SMEs, “pre-MidCaps”, MidCaps and large groups
Today, the number of eco-companies in France is estimated to be between 10,000 and 12,000.
The French eco-industrial fabric is currently composed largely of SMEs and microenterprises (TPEs), alongside major national operators—historical global leaders in certain sectors—who, according to ADEME, account for approximately 40% of the total turnover of environmental activities in France.
Alongside these major groups and SMEs are mid-sized companies (ETIs). We chose to give a prominent place in this presentation to eco-ETIs and “pre-ETIs” due to their economic potential. Often overlooked, they possess the critical mass to innovate and export, are significant job creators, and can drive the entire sector forward.
To accurately reflect how stakeholders perceive themselves, we structured the presentation of the productive fabric by company size. However, to align with the view provided by companies, this structure must be combined with a sectoral approach, as specificities vary greatly.
In the water or waste sectors, some companies have existed for over 100 years, while in others, businesses have emerged gradually through public policies, regulations, and the recent push toward a low-carbon economy.
A 2003 study by the SME Observatory, “SMEs and the Environment: Challenges and Opportunities,” made the following observations:
– The water sector is highly concentrated around large companies and their subsidiaries. Independent SMEs represent only 4.5% of the market in terms of turnover.
– The waste management sector is also dominated by large companies, with SMEs accounting for around 11% of the market. Subsidiaries of large groups are also very present, enabling national coverage and leaving little room for independents.
– The recovery sector is largely composed of SMEs, representing around 60% of turnover. Nearly half of these companies primarily recover ferrous and non-ferrous metals.
– The services sector includes a large number of SMEs. Apart from a few well-known firms, the sector consists of numerous small firms or independent engineers.
These figures need updating and expanding to include low-carbon economy players, but overall, the actor distribution trends in the environmental sector remain consistent with our understanding of the market.
• Eco-SMEs
Small and medium-sized enterprises coexist alongside major environmental players and a few mid-sized companies. Based on a sample of 1,000 eco-companies from eco-business networks, 92% of the economic fabric consists of SMEs.
This analysis was carried out across five representative regional networks:
– Brittany (Bretagne Eco-Entreprises network): of approximately 100 members, 89% are SMEs, of which 14% have only one employee.
– Rhône-Alpes (APPEL Association): of 100 members, 91% are SMEs, and more than 60% are microenterprises (TPEs).
– PACA (Ea-Eco-entreprises network): of approximately 100 companies, 70% have fewer than 10 employees, and 91% are SMEs.
– Nord-Pas-de-Calais (CD2E network): of over 600 companies, 54% have fewer than 10 employees, and 96% are SMEs.
– Île-de-France (Advancity, specialized in sustainable cities): of approximately 180 companies, 83% are SMEs, and 36% have fewer than 10 employees.
This figure is comparable to the national average of 97.4% of companies being SMEs (as of June 2009). The economic fabric of environmental SMEs thus appears consistent with that of the broader economy.
• Pre-MidCaps
A widely recognized weakness of the French productive fabric is the difficulty in growing large SMEs into major players. We therefore focused on companies with between 150 and 250 employees whose core business is the environment. A survey identified around 20 such “pre-MidCaps.” Given that we expected around 100, the surprisingly low number of independent pre-MidCaps means we remain cautious about the result’s representativeness and must further investigate the issue.
Among those identified, the most represented sector is engineering consultancies, which have often expanded by integrating new environmental competencies (energy, GHGs, biodiversity).
– The water sector seems absent from the pre-MidCaps. This may be due to its maturity and consolidation around key players, surrounded by small structures that struggle to grow. This deserves deeper analysis.
– Identified companies in the waste sector, though often long-established, are relatively few compared to the number of full-fledged ETIs in the sector.
– Ecological engineering and renewable energy sectors appear very dynamic, the only young sectors hosting companies of significant size. These can be considered drivers of the French eco-industrial fabric.
• MidCaps: Intermediate-Sized Eco-Companies
A census conducted among eco-business networks within PEXE and our knowledge of the ecosystem identified around 50 independent mid-sized companies whose main activity is the environment. These are French or foreign companies with between 250 and 5,000 employees in France.
The following graph shows the distribution of these ETIs by activity.
One-third of these companies operate in the waste sector, reflecting French expertise, while another third are active in environmental consulting. Although water is also a key environmental competency for France, it hosts four times fewer ETIs than the waste sector.
Equipment manufacturers mainly focus on air treatment.
Only one independent French ETI was identified in each of the following sectors: renewable energy, instrumentation, and green chemistry.
The graph below shows the average age of these ETIs by activity.
[GRAPHIC 10]
It is notable that the average age of these companies is around 41 years. These are often businesses whose core activity has changed little since their founding. Several explanations may account for this:
– Some environmental fields are very mature and long-established, like water and waste. The first generation of companies, over 20 years old, is still active.
– A new generation has emerged in the past decade, especially in pollution control (soils, GHGs), but very few have grown to ETI size in under 10 years.
– Except for three major groups that acquired companies, most ETIs grew gradually while maintaining ownership by private individuals, often family-linked.
– High-potential companies have often been acquired and integrated into subsidiaries of large groups.
– Young companies face growth challenges, often under-capitalized and struggling with cash flow issues.
Except for waste collection companies, all identified ETIs have developed significant international activities, creating branches abroad or distributor networks. Countries most frequently mentioned include: Algeria, Azerbaijan, Bahrain, Belgium, Brazil, China, Canada, Ivory Coast, UAE, Spain, India, Madagascar, Morocco, Mauritania, Nigeria, Oman, Qatar, UK, Romania, Thailand, Turkey, Vietnam.
• Large Groups
These include major French environmental service providers and large groups from other sectors (construction, energy) that have developed environmental expertise via dedicated subsidiaries to complement their offerings and access new markets.
There is abundant literature on these companies.
In recent years, key development axes have been the emergence of processes and services aimed at reducing GHG emissions and the environmental impact of operations and products.
French conglomerates were particularly active in cleantech in 2011: many strengthened their positions through international acquisitions in solar, biofuels, energy efficiency, smart grids, green buildings, and marine energy.
• Related Companies Whose Core Business is Not the Environment
This diverse category includes service firms, engineering firms, inspection agencies, and manufacturers who developed environmental expertise either due to regulation or as a growth opportunity. It also includes major construction companies and equipment designers who created more eco-friendly or energy-efficient products.
There is also a growing “green” trend driven by CSR commitments, with companies implementing solutions to reduce environmental impacts or meet market demands. As a result, some non-eco-companies now operate in the environmental market.
b) Typology of Professions
The private players in the sector can broadly be grouped into five job categories:
• Engineering firms, technology consultancies, and design offices
Engineering covers everything from design and studies, procurement and manufacturing control, to the construction and commissioning of technical or industrial installations.
• Builders
These are companies that build buildings, infrastructures, plants, and vehicles.
• Equipment manufacturers
These design products that help treat pollution, reduce environmental impacts, and limit GHG emissions from processes or products.
They serve a wide range of environmental markets, including drinking and wastewater treatment, waste recovery, renewable energy production, and environmental metrology (water-soil-air, weather), and energy efficiency.
Renewable energy equipment manufacturers, for example, design and sell components or full systems for solar panels, geothermal installations, wind turbines, etc.
• Operators and service managers
These manage services such as water treatment, network operations, waste collection, or recovery. They must meet set objectives, maintain public assets, and report on service operations.
• Inspection bodies and analytical laboratories
France has six major inspection bodies that are highly active in the environmental market (regulatory measurements, environmental studies, CSR), each employing thousands in France.
There are also environmental testing labs, including municipal labs and major private labs.
c) Companies with Strong Regional Roots
Eco-companies exist across mainland France and its overseas territories, for two main reasons:
– Their activities are often local, especially in water, waste, and increasingly in energy.
– The environmental sector doesn’t require physical proximity between SMEs and large companies, unlike integrated industries such as aerospace or automotive.
To identify them, an electronic directory was created by ACFCI in 2008. According to its data, 11,120 eco-companies exist in mainland France. From this data, we produced a map that highlights regional disparities in the French eco-industrial landscape (data is self-reported).
This map highlights a very high concentration of eco-industrial companies in two regions: Île-de-France and Rhône-Alpes, and a strong presence in about half of the regions.
• TERRITORIAL DYNAMICS
From one region to another, the composition of the sector in terms of activity and company size does not differ significantly. Waste, water and sanitation, air, and energy remain the sectors with the most businesses. This confirms national trends—France’s traditional areas of expertise, which are also export strengths, are those driving local activity, alongside renewables and energy efficiency, which have seen exceptional growth despite regulatory changes.
However, even with broad national patterns, regional specificities do exist.
Some areas actively support the eco-business sector, allowing for deeper local knowledge. Eco-business networks reflect these efforts. Around 40 such networks exist, working daily to grow the sector, federated under PEXE.
They may be associations (e.g., E2iA, Bretagne Éco-Entreprises) or supported by local stakeholders such as:
– Chambers of Commerce and Industry (e.g., eco-industry networks of Val-d’Oise/Yvelines, Alsace, Lorraine)
– Development agencies (e.g., Réseau EAU in Réunion)
– Public development agencies (e.g., Sénart Eco-Industry Network)
When a local actor drives a network, its geographic scope is usually aligned with that actor’s—CCI, EPA, county council. These networks can thus be regional (e.g., Midi-Pyrénées Eco-Business Club or Alsace Eco-Business Network), departmental (e.g., Val-de-Marne Eco-Actors Network), or even limited to a few towns.
In regions lacking structured environmental initiatives, data is more scattered. For example, in Franche-Comté, which lacks an organized network, eco-companies are least represented.
Others, like Provence-Alpes-Côte d’Azur and Nord-Pas-de-Calais, host many eco-companies and multiple networks. Their regional dynamism is illustrated by the presence of competitiveness clusters, innovation-oriented networks, and local initiatives, such as the Ea Éco-Entreprises network focused on water and waste with Mediterranean export strategies, or CD2E, which maintains partnerships with 73 international clusters.
According to the self-reported ACFCI directory, there are 12,261 eco-companies across mainland France and its overseas territories.