market value in 2024
Your company is already operating in Germany and you would now like to export worldwide?
Around 155,200 people are employed in telecommunications, with around 3,700 companies active in the market.
Stable development is forecast with a growth rate of 1.8% for 2025.
In 2023, the industry invested around EUR 13.6 billion. Major investments were directed towards network expansion and new technologies such as 5G and private networks.
Germany's new government aims to enhance the telecommunications sector as a key driver of economic strength. Domestic competition will be based on innovation and performance, thereby ensuring fair competition. The newly established Ministry of Digital Affairs underscores this commitment, with activities focusing on digital infrastructure including telecommunications.
The EU's Digital Decade Strategy aims for 100 percent gigabit connectivity and full 5G coverage across all member states by 2030. This strategy enhances digital infrastructure and services, boosting economic growth and living standards. To achieve its ambitious objectives, the EU has allocated EUR 7.5 billion from the Digital Europe Program for R&D and digital infrastructure projects.
Germany boasts a vast talent pool of specialists in telecommunications and digital infrastructure. Numerous colleges and universities offer specialized programs in related fields, ensuring a steady stream of skilled professionals. This strong educational foundation supports the growth and innovation within the sector, attracting multinational companies and fostering a dynamic and competitive environment.
Germany's telecommunication and connectivity ecosystem is robust and diverse, driven by key organizations that capitalize on regional strengths to drive innovation and development. Leading clusters and hubs include CyberLago in the Lake Constance region, 5G.NRW in the Düsseldorf region, the Digital Hubs for Smart Manufacturing in Bremen, Smart Systems in Dresden, Smart Infrastructure in Leipzig, and Security & Defense in Munich.
Prominent R&D institutes including Fraunhofer FOKUS and Fraunhofer HHI in Berlin are pivotal in advancing digital technologies. In addition, numerous research hubs and organizations are dedicated to 5G and 6G innovations. These include 6G-life and 5G Lab in Dresden and the Open6GHub in Kaiserslautern.
National organizations such as Bitkom, the Federal Association for the Digital Industry, BREKO, the German Broadband Association, and VATM, the German Association of Telecommunication and Service Providers, play a crucial role in shaping policies and promoting industry standards. Together, these entities contribute to a dynamic and forward-looking telecommunication infrastructure in Germany.
5G and 6G represent the next generations of mobile network technology – offering significantly higher speeds, lower latency and greater capacity compared to previous generations. 5G is already transforming industries with applications in IoT, autonomous vehicles and smart cities.
Private Networks utilize dedicated cellular connectivity (4G LTE or 5G) within a defined geographic area to support the specific needs of businesses and organizations. These networks offer enhanced security, reliability, and control, making them ideal for industries like manufacturing, healthcare, and logistics.
Radio Access Network (RAN) technology is a critical component of mobile networks, connecting user devices to the core network. Innovations in RAN, such as Open RAN, allow for more flexible and cost-effective deployment of network infrastructure.
Network Security is essential for protecting the integrity and confidentiality of data transmitted over telecommunication networks. As cyber threats become more sophisticated, robust security measures are crucial to safeguard sensitive information and ensure reliable network operations.
The newly established Federal Ministry for Digitalization and State Modernization (BMDS) in Germany aims to drive significant progress in digital transformation and modernize public administration. The ministry will focus on reducing bureaucracy, enhancing digital infrastructure and fostering an innovation-friendly environment. The BMDS will position Germany as a modern and innovative leader in Europe and globally. The creation of the new ministry is expected to significantly boost the telecommunication and connectivity sector, promote advanced technologies and improve network capabilities.
The Bundesnetzagentur (Federal Network Agency) is an independent authority in Germany that regulates, among other things, telecommunications. It ensures fair competition, efficient network operations and consumer protection. In the telecommunication sector, the agency manages spectrum allocation, oversees infrastructure development and enforces cybersecurity standards.
The Federal Office for Information Security (BSI) is Germany's national cybersecurity authority, responsible for setting stringent cybersecurity standards, certifying security components and conducting research on emerging technologies. It collaborates with other bodies to enhance the security of telecommunication networks, thereby ensuring a resilient and secure digital environment in Germany.
Major telecom operators like Deutsche Telekom, Vodafone and Telefonica drive competition in Germany's telecom sector. Deutsche Telekom leads in mobile and fixed-line services, while Vodafone and Telefonica focus on expanding fiber optic and 5G networks. Leading telecom operators and multinational companies like Deutsche Telekom, Vodafone and Telefonica drive competition in the country’s telecommunication sector.
Industry associations including Bitkom, BREKO and VATM are vital in shaping policies and promoting industry standards. They provide a platform for companies to collaborate, share knowledge and advocate for favorable regulatory conditions. Together, these entities contribute to a dynamic telecommunication and connectivity ecosystem in Germany.