Fiber optic connectors are a substantial fragment of the global telecommunication industry. Optical fibers are joined using fiber optic connectors, which allow the light conduction between two consecutive optical fibers. An additional im…
BMI View: Brexit and a terrorist attack in Nice resulted in a small downgrade to the IT spending forecast
for France in the Q4 update. An increase in political and economic uncertainty has weakened already
fragile economic sentiment in France, but we still envisage stronger performance in 2016 compared to
2015 when the extent of euro depreciation against the US dollar was a major drag on the hardware
segment. Looking beyond short-term risk factors, there are opportunities in France if Paris captures a
share of any financial services relocation away from London after Brexit, as well as in specific product
categories such as cloud computing, cyber security and Internet of Things.
Latest Updates & Industry Developments
? Computer Hardware Sales: EUR16.9bn in 2016 to EUR17.9bn in 2020 with a compound annual
growth rate (CAGR) of 1.5%. An ageing of the desktop and notebook installed base means replacement
spending could be unlocked by vendor innovation and/or an economic upturn, but the core scenario is for
a flat market over the medium term.
? Software Sales: EUR12.5bn in 2016 to EUR14.5bn in 2020 with a CAGR of 3.6%. We see short-term
impact from Brexit, but French economic performance will be important to the market if further
weakness undermines investment in projects by major verticals.
? IT Services Sales: EUR23.9bn in 2016to EUR28.1bn in 2020 with a CAGR of 4.2%. Public sector IT
budget savings initiative will be a squeeze, but we expect this to be offset by wider cloud computing
adoption in France where it is an accelerating market and there is catch-up potential to global leaders
such as the US.