Data Processing & Hosting Services in France - Market Size, Industry Analysis, Trends and Forecasts (2025-2029)

Data Processing & Hosting Services in France industry analysis

The Data Processing & Hosting Services industry in France has surged over the past decade, primarily driven by the rapid adoption of cloud computing. Many companies regard cloud computing as an innovative way of reducing their operating costs, which has led to the introduction of new services that make the sharing of data more efficient. While French adoption rates still lag behind the EU average, there's clear momentum in embracing these technologies. Businesses have been compelled to innovate, providing customised services and optimising operational costs, thereby enhancing their competitiveness in a burgeoning market. The surge in e-commerce and mobile device proliferation has also boosted demand for data processing and hosting services. Over the five years through 2025, revenue is expected to edge upwards at a compound annual rate of 9.1% to reach €16.4 billion. This includes a projected growth of 5.1% in 2025.
Cloud computing has allowed businesses to minimise investments in physical infrastructure, it has spurred revenue expansion and allowed companies to scale operations with greater agility. E-commerce has hiked significantly throughout France, with online transactions hitting €2.4 billion in 2023 according to Ecommerce Europe, fuelling the need for scalable cloud solutions. French companies like OVHcloud have capitalised on these trends, leveraging cloud-native solutions to enhance data centre efficiency and reduce overhead costs. The introduction and rapid uptake of 5G networks since 2020 have further supported the industry's upward trajectory, facilitating more efficient data processing and real-time services development.

Trends and Insights

• The pandemic fuelled demand for data processing and hosting services. The shift to a stronger remote work environment within Europe, prompted by the pandemic, led to businesses boosting their storage capabilities.
• Big data gives opportunities to providers of data storage and management solutions. The surging use of big data among all types of businesses means they have to store vast amounts of information, opening the door for providers to boost sales.
• Concentration is expanding moving forward. Major data processing and hosting service providers are likely to attempt to acquire specialist businesses so as to expand the services they can offer to clients.