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Communication Equipment Manufacturing in Europe - Market Size, Industry Analysis, Trends and Forecasts (2024-2029)

ISIC 263 March 2024 Spotlight Report

Revenue

€65.9bn

2019-2024 5.2 %
2024-2029 X.X %

Employees

295k

2019-2024 2.6 %
2024-2029 X.X %

Businesses

6,766

2019-2024 1.6 %
2024-2029 X.X %

Wages

€X.Xbn

2019-2024 X.X %
2024-2029 X.X %

Communication Equipment Manufacturing in Europe industry analysis

The communication equipment industry is experiencing high demand for smartphones, burglar alarms and fire and smoke detectors. Modern smartphones are equipped with numerous functions that make life easier for consumers, while sales of traditional home phones have declined. As technology advances and regulations tighten, interest in security devices such as burglar and fire alarms is growing. Despite these advances, the industry is facing saturation and significant competition, particularly from abroad. As a result, many European manufacturers have relocated their production to Asian countries such as China and Vietnam to take advantage of lower labour costs and access to unsaturated markets. Over the five years through 2024, industry revenue is expected to sink at a compound annual rate of 5.2% to €65.9 billion.

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  • Market estimates from 2014-2029
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Industry Statistics and Trends

Communication Equipment Manufacturing in Europe key trends

Technological and regulatory changes shape the industry.

 

Demand for smartphones is increasing, while demand for wired home phones is declining. Stricter regulations and technological changes are leading to an increase in demand for burglar alarms and fire alarms.

The modernisation of the telecommunications infrastructure creates sales opportunities.

 

European telecommunications companies are investing in fibre optics and 5G, creating new markets and sales opportunities for local manufacturers of telecommunications equipment.

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Communication Equipment Manufacturing in Europe

Industry Revenue

Total value and annual change from 2011-2029. Includes 5-year outlook.

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Communication Equipment Manufacturing in Europe market size (2019-2024)

Industry revenue has declined at a CAGR of 5.2 % over the past five years, to reach an estimated €65.9bn in 2024.

Trends and Insights

Demand for smartphones, burglar alarms and fire and smoke detectors is steep

  • The industry has a wide-ranging product portfolio for different areas of application. Consumers use house phones and smartphones as a means of communication, while two-way radios are primarily used by the police and emergency services. The industry also offers security products such as fire detectors, alarm systems and motion detectors.

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Communication Equipment Manufacturing in Europe outlook (2024-2029)

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

The modernisation of the telecommunications infrastructure opens up new sales opportunities for European manufacturers

  • In light of increasing data traffic, telecommunications operators and internet providers in the European Union and other countries have invested heavily in modernising their telecommunications infrastructure in recent years. Broadband expansion with fibre optic cables is becoming increasingly important, as the transmission speed of fibre optic cables is significantly higher than that of copper cables.

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Revenue

€65.9bn

2019-2024 5.2 %
2024-2029 X.X %

Employees

295k

2019-2024 2.6 %
2024-2029 X.X %

Wages

€X.Xbn

2019-2024 X.X %
2024-2029 X.X %

European Leaders & Laggards

Europe Job Growth CAGR: 2.6 % *
  • Job Growth

Top 5 Countries

  1. Iceland +21.1%
  2. Sweden +17.6%
  3. Finland +15.5%
  4. Turkey +15.3%
  5. Denmark +10.4%

Bottom 5 Countries

  1. Ireland -17.5%
  2. France -13.0%
  3. Slovenia -10.5%
  4. Bosnia & Herzegovina -10.5%
  5. Serbia -6.1%

* CAGR values are for the years 2019-2024.

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Biggest companies in the Communication Equipment Manufacturing in Europe

Company
Market Share (%)
2024
Revenue (€m)
2024
Profit (€m)
2024
Profit Margin (%)
2024
Siemens AG
72,439.3
5,123.2
7.1
Telefonaktiebolaget LM Ericsson
22,000.0
3,140.0
14.3
Thales SA
19,011.0
2,258.0
11.9

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Communication Equipment Manufacturing in Europe

Products & Services Segmentation

Industry revenue broken down by key product and services lines.

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Top Questions Answered in this Report

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What is the market size of the Communication Equipment Manufacturing industry in Europe in 2024?

The market size of the Communication Equipment Manufacturing industry in Europe is €65.9bn in 2024.

How many businesses are there in the Communication Equipment Manufacturing in Europe industry in 2024?

There are 6,766 businesses in the Communication Equipment Manufacturing industry in Europe, which has declined at a CAGR of 1.6 % between 2019 and 2024.

Has the Communication Equipment Manufacturing industry in Europe grown or declined over the past 5 years?

The market size of the Communication Equipment Manufacturing industry in Europe has been declining at a CAGR of 5.2 % between 2019 and 2024.

What is the forecast growth of the Communication Equipment Manufacturing industry in Europe over the next 5 years?

Over the next five years, the Communication Equipment Manufacturing industry in Europe is expected to grow.

What does the Communication Equipment Manufacturing in Europe include?

Data reception and transmission equipment and Telephones are part of the Communication Equipment Manufacturing industry.

Which countries have the most businesses in the Communication Equipment Manufacturing industry in Europe?

The European country with the most businesses in the Communication Equipment Manufacturing industry is Russia.

How competitive is the Communication Equipment Manufacturing industry in Europe?

The level of competition is high and steady in the Communication Equipment Manufacturing industry in Europe.

Related Industries

This industry is covered in 37 countries

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Table of Contents

About this industry

Industry definition

This industry manufactures telephone and data communications equipment used for the electronic transmission of signals by wire or through the air, such as radio and television broadcasting equipment and wireless communications equipment.

Related Terms

Artificial Intelligence (AI)Internet Of Things (Iot)5G

What's included in this industry?

Data reception and transmission equipmentTelephonesTV and radio broadcasting equipmentAerialsBurgular and fire alarms

Companies

Siemens AGTelefonaktiebolaget LM EricssonThales SA

Industry Code

ISIC 2006

263 - Manufacture of communication equipment in Europe

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Performance

Key Takeaways

Demand for smartphones, burglar alarms and fire and smoke detectors is steep

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Revenue Highlights

Trends
  • Revenue
  • 2024 Revenue Growth
  • Revenue Volatility

Employment Highlights

Trends
  • Employees
  • Employees per Business
  • Revenue per Employee

Business Highlights

Trends
  • Businesses
  • Employees per Business
  • Revenue per Business

Profit Highlights

Trends
  • Total Profit
  • Profit Margin
  • Profit per Business

Current Performance

Charts
  • Revenue in the Communication Equipment Manufacturing in Europe industry (2011 -2029)
  • Employees in the Communication Equipment Manufacturing in Europe industry (2011 -2029)
  • Business in the Communication Equipment Manufacturing in Europe industry (2011 -2029)
  • Profit in the Communication Equipment Manufacturing in Europe industry (2011 -2029)
Analysis

What's driving current industry performance in the Communication Equipment Manufacturing in Europe industry?


Outlook

Analysis

What's driving the Communication Equipment Manufacturing in Europe industry outlook?


Volatility

Analysis

What influences volatility in the Communication Equipment Manufacturing in Europe industry?

Charts
  • Industry Volatility vs. Revenue Growth Matrix

Life Cycle

Analysis

What determines the industry life cycle stage in the Communication Equipment Manufacturing in Europe industry?

Charts
  • Industry Life Cycle Matrix

Products and Markets

Highlights

Trends
  • Largest Market
  • Product Innovation

Key Takeaways

Modern burglar and fire alarms are part of the smart home. Innovations such as wireless IoT connectivity, artificial intelligence and advanced sensors improve system flexibility and accuracy and reduce false alarms, while video verification enables instant confirmation of the incident.

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Products and Services

Charts
  • Products and Services Segmentation
Analysis

How are the Communication Equipment Manufacturing in Europe industry's products and services performing?

Analysis

What are innovations in the Communication Equipment Manufacturing in Europe industry's products and services?


Major Markets

Charts
  • Major Market Segmentation
Analysis

What influences demand in the Communication Equipment Manufacturing in Europe industry?


International Trade

Highlights

  • Largest Importer
  • Smallest Importer
  • Total Imports into Europe
  • Largest Exporter
  • Smallest Exporter
  • Total Exports into Europe
Heat maps
  • Industry Concentration of Imports by Country
  • Industry Concentration of Exports by Country
Data Tables

Value and annual change (%) included

  • Number of Imports and Exports by European Country (2024)

Geographic Breakdown

Business Locations

Heat maps
  • Share of Total Industry Revenue by Region (2024)
  • Share of Total Industry Enterprises by Region (2024)
  • Share of Total Industry Employment by Region (2024)
  • Share of Total Industry Wages by Region (2024)

Industry Geographic Breakdown

Data Tables

Values and annual change provided for 37 European countries:

  • Revenue (2024)
  • IVA (2024)
  • Enterprises (2024)
  • Employment (2024)
  • Exports (2024)
  • Imports (2024)

Competitive Forces

Highlights

Trends
  • Concentration
  • Competition
  • Barriers to Entry
  • Substitutes
  • Buyer Power
  • Supplier Power

Key Takeaways

Most manufacturers have low market shares. In Europe, there are hardly any manufacturers that dominate the market, resulting in a low level of market concentration. Most manufacturers concentrate on niche segments and have low market shares.

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Supply Chain

Charts

Buyer and supply industries

Companies

Market Share

Charts
  • Industry Market Share by Company (2019-2024)

Companies

Data Tables

Top 10 companies by market share:

  • Market share (2024)
  • Revenue (2024)
  • Profit (2024)
  • Profit Margin (2024)

Data Tables
  • Countries of operation for Siemens AG
  • Countries of operation for Telefonaktiebolaget LM Ericsson
  • Countries of operation for Thales SA
  • Countries of operation for Nokia Corporation
  • Countries of operation for Axis Communications AB
  • Countries of operation for Sony Group Corporation
  • Countries of operation for Sirti SpA
  • Countries of operation for Rohde & Schwarz GmbH & Co KG
  • Countries of operation for Gigaset Communications GmbH
  • Countries of operation for Funkwerk AG

External Environment

Highlights

Trends
  • Regulation & Policy
  • Assistance

Key Takeaways

Manufacturers must comply with safety and waste regulations. Communication equipment manufacturers must comply with the RED directive for safety, ensure RoHS compliance to limit hazardous substances and follow the WEEE directives for responsible disposal of electronic waste.

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External Drivers

Analysis

What demographic and macroeconomic factors impact the Communication Equipment Manufacturing in Europe industry?

Financial Benchmarks

Highlights

Trends
  • Profit Margin
  • Average Wage
  • Largest Cost

Key Takeaways

Profitability is likely to decline in the coming years. The industry's high profitability is attributable to rapid technological progress and short product life cycles. Increasing competition and regulatory costs could reduce profit margins over the next five years.

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Cost Structure

Charts
  • Share of Economy vs. Investment Matrix
  • Industry Cost Structure Benchmarks:
    • Marketing
    • Depreciation
    • Profit
    • Purchases
    • Wages
    • Rent
    • Utilities
    • Other
Analysis

What trends impact cost in the Communication Equipment Manufacturing in Europe industry?


Key Ratios

Data tables
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)
  • Revenue per Employee (2014-2029)
  • Wages/Revenue (2014-2029)
  • Employees per Establishment (2014-2029)
  • Average Wage (2014-2029)

Country Benchmarks

European Leaders & Laggards

Data Tables

Top and boottom five countries listed for each:

  • Revenue Growth (2024)
  • Business Growth (2024)
  • Job Growth (2024)

European Country Performance

Data Tables

Rankings available for 37 countries. Statistics ranked include:

  • IVA/Revenue (2024)
  • Imports/Demand (2024)
  • Exports/Revenue (2024)
  • Revenue per Employee (2024)
  • Wages/Revenue (2024)
  • Employees per Establishment (2024)
  • Average Wage (2024)

Structural Comparison

Data Tables

Trends in 37 countries benchmarked against trends in Europe

  • Concentration
  • Competition
  • Barriers to Entry
  • Buyer Power
  • Supplier Power
  • Volatility
  • Capital Intensity
  • Innovation
  • Life Cycle

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)

Methodology

Where does IBISWorld source its data?

IBISWorld is a world-leading provider of business information, with reports on 5,000+ industries in Australia, New Zealand, North America, Europe and China. Our expert industry analysts start with official, verified and publicly available sources of data to build an accurate picture of each industry.

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

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.

To learn more about specific data sources used by IBISWorld's analysts globally, including how industry data forecasts are produced, visit our Help Center.