having telecommunications infrastructure themselves are not part of the industry.

What's included in this industry?

Data transmission (including SMS)Connection and languageProvision of network infrastructure

Companies

Deutsche Telekom AGTelefónica Deutschland Holding AGVodafone GmbH

Purchase this report to view all 5 major companies in this industry.

Related Terms

4G/5G4KINTERNET PROTOCOL TELEVISION (IPTV)LONG TERM EVOLUTION (LTE/LTE ADVANCED)M2M CARDSOVER-THE-TOP (OTT) SERVICESROAMING

Industry Code

WZ 2008

WZ 61.20 - Wireless Telecommunications Carriers 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

With increasing digitalisation, companies are integrating more and more networked technologies into their work processes. In recent years, machines, sensors and devices have ...

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

Data transmission accounts for the largest share of industry revenue. In particular, the ongoing expansion of the 5G network is likely to provide further growth impetus in th...

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 share of companies in the sector is in the centre region. The large population and the presence of numerous service companies offer telecommunications providers p...

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

Deutsche Telekom, Telefónica and Vodafone dominate the industry. The market entry of new network operators is difficult due to the enormous costs involved.

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

Deutsche Telekom has significantly expanded its 5G network coverage in Germany. By the end of 2023, 96% of the German population had access to the company's 5G network.

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 Deutsche Telekom AG's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Telefónica Deutschland Holding AG's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Vodafone GmbH's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of revenue, market share and profit margin trend for 2 additional companies

Detailed analysis

  • Description and key data for Deutsche Telekom AG, and factors influencing its performance in the industry
  • Description and key data for Telefónica Deutschland Holding AG, and factors influencing its performance in the industry
  • Description and key data for Vodafone GmbH, and factors influencing its performance in the industry
  • Description, key data and performance trends for 2 additional companies

External Environment

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

Analyst insights

Increases in revenue from internet providers pose a risk for the industry. Internet providers are among the strongest competitors of wireless telecommunications providers. Th...

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

The wireless telecommunications industry is one of the most profitable industries in Germany. The good scalability of industry services and limited competition enable high pr...

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 Wireless Telecommunications Carriers industry in Germany in 2024?

The market size of the Wireless Telecommunications Carriers industry in Germany is €29.7bn in 2024.

How many businesses are there in the Wireless Telecommunications Carriers in Germany industry in 2024?

There are 363 businesses in the Wireless Telecommunications Carriers industry in Germany, which has grown at a CAGR of 9.5 % between 2019 and 2024.

Has the Wireless Telecommunications Carriers industry in Germany grown or declined over the past 5 years?

The market size of the Wireless Telecommunications Carriers industry in Germany has been growing at a CAGR of 6.9 % between 2019 and 2024.

What is the forecast growth of the Wireless Telecommunications Carriers industry in Germany over the next 5 years?

Over the next five years, the Wireless Telecommunications Carriers industry in Germany is expected to grow.

What are the biggest companies in the Wireless Telecommunications Carriers market in Germany?

The biggest companies operating in the Wireless Telecommunications Carriers market in Germany are Deutsche Telekom AG, Telefónica Deutschland Holding AG and Vodafone GmbH

What does the Wireless Telecommunications Carriers in Germany include?

Data transmission (including SMS) and Connection and language are part of the Wireless Telecommunications Carriers industry.

Which companies have the highest market share in the Wireless Telecommunications Carriers in Germany?

The company holding the most market share in Germany is Deutsche Telekom AG.

How competitive is the Wireless Telecommunications Carriers industry in Germany?

The level of competition is high and steady in the Wireless Telecommunications Carriers industry in Germany.

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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.