Switzerland Telecom Market Size (2024 - 2029)

Switzerland Telecom Market Analysis

The Switzerland Telecom Market size is estimated at USD 5 billion in 2024, and is expected to reach USD 8 billion by 2029, growing at a CAGR of 4.32% during the forecast period (2024-2029).

• The Swiss telecommunications market is set to experience substantial expansion in the coming five years. Leading companies such as Swisscom, Sunrise, and Salt, which are all based in Switzerland, contribute to innovation by consistently investing in extensive research and development. This growth is further supported by increasing customer demand for fast connectivity and the increased investment in the deployment of 5G infrastructure.
• In Switzerland, a landscape of robust competition defines the telecommunications sector, with many providers vying for market share. As per the Federal Communications Commission (ComCom), Swisscom, by the close of 2023, boasted 6,202,000 mobile telephony customers, marking a modest 0.5% increase of 29,000 from the previous year. Notably, Swisscom secured 129,000 new contract customers, primarily through postpaid plans. The Swiss market currently hosts over 20 active operators, with Swisscom, Sunrise, and Salt emerging as the dominant trio. With these critical players intensifying their offerings, the market is poised for substantial growth shortly.
• According to ComCom, the contract segment has been the primary driver of market dynamics for the past decade. Prepaid users are steadily transitioning to contracts, with the share of contract customers climbing from 61% in 2013 to nearly 85% by 2023. This trend is consistent across all three major network operators: Sunrise leads with 87% contract customers, followed by Swisscom at 85.1% and Salt at 81.1%. Moreover, these companies are significantly enhancing their market share in the region, impacting the market's growth.
• The rise of new technologies spearheads a digital revolution, propelling a notable increase in internet users. This surge contributes to factors like the affordability of smartphones and the rollout of 5G-enabled devices, intensifying the appetite for mobile internet connections. Switzerland's telecom sector is strategically pivoting towards the expanding 5G landscape, foreseeing a surge in local service revenue. This optimism stems from the expectation that as users increasingly harness faster download speeds, they will consume content acceleratedly. Moreover, the broader availability of high-speed internet has catalyzed the emergence of novel applications and services, bolstering market expansion.
• Switzerland has achieved nearly complete mobile coverage thanks to cutting-edge 4G and 5G technologies. Swisscom and Salt phased out their 2G networks (GSM, GPRS, and Edge) between 2019 and 2021, with Sunrise following suit at the beginning of January 2023. According to ComCom, Swisscom reached 99% of the population with 5G and speeds of up to 1 Gbps by the end of 2023 and 81% with 5G+ speeds of up to 2 Gbps. Moreover, the increasing investments in boosting the adoption of 5G technology in the region are expected to drive the market's growth.
• The county's infrastructure relies heavily on outdated DSL networks, with DSL connections surpassing the OECD average by nearly threefold. Nevertheless, there has been a concerted effort by the Swiss government, regulatory bodies, and service providers to prioritize fiber-based services, offering speeds of at least 1Gb/s. Additionally, the rising number of mobile cellular connections is anticipated to boost the need for mobile networks and contribute to the expansion of the market.
• The COVID-19 pandemic has confined a significant segment of the Swiss population to their homes, leading to a surge in remote work and, subsequently, heightened broadband usage. This trend underscores the importance of providing high-speed broadband services, which, in turn, will bolster the telecom sector. Furthermore, the accelerated internet adoption and rising smartphone penetration, catalyzed by the COVID-19 pandemic, are poised to propel the market's expansion further.

Switzerland Telecom Industry Segmentation

• Telecom or telecommunication is the long-range transmission of information by electromagnetic means. The Swiss telecom market is segmented by service (voice services [wired and wireless]), data and messaging services, and OTT and PayTV services. The market sizes and forecasts are provided in terms of value (USD) for all the above segments.