France ICT Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

The France ICT market is expected to register at a CAGR of 7.7% over the forecast period. France's increased emphasis on digital technology, AI, cyber security, robots, and healthcare IT is considerably driven the industry. Additionally, the increased need for digital technologies and initiatives, digitalization, scalable IT infrastructure, the widespread use of the 5G network, and the growing penetration of technology giants are all considerably boosting the market's growth.

Key Highlights

• Moreover, the rise in digital transformation in France is expected to drive the ICT Market significantly. Sectors, especially France's education and training systems, are well-transformed to meet the rising social and economic digital transformation needs. In particular, education and training institutions are being extensively equipped with various digital tools and infrastructures, new digital platforms are being developed to facilitate and enhance online learning, and digital inclusion measures are being highly implemented for the benefit of the most vulnerable people in France. These measures are incredibly vital to maximizing the digital skills levels, contributing to France reaching the Digital Decade target of about 80% of people with at least basic digital skills by 2030.
• Also, the market is witnessing various significant partnerships within the country, driving growth exponentially. For instance, in October 2021, Insight SIP, in collaboration with the French Southern Region Future Investment initiative, announced further development of its IoT security program. The expert in miniature RF modules with built-in antennas, Insight SIP, announced that it had received funding from the French government and the Southern regional government as a significant component of the 'Regional Investment Program for the Future' that will enable it to advance its IoT security program.
• As per Eurostat, in 2021, France's overall share of daily internet users reached around 78%. Also, the year 2021 represented a peak in the percentage of daily internet users in France. This rise in the overall usage of online users within the country is expected to create ample growth opportunities within the market, enhancing the overall growth of the market vastly.
• However, due to the fragmented market aspect, the rising frequency of data breaches, and the nation's reliance on outside sources to compensate for the talent gap might impede market growth in France.
• Despite the COVID-19 pandemic negatively influencing France's digital transformation, businesses are realigning their IT strategies, automating operations, controlling operational expenses, and putting new technologies into place for better and enhanced efficiencies. Additionally, various advanced technologies like blockchain, artificial intelligence, big data, machine learning, cloud computing, the internet of things, robotic process automation, cybersecurity, and augmented/virtual reality are significantly assisting in achieving these objectives in the post-COVID-19 scenarios.

France ICT Market Trends

Increased Government initiatives in 5G is Expected to Drive the Market

• The French government significantly emphasized encouraging industrial transformation, and 5G is a crucial component. As per the most recent 5G Observatory report from the telecom watchdog, the Electronic Communications, Postal and Print Media Distribution Regulatory Authority (ARCEP), the total number of mobile base stations offering commercial 5G services in France equated to about 22,000 sites by the end of 2021.
• In July 2021, France planned to invest almost EUR 1.7 billion in its 5G industry by 2025 through public and private investments, per the 5G and future telecoms plan unveiled by government ministers. The objective is to hasten the development of 5G, especially new use cases, to encourage acceptance and strengthen the technology's influence on other industries. This is anticipated to generate 20,000 new jobs and contribute to the country's 5G sector, reaching a value of EUR 15 billion (USD 15.65 billion) by 2025.
• Also, in March 2022, the French government revealed a series of initiatives to enhance the deployment of industrial 5G use cases. The government vowed to open access to 2.6GHz frequencies for use in industrial 5G projects and to look into opening up access to the 3.8GHz and 4GHz bands as well. Other initiatives include opening a joint call for 5G private network projects by France and Germany.
• Moreover, in August 2022, France thoroughly applied the European Electronic Communications Code (EECC) with the issue of a transposition ordinance in May 2021. The code increased the range of universal services and gave all citizens access to sufficient and reasonably priced broadband.
• France has undergone tremendous change in the last few years in terms of digitization. 5G technology is the most vital infrastructure for the upcoming stage of digital transformation, which will become more widely used nationwide with government support. As per Ericsson, the 3.5GHz (5G) roll-out is expected to be completed in France by 2025. The 3.5GHz 5G network will cover 41% of the French population, up from 34% in 2023. This is anticipated to boost the overall growth of the market significantly.

The IT and Telecom Sector is Expected to Drive the Market

• As per data from International Telecommunication Union, with a commitment of 21 contributing units, or around CHF 6.7 million (or roughly EUR 6.9 million or USD 7 million), France is one of the top contributors to the International Telecommunication Union (ITU) annual budget.
• Also, in the 2022 edition of the Digital Economy and Society Index, France is ranked 12th out of the 27 EU member states. The Plan de Relance (Recovery plan), which receives a contribution from the Recovery and Resilience Facility (RRF) of about EUR 40 billion, and France 2030, a strategic plan to strengthen technological sovereignty, ensure the greening of the economy, and foster innovation, are both supporting the digital transformation of the French economy and society.
• Moreover, on the other hand, the market is witnessing various significant mergers, acquisitions, and investments by key players as part of their crucial growth strategy to improvise their business and overall presence to reach customers and fulfill their requirements for various applications. For instance, in March 2022, Phoenix Tower International declared that it had finalized a definitive agreement -- subject to the FCA ('French Competition Authority ') approval -- with Cellnex Telecom to purchase 1,226 telecommunications sites in very dense areas in France, adding SFR as a 2nd major MNO, within France.
• Also, in May 2022, TOTEM would offer mobile coverage for the upcoming 15 Sud line of the Société du Grand Paris metro. By 2025, TOTEM will have installed a mobile indoor DAS (Distributed Antenna System) network throughout the Grand Paris Express' 15 Sud line and will continue to do so until at least 2035.
• As per Eurostat, the total percentage of French households with internet connectivity rose by 3% from 2019 to 2021. As a result, France's percentage of households having internet access peaked in 2021 at 93%. Also, in 2021, more than six in 10 French online users conducted audio or video calls. The adoption of online voice and video calls increased dramatically between 2019 and 2021 as usage patterns were hastened by the global COVID-19 pandemic outbreak in 2020. This increase in such usage trends will considerably augment the market's growth throughout the forecast period.

France ICT Market Competitor Analysis

The France ICT market is competitive and fragmented due to the country's several players. Several key players in the ICT market are constantly trying to bring crucial advancements within the market. A few prominent firms are entering into various strategic collaborations and extending their footprints, especially in developing areas, to consolidate their overall positions in the market. Some of the key developments in the market are as follows:

• March 2022 - In keeping with the commitment to offer the most available and reliable connection for IoT devices deployed anywhere in the world, Soracom, Inc., a worldwide provider of advanced IoT connectivity, declared it had entered an agreement with Orange Wholesale France to extend its network for IoT connectivity throughout the world. This partnership with Orange Wholesale France enables the company to bring France's most extensive MNO capability to Soracom customers worldwide.
• March 2022 - The LoRa Alliance, the global association of companies backing the open LoRaWAN standard for the internet of things (IoT) low-power wide-area networks (LPWANs), declared the significant market traction across France, which positions LoRaWAN as one of the most preferred LPWAN technology in the region.

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