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FRANCE Software Development Market Overview
FRANCE Software Development Market size is forecast to reach EUR 18,523 million by 2027, after growing at a CAGR of 3.94% during 2022-2027. France, which stretches from the North Sea to the Mediterranean, is the EU's largest country. France is now one of the world's most modern countries and a leader among European nations. The EU and the United States have been the primary sources of foreign investment in France. The majority of investment is concentrated in the fields of engineering, electronics, and chemicals, and it is aimed primarily at the country's more densely populated areas. According to the industry federation, Syntec/IDC, IT software and services sales grew 4.1% in 2018, to €56.3 billion. This growth was primarily driven by digital transformation projects, with SMACS (Social, Mobility, Analytics, Cloud and Security) increasing by 15.4%. In Western Europe, France has the lowest outsourcing rate and is relying on its own professionals mainly to provide the entire range of IT services.
Report Coverage
The report “FRANCE Software Development Market – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments of the FRANCE Software Development market.
By language: Java, Python, C++, Scala, Ruby, LISA, PERL, SQL, Android, iOS, and Others.
By Market Demand: In-House on Payroll, Hired from Secondment Providers, Hired Freelancers, and Fully Outsourced.
By Deployment Type: On-Premise, Cloud.
By Business Size: Small and Medium Business, Enterprise, and Government.
By End-use Industry: Banking and Financial Institution, Insurance Firms, Media and, Entertainment, Government, Defense, Telecommunication, Automotive, Consumer Goods and Retail, Healthcare, Manufacturing and Others
Key Takeaways
• France is the third largest ICT market in Europe by value, with contributions from its strong IT infrastructure and a growing number of young professionals that are enrolling in the IT industry.
• SaaS and cloud-based software products were resisted for a period of time by a number of sectors due to reasons such as data privacy, security, the extended duration for amortization of past IT investment, etc. – especially the public sector. However, this trend has been reversed in recent times with more acceptance found and more than 80% of the Top 100 French software companies offering SaaS solutions.
• In 2021, Claranova confirms its status as a technology leader by moving up to 5th place in this year’s Truffle 100 ranking of France’s most important independent software vendors (ISVs). By gaining two places this year, Claranova registered the most important increase in the top 10 of the sector’s leading companies.
Language - Segment Analysis
Java held the largest share in the FRANCE Software Development Market in 2021. Around 60% of France’s Stack Overflow traffic comes from within 50 miles of Paris (the next largest cities, like Lyon and Toulouse, each made up about 5%), which isn’t surprising because that’s where the population is most concentrated. (One exception is Marseille, which makes up only 3% of traffic despite being France’s second largest city). PYPL publishes separate rankings for the US, India, Germany, United Kingdom and France. According to this index, Python is in position number 1 worldwide, followed by Java. To specify, Python has doubled its shares (48%) in Germany, the United Kingdom, and France. And it has the highest share in the UK (34%) and the lowest in India (31%). (Source: GitHub). As per IndustryARC research, Analysts such as data analysts and systems analysts, as well as programmers and developers with expertise such as Java, C#, SAP, and Oracle, appear to be in high demand.
Market Demand - Segment Analysis
In-House on Payroll held the largest share in the FRANCE Software Development Market in 2021. Over the last decade, organizations all over Europe, including France, have prioritized the use of the Internet and the installation of effective business information systems. As a result, the demand for IT workers has skyrocketed, and France today faces an IT skills shortage. Developer and programmer skills such as Oracle, PHP, SAP, Java, Linux, and Perl, as well as analyst responsibilities such as data analysts, systems analysts, and financial analysts, are among the most in-demand IT jobs in France right now. (Source: UK Job portal)
Deployment Type - Segment Analysis
Cloud held the largest share in the FRANCE Software Development Market in 2021. If the cloud computing technology built by Alphabet's Google and Microsoft is licensed to French enterprises, some of France's most sensitive governmental and corporate data can be safely maintained, according to the government. Two French businesses, OVHcloud and Dassault Systemes' Outscale, already meet these requirements. OVHcloud announced a partnership with Google to expand its cloud computing capabilities. (Source: money.us). According to IndustryARC research, under the Deployment model, the Cloud segment accounts for roughly 65% of the Software Development market.
Business Size - Segment Analysis
Small and Medium Businesses held the largest share in the FRANCE Software Development Market in 2021. France is ready to develop and capitalize on the exceptional opportunities created by the new digital economy. In 2019, 77% of French people owned a smartphone, and 76% owned a laptop computer. One example of the rise of economy 2.0 is the phenomenal growth of e-commerce: France is the second-largest market in Europe and the fifth-largest market in the world. Indeed, 40 million French e-consumers spent €103.4 billion online in 2019, representing an 11.6% increase in revenue year on year. "La French Tech" refers to the ecosystem comprised of French startups ranging from biosciences to marketplaces, wherever they may be in the world.
End-use Industry - Segment Analysis
Banking and Financial Institution has dominated the France Software Development Market with a market share of 11% as of 2021. All sectors of the French economy are diverse. Many large companies, including Air France, France Telecom, Renault, and Thales, have been partially or fully privatized. The sources and types of foreign investment in France are diversifying. For example, Japanese interest has grown significantly, as has an investment in real estate and the service industry, particularly in and around Paris. Businesses that saw digital demand increase during the pandemic, including such as banking and financial institutions. Leaders that had the capital to invest in digital transformation and change their IT architecture to better adapt to the current situation, such as financial services institutions, banks, insurance and luxury retail, which is now acting favorable to the economy of France.
Drivers – FRANCE Software Development Market
Increased innovation and adoption of new technology
Increasing software AI and automation, data analytics adoption in end-user industries, and the scope and potential of the global information technology market are all expected to rise significantly in France. Growing acquisitions in the IT industry have had a significant impact on the industry's growth over the last decade. In the technological industry, acquisitions and investments are causing a massive shift. Social media networking sites provide opportunities for information technology innovation. Acquisitions in the industry have led to companies expanding their operations, developing more expertise, and increasing revenue. Paris, France's capital, is Europe's largest market by gross domestic product (GDP) and the world's fifth largest. After Tokyo, Paris is home to the most multinational headquarters in the world, including many of the Global Fortune 500. France ranked 12th in the 2020 Global Innovation Index (16th in 2019). France has been named the sixth most creative country in 2021, up seven places from 2020. Furthermore, according to the European Patent Office, France is the second largest European depositor of patents and ranks fifth in the world.
Private and public consumption would boost France's IT spending even more
The software and service segment of the industry has seen the fastest growth over the last decade, which has been aided by strong government support. Furthermore, rising internet penetration and widespread computer use are driving market demand in France. Cloud computing and the Internet of Things are critical for market expansion in the medium term due to their enormous potential for industrial growth. Recently, Digital Transition and Electronic Communication announced a strategy for "Industrial and Deep Tech Start-Ups," which will aid in the industrialization of these businesses. The strategy is part of the France 2030 investment plan and aligns with ambitions to convert innovation potential into production capacity – particularly in sectors critical to the ecological and energy transition. It is also completely consistent with the goal of facilitating the emergence of French players who will be major players on the European and global stages.
Challenges – FRANCE Software Development Market
Unskilled Professionals
Over the last decade, companies throughout Europe, including France, have prioritized the use of the Internet and the implementation of good business information systems. As a result, the demand for IT professionals has skyrocketed, and France is now facing an IT skills shortage. The areas in which France faces major skills shortages are in the information technology sector which includes software developers, cyber security, tech consultants, data security, etc. France has been grappling with high unemployment rates for some time. France's unemployment rate remained above 9% from 2012 to 2018. Fortunately, in 2019, that percentage fell to 8.43%, and in 2020, it fell slightly to 8.34% for the year, indicating that France's economy is gradually improving. It is essential to consider that France's unemployment rate is partly due to a shortage of skilled workers among the unemployed population.
Complexity of Doing Business
France is ranked 2nd in the 2021 Global Business Complexity Index due to an increase in the complexity of business environments since 2020 when it was ranked in the 12th position. Complexities in accounting, tax processes, heavy employee-centric HR regulations, need to do all accounting and statutory due diligence work in the French language only are some of the reasons for this position. In addition, businesses also face hurdles in opening bank accounts or accessing credit to invest in the business. It is ranked 104th in the Ease of getting credit parameter as per the 2020 World Bank Doing Business report.
Market Landscape
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the FRANCE Software Development market. In 2021, the FRANCE Software Development Market share has been consolidated by the top ten players accounting for XX% of the share. Major players in the FRANCE Software Development Market are Murex, LUCCA, Mindsay and others.
1. FRANCE Software Development Market - Market Overview
1.1 Definitions and Scope
2. FRANCE Software Development Market - Executive Summary
2.1 Market Revenue, Market Size and Key Trends by Company
2.2 Key trends by Languages
2.3 Key trends by Market Demand
2.4 Key trends by Deployment Type
2.5 Key trends by Business Size
2.6 Key trends by End-use Industry
2.7 Key trends by Country
3. FRANCE Software Development Market - Market Forces
3.1 Market Drivers
3.2 Market Constraints
4. FRANCE Software Development Market - Strategic analysis
4.1 Value chain analysis
4.2 Opportunities analysis
4.3 Freelance and Secondment Impact Analysis
4.3.1 Labor Legislations
4.3.2 Economic Developments
4.3.3 Schooling/Education
4.3.4 Corporate Recruitment Plans
5. FRANCE Software Development Market – By Language (Market Size - EUR Million)
5.1 Java
5.2 Python
5.3 C++
5.4 Scala
5.5 Ruby
5.6 LISA
5.7 PERL
5.8 SQL
5.9 Android
5.10 iOS
5.11 Others
6. FRANCE Software Development Market – By Market Demand (Market Size - EUR Million)
6.1 In-House on Payroll
6.2 Hired from Secondment Providers
6.3 Hired Freelancers
6.4 Fully Outsourced
7. FRANCE Software Development Market – By Deployment Type (Market Size - EUR Million)
7.1 On-Premise
7.2 Cloud
8. FRANCE Software Development Market – By Business Size (Market Size - EUR Million)
8.1 Small and Medium Business
8.2 Enterprise
8.3 Government
9. FRANCE Software Development Market – By End-use Industry (Market Size - EUR Million)
9.1 Banking and Financial Institution
9.2 Insurance Firms
9.3 Media and Entertainment
9.4 Government
9.5 Defense
9.6 Telecommunication
9.7 Automotive
9.8 Consumer Goods and retail
9.9 Healthcare
9.10 Manufacturing
9.11 Others