Market Trends of Ireland ICT Industry
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.
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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.
