The market for electrical installation work - France (2024)

1.2 Global market

World market for electrical installations France, ****-****, in billions of USD Source: ****

The global market for electrical installations in France shows strong growth forecast from **** to ****, rising from USD ***.** billion to USD ***.** billion. Forecasts indicate a steady increase every year, underlining growing demand for electrical installations.

1.3 French market

Market for electrical installation work in all premises (***) France, ****-****, in billions of € excl. tax Source: ****

The market for electrical installation work in France showed notable growth from **** to ****, rising from €**.** billion to €**.** billion excluding VAT. Despite a slight dip in ****, probably due to the COVID-** pandemic, the sector quickly rebounded to reach record levels. This trend points to increased demand for electrical installations, possibly reflecting sustained investment in infrastructure and the transition to more advanced, sustainable technologies.

Breakdown of electrical installation sales by type of work (***) France, ****-****, in Source: ****

The breakdown of sales for the electrical installation sector in the private market in France between **** and **** shows a predominance of low current (***) remain marginal. This distribution underlines the importance of current systems in private electrical installations, suggesting a focus on safety and energy efficiency.

2.1 Demand divided between new installations and maintenance-renovations

Demand for electrical installations is divided into two main segments: new construction and maintenance-renovation.

New construction: This segment covers electrical installations in new residential, commercial and industrial buildings. Elements specific to this market include the installation of modern, efficient electrical systems, the integration of cutting-edge technologies such as home automation, advanced communication networks, electrical systems for the home and the building industry, as well as the development of new products and services.advanced communication networks, energy management systems, and electric vehicle charging infrastructures (***). New construction often requires solutions that comply with the latest safety and energy efficiency standards, as well as installations adapted to new connectivity and sustainability requirements.

Maintenance-renovation: This segment focuses on upgrading, repairing and modernizing existing electrical systems. Typical work includes bringing older installations up to current standards, replacing obsolete wiring, upgrading electrical distribution systems, and installing safety devices such as differential circuit breakers. In addition, renovation can incorporate solutions to improve energy efficiency, such as installing photovoltaic panels, modernizing lighting with LED solutions, and adding intelligent energy management systems.

Breakdown of electrical, plumbing and other installation sector sales by outlet France, ****, in Source: ****

In ****, the breakdown of sales in the electrical, plumbing and other installation sector in ...

2.2 The decline in the new-build market

In ****, companies in the construction sector face persistent challenges, particularly in new housing construction, affected by high prices and adjustments to government support schemes such as the end of the Pinel scheme and the refocusing of the PTZ. Non-residential construction is showing greater resilience, buoyed by the dynamism of e-commerce, growing tourism and public reindustrialization initiatives. Meanwhile, the existing housing market continues to show signs of slowing, influencing future activity in maintenance and improvement work.

Non-residential premises

Number of building permits for non-residential premises France, ****-*****, in millions of permits Source: ****

The number of non-residential premises under construction in France from **** to **** shows a variable trend, with relatively stable building permits but fluctuating housing starts and a gradual decline since ****. This dynamic indicates persistent challenges in bringing authorized projects to fruition, possibly reflecting economic and regulatory constraints affecting the non-residential construction sector.

Non-residential floor area under construction (***) France, **** - ****, in millions of square meters Source: Insee, Insee *first * months of ****, over ** sliding months

Non-residential floor area under construction (***) France, **** - ****, in millions of square meters Source: Insee, Insee *the term "non-residential premises" includes premises for public services or collective interest, transport, education-research, social action, special structureshealth, culture and leisure, hotel accommodation, ...

2.3 The maintenance-renovation market

Themaintenance-renovation segment is mainly underpinned by the demand for energy-efficiency improvement work. High energy prices (***). However, pressures on household purchasing power may limit their ability to pay for the remaining work.

Housing maintenance-renovation market France, ****-****, billions of euros Source: ****

The housing maintenance and renovation market recorded steady growth from **** to ****. Average annual growth rates for large-scale home improvement works and small-scale works are *.**% and *.**% respectively in terms of value.

It should be noted that this sector was one of the few to benefit from the health crisis, as part of the spending was redirected towards home improvements.

Growth in this sector is mainly due to the impact of inflation and rising prices in the industry, as well as new regulations encouraging private individuals to invest in renovating their homes.

Trend in sales of older homes France, ****-*****, by units sold **** : (***) Source: ****

Trends in the number of real estate transactions in the older housing segment have a direct influence on activity in the energy renovation sector. This is because, on a fairly regular basis, renovation work is undertaken following these sales.

Between **** and ****, we have observed continuous growth in the volume of sales of older homes, with an average increase of ...

2.4 Helping the French cope with energy renovation: the role of government incentives

What the French think and their fears about energy renovation

Energy renovation work carried out since January **** France, ****, %, %, %, %, %, %, %, %, %, %, %, % Source: ****

**% of homeowners have already carried out energy renovation work since January ****, while **% of homeowners have not yet undertaken such work, but intend to do so in the future.

Triggers for energy renovation work France, ****, % of total Source: ****

The main factor triggering energy renovation work is equipment failure, obsolescence or poor condition, which accounts for almost a third of cases. It should be noted that for the remaining **%, various reasons motivated the decision to undertake energy renovation work.

What are the main deterrents for homeowners to improve the energy performance of their homes? France, ****, % of homeowners Source: ****

The main reason most homeowners give for not improving the energy efficiency of their homes is the cost of the work, cited by **% of them, followed at a distance by the scope of the work, cited by **%.

What do you consider to be the most effective ways of encouraging homeowners to improve the energy performance of their homes? France, ****, % of respondents Source: ****

For **% and **% of French people respectively, the prospect of being able to deduct part of the cost of the work from their income ...

2.4 The smart grid in housing: the rise of the smart house

Smartgrids are "intelligent" electricity distribution networks that use information and computing technologies to optimize the production, distribution and consumption of electricity to improve energy efficiency.to optimize the production, distribution and consumption of electricity to improve energy efficiency.

The rise of smart grids in production facilities and homes represents a major opportunity for the electrical installation market. Smart houses and smart factories use advanced technologies to optimize energy management, integrating IoT devices and intelligent energy management systems. This enables more efficient and flexible consumption, supporting innovation and meeting growing needs for energy efficiency and sustainability.

Demand trends in home automation

Survey: Do you own any connected objects related to home automation? France, ****, in Source: ****

In ****, **% of those surveyed will own at least one connected object in their home, compared to **% in ****. Ownership of, and interest in, connected objects is higher among men, with **% already owning one and **% planning to use one, compared to women, where the figures are **% and **% respectively. This disparity reflects a wider issue of gender disparity in the adoption of new technologies, where access to and use of digital tools is often encouraged differently by gender from childhood onwards. The most significant gaps in ownership of connected objects ...

2.5 New demand trends in the electrical engineering market

Increasingly efficient solar panels

In terms of the number of installations, the French photovoltaic installed base is largely dominated by large-scale facilities (***).

France intends to accelerate the deployment of photovoltaic installations drastically in the coming years, increasing the number of new installations to * GW per year between **** and **** [***].

French photovoltaic installations by farm size France, Q* ****, in Source: ****

New installations in **** France, ****, in Source: ****

The solar photovoltaic market in France shows strong growth potential, with forecasts indicating * million self-consumers by ****, compared with ***,*** installations today, according to RTE (***). This expansion is being driven by rising electricity tariffs and growing demand for photovoltaic equipment from businesses, supermarkets and farms.

Innovations include bi-facial photovoltaic panels, which capture light from both sides, boosting efficiency. Hybrid solar panels produce both electricity and hot water, improving overall efficiency and limiting the risk of overheating. What's more, innovative micro-inverters make it possible to dispense with solar batteries and create autonomous mini power grids, operating even in the event of a power cut[***].

Electric vehicle charging infrastructure (***) Encouraged by the French government, the construction of electric vehicle charging infrastructures (***) in collective housing buildings, the installation of fast recharging stations at freeway service areas, and the improvement of territorial coverage. ...

3.1 Value chain

3.2 Volume and geographical breakdown of companies and employees

The number of establishments in the electrical installation sector in France has increased from **,*** in **** to **,*** in ****, indicating steady growth. The number of salaried employees has also risen, from ***,*** in **** to ***,*** in ****, despite a slight drop in ****.

Number of companies in the electrical installation sector (***) France, ****-****, in units Source: ****

Number of employees in the electrical installation sector (***) France, ****-****, in units Source: ****

The regions stand out for their dynamism in the electrical installation sector: Ile-de-France dominates with *,*** companies and **,*** employees, followed by Auvergne-Rhône-Alpes with *,*** companies and **,*** employees. Occitanie and Nouvelle-Aquitaine also show a significant presence, with *,*** and *,*** companies respectively, reflecting a varied but concentrated distribution of electrical activity in France.

3.3 Trends in the electrical wholesale market

A market dominated by two electrical supplies giants: Rexel and Sonepar

The electrical supplies trading market is highly concentrated around the two groups Rexel and Sonepar, regularly resulting in more or less concerted pricing strategies.

In ****, Médiapart revealed that Schneider Electric, Legrand, Rexel and Sonepar were accused of having set up aprice cartel system, using"derogated price" mechanisms to keep prices high and limit competition. These practices, which were legal under certain conditions, enabled manufacturers to compensate distributors through credit balances, in exchange for maintaining high wholesale prices. Schneider and Legrand are said to have adopted these methods since the ****s and **** respectively, covering a significant proportion of their sales[***].

In ****, the FrenchCompetition Authority confirmed these accusations, again singling out Schneider, Legrand, Rexel and Sonepar for their system of derogated prices. The institution highlighted how these practices had affected pricing conditions in the electrical distribution sector, particularly on large construction sites, despite the apparent legality of these special contractual arrangements[***].

The strong bargaining power of these players therefore has a direct influence on the activity and pricing carried out by electricians, who are obliged to reflect this economic reality in the prices they charge.

The rise of online sales

Online ...

4.1 Types of work that can be carried out

Heavy current

High-current installations encompass a wide range of services essential to the distribution and management of high-power electricity. These services include :

Low-voltage electrical installations: including the installation and maintenance of electrical systems in residential, commercial and industrial buildings. Site installations: Provide temporary solutions to power equipment and facilities on construction sites. lighting: Includes the installation of lighting systems for indoor and outdoor spaces, tailored to customers' specific needs. Machine power supply: Supplies power to industrial equipment and machinery in a variety of sectors.

Low voltage

Low-current installations focus on communication and control systems, essential for modern infrastructures and industrial environments. Main services include:

Industrial IT: Installation and maintenance of IT networks and systems in production environments. Voice Data Image (***) networks: Installation of communication networks integrating voice, data and images for commercial and residential applications. Automation: Installation of automated systems to improve efficiency and precision in various industrial processes. Instrumentation and Process: Integration of measurement and control devices to monitor and manage industrial processes.

Electrical panels

Our wiring workshops specialize in the manufacture of custom-built switchboards to meet specific customer specifications. These panels can be produced in the customer's brand of choice and include:

Wired panelboards: Design and manufacture of customized ...

4.2 Electrical installation prices

New electrical installation prices by type of dwelling[***] [Travaux.com

Every electrical installation must include :

An electrical panel, An adequate length of cable to carry electricity to all premises, Switches, A ground connection.

Prices for individual new electrical installation work[***]

Prices for renovation work[***]

4.3 Rising raw materials costs

Copper plays a crucial role in electrical installations thanks to its superior electrical and mechanical properties. As a first-rate electrical conductor, copper offers exceptional conductivity, facilitating efficient transfer of electricity while minimizing energy losses. Its malleability makes it easy to shape and install in a variety of electrical equipment and cables. What's more, copper is corrosion-resistant, ensuring the long-term durability of electrical networks. However, variations in copper prices can have a direct impact on the cost of electrical installation projects, affecting construction and renovation budgets.

Production price index for copper metallurgy France, ****-**** Source: ****

Data on theproduction price index for copper metallurgy in France between **** and **** show a fluctuating trend, rising from ***.* in January **** to ***.* in October ****, with a slight drop thereafter to stabilize at around ***.* in early ****. These figures reflect the volatility of copper prices, influenced by various economic and industrial factors.

At the same time, according to a recent article, growing demand for copper is being driven by China's industrial recovery and increased needs in the energy transition, as well as by the anticipated rise of artificial intelligence. This trend could potentially push prices up to $**,*** per tonne by ****, underlining the growing importance of this metal in various economic ...

5.1 Regulatory framework

Provisions relating to the safety of electrical installations in new buildings are set out in article R ***-** of the French Construction and Housing Code. Their application is defined by thedecree of October **, ****, which requires electrical installations in new buildings to comply with standards NF C **-*** and NF C **-*** in force at the time of construction.

Before being energized by an electricity distributor, new or completely renovated installations must obtain a certificate of compliance with the safety requirements imposed by the regulations in force. This obligation, introduced by the Decree of December **, **** and extended to renovated installations by Decree no.****-*** of March *, ****, requires that the certificate of compliance, drawn up and signed by the person carrying out the work, be endorsed by an approved body.

Order of August *, ****

For new homes for which the building permit has been submitted since September *, ****, the order of August *, **** requires at least two RJ**-type communication sockets depending on the number of rooms: * sockets in a T*, * sockets in a T*, and * sockets in a T* or more. Each RJ** socket must be connected to the communications panel by twisted-pair cables in a star configuration.

To be connected to the network, a ...

6.1 Positioning the players

• Dalkia
• SPIE
• Bouygues Energie et Service (Equans)
• Eiffage Énergie Systèmes
• Snef
• Fauché Groupe
• RTE France