Les Bleus progressed beyond the second round after a 2-0 win over Nigeria, with a Paul Pogba header breaking the Africans' resistance before Joseph Yobo sliced into his own net late on.
France have received plaudits for their performances in the World Cup so far, most notably a 5-2 win over Switzerland in the group stages, but Deschamps insists that they have not yet come close to reaching their peak.
"There is room for improvement," the 45-year-old was quoted by L'Equipe.
"The group is young. Even when things are going well, there are always aspects that can be improved."
Deschamps, a World Cup winner in 1998, noted that there a number of aspects to address if France are serious about mounting a challenge for a second World Cup title.
"The precision in technical interchanges, complexity in movement [can be improved]," he continued.
"The defensive aspect is something we can work on. But in the offensive space, it's more complicated. It requires more time to get it right."