Ireland ICT - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

Ireland ICT - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Ireland ICT Market size is estimated at USD 21.86 billion in 2024, and is expected to reach USD 32.56 billion by 2029, growing at a CAGR of 8.39% during the forecast period (2024-2029).

Key Highlights

• Ireland is a pivotal player in Europe's information and communication technology (ICT) and software sector. With a reputation as a tech start-up hub, Dublin is a country for growth opportunities in Europe. Ireland's ICT market is known for its economy, rich expertise, innovation, and development. The market presents ample opportunities for businesses to enhance their efficiency and competitiveness through the adoption of cloud computing, AI, IoT, and data analytics.
• There is an increasing demand for consulting, integration, and implementation services driven by the need for digital transformation across various industries. While Dublin has attracted several international players, other regions in Ireland also host many companies. Notably, sectoral clusters are prominent in the Midwest, including Limerick and its surroundings, and in the southeast, particularly in Waterford and Kilkenny. Additionally, Cork is a pivotal location, serving as the headquarters for Apple Inc.'s EMEA operations.
• Ireland's universities are leaders in ICT and software, fostering robust ties with the market. This has endowed Ireland with one of Europe's youngest and most educated workforces. The Technology Ireland ICT Skillnet, a government-backed initiative, is a pivotal business-support network. It links teams and individuals, spanning small to large enterprises, to provide subsidized, state-of-the-art tech training programs.
• There is a strong talent pool in the country. However, there is a persistent shortage of specialized skills in areas such as cybersecurity, artificial intelligence, data analytics, and advanced software development. The skill gap hinders the ICT market’s growth in Ireland.
• The digital transformation sector witnessed a positive surge in the wake of the COVID-19 pandemic. Post-pandemic, firms grappled with significant losses, prompting a pronounced shift toward digitalization. This intensified focus on digital operations, with companies investing in enhancing operational efficiency. Consequently, the sector saw a notable growth in mobile cellular connections, which increased the momentum of digital technologies.

Ireland ICT Market Trends

Large Enterprises Hold the Major Share of the Market

• Large enterprises hold a maximum share of the market. This is mainly due to the large multinational tech companies, including Google, Facebook, Microsoft, and Amazon. These players contribute a major share of ICT through their operations, investments, and employment. In a 2024 report, Microsoft and Trinity College Dublin revealed that 49% of Irish organizations had integrated Generative AI, while a mere 2% had adopted an AI-first policy, emphasizing technology in their strategy, decision-making, and resource allocation, paving the way for significant growth.
• In March 2024, Microsoft launched a national AI skilling program to empower individuals of all backgrounds to upskill for an AI-driven future. This initiative was pivotal in Microsoft's broader strategy to 'Skill Up Ireland,' which aims to help every individual and organization develop the necessary competencies to navigate the evolving AI landscape. Based on the World Economic Forum's projection, 60% of the workforce will require reskilling by 2027, with a commitment to empowering current and future generations.
• There is a significant focus on cloud technologies as large enterprises plan to enhance their digital transformation. Cloud services are expected to witness substantial market growth due to the cost-effective and scalable solutions that this service offers. For instance, in March 2024, TEKsystems Global Services, a key player in technology and business solutions serving over 80% of the Fortune 500, expanded its collaboration with Google Cloud, extending to the UK and Ireland (UK&I). This move deepened TEKsystems Global Services’ technical expertise, showing its commitment to enhancing the partnership alongside Google Cloud on a global level.
• Ireland aspired to lead globally in digital governance, aiming to offer top-tier digital services. With a workforce of nearly 2,000 ICT professionals spread across more than 40 government entities, departments, and agencies, the civil service is pivotal in realizing this vision. ICT was pivotal in fostering the nation's social and economic development in Ireland's civil service. These roles focus on developing and maintaining systems that directly enhance the daily lives of both citizens and businesses.
• With the increasing volume of cyber threats, large enterprises in Ireland are focusing investments in advanced cybersecurity measures. This is important for protecting sensitive data and ensuring compliance with regulatory requirements.

The Retail Segment is Expected to Witness Growth

• The retail segment is poised for growth, driven by advancements in its landscape. Retailers are ramping up investments in AI to streamline operations, elevate customer experiences, and fine-tune their supply chains. They are also integrating digital tools to boost efficiency and enhance customer engagement. For example, ICT Skillnet provides advanced training at a fraction of the market rate. This initiative is pivotal in upskilling Ireland's technology workforce and aligning them with future job market demands.
• The retail segment is increasingly adopting advanced ICT technologies like cloud computing, Big Data, the IoT, and AI to revolutionize operations. These technologies create operational models that help drive tangible changes, enhance shopping efficiency, and elevate the overall consumer experience. In other words, the retail segment is undergoing an intelligent revolution. A growing number of Irish start-ups are driving the market; as per the Federation of Business Information Services, Ireland recorded a rise in start-ups in 2023, with nearly 950 new companies registered, amounting to around 22,581 start-ups.
• The Industrial Development Authority (IDA) supports FDI in Ireland, while many domestic exporting firms are supported by Enterprise Ireland (EI). The IDA provides investment into Ireland by foreign-owned companies, while enterprises in Ireland are crucial for the development and growth of Irish enterprises and mainly support them in exporting to international markets.
• As consumers and businesses increasingly utilize products and services, the volume of generated data rises. The surge in data creation propels the expansion of data centers, highlighting the pressing need to manage this data effectively. The rise of data-driven innovation promises substantial advantages for both citizens and businesses. Organizations that invest in such innovation witness accelerated productivity growth.
• As per the International Trade Administration, in Ireland, e-commerce has seen a notable rise, with online spending estimates indicating a robust 30-40% increase in recent years. Particularly, growth is driven by the surging trend of mobile commerce, as consumers are strongly inclined to make purchases through their smartphones.

Ireland ICT Industry Overview

The Irish ICT market is fragmented, with numerous competitors and competing technologies that provide intense rivalry among the players. Further, acquisitions and collaborations of large companies with start-ups are expected, focusing on innovation. Some of the players include Google, Microsoft, Oracle, and Intel.

• March 2024: Oracle unveiled its plan to introduce Oracle Payroll, tailored specifically for Ireland, as an integral component of Oracle Fusion Cloud Human Capital Management (HCM). This localized offering, an extension of Oracle's renowned global payroll system, is set to bring advanced features to the Irish workforce. These include AI-powered risk management, streamlined workflows, compliance tools, enhanced data analytics, and expedited payroll processing.
• June 2024: Apollo Global Management, a buyout firm, was expected to acquire a 49% equity stake in Intel's manufacturing facility in Ireland for a substantial USD 11 billion. This acquisition specifically targeted Intel's Fab 34 facility in Leixlip, Ireland, which notably houses the US chipmaker's cutting-edge Intel 4 manufacturing process, utilizing advanced extreme ultraviolet lithography machines. The transaction, planned for closure in the second quarter, not only marked a strategic move for Apollo but also positioned Intel to reallocate its resources, potentially bolstering other segments of the business.

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