Germany Telecom Towers Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Volume (2024) | 80.92 Thousand units |
| Market Volume (2029) | 95.21 Thousand units |
| CAGR (2024 - 2029) | 3.31 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Germany Telecom Towers Market Analysis
The Germany Telecom Towers Market size in terms of installed base is expected to grow from 80.92 Thousand units in 2024 to 95.21 Thousand units by 2029, at a CAGR of 3.31% during the forecast period (2024-2029).
- Germany has made significant strides in deploying 5G services, bolstered by government investments and supportive legislation. To harness the full potential of 5G, networks must be universally accessible. This urgency underscores the swift transfer of spectrum for both consumer and business use, subsequently fueling the demand for telecom towers nationwide.
- Federal governments are partnering with telecom companies to enhance cellular service reliability, aiming to bridge connectivity gaps nationwide. Such initiatives are poised to drive the growth of the telecom towers market during the forecast period.
- For instance, the Gigabit Strategy, a collaborative effort between the federal government, local authorities, and the telecom industry, aims to ensure sustainable digitization. Both the federal Digital Strategy and the German Gigabit Strategy aim to target universal access to fiber optic and advanced mobile communications technology by 2030.
- In its latest "Gigabit Strategy," Germany's Federal Ministry for Digital Affairs and Transport (BMDV) set forth key goals, prominently featuring the aim to equip at least 50% of all German locations with FTTH networks by the end of 2025. The initiative aims to expedite the rollout of 5G and fiber optics. The government also plans to achieve this by streamlining infrastructure planning and aiding mobile operators in accessing underserved regions. Through this strategy, the German government targets a threefold increase in fiber optic connections by the end of 2025.
- In October 2023, Phoenix Tower International, a global player in wireless communications infrastructure, announced its definitive agreement with NOVEC BV to acquire its German subsidiary, NOVEC GmbH. NOVEC GmbH, with its operation of 220 telecommunications sites, is actively developing a robust pipeline of new sites, positioning itself as a pivotal player in deploying essential infrastructure for mobile operators across Germany.
- In July 2024, O2 Telefónica and Deutsche Telekom were set to deepen their collaboration in the fiber optics domain. The two firms signed a deal to introduce a new purchasing model for marketing fiber optic connections within Deutsche Telekom's network. Through this purchasing model, O2 Telefónica can align Deutsche Telekom's latest fiber optic offerings with its own customer outreach.
- However, factors like environmental concerns, the high cost of infrastructure deployment, and community opposition to new tower installations are restricting the German telecom towers market. With the market's maturity and high mobile coverage, the demand for new towers is also diminishing, further limiting growth opportunities.
Germany Telecom Towers Market Trends
5G Deployment Acts as a Major Catalyst for Growth in the Cell-tower Leasing Environment
- In the German telecom towers market, the surge in 5G deployments is significantly driving growth in the cell-tower leasing industry. 5G technology's rollout demands a denser network of cell sites than its predecessor, 4G, owing to the former’s higher frequency bands, which cover shorter distances and face easier obstructions. This factor drives a significant need for bolstering infrastructure, necessitating the construction of new towers and upgrades to the existing ones.
- In response to these demands, mobile network operators (MNOs) are increasingly opting for leasing agreements with independent tower companies instead of constructing and overseeing new sites. Through leasing, MNOs can rapidly broaden their 5G networks without incurring hefty initial expenses. Simultaneously, tower companies benefit from increased occupancy rates and extended contracts. This mutually beneficial management is fueling the growth of the cell-tower leasing environment.
- With the ongoing deployment of 5G, MNOs are also actively upgrading their existing sites with 5G-compatible equipment, thus intensifying the demand for leased tower space. To achieve widespread 5G coverage, especially in urban and suburban locales, the German telecom towers market is increasingly leaning on leasing, underscoring the importance of existing and new towers.
- In June 2024, Ericsson and Telefónica Germany signed an agreement to extend their core network partnership. Ericsson's dual-mode 5G Core and cloud infrastructure solutions currently deliver mobile connectivity to 45 million O2 Telefónica subscribers, encompassing 5G Standalone (SA), 5G Non-Standalone (NSA), 4G, and even 2G services. The agreement enables the two companies to enhance innovation and functionality in the core network, gearing up for future demand.
- In July 2024, O2 Telefonica, a German telecom operator under the ownership of Spanish telco Telefónica, signed a cooperation agreement with local highway operator Autobahn GmbH. The collaboration aims to enhance the 13,200-kilometer-long highway network by expanding mobile phone sites equipped with 5G technology.
The Rooftop Segment is Expected to Witness Significant Growth Opportunities
- In Germany, the telecom towers market is experiencing significant growth, largely fueled by the rising demand for rooftop installations. With challenges such as land constraints and community pushback against new ground-based tower constructions, rooftop installations have emerged as a compelling alternative. These installations allow mobile network operators (MNOs) to boost network coverage and capacity, sidestepping the lengthy approval processes of constructing new towers.
- Strategically positioned in urban locales, rooftop sites enable MNOs to meet the surging demand for high-speed data and enhance connectivity, especially in densely populated regions. This factor is becoming increasingly vital as Germany accelerates its 5G deployment, necessitating a more concentrated network of sites to guarantee optimal coverage and performance. According to the Federal Network Agency, in June 2023, approximately 95.91% of households in Germany enjoyed access to high-speed broadband internet.
- Communities and local governments find rooftop installations less intrusive and, therefore, more acceptable. For MNOs, these installations present a cost-effective solution by leveraging existing structures, cutting capital expenditure, and accelerating the timeline to activate sites.
- The rising demand for rooftop installations is bolstering the telecom towers market in Germany. These installations offer a viable and scalable solution, effectively addressing the regulatory, environmental, and community challenges linked to conventional tower construction.
- In July 2024, Vodafone Germany, in collaboration with Ericsson, rolled out its inaugural compact 5G antenna atop a parking garage in Düsseldorf. Vodafone aims to deploy an additional 500 sites by the end of next year. This expansion, especially on rooftops, may enhance Vodafone's 5G mobile network coverage throughout Germany.
Germany Telecom Towers Industry Overview
The German telecom towers market is moderately consolidated and consists of several major players. The major market players with a prominent share in the market, such as Deutsche Telekom, Vodafone Germany, and United Internet AG, are working on expanding their customer base through the adoption of various technologies.
- May 2024: Deutsche Telekom, a German mobile network operator (MNO), unveiled a new campus network tailored for Hamburger Containerboard, a paper manufacturer. Strategically positioned in Spremberg, eastern Germany, the site now boasts over 120 5G antennas, ensuring comprehensive coverage across its 350,000 sq. m.
- February 2024: Deutsche Telekom introduced its innovative "Cell Tower to Go" to a global audience at the Mobile World Congress (MWC) in Barcelona. This compact and lightweight solution surpasses its predecessors in size and weight. An upgraded edition with advanced technology now provides enhanced mobile radio coverage and increased capacities, delivering even greater flexibility.
Germany Telecom Towers Market Leaders
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Deutsche Telekom
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Vodafone Germany
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Telefónica Germany GmbH & Co. OHG
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United Internet AG
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Freenet AG
*Disclaimer: Major Players sorted in no particular order
Germany Telecom Towers Market News
- July 2024: Vodafone divested an additional 10% stake in its tower business, Vantage Towers, garnering EUR 1.3 billion (USD 1.42 billion). The sale was mainly a part of the deal announced in 2022 when the carrier finalized a deal to sell a stake in its German-based tower unit to KKR and Global Infrastructure Partners (GIP).
- December 2023: Nokia and Deutsche Telekom AG (DT) commenced the deployment of a multi-vendor OpenRAN network in collaboration with Fujitsu, marking a significant step in Germany's telecommunications landscape. DT seamlessly integrated the technology into its live commercial network, launching an initial cluster that offers 2G, 4G, and 5G services to customers in Neubrandenburg, northern Germany. This deal signifies Nokia's notable re-entry into DT's commercial network, fulfilling the MoU signed by both companies at MWC 2023.
Germany Telecom Towers Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Connecting/Improving Connectivity to Rural Areas
5.1.2 5G Deployment Acts as a Major Catalyst for Growth in the Cell-tower Leasing Environment
5.2 Market Restraints
5.2.1 Environmental Concerns About Power Supply Systems to Towers
5.2.2 Tower Sharing Between Telecom Companies
6. TECHNOLOGY SNAPSHOT
6.1 Technology Snapshot
7. MARKET SEGMENTATION
7.1 Ownership
7.1.1 Operator-owned
7.1.2 Private-owned
7.1.3 MNO Captive Sites
7.2 Installation
7.2.1 Rooftop
7.2.2 Ground-based
7.3 Fuel Type
7.3.1 Renewable
7.3.2 Non-renewable
8. COMPETITIVE LANDSCAPE
8.1 Company Profiles*
8.1.1 Deutsche Telekom
8.1.2 Vodafone Germany
8.1.3 Telefónica Germany GmbH & Co. OHG
8.1.4 United Internet AG
8.1.5 Freenet AG
8.1.6 ATC Germany GmbH
8.1.7 Sky Germany
8.1.8 Tele Columbus AG
8.1.9 BT (Germany) GmbH & Co. OHG
8.1.10 M-net Telekommunikations GmbH
9. INVESTMENT ANALYSIS
10. FUTURE MARKET OUTLOOK
Germany Telecom Towers Industry Segmentation
Telecommunication towers encompass a variety of structures, such as monopoles, tripoles, lattice towers, guyed towers, self-supporting towers, poles, masts, and other similar forms. These towers, equipped with one or more telecommunication antennas, facilitate radio communications. They can be situated on the ground or atop a building's rooftop and often include storage for equipment and electronic components.
The German telecom towers market is segmented by ownership (operator-owned, private-owned, and MNO captive sites), installation (rooftop and ground-based), and fuel type (renewable and non-renewable). The market size and forecasts are provided in terms of value (USD) for all the above segments.
| Ownership | |
| Operator-owned | |
| Private-owned | |
| MNO Captive Sites |
| Installation | |
| Rooftop | |
| Ground-based |
| Fuel Type | |
| Renewable | |
| Non-renewable |
Germany Telecom Towers Market Research FAQs
How big is the Germany Telecom Towers Market?
The Germany Telecom Towers Market size is expected to reach 80.92 thousand units in 2024 and grow at a CAGR of 3.31% to reach 95.21 thousand units by 2029.
What is the current Germany Telecom Towers Market size?
In 2024, the Germany Telecom Towers Market size is expected to reach 80.92 thousand units.
Who are the key players in Germany Telecom Towers Market?
Deutsche Telekom, Vodafone Germany, Telefónica Germany GmbH & Co. OHG, United Internet AG and Freenet AG are the major companies operating in the Germany Telecom Towers Market.
What years does this Germany Telecom Towers Market cover, and what was the market size in 2023?
In 2023, the Germany Telecom Towers Market size was estimated at 78.24 thousand units. The report covers the Germany Telecom Towers Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Germany Telecom Towers Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Germany Telecom Towers Industry Report
Statistics for the 2024 Germany Telecom Towers market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Germany Telecom Towers analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Germany Telecom Towers Market Report Snapshots
