The application software publishing sector (NAF code 58.29C) stands as a pillar of the French digital economy. It is a market that encompasses all companies developing, producing, and marketing software that meets professional or consumer needs. This can include business solutions, management applications, collaborative tools, or specialized software. The activity involves designing, programming, testing, maintaining, and updating software. They can be offered under license, as SaaS (Software as a Service), or integrated into larger information systems.
The sector primarily targets businesses and government agencies, which account for 80 % of its customer base, but it also appeals to the general public. The market is growing steadily, driven by digital transformation and the rising demand for cloud and intelligent solutions. Major French players include Dassault Systèmes, Sopra Steria, Cegid, and Murex. However, the market leaders in France are often foreign subsidiaries, such as SAP, Microsoft, Salesforce, Oracle, and IBM.
Now a globalized and highly competitive sector, software publishing today combines technological innovations, digital services, and customized solutions.
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The French software market is doing well. Revenue reached 14.6 billion euros in 2023 and is expected to rise to 15.8 billion in 2024, representing an 8.59 % year-over-year increase, according to initial estimates from Epsimas. Between 2015 and 2024, the sector experienced an average annual growth rate of 8.10 %, and projections indicate further growth of 4.96 % from 2024 to 2029.
The SaaS model now dominates the market, accounting for 61 % of revenue in 2023, compared with just 10 % in 2010. This growth reflects companies’ preference for flexible solutions that are accessible online and do not require on-premises installation.
The international dimension remains central to the French market. In 2023, 56 % of revenue was generated abroad, remaining stable compared to 2021 (58 %), according to Numeum and EY. The geographic breakdown is approximately 42 % for France, 26 % for EMEA (Europe, Middle East, Africa), 25 % for the Americas, and 8 % for Asia-Pacific.
France ranks third in Europe in the SaaS market with a 12.5 % market share, behind Germany (18.5 %) and the United Kingdom (15.7 %).
Software segmentation can be done according to their type: business software (BtoB) and consumer software (BtoC).
B2B software is specifically designed to meet the operational and strategic needs of organizations. They cover areas such as customer relationship management (CRM), enterprise resource planning (ERP), cybersecurity, and business process optimization. B2C software, on the other hand, is aimed at individuals and is used at home or in educational contexts, including productivity applications, games, and communication tools.
Software publishing concerns a wide range of economic sectors, such as industry, finance, distribution, and services, and primarily targets a B2B clientele. Software solutions can be developed for internal company use, to optimize processes and operational performance, or for external clients, through software intended for the general public. The clientele includes both small and medium-sized enterprises and large multinational corporations.
The cloud-based Software as a Service (SaaS) model is increasingly favored by businesses. In France, it accounts for over half of software publishers' revenue. Client organizations place great importance on return on investment, operational efficiency, solution scalability, and rapid adoption of technological innovations, particularly artificial intelligence, in order to strengthen their competitiveness and adaptability in constantly evolving markets.
Technological advancements are structuring market growth. Cloud computing has profoundly transformed software distribution, enabling the rise of the SaaS model and solutions accessible without local installation. Artificial intelligence and machine learning provide new predictive and adaptive functionalities, such as voice recognition or personalized recommendations. The widespread adoption of smartphones and tablets is also pushing publishers to design applications optimized for mobility.
The market is segmented by customer type, business model, and technology employed. B2B software, focused on process management, coexists with consumer solutions. Subscription models are gaining ground, while cloud, AI, and blockchain-based innovations are creating new sub-segments.
Growth continues to be driven by major French players. Dassault Systèmes maintains its leading position with revenue of 5.1 billion euros. Criteo and Ubisoft follow with 1.9 and 1.8 billion, respectively, despite a decline of 0.3 billion for the latter. At the same time, smaller publishers are experiencing strong momentum: an average growth rate of +22% year-over-year for those with revenue of less than 5 million euros, and +17% year-over-year for those with revenue between 50 and 100 million.
The software market experiences marked seasonal variations. Peak activity occurs mainly in January and March, periods when companies finalize their budgets and launch new projects. Conversely, the summer months: July, August, and September, generally see quieter activity, likely due to holidays and lower team engagement.
The software market in France is highly competitive and open to international players. French publishers must compete with multinational corporations such as Microsoft, SAP, Oracle, and IBM, while also facing innovative startups and players in the cloud and open-source sectors. International competition forces French companies to combine local expertise, customized solutions, and regulatory compliance.
Major French companies, such as Dassault Systèmes, Criteo, and Ubisoft, remain the drivers of growth. However, smaller companies are posting remarkable growth rates: +22% year-over-year for those with revenue under 5 million euros and +17% year-over-year for those with revenue between 50 and 100 million
According to Epsimas projections, the application software market in France is expected to continue growing at an average rate of 5 % per year through 2029. This growth is driven by the digital transformation of businesses, the increasing integration of artificial intelligence, and the transition to the cloud.
Nevertheless, publishers will have to overcome several challenges: talent shortages, competitive pressure, data security, and reducing the environmental footprint of digital infrastructure.
Companies that can combine technological innovation, economic performance, and sustainability will strengthen their position in a rapidly changing sector.
Sources: EPSIMAS
Subclass 58.29C : Application software development
This subclass includes:
the editing of general software for professional or domestic use (hobbies, education, management) such as:
office applications, project management, assisted training, educational applications, etc.
The development of application software for professional use that performs a specific type of processing or a set of tasks for a specific business domain
utility software publishing
This subclass also includes:
database management software publishing
Source : INSEE
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