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French IT market to increase by 5%

Industry Sector

Information Technology

Published

21 January 2013

Author

Matt Bodimeade

Type of News

Market

The French IT market is the third largest in Europe and, despite current fiscal retrenchment spending within the industry is expected to reach US$49.3 billion in 2013, up 5%, and is expected to report slightly higher single-digit growth, following the marked deceleration in 2012.

Migrations to Microsoft's Windows 8 operating system could provide a boost, along side a wave of releases of new generation devices. Furthermore, key drivers will include growing mobile and fixed broadband penetration, product innovation such as tablets, technology innovation such as GSP technology and services, and the economic recovery.

The French IT market has shown overall signs of stabilisation over the last few years, with new IT services deals in sectors such as energy, telecoms and banking, and a pick-up in outsourcing deals. Despite the tightening of government purse strings, government agencies such as the Social and Health Ministry also commissioned projects.

In 2012, French IT services vendors reported continued opportunities in the French market, with the most robust sector being IT services, where virtualisation and cloud computing offer opportunities.

In 2012 the French market for cloud computing was estimated at around US$2 billion, equivalent to around 5% of the total value of the IT services market. By 2016, it is forecast that the market opportunity could be worth around US$7 billion.

In addition to the traditional IT services players, the cloud computing opportunity has also attracted a number of new players into the market. In September 2012, a new cloud computing company, Numergy, was created by French operator SFR and IT group Bull, in partnership with government investment firm Caisse des Despots. The company will aim to provide cloud-based services to government and businesses in France and around Europe.

As the French economy faces budgetary pressures in 2013, enterprises will remain cautious about capital spending, but there could be a boost from computer hardware tenders previously delayed by the economic situation. A new wave of Windows 8 devices, and lower-cost ultrabooks, could help stimulate new cycles of hardware upgrades, even if the exact dimensions of the boost are unclear.

For more information on the French IT market, see the latest research: French IT Market

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