France Information Technology Report Q1 2013
- ID: 2373230
- January 2013
- Region: France
- 64 pages
- Business Monitor International
BMI View: French IT spending is expected to reach US$49.3bn in 2013, up 5%, with BMI downwardly revising our forecast due to our expectation that further fiscal consolidation will constrain public sector demand. 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. Newly elected President Francois Hollande's faces a struggle to return France to economic growth and much will depend on a resolution to the eurozone crisis. Longer-term demand drivers include increasing operational efficiency, coordinating global supply chain and modernising logistics and warehouse functions.
Headline Expenditure Projections
Computer Hardware Sales: US$10.4bn in 2012 to US$10.9bn in 2013, +1% in US dollar terms. Growth forecast in US dollar terms downwardly revised due to macroeconomic factors and analyst modification.
Software Sales: US$14.1bn in 2012 to US$14.8bn in 2013, +5% in US dollar terms. Forecast in US dollar terms downwardly revised due to analyst modification, but faster growth is expected in hosted software services.
IT Services Sales: US$22.6bn in 2012 to US$23.7bn in 2013, +5% in US dollar terms. Forecast in US dollar terms downwardly revised due to macroeconomic factors, with one potential demand driver being organisations looking for help to utilise efficiencies from cloud computing
France's score was 74.9 out of 100.0. France ranks fourth in our latest Europe RRR table, behind the UK, Germany and Sweden, but ahead of CEE markets such as Poland, Russia and the Czech Republic.
Key Trends & Developments
- In 2013 the French computer hardware market 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, with a wave of releases of new generation devices. 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.
- The French government's National Investment Programme should provide a boost to the market.
In 2012 the French market for cloud computing was estimated at around US$2bn, 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$7bn.
In addition to the traditional IT services players, the cloud computing opportunity has also attracted a number of new players into the market. In September 2012, a new cloud computing company, Numergy,
was created by French operator SFR and IT group Bull, in partnership with government investment firm Caisse des Despots. The company will aim to provide cloud-based services to government and businesses in France and around Europe. SHOW LESS READ MORE >
Executive Summary 5
SWOT Analysis 7
France IT Sector SWOT 7
France Political SWOT 8
France Economic SWOT 8
France Business Environment SWOT 9
Europe IT Risk/Reward Ratings 10
Table: Europe Risk/Reward Ratings, Q113 12
Europe IT Markets Overview 13
IT Penetration 13
Market Growth And Drivers 15
Sectors And Verticals 17
Market Overview 21
Government Authority 21
Industry Developments 30
Industry Forecast 31
Table: France IT Industry - Historical Data And Forecasts (US$mn unless otherwise stated), 2009-2017 33
Industry Forecast Internet 34
Table: Telecoms Sector - Internet - Historical Data And Forecasts, 2009-2016 34
Competitive Landscape 36
IT Services 41
Macroeconomic Forecast 44
Table: France - Economic Activity, 2011-2016 47
Company Profiles 48
Atos (formerly Atos Origin) 48
Country Snapshot 56
Table: France's Population By Age Group, 1990-2020 ('000) 57
Table: France's Population By Age Group, 1990-2020 (% of total) 58
Table: France's Key Population Ratios, 1990-2020 59
Table: France's Rural And Urban Population, 1990-2020 59
BMI Methodology 60
How We Generate Our Industry Forecasts 60
IT Industry 60
IT Ratings - Methodology 61
Table: IT Business Environment Indicators 62
Table: Weighting Of Components 63