Market Trends of France Data Center Networking Industry
IT & Telecommunication Segment Holds the Major Share.
- Cloud storage in France is growing due to the growing demand for cost-effective data backup, storage, and protection across all businesses and the need to manage data generated by the increasing use of mobile technology.
- The expansion of its IT infrastructure has been receiving major funding from the global company's in the country. The popularity of and investments in cloud computing services are rising in France. In May 2024, Microsoft revealed its plan to invest USD 4.3 billion in France's AI and cloud sectors. The tech giant also committed to training over a million individuals in France in AI. Partnering with the government employment agency, Travail, Microsoft aims to provide AI training specifically tailored for job seekers.
- Regional cloud infrastructure providers such as Equinix, OVHcloud, and Dassault Systèmes have partnered with international hyperscalers such as Amazon Web Services (AWS), Google Cloud Platform (GCP), and Microsoft Azure to bring French cloud infrastructure to improve and enable a resilient future. Europe-based global service providers such as Capgemini, Orange, Atos, and Soplasteria also invest in similar partnerships.
- Further, in the Telecom segment, 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 nationwide 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 above improvements in the market are expected to propel the segment's growth, which creates more demand for data center network devices and services during the study period.
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Ethernet Switches Holds Largest Market Share
- Data Center Ethernet switches are network devices that operate in a data center environment. In order to facilitate the efficiency and rapid transfer of data, they play an essential role in establishing interconnection between servers, storage devices, or other network equipment at a data center. Switches are designed for high-speed data transmission with support for gigabit and multigigabit Ethernet, including 10 GbE, 25 GbE, 40 GbE, 100 GbE, and beyond.
- France has undergone a considerable digital transformation within its industries, just like many other countries. Businesses are investing in data centers to make processes, services, and operations more efficient. In order to make data center operations efficient, reliable, and secure, ethernet switches play a crucial role.
- Ethernet switches that combine energy efficiency features play an essential role in data center green practices as sustainability becomes a priority in France. As a result, it reflects global trends toward more environmentally friendly data center operations.
- Increasing focus on digitalization, Internet penetration (reached 92% by 2022 from 88% in 2019), and e-commerce sales across the country create more need for storage facilities. For instance, The majority of French online buyers continue to purchase from their homes or places of business. Sales have increased in France, which is the second-largest e-commerce sector in Europe. The total revenue generated by the e-commerce industry in 2022 was EUR146.9 billion (USD 157.89 billion), a rise of 13.8% from the previous year. Such instances in the market resulted in huge demand for data centers and, consequently, the need for more ethernet switches within data centers.
- The key players in the market focus on updating the network devices to meet the market demand. In July 2023, Broadcom introduced a new software-programmable Trident 4-X7 Ethernet switch ASIC to support the growing need for 400G connectivity inside enterprise data centers as demand for increasing bandwidth levels increases.
