Communication Equipment Manufacturing in Germany - Market Research Report (2014-2029)
Frankfurt, Germany
Last Updated: July 2024
WZ C26.30DERevenue
€6.8bn
Past 5-Year Growth
Profit
€XXX.Xm
Employees
22,169
Businesses
122
Wages
€X.Xbn
Communication Equipment Manufacturing in Germany industry analysis
In the last five years, the telecommunications equipment manufacturing industry has recorded an average decline in turnover of 1.9%. An important reason for this development is the high competitive pressure from Asian and Eastern European manufacturers, who have lower labour costs compared to German manufacturers and can therefore offer their products at lower prices. In addition, the market for telecommunications equipment is not yet saturated in many Asian countries. European, US and Asian manufacturers therefore prefer to open production facilities in East Asia in order to benefit from the high demand there. In 2024, the industry's turnover is expected to fall by 2.3% to 6.8 billion euros.The industry's product portfolio includes various telecommunications devices such as home phones, smartphones, two-way radios, fire alarms and alarm systems. German manufacturers of telecommunications devices are increasingly withdrawing from the mass market for private customers and focussing on niche markets in which they mainly serve commercial customers. This allows them to avoid the strong competitive pressure from foreign manufacturers and achieve higher profit margins. Companies in the sector source many components for the production of their appliances from abroad, with the final production step taking place in Germany. In this way, companies in the sector benefit from the "Made in Germany" label.By 2029, industry turnover is expected to increase by an average of 0.1% per year to 6.8 billion euros. The ongoing broadband expansion and the expansion of the 5G network are likely to lead to increased demand for data transmission devices, antennas and other telecommunications technology products over the next five years. In addition, technological advances in the field of security technology and increasingly stringent regulatory requirements regarding the use of smoke detectors are expected to have a positive impact on industry development. However, automation options in the industry are limited, as the supplier parts sourced from abroad are mainly assembled in Germany and research and development is carried out on a large scale. Rising labour costs in the industry are expected to lead to a slight decline in the profit margin by 2029.
Trends and Insights
- The sluggish development of the industry is due to strong competitive pressure from foreign companies. Large manufacturers of telecommunications equipment prefer to manufacture their products in countries such as China, Vietnam, the Czech Republic and Hungary.
- Cordless home phones are increasingly being replaced by smartphones, which not only allow mobile use but also have more functions. Sales of wireless devices, on the other hand, have remained stable over the last five years.
- The Süd region is home to the largest number of companies in the industry in an interregional comparison. There are a large number of clusters in Süd Germany that specialise in the fields of electronics and IT.
- The industry players are in strong internal competition with each other. In the case of telephones and radio devices, competition is centred on the range of functions offered by the devices, while price competition is more apparent in the case of data transmission devices.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 1.9 % over the past five years, to reach an estimated €6.8bn in 2024.
Trends and Insights
Smartphones and intruder alarm systems as well as fire and smoke detectors are becoming increasingly important for the industry
- The telecommunications equipment manufacturing industry has a wide-ranging product portfolio for different areas of application. House phones and smartphones are used by private households as communication devices, while radios are mainly used by the police, emergency services and shipping. In addition to security technology products in buildings such as fire detectors, alarm systems and motion detectors, data transmission devices are an important product group in the industry.
- Additional trends and insights available with purchase
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
The expansion of the telecommunications infrastructure opens up new sales opportunities for industry players
- Telecommunications operators and internet providers in Germany and other countries have invested heavily in the expansion of their telecommunications infrastructure in recent years in view of increasing data traffic. The expansion of broadband with fibre optic cables is becoming increasingly important, as the transmission speed of fibre optic cables is much higher than that of copper cables.
Biggest companies in the Communication Equipment Manufacturing in Germany
| Company | Market Share (%)
2024 | Revenue (€m)
2024 |
|---|---|---|
Gigaset Communications GmbH | 205.6 | |
Funkwerk AG | 109.6 | |
HMF Smart Solutions GmbH | 35.3 |
To view the market share and analysis for all 4 top companies in this industry, view purchase options.
Products & Services Segmentation
Communication Equipment Manufacturing in Germany
Products & Services
Industry revenue is measured across several distinct product and services lines, including Telephones and radios, Antennas, antenna parts and accessories and Data transmission devices. Telephones and radios is the largest segment of the Communication Equipment Manufacturing in Germany.
Trends and Insights
Smartphones are gaining ground among phones, while wireless devices are still in high demand
- This segment ranges from wired telephones, cordless home phones, mobile phones and smartphones to radios, which are used by emergency services, the police or in shipping, for example.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Consumer Electronics Manufacturing in Germany
Complementors
- Electronic Component Manufacturing in Germany
- Loaded Electronic Board Manufacturing in Germany
- Computer & Peripheral Equipment Manufacturing in Germany
- Measuring, Testing & Navigational Equipment Manufacturing in Germany
International industries
- Global Computer Hardware Manufacturing
- Telecommunication Networking Equipment Manufacturing in the US
- Telecommunications Networking Equipment Manufacturing in Canada
- Communication Equipment Manufacturing in Australia
- Communication Equipment Manufacturing in the UK
Table of Contents
About this industry
Industry definition
The industry manufactures wired and wireless telephones and data communication devices. This includes devices for radio and television broadcasting as well as wired and wireless telecommunications, and security equipment such as burglar and anti-theft alarms and smoke detectors. Consumer electronics devices or assembled printed circuit boards, on the other hand, are not among the industry products.
What's included in this industry?
Manufacture of telephonesManufacture of radio equipmentManufacture of fire and smoke detectorsManufacture of burglar and theft alarm devicesManufacture of antennasCompanies
Gigaset Communications GmbHFunkwerk AGHMF Smart Solutions GmbHPurchase this report to view all 4 major companies in this industry.
Related Terms
5GADDITIVE MANUFACTURINGARTIFICIAL INTELLIGENCE (KI)ORGANIC LIGHT EMITTING DIODE (OLED)TERRESTRIAL TRUNKED RADIO (TETRA)VOICE-OVER-IP (VOIP)Industry Code
WZ 26.30 - Communication Equipment Manufacturing 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 sluggish development of the industry is due to strong competitive pressure from foreign companies. Large manufacturers of telecommunications equipment prefer to manufactu...
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
Cordless home phones are increasingly being replaced by smartphones, which not only allow mobile use but also have more functions. Sales of wireless devices, on the other han...
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2024
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
- International trade, including imports by country and exports by country
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
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
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 Süd region is home to the largest number of companies in the industry in an interregional comparison. There are a large number of clusters in Süd Germany that specialise ...
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 players are in strong internal competition with each other. In the case of telephones and radio devices, competition is centred on the range of functions offered...
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 this industry. Small providers specialising in niche segments in particular share the market.
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 Gigaset Communications GmbH's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Funkwerk AG's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of HMF Smart Solutions GmbH'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 Gigaset Communications GmbH, and factors influencing its performance in the industry
- Description and key data for Funkwerk AG, and factors influencing its performance in the industry
- Description and key data for HMF Smart Solutions GmbH, 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 Product Safety Act is a German law that regulates the safety of products that are placed on the market in Germany. Telecommunications equipment manufacturers must ensure ...
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
In the next five years, the industry's profit margin is expected to decline but remain high. One reason for this is the increasing competition in some product segments in whi...
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)
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.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Communication Equipment Manufacturing industry in Germany in 2024?
The market size of the Communication Equipment Manufacturing industry in Germany is €6.8bn in 2024.
How many businesses are there in the Communication Equipment Manufacturing in Germany industry in 2024?
There are 122 businesses in the Communication Equipment Manufacturing industry in Germany, which has declined at a CAGR of 0.0 % between 2019 and 2024.
Has the Communication Equipment Manufacturing industry in Germany grown or declined over the past 5 years?
The market size of the Communication Equipment Manufacturing industry in Germany has been declining at a CAGR of 1.9 % between 2019 and 2024.
What is the forecast growth of the Communication Equipment Manufacturing industry in Germany over the next 5 years?
Over the next five years, the Communication Equipment Manufacturing industry in Germany is expected to grow.
What are the biggest companies in the Communication Equipment Manufacturing market in Germany?
The biggest companies operating in the Communication Equipment Manufacturing market in Germany are Gigaset Communications GmbH, Funkwerk AG and HMF Smart Solutions GmbH
What does the Communication Equipment Manufacturing in Germany include?
Manufacture of telephones and Manufacture of radio equipment are part of the Communication Equipment Manufacturing industry.
Which companies have the highest market share in the Communication Equipment Manufacturing in Germany?
The company holding the most market share in Germany is Gigaset Communications GmbH.
How competitive is the Communication Equipment Manufacturing industry in Germany?
The level of competition is high and steady in the Communication Equipment Manufacturing industry in Germany.
