Communication Equipment Manufacturing in France - Market Size, Industry Analysis, Trends and Forecasts (2025-2029)

Communication Equipment Manufacturing in France industry analysis

The French communication equipment industry is deeply involved in technological advances and contributes significantly to the production of devices that enable electronic signal transmission via cable or air. Major manufacturers like the Thales Group, Alcatel-Lucent Enterprise (ALE International SAS) and Sagemcom have cemented their presence by specialising in secure communication systems, network solutions and broadband innovations. Unlike consumer smartphone manufacturers, French companies focus on B2B solutions and are active in the fields of telecommunications infrastructure and corporate solutions. Over the five years through 2025, the revenue of this industry is expected to dip at a compound annual rate of 6.1% to €12.1 billion; however, revenue is forecast to increase by 1.8% in 2025.
The industry operates in a complex technological landscape, with demand fuelled by telecommunications providers investing in network modernisation. This includes the use of technologies like fibre optics and 5G to expand connectivity in urban and underserved rural areas. The growing demand for backhaul solutions and femtocell technologies, driven by increasing data traffic, is creating new opportunities for French manufacturers to develop innovations and improve network efficiency. However, the industry faces risks associated with supply chain disruptions due to geopolitical tensions and shortages of microprocessors and other electronic components, requiring it to increasingly turn to domestic and regional suppliers.
Over the five years through 2030, revenue is expected to rise at a compound annual rate of 1.2% to €12.8 billion. In the coming years, the expansion of 5G networks will boost demand for advanced communication equipment and offer lucrative opportunities for French manufacturers to strengthen their market position. The integration of artificial intelligence and the Internet of Things is transforming sectors like energy, boosting efficiency and promoting sustainability. Furthermore, the French military's increasing demand for sophisticated telecommunications equipment is driving innovation and investment in research and development. By favouring domestic providers, France is strengthening national security and promoting technological sovereignty.

Trends and Insights

• Technological and regulatory changes shape the industry. Demand for smartphones is increasing, while demand for wired home phones is declining. Stricter regulations and technological changes are leading to an increase in demand for burglar alarms and fire alarms.
• Modern burglar and fire alarms are part of the smart home. Innovations such as wireless IoT connectivity, artificial intelligence and advanced sensors improve system flexibility and accuracy and reduce false alarms, while video verification enables instant confirmation of the incident.
• Most manufacturers have low market shares. In Europe, there are hardly any manufacturers that dominate the market, resulting in a low level of market concentration. Most manufacturers concentrate on niche segments and have low market shares.