The home computer assistance market - France

1.2 A fragmented and growing French market

The French home IT support market was estimated to be worth €*.* billion in ****. It would have continued to grow until **** before suffering a drop in turnover of just over *% in ****. The forecasts for **** show a very slight recovery in the market, and suggest that the market will continue to grow in the future. Although * out of * French people have a computer at home [***], **% say that the difficulties of managing this tool are the main obstacle to buying a computer

Evolution of the turnover of the home computer troubleshooting France, ****-*****, in billion euros Source: ****

In fact, the the French market for in-home computer assistance is generally growing (***) - although France is not on the podium of the leading countries in this market - composed notably of the United States, the United Kingdom and Germany.

As the activity is mainly concentrated in urban areas and large cities, the Ile-de-France is logically the most active region on the market, with nearly ** home repair companies in Paris.

If the the market for home computer assistance is still very fragmented A distinction is made between * main types of actors :

Very small structures ; Specialized and well-structured companies ; The subsidiaries of distributors such as B'Dom (***) ; Consulting ...

1.3 Summary of market drivers

2.1 A market dependent on new consumer habits

Household equipment plays a more than significant role in the growth rate of the IT support market, which has led to the development of the sector in the ****s. However, the global computer market was in decline until the year **** for nearly six years. The competition is indeed with tablets and smartphones which are replacing the classic laptops [***]. However, according to Les Echos According to IDC, more than *** million PCs will be sold in ****, i.e. as many as in ****, which represents a growth of **% compared to ****. The French market would thus have grown by *% in volume due to the increase in the frequency of telecommuting and for entertainment during periods of restrictions related to Covid-**. However, this demand was focused on laptops, as desktop PCs followed their already initiated decline with a decrease of -**% over the year

In ****, just over **% of French people had one or more computers in their homes (***).

Not all French people have yet "appropriated digital tools". There is a difference in knowledge by age, geographical area and level of education (***). Nevertheless, we note a common desire for training and discovery of new digital technologies

This appetite, together with the growing access of the French to ...

2.2 The aging of the French population

The french population is nowadays more and more aged . According to a prospective study by INSEE, */* of the French population will be over ** years old by ****. Life expectancy is expected to continue to increase, as the following graphs show, leading to new demands and new challenges. [***]

Estimates of the number of women by age group France, ****-*****, in millions of people Source: ****

Evolution of the number of men by age group France, ****-*****, in millions of people Source: ****

At the same time, the the proportion of retirees with a computer at home has risen sharply . These people, who are not "digital natives", need specific help and assistance courses to help them. They particularly need home assistance to get to know their equipment.

2.3 Support for new products

Although the number of computers per household has hardly increased in the ** years leading up to ****, the number of tablets and smartphones has grown enormously This proportion has indeed increased from *% in **** to **% in **** concerning tablets . This proliferation therefore naturally creates an increase in the demand for IT support for these new devices, which require services similar to those of computers. Moreover, even senior citizens (***) are converting to the use of tablets, with the rate of equipment within this age group rising from * to **% between **** and ****. [***]

Copy of Tablet ownership rate at home by age group France, ****-****, %  

3.1 Democratization of support services

According to an ADEME study conducted in June **** (***), the professionals of home computer assistance rely mainly on franchising and the development of connected objects to sustain their growth.

The services related to IT are in full development and are expected to continue to grow in the coming years. One of the reasons for this is the growth in Internet access in France . Indeed, more and more people are connected and the quality of the networks is improving, especially with the development of very high speed. The optical fibre which the government plans to deployment throughout France by ****, revives the interest in using a computer, especially in remote areas.

Mass access to the Internet leads to a proliferation of computer viruses and attempted hacking on home computers . For several years, the number of attacks and malware has been steadily increasing to astronomical numbers. Lockdowns have also been prime time for hackers as the attacks increased during these periods in **** . The number of thwarted attack attempts has almost doubled in three months The number of malware attacks has increased by **.*% between the second and third quarters of ****. Malware includes programs such as Emotet, Agent Tesla, Gozi and RanumBot. [***]

In addition, the support services ...

3.2 The development of remote assistance

Remote assistance is increasingly popular, and is provided via traditional media (***), the remote assistance allows to avoid the travel expenses and thus to reduce the cost. It is fast, most companies offer assistance within ** hours. The software TeamViewer is thus the leader of the remote assistance software, the company publishing it having made *** million euros of turnover thanks to it.

This rise in remote assistance can represent a significant threat to traditional French home-based IT support companies . Indeed, remote assistance represents a real alternative to home assistance, especially for problems related to the Internet network. Moreover, it is more easy to relocate these services to other countries This is certainly the main reason why remote assistance does not benefit from the tax credit for home assistance

Automated IT support?

The remote assistance is itself competing with the rise of specialized software (***). They offer turnkey in-house IT support services. They are able to unlock a computer, refer the user in case of malware and empowering key operations

This software, once limited to simple bug fixing, has improved considerably.

3.3 The rise of connected objects

In the long term, the market could be driven by the boom in connected objects. Home computer assistance would no longer be limited to computers, but also to everyday connected objects In ****, the connected objects market in France grew by ***%, and then in ****, it grew by another **% compared to the previous year. These phenomenal increases represent a current turnover of over €*.* billion. However, in ****, the market had contracted slightly after an exceptional boom.

Market size of connected objects France, ****-****, Million Euros Source: ****

The demands should therefore evolve: while today they only concern the installation of PCs and their tools, tomorrow they will concern, for example, the bug, the breakdown or the maintenance of various connected objects.

3.4 Workforce and training within the profession

The professional workforce in the home computer assistance sector is made up of both franchised companies and individuals. The latter are more and more numerous, offering a better service of proximity, and acting as a micro entrepreneur. [***]

In the case of an intervention at home, the company sends a technician, who in the vast majority of cases a computer training

Bac pro Digital Systems BTS Electronic Systems BTS in computer science DUT Electrical and Computer Engineering Bac pro computer and network

There is no mandatory diploma to work as a computer repairman, even for the part of the activity that is under the jurisdiction of the Chambre des Métiers [***]. However, some regulatory aspects must be taken into account when starting a computer support business, especially depending on the type of activity: support, disassembly, shop sales.

3.5 The development of franchise systems on a national scale

Becoming a franchisee in the home computer repair sector seems to be inexpensive in terms of initial investment, compared to other sectors. In fact, according to franchise-informatique.fr The average investment is about €**,***. In comparison, it takes at least €**,*** to open a real estate agency, and specialist businesses such as shops, restaurants and others can quite often exceed €***,***. This is partly due to the small number of expenditure items in relation to the business. However, there are few well-developed franchise networks on the French market that specialise in home-based IT support.

Study of the main franchises present on the French territory:

Doctor Computer The company is the leading French network with approximately ** agencies in France. The company is specialized in home computer repair, assistance, maintenance, training and installation of computer equipment. The entry fee is * *** €.

Docteur Ordinateur's network of franchisees France, ****

The franchise is therefore widely established in France, with the majority of its franchisees in the following regions: South-East, East and West

Experadom Experadom's franchisees offer home assistance to individuals in order to improve their knowledge of computers and the Internet. The company has ** locations in France according to AC-Franchise . The entry fee is €*,***.

Go Micro This franchise network offers ...

4.1 Rates and services

The B*C market

For individuals The packages are varied and can include

Training Installation and delivery of new equipment The configuration of a PC, a box, digital networks or any associated equipment Troubleshooting and part replacement Backup or data transfer The fight against possible viruses or malfunctions Purchasing advice.

These services can be invoiced by the hour or by the package. From one company to another, hourly rates can vary greatly, from **/**€ per hour, to nearly **€ per hour

In Paris, the rates are generally ** euros per hour minimum, while they are for example ** euros in Nantes or ** euros in Nancy

As mentioned above, the companies approved "personal services" allow individuals to benefit from

From a **% tax credit of the actual expenses, for people in employment or job seekers, up to a limit of *,*** euros per year A **% tax reduction in other cases with the same ceiling.

According to the Syntec Numérique study, iT service prices fell significantly in **** .

Online assistance is a very common solution, the prices are lower than for home assistance. Most companies choose this alternative as well as many private individuals.

As an example, here is a price list proposed by a home computer assistance company ...

4.2 Services offered in detail

Start-up support

It is a matter of assisting the customer throughout the process until he takes over the delivered product. Indeed, the customer may express the need to be trained to the new references induced by a new product

Turnkey formulas are therefore proposed: from the purchase of his property, the customer will be taken in charge and advised in order to discover all the capacities and all the tools of his product This support service includes, for example, the installation of basic software.

The assistance

A computer troubleshooting is performed by a professional when a hardware failure or change of a computer component occurs

You can also call a technician in case of a breakdown or a general bug, the main goal being to get the device back in operation Troubleshooting is limited to the replacement of parts and does not include the recovery of data from a hard drive for example.

The training

According to the government website that lists human services Whether it is to learn or to deepen or improve their knowledge of computers, individuals can call on professionals in the sector offering training at home which consists of :

Introduction to computer tools To become familiar with ...

5.1 An incentive-based regulatory framework for individuals

The VAT

In France, there are now * categories of home services with different VAT rates: *.*%, **%, **%. The *.*% VAT rate is reserved for personal care.

The normal rate of VAT (***).

The tax reduction

The individual who uses computer or internet assistance at home can benefit from a tax reduction . Conditions vary according to

The location of employment It must take place in France at the residence of the person concerned Its nature The employee may be employed by an individual, an association or a non-profit organization The activities concerned The services offered are diverse and include childcare, tutoring and computer and internet assistance.

The tax reduction rate is **% of the expenses incurred during the year, subject to a ceiling

The limit on computer assistance expenses

The ceiling for home computer assistance expenses is currently **** euros per household

This **** euros includes training, initiation and installation of hardware, but also delivery and maintenance services. Tablets, computers, smartphones and all digital equipment connected to the internet are concerned. Cameras, cameras and game consoles are not covered

6.1 Segmentation

The INSEE NAF code number **.**Z corresponds to the activity of "Repair of computers and peripheral equipment".

The IT support market is still very fragmented, but there are still * main types of players:

• CIEL MON ORDI
• OPTIM ORDI
• NANCY DÉPANNAGE
• ADECS
• Solutions 30
• Docteur Ordinateur
• Bugbusters
• AIRRIA
• B’DOM
• Wavestone
• ANM Informatique
• OrdiAssist
• SOS Informatique
• Ubikwi
• ACCESS 2 IT