The computer equipment rental market - France

The global hardware rental market, particularly in the IT equipment sector, has been experiencing a slight upward trend, in part due to companies preferring usage-based solutions over purchasing. 

The offering has diversified, now including operational leasing, financial leasing, and leases with or without purchase options. Banks and financial institutions play a dominant role, with key players such as Xerox and Econocom having significant sales, the former reporting $7.022 billion in 2020 through its financial services subsidiary. Prices in the sector have been falling, with notable competitive pricing being offered by various players, such as PC Vert and Fleet, with rates varying depending on the device and duration of the rental.

Exploring the Growth and Trends of the IT Hardware Rental Market in France

The hardware rental market in France, which encompasses various IT equipment such as laptops, desktops, printers, scanners, and more, has experienced a resilient stability and modest growth despite the economic fluctuations and crises like COVID-19. Companies are increasingly turning to rental services for their hardware needs, recognizing both the financial flexibility and operational benefits it offers. The market, which contracted slightly by approximately 1% in 2020 compared to the previous year, displays a promising future as more companies favor a "usage-based" approach to accessing technology.

The French market, a leader in Europe, constitutes about 44% of sales in the European Union. Following France, Germany contributes roughly 18%, and Italy around 13%, which when combined with France, sum up to 75% of sales within the industry in Europe The IT hardware rental market went through fluctuations—highlighted by a significant growth of more than 30% in 2018 compared to the previous year, reaching sales close to 11.5 billion euros.

Observing the market dynamics, there's a clear shift towards operational and financial leasing. The latter has grown in popularity due to its fiscal advantages and the ability to upgrade technology regularly. Interest rates favoring the market have also placed leasing as an attractive alternative to traditional purchasing. While France saw a mix in the number of companies and employees within this sector, the overall landscape remains relatively stable.

The impact of digital transformation on the market is crucial, with investment in Information and Communication Technology (ICT) products and services rising steadily over the last two decades. Regions such as Île-de-France lead in employee density, revealing a centralization tendency in the geography of market players. Given the competitive nature of the market, there's been a structural decline in rental service prices for IT equipment. Companies have embraced cloud computing, which subsequently lowers their need for physical hardware acquisition. Therefore, prices are experiencing a downward trend for the fourth consecutive year, with offerings ranging from around 20 to 75 euros per month depending on the equipment and service level.

Regulations also play a significant role in shaping the market. The recent IFRS16 reform and changes to tax depreciation incentives directly influence company strategies in equipment leasing. Financial players, particularly bank subsidiaries, are significant stakeholders in the market, offering a variety of leasing options and commanding a large portion of the market share. 

Navigating the Competitive Landscape of IT Hardware Rental Market Players

The IT hardware rental market boasts an array of industry participants that range from manufacturer subsidiaries to digital services powerhouses and traditional banking heavyweights. Among these players, distinct strategies and areas of expertise have allowed each to carve out their own niche within the highly competitive sector.

• Xerox Financial Services, a subsidiary of the renowned document technology company Xerox, has been a notable player in the IT hardware rental market. As a manufacturer's subsidiary, Xerox Financial Services capitalizes on the brand's reputation and global reach to provide financial solutions tailored to the needs of businesses looking to rent or lease IT equipment.
  
  
• On the frontline of digital services providers is Econocom, a company that goes beyond mere equipment rental to offer comprehensive digital transformation services. Econocom differentiates itself by developing solutions that encompass every facet of the digital lifecycle, from the financing and provision of enterprise-grade equipment to ongoing support and management, firmly positioning itself as a one-stop-shop for all things IT.
  
  
• The landscape also includes traditional banking institutions, which have extended their commercial presence to the domain of IT leasing. Entities such as Franfinance Location (a subsidiary of Société Générale), 3 Step IT (partnered with BNP Paribas), and Leasecom (affiliated with Crédit Mutuel Arkéa) signify the banking sector's deep integration into the realm of IT hardware rental. Their offerings are typically characterized by financial lease arrangements with or without purchase options, reflecting the banks' robust financial backing and capacity to offer attractive terms.
  
  
• In addition to these, specialized leasing players like Grenke, Factum Finance, and Corhofi focus almost exclusively on leasing, blending industry expertise with a personal touch to guide customers through their IT solution choices.
  
  
• Retail has made a significant mark on hardware rentals, evident in the ventures of LDLC and Lokéo (now Boulanger Location). These e-tailers have expanded their horizons to include a variety of products available for lease, not just selling equipment but also managing the full life cycle, including delivery and post-lease handling.
  
  
• Lastly, the array includes subsidiaries of equipment manufacturers like IBM Global Financing and Xerox itself, which maintain a firm grasp over financing solutions, leveraging their knowledge of the products they produce to tailor leasing agreements.

Each player within the IT hardware rental market has honed its strategic position.

Inforamtion

• Number of pages : 30 pages
• Format : Digital and PDF versions
• Last update : 02/12/2021

Summary and extracts

List of charts

• Sales in the office machinery and computer equipment rental and leasing sector
• Breakdown of sales in the office machinery and IT equipment rental and leasing sector
• Investments in TCSI products and software from 2000 to 2016
• IT use in ICT-producing sectors
• IT use in non-ICT sectors
• Share of different products in TSCI investment
• Percentage of companies purchasing cloud computing services over the Internet
• Number of companies in the office machinery and computer equipment rental and leasing sector
• Number of employees in the office machinery and computer equipment rental and leasing sector
• Sales in the office machinery and computer equipment rental and leasing sector
• Average sales index - Rental and leasing of office machinery and computer equipment (NAF 77.33Z)
• Financing of computer, electronic and office equipment for businesses and professionals by specialized credit institutions
• Sales index for the office machinery and IT equipment rental and leasing market