Market Trends of Ireland Data Center Rack Industry
IT & Telecommunication sector accounted for majority market share in 2022.
- The Irish market has been driven by increasing cloud adoption in large enterprises due to technological advances. The 10% increase in cloud usage in Ireland's public sector could result in an annual economic impact of EUR 473 million (USD 514.32 million). On the investment front, AWS announced plans to invest in a new campus in Charlemont Square to house its cloud computing workforce, which was due to open in September 2022.
- This has increased the inclusion of technology among people. As a result, proximity to cloud service providers (CSPs) has become a key factor when businesses choose data centers in the local market. As a result, Dublin has evolved into a cloud computing hub hosting major cloud providers such as Microsoft, Google, Amazon Web Services, and IBM.
- Along with the increase in data volume, domestic SMEs' use of cloud computing has also increased significantly. Rising demand from healthcare, logistics, e-commerce, and manufacturing sectors has led several cloud and colocation service providers to expand their presence in the country.
- Ireland's ICT market is open and competitive, with many international suppliers offering new and innovative digital products and services. The US's leading digital service providers have a solid competitive position in the market. Irish distributors, system integrators, and value-added resellers constantly strive to identify and source the latest and most innovative digital products and services. Opportunities exist for US multinationals and small businesses that provide innovative, cutting-edge digital solutions.
Understand The Key Trends Shaping This Market
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Full Rack is the fastest growing segment in 2023.
- In Ireland, due to the increasing shortage of space in various companies, full shelving has taken a large part of the market share in France. The demand for complete rack data center infrastructure is increasing to cope with the increasing rack size due to the rapid growth of mobile broadband networks due to the increase in big data analytics combined with cloud computing.
- Ireland has experienced a substantial increase in e-commerce activity, with recent estimates indicating a 30 to 40% rise in online spending. Market value estimates range from EUR 4 billion (USD 4.35 billion) to EUR 7 billion (USD 7.61 billion). High smartphone usage (90%) and household internet connections (92%) are driving Irish online retailing. As consumers become more willing to purchase products using their mobile phones, mobile commerce is experiencing significant growth. In recent years, there have been notable increases in consumer online activity for Irish food shops, technology product and service vendors, travel, lodging, event tickets, and clothing.
- Further, with large amounts of data generated every day, businesses rely on data centers to efficiently manage data and storage. Therefore, the increasing use of full-rack data centers is the most important factor affecting data center rack consumption. Increasing demand for technology services and investments by large companies are also changing the market growth.
- Smartphones hold a major share of internet usage in Ireland. The majority of internet users use a smartphone or mobile phone to go online, while 75% use a laptop, 52% use a tablet, and just 29% use a desktop computer. Overall, there is a decreasing trend for desktop computer usage. On average, the time spent on smartphones per day is 3 hours and 5 minutes, which is expected to increase during the forecast period.
