Overview
According to Technology Ireland, Ireland’s $50 billion digital economy accounts for 13% of GDP. Over 1,000 digital companies operate in Ireland including major U. S. MNEs like Apple, AWS, Cisco, Dell, Google, HPE, IBM, Intel, Meta, Microsoft, and Oracle. There is also a substantive SME community of digital technology companies comprising both international and indigenous firms. The $19 billion Irish ICT market has seen sustained demand growth as digital technologies and solutions play an ever-increasing role across the economy. The consistent advancement of national digital initiatives that support the EU successful digital transformation goal by 2030 is recognized in the EU Digital Decade - Ireland Country Report 2025.
Leading Sub-sectors
Digitisation (IT, Software and Computer and Cloud Services)
The medium outlook for the Irish IT market remains positive. Annual expenditure in enterprise software is circa $668 million and is driven by customer relationship management (CRM) and enterprise resource planning (ERP) solutions. Expenditure on network storage software is around $62 million while the security software market is estimated at $124 million. Spending on software in the healthcare sector is over $120 million. There is an accelerated move to hybrid and multi-cloud environments with 82 data centers operating in Ireland. The Hyperscale segment (AWS, Google, Meta, Microsoft) accounts for 77% of capacity while the colocation segment holds a 22% share. Alongside a digital government initiative across the public sector, the Irish government is supporting SMEs develop their online presence and eCommerce channels. The digital sector plays a significant role in driving Ireland’s economic activity. Irish enterprises have spent $1. 4 million annually on data processing and storage activities in recent years. End user demand for cloud computing (SaaS/IaaS/PaaS) is expected to underpin future market growth.
Advanced Manufacturing & Artificial Intelligence
Ireland’s Industry 4. 0 strategy sets out the key ambitions for helping the manufacturing sector embrace digital technologies. A network of advanced manufacturing research centers has been rolled out nationwide by Science Foundation Ireland (SFI) to support indigenous SME manufacturers. Similarly, Ireland is making significant progress on AI adoption, innovation and digital transformation. The Irish government is keen to leverage its role as a hub for the major U. S. Very Large Online Platforms and Search Engines to position itself as a leader in AI to drive a transatlantic digital marketplace. The AI Economy in Ireland Report (March 2025) reveals that AI adoption in Ireland has surged to 91 percent, nearly doubling from 49% in 2024. The report projects that AI adoption will add at least $250 billion to Ireland’s economy by 2035.
Cybersecurity
The $600 million Irish market for cybersecurity solutions and services is extremely vibrant with U. S. vendors retaining a strong presence. With its large $50 billion digital economy, Ireland is increasingly encountering cybersecurity threats that have led to a strong upsurge in spending on cyber security in both the public and private sectors. PWC’s 2026 Digital Trust Survey reveals that Irish businesses continue to increase spending on risk management technology with a focus on relocating critical infrastructure and changing vendors as businesses seek partners who meet higher security standards. Cybercrime remains the most prevalent type of fraud committed in Ireland and is three times more disruptive than the global norm. An Expleo Ireland 2025 report revealed that nearly 30 percent of large organizations paid a cybersecurity ransom over the past year while 41 percent admitted they had fallen victim to an AI-powered cyberattack in the past 12 months. Hiscox’s 2025 cyber readiness report 40 percent of Irish businesses suffering a cyberattack.
EU legislation around data privacy and cybersecurity is a key driving force within the sector. Alongside the General Data Protection Regulation (GDPR), the Network Information Services 2 (NIS2) Directive and the Digital Operational Resilience Act (DORA) are driving spending on cybersecurity as companies, digital service providers, critical infrastructure providers and the public-sector seek to comply with these regulations. Companies that suffer data breaches and cyber incidents in the future will be liable for heavy penalties that could amount to as much as 4 percent of a company’s global revenues. With 3,000 Irish organizations falling within the scope of EU’s NIS2 Directive, Ireland’s National Cyber Security Center (NCSC) has issued draft NIS2 Risk Management Measures Guidance.
Opportunities
The Irish ICT market is open and highly competitive with many international suppliers offering new and innovative digital products and services. Leading U. S. digital services players have a strong competitive presence in the market. Irish distributors, systems integrators and value-added resellers continually seek to identify and source the latest innovative digital products and services. Opportunities exist for U. S. MNEs and SMEs offering innovative and leading-edge digital solutions.
Industry sources expect Irish spending on cloud to grow in double digits across nearly all sectors in the near term. Financial services and manufacturing are the leading end-user segments with each sector spending $84 million and $68 million respectively annually. Sector-specific opportunities exist across the ERP, Financial, Healthcare, Energy, and Telecom segments together with Cloud Computing, Data Analytics & Big Data and Smart Cities. End user segments encompass organizations ranging from SMEs to MNEs and the public sector.
Regulatory arrangements for the ICT sector are largely driven by the European Commission’s Digital Market Act (DMA) which is fostering initiatives on free flow of data; cybersecurity; e-Privacy; setting ICT standards; and intellectual property. U. S. suppliers need to be particularly cognizant of data privacy issues outlined in the Data Protection section of the Chapter on Selling U. S. Products and Services.
The ongoing threat of cyber-attacks is driving increased spending on security solutions. Opportunities exist to provide cybersecurity solutions and services to large corporations, SMEs and public-sector organizations. Significant opportunities are to be found in organizations for which IT security is mission critical, such as major financial institutions, utilities, and government departments. With cybercriminals increasingly seeking to breach automated industrial systems, Operational Technology (OT) attacks are likely to continue their upward trend with securing legacy OT systems of particular concern. Solutions utilizing Artificial Intelligence (AI) and Machine Learning (ML) have a growing market share within the CNI segment.
Preparedness for cybercrime in Ireland is increasing with many companies performing cyber-attack vulnerability risk assessments. However, while extremely vigilant in the search for fraud, Irish organizations have been slow to invest in technologies related to fraud prevention, detection, and authentication. Most economic crimes in Ireland are detected through corporate controls including fraud risk assessments, suspicious transaction reporting and corporate security. U. S. cybersecurity vendors have been playing a leading role in the Irish market. Irish distributors, systems integrators (SIs) and value-added resellers (VARs) are continually seeking to identify and source the latest innovative cybersecurity solutions from the U. S.
Resources
Industry Associations
- Technology Ireland
- Cloud Infrastructure Ireland
- Digital Infrastructure Ireland
- Cyber Ireland
Government
- Department of Justice, Home Affairs & Migration (Cyber Security)
- Department of Enterprise, Tourism & Employment (Artificial Intelligence)
- Data Protection Commission
- Coimisiún na Meán (Irish Media Commission)
- National Cyber Security Centre (NCSC)
- eTenders Irish Public Procurement Portal
Sector News
- EU Digital Decade - Ireland Country Report 2025.
- PWC Ireland Digital Trust Insight Survey 2026
- Hiscox Ireland Cyber Readiness Report 2025
- Expleo Ireland Business Transformation Index 2025
- Statista: Enterprise Software - Ireland
- Statista: Cybersecurity - Ireland
- Statista: Public Cloud - Ireland
- The AI Economy in Ireland 2025: Trends, Impact & Opportunity
- TechCentral (Irish Tech sector news)
- Silicon Republic (Irish digital sector news)
For more information about Ireland’s ICT and digital services sector, please contact:
Padraig O’Connor
Commercial Advisor – ICT & Cybersecurity Sector
U.S. Commercial Service Ireland
Tel: +353.87.2314726
Email: Padraig.O’Connor@trade.gov