Market Trends of france data center Industry
Rising smartphone users and cashless transactions boost the market growth
- The total number of smartphone users in the country was 54.20 million in 2022, which is expected to register a CAGR of 1.25% during the forecast period to reach a value of 59.15 million by 2029.
- Digital usage is expanding rapidly in France. The quick internet and smartphone technology adoption in various businesses has impacted consumer behavior. For instance, from 2018 to 2021, the per capita purchasing power per person in France increased from 0.9% to 2%. As a result, more people can purchase smartphones, leading to a growing number of smartphone users.
- The internet penetration of the country increased from 80.05% in 2017 to 84.8% in 2020, while the number of smartphone users increased from 39.7 million in 2017 to 49.8 million in 2020. Owing to such extensive use, digital payment services were promoted, and their application increased due to the COVID-19 pandemic. Additionally, the nation raised the payment threshold from EUR 30 to EUR 50 to lessen the chance of the virus spreading. People are now more inclined to prefer cashless transactions, which is predicted to have a long-term impact on the market. Consequently, there are more smartphone users in France.
- The rising use of smartphones in the French market results in a constant increase in data, necessitating a growing amount of storage space to accommodate this uncontrollable flow of data with the need for real-time processing and analysis. The data centers must manage the sheer amount of data. Thus, the requirement for extra racks in French data centers may increase as the number of smartphone users rises.
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Rising adoption of e-commerce, 5G infrastructure and digital banking such as Neobank increases the adoption of market demand
- In 2022, the nation's average data speed was 59.66 Mbps. The mid-2000s saw the introduction of 4G in France. France launched its 5G services in 2020. Since the launch of both services, 4G reached 86.72 Mbps in 2022 and 5G reached 201.3 Mbps by 2022. Four French mobile service providers, Orange, SFR, Bouygues Telecom, and Free Mobile, tested their 4G offerings in 2013 in Paris, Marseille, Lyon, Lille, and Nantes, which are significant 4G hotspots. The 4G coverage has grown from 45% at the beginning of 2018 to 76% by the middle of 2020.
- In terms of 5G network services, France saw the deployments of these networks in 2020 for commercial and industrial services from Nokia, Orange Business Services, Free Mobile, Ericsson, and SNCF. According to French government plans, 5G should be available across the country by 2030. All four major operators had planned to install 5G in 3,000 locations by 2022, 8,000 by 2024, and 10,500 by 2025, which will further suggest the exponential generation of raw data in the near future. The 2G and 3G services will be decommissioned by 2026 and 2029, respectively.
- The increased average speed is paving the way for end users, such as e-commerce, and digital banking, to expand their online services for customers. Neobanks, or digital-only banks, are changing how France's banking industry functions in the future. The number of current accounts opened in neobanks has increased by 2.5% from 2018, and France has over 3.5 million active accounts. Nevertheless, 31% of Neobank users want to use banks' services more frequently in the future. Thus, the rise in mobile data speed is expected to lead to more service-oriented applications among end-user industries and is expected to lead to the growth of data processing facilities in the coming years.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Rising OTT subscription and ecommerce sales boost the data center growth
- Increasing rate of fiber deployment and usage of French internet exchange showcase the data center demand
- Increasing households access to broadband along with growth of internet exchanges boost the market growth
