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

Ashkan Salim Ashkan Salim Frankfurt, Germany Last Updated: October 2024 WZ J61.10DE

Revenue

€45.4bn

2024

€45.4bn

Past 5-Year Growth

Profit

€X.Xbn

Employees

55,730

Businesses

718

Wages

€X.Xbn

Wired Telecommunications Carriers in Germany industry analysis

The wireline telecommunications industry has faced a number of challenges in recent years. Since the emergence of mobile services, the industry has been in intense competition with mobile operators. In addition, the industry players are in competition with Internet providers. This is forcing providers of wireline telecoms services to lower prices for their services, which is having a negative impact on the industry's revenue development. OTT services are another factor that has a strong negative impact on the industry's turnover. These make it possible to transmit data or make phone calls over the internet free of charge. This is exacerbated by the fact that, unlike wired telecommunications, OTT services are not affected by regulation. Since 2019, revenue has increased by an average of 1.1% per year and is expected to amount to 45.4 billion euros in the current year.In addition to technical progress, which was primarily driven by wireless telecommunications, there were also structural changes in the telecommunications sector. The so-called liberalisation process of the telecommunications sector began as early as 1998. The German government decided to open up the market to new participants in order to enable competition. Since then, many companies have entered the sector, which has contributed to the emergence of a market with strong price competition. Telecommunications companies are trying to attract and retain customers by offering complete packages in the form of flat-rate tariffs. They also offer bundled services that include not only a landline connection, but also other services such as mobile telephony or internet television. Industry turnover is expected to grow by 0.7% in the current year.In recent years, telecommunications companies have increasingly invested in the expansion of their fibre optic infrastructure in order to provide private and business customers with very fast internet. Investments by industry players in broadband expansion are likely to continue in the coming years, which should have a positive impact on industry sales. Sales are expected to increase by an average of 0.8% per year over the next five years. In 2029, they are expected to amount to 47.3 billion euros.

Trends and Insights

  • Despite the intense price competition, the individual providers can achieve high profit margins. This is because an increase in the number of Internet accesses only incurs low additional costs.
  • Broadband connections via fibre optic networks are in high demand. Fibre optic cables can achieve faster transmission speeds than copper cables. This is particularly important for commercial customers.
  • The centre region is home to the most companies in the sector. Since more than a third of Germany's population lives there, the demand for telecommunications services is particularly high.
  • Internet providers are the biggest competitors in the industry. They also offer wired telecommunications services, but often at more favourable conditions.

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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has grown at a CAGR of 1.1 % over the past five years, to reach an estimated €45.4bn in 2024.

Trends and Insights

Wired telecommunications in Germany is increasingly based on modern connection technologies

  • The wired telecommunications industry is in a state of optimism with regard to the spread of high-performance services. According to the Federal Network Agency, the number of fixed broadband connections in Germany rose from 35.2 million to 38.4 million between 2019 and 2023.
  • Additional trends and insights available with purchase
Wired 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

Both private consumers and companies need faster internet

  • The mobile internet is becoming an integral part of everyday life. The demand for digital services such as e-commerce, online payment services and ad-financed services continues to grow.

Biggest companies in the Wired Telecommunications Carriers in Germany

Company
Market Share (%)
2024
Revenue (€m)
2024
Deutsche Telekom AG
14,111.0
Vodafone Group plc
7,097.0
Telefónica Deutschland Holding AG
833.0

To view the market share and analysis for all 4 top companies in this industry, view purchase options.

Products & Services Segmentation

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

Industry revenue is measured across several distinct product and services lines, including Landline, Broadband and Cable network. Landline is the largest segment of the Wired Telecommunications Carriers in Germany.

Trends and Insights

Fibre-based solutions are becoming increasingly important in the broadband segment

  • The Broadband segment comprises the provision of Internet access via fibre optic and copper cable networks.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Market players provide access for the transmission of voice, data, text, sound and images by means of wired infrastructure and operate cable transmission networks. The sector also includes companies that purchase such access and network capacity from network owners or operators. Internet service providers are not included.

What's included in this industry?

LandlineBroadbandCable network

Companies

Deutsche Telekom AGVodafone Group plcTelefónica Deutschland Holding AG

Purchase this report to view all 4 major companies in this industry.

Related Terms

OVER THE TOP (OTT)INTERNET PROTOCOL TELEVISION (IPTV)FIBRE TO THE BUILDING (FTTB)FIBRE TO THE HOME (FTTH)ASYMMETRIC DIGITAL SUBSCRIBER LINE (ADSL)

Industry Code

WZ 2008

WZ 61.10 - Wired 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

Despite the intense price competition, the individual providers can achieve high profit margins. This is because an increase in the number of Internet accesses only incurs lo...

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

Broadband connections via fibre optic networks are in high demand. Fibre optic cables can achieve faster transmission speeds than copper cables. This is particularly importan...

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 centre region is home to the most companies in the sector. Since more than a third of Germany's population lives there, the demand for telecommunications services is part...

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

Internet providers are the biggest competitors in the industry. They also offer wired telecommunications services, but often at more favourable conditions.

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 wants to push ahead with opening up its fixed network infrastructure to other providers. The company is already generating additional revenue through coopera...

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 Vodafone Group plc'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 revenue, market share and profit margin trend for one additional company

Detailed analysis

  • Description and key data for Deutsche Telekom AG, and factors influencing its performance in the industry
  • Description and key data for Vodafone Group plc, 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, key data and performance trends for one additional company

External Environment

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

Analyst insights

The federal government is supporting the expansion of the fibre optic network. The Federal Ministry for Digital and Economic Affairs (BMDV) and KfW are offering companies fav...

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

Telecommunications companies' expenditure on upstream services has fallen in recent years. Nevertheless, material costs remain high and still represent the largest cost facto...

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 Wired Telecommunications Carriers industry in Germany in 2024?

The market size of the Wired Telecommunications Carriers industry in Germany is €45.4bn in 2024.

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

There are 718 businesses in the Wired Telecommunications Carriers industry in Germany, which has grown at a CAGR of 1.9 % between 2019 and 2024.

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

The market size of the Wired Telecommunications Carriers industry in Germany has been growing at a CAGR of 1.1 % between 2019 and 2024.

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

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

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

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

What does the Wired Telecommunications Carriers in Germany include?

Landline and Broadband are part of the Wired Telecommunications Carriers industry.

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

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

How competitive is the Wired Telecommunications Carriers industry in Germany?

The level of competition is high and increasing in the Wired 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.