Market Trends of France ICT Industry
This section covers the major market trends shaping the France ICT Market according to our research experts:
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.
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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.
